Decision-Making Process

Germans are process oriented. They think through how a task is best completed. Germans set up work processes which are logical, structured, can be monitored and optimized. Since there is no action without first a decision to act, Germans focus on how decisions are made.

The more complex the decision, the more carefully Germans consider how they make it. Who will be affected by the decision? Who has the final say about the decision? Who has what rights and responsibilities? Germans believe that routine, yet complex, decisions are best made with the help of a decision-making process. And the better the process, the better the decisions made.

The Germans are methodical. In order to maintain Überblick (overview) and Durchblick (throughview) they distinguish carefully between specific steps and their individual requirements within a decision making process. Germans believe that a methodical approach minimizes mistakes.

They also assign a generous time frame to an important decision. In order to move carefully through the process they allow for the repetition of certain steps. Germans believe in moving to the next step in a process only after the preceding step has been completed properly. Patience and thoroughness are critical.

A methodical approach means a well-structured process with sequential action. The clearer the process, the tighter and more logical the sequence of the individual steps, the better coordinated all of the related activities.

Method. Latin methodus, Greek méthodos: The path of analysis, the route to somewhere; a set way to reach insight; a specific way of doing something; the path to a specific goal; based on a plan; well thought through.

German education stresses methodology. University students receive their degrees after demonstrating in a thesis that they have mastered the methodologies current in their field of study. The first part of a thesis goes into great detail about the specific methodology of analysis applied to the subject.

Sequence. Latin sequentia: order of things; to place similar things in line; repetition of a musical motif; shorter pieces of a movie put in a specific order; series of cards in a row.

Process Rhythm

All processes have a rhythm, made up of the individual process steps, their sequence and the time allotted to them. Processes do not exist in a vacuum, however. Every process and its rhythm is subject to external factors.

Germans do their best to prevent external factors from influencing the rhythm of their processes, however. They believe that if a given decision making process has proven to be effective, if it has led to good decisions, it should not be interrupted or distracted.

If the decision is an important one, if the decision making process has proven to be robust, Germans will do their best to shield it from external factors.

Bonn Republic

Die Unbeugsamen (The Indomitables, 2021): This documentary tells the story of women in the Bonn Republic who had to fight persistently and patiently for their participation in democratic decision-making processes. Their long-term, unwavering commitment and refusal to be rushed by societal or political pressures exemplify the German belief that significant decisions require time, perseverance, and careful deliberation.

German proverbs

Germans proverbs about a patient approach to decision-making say: allow the decision process to unfold at a pace appropriate to its significance, resist external pressures to rush, and recognize that patience is integral to achieving the best results.

Citizens exposed

Towards the end of 2014, the German Postbank conducted a study with the goal of identifying the good policies which Germans enforce with regard to their financial matters. The results were summarized in article titled When it comes to money, Germans are bureaucrats who are afraid to take risks:

“Like a pillar of economic wisdom, the desire to have a higher income looms above all other factors. The remaining results are actually more reflective of the ‘financial illiteracy’, which the Germans are already often credited with.

In this way, the study exposed the citizens as being fearful bureaucrats, who above all just want to increase their personal wealth through taxation, saving, and maintaining better control of their finances, rather than earn money through smart investing, or saving for retirement.”

Risikoscheu – A fear of risks: The attribute of a decision-maker to prefer the path of lesser risk – and thereby most minimal loss – when confronted with several alternatives which have an equal anticipated gain. This may mean waiting longer for the same reward, or even settling for a lesser gain, if the chances are greater that it will be received.

Three inches high

Horst Brandstätter, the founder of Playmobil, dies at 81.

“Although a billionaire by the end of his life, he was a world champion in economizing, the younger Mr. Brandstätter (son Conny) said, citing as an example his father’s insistence on using cheap packs of cards for his favorite card game.

Mindful of his cash flow as the world oil crisis drove up the cost of plastics in the 1970s, Mr. Brandstätter summoned his chief designer and asked him to come up with toys that would use less plastic.

Mr. Beck came up with Playmobil, whose miniature models and environments are said to have been inspired by children’s drawings and the figurines of traditional Christmas crèches. At about 3 inches high, the figures have round faces, movable arms and legs, and hands that can grasp a pirate’s sword, a carpenter’s saw or a firefighter’s hose.”

Source: New York Times, June 11, 2015. By Alison Smale

herunterbrechen

The Germans speak good to very good English. This, however, can lead to them importing English terms literally into German: “to break down” becomes herunterbrechen, as in to break down a complex topic into its component parts.

