United States – Page 45 – understand-culture

Better and better

“The reliability of a product is understood to be how verlässlich (reliable, sound, solid, trustworthy, sure) are its functionalities at any given time.” This somewhat cumbersome definition communicates clearly what is of great importance to German consumers.

No wonder, therefore, that German manufacturers leave as little as possible to chance when developing their products. The Association of German Engineers organizes expert conferences on a on-going basis on the topic of technical reliability and maintains a working group on the subject. The Technical University of Hamburg has an institute with the same name – Zuverlässigkeitstechnik – literally Reliability Engineering.

It is no coincidence that the legendary Miele washer is known throughout the world for its reliability and quality, a product based on gewissenhafter (painstaking, diligent, meticulous) research.

A family-owned and -run company, Miele’s motto is Immer Besser – Better and Better, not only in the sense of striving to be better than the competition, but even more so in striving to offer the best Technik – technical solutions, engineering. Very much in the tradition of German Zuverlässigkeitsforschung – reliability research.

Miele dishwasher:

Business Majors

Business has long been a cornerstone of American culture. The American Dream is typically associated with the ability to start with almost nothing, and through the virtues of business, to rise to great wealth and social stature.

Although the U.S. is no longer the country with the largest rate of social mobility in the world Americans still hold business savvy and an ability to rise in social stature in high prestige.

The most popular major for American university students is business, with approximately 22% of graduates. Science and engineering are the least popular majors, with approximately 5% of American students choosing engineering, and only 1.4% choosing physical sciences.

As a result of this business prestige, in every American engineer you’ll find a businessperson – someone who’s always looking to get the best for less, and will never consider quality without also considering the cost necessary to achieve it.

Serviceability is reliability

Reliability in the U.S. also means serviceability. No product is perfect. Service can make up for it. And service is based on a product’s serviceability. After sales comes service. Should be fast, easy and profitable.

From Ford’s Model T which came with a tool box, all the way to today’s call centers responding 24/7 via 1-800 numbers, to the service trucks on the road, Americans tolerate suboptimal reliability if their concerns are listened to and acted upon.

But wait. Earning profits on a product’s imperfection? The German engineer winces at this. Products should work as developed. The German consumer winces at this. Products should work as promised.

Warranty

Warranty: A real covenant binding the grantor of an estate and the grantor’s heirs; a collateral undertaking that a fact regarding the subject of a contract is or will be as it is expressly or by implication declared or promised to be; something that authorizes, sanctions, supports, or justifies; a usually written guarantee of the integrity of a product and of the maker’s responsibility for the repair or replacement of defective parts. Middle English warantie, garantie, to warrant.

U.S. federal law establishes minimum legal standards for warranties on products. Some companies, however, offer warranties (for purchase or for free) that exceed the legal minimum by covering a broader array of problems the buyer might face.

For example, Apple’s standard iPhone warranty includes one year of hardware repairs and 90 days of telephone support. However, an extended warranty can be added that provides full hardware and phone support coverage for two years. Private companies also offer warranties on electronics and other high value goods.

Every Toyota vehicle is supported by a 36-month/36,000-mile limited warranty coverage. In addition, most individual Toyota parts have 12-month coverage, a fairly standard warranty for new vehicles.

Most manufacturer warranties for electronics, appliances, etc. cover only products that fail due to defects in construction or malfunctions of the item’s hardware. Some consumers want more protection, so retailers like Best Buy offer protection plans that go beyond the manufacturer’s warranty. Best Buy‘s Geek Squad Protection Plan, for example, covers normal wear and tear, no lemon policy, accidental, and damage from handling. Since these plans cover a much wider spectrum of potential problems, they tend to be quite expensive.

In order to remain competitive, American retailers offer generous return and exchange policies. Most companies print their policy directly on the receipt and use phrases like „easy returns and exchanges,“ „no hassle returns“ or „100% satisfaction guarantee.“ Some companies, like outdoor supplier REI, allow customers to return products for a full refund or exchange at any time for any reason.

Many retailers (WalMart, Target) do not require a receipt for returns or exchanges. If no receipt is available, stores generally refund the credit on gift cards that can only be used at the store.

These generous policies highlight the importance that American consumers assign to customer-centered policies that are clearly communicated and executed in a friendly manner. Retailers, on the other hand, encourage buyers to spend first and think later. They give consumers confidence that satisfaction with a particular product or brand is guaranteed.

The Image of Exclusivity

In his May 12, 2015 article Taking the Fast Lane in the Handelsblatt Global Edition, Christian Schnell (schnell means fast in German) wrote about Porsche’s success in the U.S.

“Porsche keeps setting sales records in the United States, with double-digit percentage growth over four years. Of 190,000 Porsche’s sold last year, 47,000 were delivered to U.S. customers. The brand, part of the Volkswagen Group, has grown sales by double-digit figures for four years straight.”

Porsche is a niche player. It has a U.S. market share of only 0.4 percent. “It shouldn’t become much more than that to protect the car’s image of exclusivity, in Porsche’s view.”

“We have not set a figure as a target. Instead, we want to get a sense of how much we can expand the brand,” said Porsche-CEO Matthias Müller. “We’d rather sell a car less than one too many.”

Schnell noted: “At other companies, such elitist thinking has led to conflicts.” In 2014 the chief executive of Ferrari, Luca die Montezemolo, said he only wanted to build 7,000 cars per year. “The statement angered Sergio Marchionne, CEO of Ferrari’s parent company Fiat.” Not long thereafter, Montezemolo was out of a job.

