Germany – Page 38 – understand-culture

Markenprodukte

Markenprodukte. Brand name products: Products which are immediately recognized as excellent based on the name of its producer; often products which are of average quality but remain in the minds of consumers due to constant advertising.

German companies have been exporting high quality products consistently since the end of the Second World War. Their products have gained an international reputation for being very good, often better than their competitors. The Germans view reliability as one of the key characteristics of a well-known brand.

Qualität ist, wenn der Kunde wiederkommt, nicht das Produkt. Quality is when the customer returns, not the product. This well-known saying indicates the importance quality plays in the German product philosophy. A product which does not function perfectly and therefore needs to be returned is an embarrassment to the producer.

Sandwich Method

The sandwich method is describes the American approach to giving negative feedback. Its goal is to communicate criticism in a way which will avoid demotivating the other person. Like a sandwich with a slice a bread on both the top and the bottom, praise is given at the beginning and the end of the feedback talk. In the middle is the substance of the conversation, the points of criticism. Open with praise. Communicate criticism. Close with praise.

Is there anything new about this? Research on the American approach to communicating criticism over the last fifty to one hundred years would probably show that it is not. American ears know to listen carefully after the positive has been said. They listen for the nuances, the terms used, especially the euphemisms. This makes it all the more complex and difficult to understand for non-Americans, regardless of strong their command of the English language.

„You did a fine job.“

„If you can‘t say anything positive”

Euphemism: The substitution of an agreeable or inoffensive expression for one that may offend or suggest something unpleasant: eliminate for kill; suboptimal for below standard; interesting for bad; issue or challenge for problem; career change, early retirement opportunity, career transition, involuntarily separation for being fired;

economically disadvantaged for poor; temporary negative cash flow for broke; substandard housing or economically depressed neighborhood for slum; collateral damage for deaths of women and children and old people; pre-owned vehicle for used car; adult beverages for alcohol.

Almost every American has at some point in their lives heard the statement „If you can‘t say anything positive, don‘t say anything at all.“ Americans are careful about giving negative feedback. Charles Schwab has been quoted: “I have yet to find the man, however exalted his station, who did not better work and put forth greater effort under a spirit of approval than under a spirit of criticism.”

More Rules of Moderation

The Germans believe that moderation can succeed only if it makes clear to all parties involved that there will be no naming a winner and a loser.

Naming one side the loser is a guaranty that the conflict resolution will not hold, that the losing party will seek to roll back, revise, reject the resolution. True acceptance, real stability, can be achieved only if both parties come away accepting a compromise.

Akzeptieren. Latin acceptare, to accept, take on, allow, approve, recognize; to come to agreement with someone; to accept an apology, a recommendation, an idea.

Efficient products

Automobiles: Germans like to drive powerful, fast cars and are proud of their Autobahn with its lack of speed limits. At the same time they like to save money. This is reflected in their cars. Over the last twenty years the fuel efficiency of German cars has increased by 20%, while doubling their horsepower.

The VW Lupo 3L TDI is a case in point. It is the first mass produced car which can go 100 kilometers on 3 liters or less fuel, while maintaining the power of others compact cars.

The entire German car industry is constantly increasing the efficiency of its production methods. Most produce only 30-40% of the final product. The rest is developed and manufactured by a complex, sophisticated network of specialized suppliers, many of whom are located right next to their German customers.

Residential homes: Germans focus on building homes which maximize space. German houses tend to be small, certainly in comparison to homes in the U.S., which are twice the size.

German homes are built, and renovated, with an eye on energy conservation. Insulation and electricity efficiency are two of the key goals. And the German government supports these with generous subsidies via the KfW, Kreditanstalt für Wiederaufbau, the Bank for Reconstruction, founded in 1948.

This is especially the case with new construction and renovations, with the KfW offering ten different types of financial support linked to new efficiency technologies. All loans have borrowing rates guaranteed to be lower than the rate of inflation. In some situations, families receive cash payouts as subsidies.

Particularly popular, and subsidized by the government, are solar panels, which save electricity and reduce Germany‘s dependence on electricity produced by fossil fuels.

Water consumption: Since the 1980s ecological groups have been campaigning for less water use, in order to protect the environment and save money. Since then water conservation has become common in Germany. The manufacturers of showers, faucets, toilets, washers, dishwashers and other household appliances have developed and brought to market highly efficient products.

German households save so much water that waste water systems have difficulty keeping themselves clean due to too little waste water moving through the system. Local water works often need to flush through extra amounts of water in order to keep the system clean.

The Fractal Factory

In 1995 Hans-Jürgen Warnecke, Head of the Fraunhofer Insititute in Munich from 1993 until 2002, published the anthology Aufbruch zum Fraktalen Unternehmen: Praxisbeispiele für neues Denken und Handeln – loosely translated as Breaking out into the Fractal Company: Concrete Examples of New Thinking and Acting.

Warnecke instantly became known in the production world both in Europe and internationally. The book takes a deeper look at manufacturing processes addressing questions such as: On what principle are production processes based? How does change best occur in material flow processes? How can the quality of processes be improved?