But just because a term can be literally translated into another language does not mean that the thinking behind that term fits into the other culture’s way of thinking.

In fact, Germans do not consider it helpful to take complexity and break it down (herunterbrechen) into its component parts. They aim to do the opposite, to see particulars in their interrelationships, in their mutual influences. They look for patterns, strive to understand complexity as a whole, as a system. Germans do not break down, instead they tie together.

In this sense, herunterbrechen is a form of corruption, of turning, twisting, convoluting a complex reality. Instead of simplifying complexity, the Germans enter into it, in order to understand it, to work with it as it is.

Founderland

A willingness to take risks and a desire to make decisions are the basic requirements for starting a business. Germany is not a land of entrepreneurs.

According to Global Entrepreneurship Monitor (GEM), an annual joint publication of the University of Hannover and the Institute for Jobmarket and Career Research of the German Federal Agency for Employment, only 2.5% of adults in Germany started a business which they could live from. This placed Germany in spot 10 of the 22 compared.

Rolf Sternberg, an economist, considers one reason for the weak culture of entrepreneurship to be the widespread desire toward security:

“The tendency to strive towards security is much more prevalent in Germany than in Anglo-American countries”. This is the flipside of having a well-developed social security system.

Yvonne Stolpmann of Chamber of Commerce in Nürnberg summarizes the situation as such: “Those who give up a permanent position here stand to lose a lot of security. It’s different in the USA”.

Insurance protection

Germans love insurance policies. According to the magazine Stern, the average German household paid an average of 2,771 EUR annually for private insurances in 2002, 106 EUR more than in the previous year. They are clearly willing to spend on their security.

However, the avoidance of risks in this way is often not rational. According to Stern, every other German is insured for legal representation, yet only one in ten have disability insurance. Statistically, however, one out of four people will be unable to work for an extended period of time during their lifetime due to illness or an accident.

The investment counseling agency KSK-Südholstein makes a similar attest: “Germans love to be rooted and secure. That is why they are so keen on insurances. For this reason, there is an incredible variety of insurances available on the German insurance market.

Amongst these policies you will find some which are sensible, and others which really are not, because not every value must be insured. Much to the dismay of experts, there is a tendency in Germany to insure small amounts of damage with high initial ventures.”

“There you have it!”

In February 2015 Christian Lindner, the head of the Free Democatic Party (FDP), gave a speech in Dusseldorf, the capital of the German state Northrhine Westphalia.

“Entrepreneurship is a signal of confidence in a culture’s future. When people start new companies, they are not only creating a better future for themselves, they’re creating jobs for others.”

Hardly into his speech a state representative from the ruling Social Democrats (SPD) called out smugly that Lindner, indeed, had had personal experience with startups.

Lindner pounced on the opportunity. “Aha, look here. You say that I have experience. It is true, dear colleague. During the highpoint of the new economy I founded a company. It was not successful. But the leader of your party, the premier of this great state, in her speech today stated clearly that Germans should not stigmatize those whose startups fail.”

Lindner continued: “There you have it, in your own caucaus, Madame Premier, a colleague who doesn’t listen to you. This is exactly one of the reasons why so many people prefer to work as civil servants, instead of starting a company. For if they are successful then you Social Democrats want to tax and reallocate their profits. And if they are not successful, then they are derided.”

Auf YouTube wurde die Rede bereits millionenfach angeklickt. In DIE ZEIT vom 19. Februar 2015 schreibt Feliks Eyser, ein Gründer, der im zweiten Anlauf erfolgreich war, in einem Artikel mit dem Titel „Wer wagt, verliert“:

Within hours the speech was uploaded to YouTube and clicked on over a million times. A week later DIE ZEIT, a respected political weekly, published an article by Feliks Eyser, whose first startup failed but whose second succeeded.

The article’s title was „Wer wagt, verliert“ – those who risk, fail. This is the opposite of the well-known German figure of speech “Wer wagt, gewinnt” – those who risk, win.

“Failure is a part of entrepreneurship just like sore muscles are a part of sports. Those who start a company run the risk of failure. Courage is essential. Perhaps more people in this country would have that courage if a busines failure were not seen as human failure.”

Interestingly, Eyser wrote scheitern not seen as versagen. Both terms translate into failure. Could this mean that Germans see in failure human or personal failure?

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