It was an incident which the Porsche-CEO could not understand. “If Mr. Marchionne thinks he can turn Ferrari into a mass market brand I can only say: ‘A very warm welcome’.”

Food and obesity

Despite the fact that over 30% of Americans are considered obese, they continue to expect and consume very large portions of food. This is part of a culture that glorifies and celebrates things that are large. Large homes, large cars, and large food portions are made possible by America’s abundant wealth and natural resources and celebrated as a key aspect of American culture. Bigger is better.

McDonald’s revolutionized the restaurant sector by applying an assembly line model to their hamburger restaurant. This process produces food of predictable quality in an efficient manner. In order to be profitable, non-fast food chains like the Cheesecake Factory must quickly produce food products of predictable quality without wasting ingredients or resources such as water and electricity. These restaurants have set up processes that rely upon training low-skilled workers how to create high-quality products by following strict processes.

„Bigger is better“: Many travelers have noted that American food portion sizes are much larger than portions in other countries in Europe and Asia. A medium sized drink or meal in America is the equivalent of a large in many Asian or European countries. Mainstream America tends to value size and price over the quality of a food product. Most fast food chains give customers the option of super-sizing a meal for a small fee ($0.50 – $1.00). Super-sizing increases the apparent value of the meal because it increases the size (and calorie count) for a small sum of money.

Some corners of American society have begun to strive for healthier, more sustainable portion sizes. One notable example is the controversial decision by New York City Mayor Michael Bloomberg to limit soft drink sizes. The law bans the sale of sugary drinks larger than 16 ounces and is aimed at curbing obesity and unhealthy habits that ultimately increase medical costs and decrease worker productivity.

Another initiative aimed at encouraging Americans to make better eating choices is the federal law that forces food chains with more than a certain number of store locations to post calorie information on the menu. This law was part of the Affordable Care Act, also known as „Obamacare.“

Intelligent, not independent

Team member to team lead. Product to consumer. Could there be a link between those two relationships? Could it be that how a culture defines the relationship between team lead and team member is similar or analogous to the relationship between the consumer (B2C) or the customer (B2B) on the one side and the product on the other? Between the consumer and the electronic device like a computer, tablet smartphone, or between the customer and a complex production system?

But analogous not in the sense that employees are tools, objects, inhuman – although certainly there are managers, organizations, companies who indeed treat their employees as means to an end. More in the sense that it is expected that the employee, the team member, get the job done, make work and life easier for management, for fellow employees, for internal or external customers.

In the American product philosophy, how intelligent should a product be: kitchen oven, washer, automobile, computers and their software, technologies which utilize forms of artificial intelligence? Intelligent in the sense of independent, of the user?

Just as the American team lead reserves the right to go from the strategic level down to the tactical in order to manage or even implement (player-coach), so too the American consumer (B2C) or customer (B2B) wants a product which can be managed, controlled, directed, steered, run.

See the print advertisements, including large banners for example in airports, stating „Company X runs SAP.“ Enterprise software, highly complex, but at the service, at the disposal, of the client.

Americans want intelligent products, yes, but not independent of purpose. And the user determines the purpose, not the product itself.

Used cars

According to DEKRA’s 2014 report German automobiles scored very highly in terms of reliability, ranking first in six of nine categories.

The overall winner was the Mercedes E-Class, followed by the Audi Q5 and the Audi A5. Car of the Year was the Mercedes B-Class. As reported by the Kölner Stadtanzeiger on February 19, 2014.

Reliability is in Germany one of the essential characteristics of any product, and at the same time a key element of the German brand.

“March to our own beat”

WordPress software powers 70 million websites. Just about half of the biggest blogs in the world run on WordPress. Automattic – owner of WordPress – is not your typical Silicon Valley Web start-up.

“We march a little to our own beat, and sometimes it’s out of sync with Silicon Valley — and that’s been to our advantage and disadvantage,” co-head Toni Schneider said.

“We don’t get sucked into the latest thing, while some of our competitors are distracted by the latest shiny object. The disadvantage is sometimes we’re against the grain of what everyone else is excited about, and people ask ‘Why don’t you have x yet?’ — but we go at our own pace.”

Another way that Automattic is unusual is its extraordinarily low rate of staff changeover. It currently has 106 employees — and it has only ever hired 118 people.

Automattic was founded by Matt Mullenweg. From Houston. An American with a German background.

Air conditioning

Air conditioning in the U.S. is present in almost every home and building. It is often run 24 hours a day in commercial buildings. Large airports are air-conditioned 24 hours a day throughout the entire year. Americans often use substantial amounts of money during hot summer months and cold winter months to keep the temperature in their home around 70 degrees Farenheit. These practices represent a focus on the output – comfort – over other considerations such as environmental toll, cost, etc.

The U.S. Department of Energy recently passed increased standards for heating, ventilation, and air-conditioning (HVAC) equipment used in homes. These new standards will gradually take effect over the next several years and will require newly installed heating and cooling equipment to be higher efficiency equipment. Although this act shows that the government is serious about curbing energy use in American homes, enforcement will be difficult.

Some companies have realized that they spend large amounts of money heating, cooling, and lighting empty offices during nights and weekends. Many have adopted technologies that program equipment to automatically switch off at certain times of the day.