Prof. Thomas Bauernhansl from the Institute of Industrial Manufacturing at the University of Stuttgart underscores the ongoing importance of Warnecke’s work:

“The concept of the fractal factory, which Hans-Jürgen Warnecke proposed in the 1990s, remains highly relevant and meaningful today for manufacturing companies. The visionary power of his organizational model can be seen at work in agile and flexible production structures.”

Klaus-Hardy Mühleck, considered one of the top experts among CIOs, stresses time and again the influences of Warnecke on his work.

Ökostrom

Electricity: Germany is not rich in resources. Coal is no longer in abundance. There is no oil to be drilled out of the ground. There are too few mountain ranges offering hydropower. And the German population has rejected nuclear power as a long-term solution to its energy needs. In order to protect itself from the ups and downs of the international energy markets, Germany has long since focused on developing renewable energy sources.

Several laws since 1999 support the development of so-called Ökostrom or bio-energy, guaranteeing minimum prices for those utilities who produce it. Its planned outcomes – reduced dependence on fossil fuels, development of renewable resources, ensuring long-term energy supply – have begun to occur. The share of total electricity production attributed to renewables has been increased from 5.4% to 20.3% in the timeframe 1999-2011.

Gasoline: The Ökosteuer or ecology tax is also applied to gasoline and diesel fuel, making up roughly 10% of the price at the pump. The purpose of the tax is twofold: reduce consumption of what is a limited resource, and increase the efficiency of automobiles. Leading German economic institutes have documented the positive effect thusfar: less driving and the development of more fuel-efficient cars.

The laws passed were controversial. Many were skeptical that they would have the predicted effect. But since then large segments of the population are convinced that Germany is on the right path. Two changes of government have not challenged their effectiveness. Germans are proud of the fact that their electricity grids never fail, that they are shutting down all of their nuclear energy plants, and that their companies are producing cutting-edge renewable energy technologies.

Process-Pope

Klaus-Hardy Mühdeck, current CIO of ThyssenKrupp and former CIO of Volkswagen, is considered Germany’s Prozesspapst – literally process-pope. He is the first CIO to change his title to Chief Process Officer.

In an interview with Computerwoche – Computer Week – in 2006 Mühdeck described his fascination with process management:

“Processes network functions, no more and no less. Throughout my entire career I have been involved in processes. In most companies it is under the board member responsible for strategy. But the trend is clear. CIO’s are defining processes and systems.”

It is the CIO, says Mühdeck, who is the bridge between the demands of the company and the systems platforms and company-internal processes. CIOs need to be able to communicate with and understand the areas of development and manufacturing.

You can only truly understand a company’s processes if you understand how the various functions and departments actually work.

Work efficiently

eRetail sector: The EU Department of Statistics states that Germany has the lowest food prices in Western Europe. This can be attributed to the large percentage – 40% – of discounters in the market, whose aggressive pricing force the other supermarket chains to hold the line on price.

Discounters are known for constantly offering sales. They have been able to maintain their margins by constant increases in efficiency and cost reduction. In addition, they stock on those products which move fast, maintain modest store sizes, choose inexpensive locations, and pay only for targeted advertising.

Business consultants: Every segment of the German economy strives to improve on efficiency. Process optimization, cost reductions, the focus on core competencies, improved product portfolios, increased competitiveness. All of these areas enjoy special attention of top management.

This is why business consulting continues to grow at a steady pace in Germany. Although its economy accounts for roughly 20% of Europe‘s output, consultants do more than 25% of their business for German companies.

German house

Wirkung. Effect. Wirkungsgrad. Difference between output and input. Wirtschaftlichkeit. Difference between goals reached and resources used.

In most German buildings – residential or commercial – the lights in the hallways go off automatically after a short amount of time. Switches on the walls near the doors and in the middle of the hall allow one to turn the light back on. Germans refer to the lights being on as brennen, burning, as in a candle, oil lamp or burning fuel.

Germany, with 80 million inhabitants and large portions of its territory devoted to agriculture, is the size of the American state of Montana. Germans are well versed in maximizing the use of space. Rarely is there a house or apartment in a German city or town with an attic or basement which has not been renovated for use as an additional bedroom, study or storage space.

German supermarkets, too, are rather compact. As are the packaging of consumers items, often fit to the size of the content. No oversized breakfast cereal boxes or potato chip bags.

During the cold months down blankets at night keep old and young warm and comfortable while the heat is turned down or even off. Down blankets are expensive, but they last for many years.

When walking, cycling or driving by new house construction one can see stacks of insulation material waiting patiently to make their contribution to energy conservation, their necessity legislated by state and local building codes. In fact, the German government provides generous subsidies for renewable energy sources: wind, solar, biomass.

As for electricity-gulping air conditioning, you’ll find very few residential homes outfitted with it. The majority of office buildings allow you to simply open the windows. Hazy, hot and humid weather comes to the northern and middle European climate for only a few weeks a year. The nights always cool down, allowing for buildings to take in natural air conditioning.