United States – Page 40 – understand-culture

Balance customer and supplier

Augenhöhe. Literally eye-level. To be at eye-level with each other. Germans reject any form, even the slightest indication, of a one-sided customer-supplier relationship. One-sided in the sense of imbalance, a working relationship in which the one is master, the other slave.

For Germans, implicit in any business relationship is a transaction, an exchange, a trade. A problem is solved. A need is satisfied. A lack of expertise in a particular area, on a specific question, is provided from the outside. Manufacturing needs better technology. The company needs advice concerning tax law. Another company needs help with marketing, logistics, personnel, product packaging, research and development.

The list of possible business transactions is infinite. People, teams, companies collaborate, work together, because one has something the other needs, and will exchange it for something of value.

Germans are very sensitive to maintaining balance in any form of collaboration. The German customer wants in a supplier, service provider or consultant: someone who insists on working with them at eye-level, who is self-confident, knows her own worth, and rejects any working relationship which can lead to an imbalance.

The German customers want the best possible work results, input, support from suppliers, service providers, and consultants. They do not want those who react immediately to each and every desire, idea, or spontaneous thought they might have, as if the client had issued a purchase order.

Often the customer is not in a position to recognize what is best for them. And every customer is, in turn, a supplier, service provider or consultant to another company in another business relationship. That’s what business means. Today customer, tomorrow supplier.

The Germans would far more prefer to consult than to serve. Consulting is knowledge- / expertise-based. To give advice. Two parties standing at eye-level to each other. Balance. Listen, discuss, decide, act. The one side pays for it. Of course. But for the Germans, the customer is never king. And the supplier, service provider, consultant is never slave.

Scientific Management

Frederick Taylor was an American engineer from Philadelphia whose studies in the early 20th century had great influence on American industrial processes. His Principles of Scientific Management focused process standardization, systematic training and the definition of roles and responsibilities. It led to the term Taylorism.

Roommate Agreement

On The Big Bang Theory, an American television show about a group of physicists and the girl next door, two of the main characters share an apartment together. In order to ensure that things run smoothly from the beginning one of the roommates drafts a roommate agreement that outlines all of the rules by which the two characters will abide.

Additionally, anytime there is a change in the characters’ status (for example, if one of them starts dating), this roommate will write a modified version of the agreement to accommodate the new arrangement.

However, the second roommate hates having a fixed list of rules, and rather than being a way to solve disputes, the roommate agreement actually becomes the source of many arguments.

Between honesty and politeness

There’s a fine line between honesty and politeness and Germans are known abroad for not beating around the bush. Kate Müser and Waslat Hasrat-Nazimi at Deutsche Welle in Bonn explore the rather direct questions they’ve had to answer in Germany.

Note 1: Towards the end Kate states that it is impolite to discuss politics in the German context. This is not correct. In fact, it is just the opposite. Many comments below the video on YouTube are by Germans stating this clearly.

Note 2: Another German commented, and rightfully so, that the opposite of direct is not polite, but instead indirect. The commenter goes on to state that Kate’s ironic winking about how German directness can be impolite is an unfair judgement of the German people.

Public Apologies

In America, celebrities are often considered suppliers, and their fans customers. Anytime celebrities make mistakes or behave in ways which don’t meet their fans’ expectations, they are expected to immediately issue formal apologies. Some of the more recent examples include:

Lance Armstrong – issued a public apology after admitting to using drugs to win the Tour de France seven times. Justin Bieber – issued a public apology after a video surfaced, in which the pop star told a racist joke. Reese Witherspoon – issued a public apology after being arrested for disorderly conduct.

“We choose freedom!”

It’s been said many times that Konrad Adenauer – West Germany’s great chancellor from 1949 until 1963 – was a master of communicating the complex simply.

His extraordinary ability to communicate with the “average Joe” was particularly effective in the early post-War years in West Germany. During one of the great national debates in the Bundestag about West German foreign policy Adenauer contrasts starkly his policy to that of the opposition Social Democrats by shouting: Wir wählen die Freiheit! Between slavery and freedom, we choose freedom!

If you understand German, and if you are even only somewhat familiar with the history of modern Germany, and the history of West Germany after the Second World War, then you should listen carefully to this extraordinary interview with Konrad Adenauer from the year 1965 with the highly-respected political journalist, Günter Gaus:

“Make an Englishman shit”

This is also a reason why it is anecdotes, if well told and timed, are enormously persuasive in the American cultural context. For Americans anecdotes are empirical. They are reality experienced, the opposite of theory, which is often seen as abstract and unrealistic, separated from reality.

An anecdote says: “I know what I’m talking about. I was there. I saw it with my own eyes. This is no theory, it’s reality!” Any American politician, for example, speaking in their legislative district or in the media about a difficult issue, such as the war in Iraq, will come across as especially convincing if they can claim to have visited that region.

Like aphorisms, anecdotes transport deeper-lying wisdom. Isn’t that what the Bible – Old and New Testament – does via one story after the other, communicate the deepest-felt, and therefore most complex, beliefs of a people, of Jews and Christians?

Isn’t story-telling the highest, the most sophisticated, form of activating (speaking to) the human imagination? Truly persuasive communicators in the U.S. plan very carefully when they draw on anecdotes. This is why we all listen so carefully when our grandparents tell their stories. They have the years of human experience.

The historians are in agreement. That Abraham Lincoln was the most masterful storytellers in American history. It has been written that he could hold audiences for up to four hours at a time.

Germans consult. Americans serve.

A big source of misunderstanding between Americans and Germans, rarely made explicit, is about whether business should inherently be customer-centric, supplier-centric, or somehow balanced, as our fourth column in this series explains.

Germans and Americans alike will of course say they care about their customers. But they associated different meanings with that notion. And that often leads to misunderstandings and frustration. American providers of business services proudly offer exactly that: a service. By contrast, German providers view their proposition less as a service and more as a consultation. The difference is subtle, but consequential.

Mandate

Mandate. Latin mandatum, task, job, order to do something for another; to represent another legally; an elected office to represent the voters.

A mandate is a broadly defined task where the service provider – consultant, attorney, architect, subject area expert – advises the client. The business relationship is not made up of small, individual tasks.

Instead, the service provider – the person who has been granted the mandate – serves, represents, and advises the client in a complex area involving many different kinds of issues and interactions.

Attorneys represent their clients in legal matters. Political office holders represent their voters. A mandate obligates the adviser to act in the interest of the client even without the client‘s expressed permission.

On the same page

The first step an American supplier will take is to gain a deep understanding of the customer‘s needs. Because these aren’t always so concrete, they must also try to identify the perceived needs. The relationship with the customer should be highly collaborative on all levels, from the beginning to the end.

The American supplier, vendor, consultant, constantly strives to make sure that they are “on the same page” with the client. In fact, they work literally side-by-side with the client, going to the client’s place of work and completely adjusting their schedule. They maintain continuous dialogue throughout the process so that they always understand the client’s needs and desires, especially as they change.

This includes knowledge-transfer agreements, which detail when the customer will be able to do something on his own, without supplier assistance, so that he begins to take over the process.

Results: Because the customer exerts such a certain level of control over the external expert (the how as well as the what), the expert is held accountable exclusively for the work dictated (ordered) by the customer. How the results might affect related areas within the client company remains the responsibility of the customer. Responsibility cannot exceed scope of work.

Information: For this collaborative effort to function effectively a high level of communication between customer and supplier is necessary. Information flow is guaranteed via short-term feedback between the customer and the supplier during the entire business relationship. This allow customers to modify their requests depending on changing situations.