United States – Page 70 – understand-culture

Much unease

Americans become very uneasy whenever they see their German colleagues address processes with their characteristic intensity. German process discipline is almost synonymous with rigidity.

Another, more careful, look reveals, however, a contradiction. On the one side, German processes are generic, theoretical, complex and seemingly not fully focused on the goal. On the other, Americans have the sense that Germans expect processes to be followed by the letter. They ask themselves how they are supposed to follow a process which is hardly described?

German procedures are also generic and not spelled out. The Germans take this as a signal to decide independently, to make their own judgement, in a given situation. Instead of requesting input or permission from their manager, they either decide themselves or discuss with an experienced colleague how to handle a given procedure within the context of its process.

To the Americans this represents a severe breakdown in process discipline. They have little understanding, thus tolerance, for processes or procedures which allow for so much independent action when that action can lead to mistakes, errors, problems, to an domino effect.

All theory is gray

To deduce is to infer certain consequences from general premises (assumptions, propositions). Infer means to form an opinion, to reach a conclusion based on facts. Stated simply, to apply the general to the specific. This is a central part of how Germans think.

Deductive thinking is in German commercial law. What work processes should look like are very specifically defined. They should, for example, be based on German laws governing safety, but be shaped by overall knowledge of the respective company.

Work process, therefore, are based both on theory (safety laws) and on practice (knowhow developed over years).

The renowned German dual vocational training is based on this logic. The students in vocational schools learn at the same time theory and practice (or application). The so-called gray theory – classroom learning – is a requirement.

Deviation from prozess goal

In 2011 PwC presented the results of its study Zukunftsthema Prozessmanagement – literally Future Topic Process Management, which surveyed its current state in German companies.

95% of executive management in Germany agreed that business process management was either important or very important to their success. Process management has become a critical function at the corporate level.

At the same time only 5% of those surveyed said that their process management was well developed. 46% of the companies did not have a clear plan on how to react to process deviation. Only 12% claimed to have an established mechanism for handling deviation from the most critical internal business processes.

While the study documents how much room for improvement there is in the area of process management governance, it was equally clear how flexibly German companies react to process deviation. Which, in turn, contradicts the cliché that Germans have a process for everything and always stick to the process.

proximity and dialogue

Power: Ability to act or produce an effect; legal or official authority, capacity, or right; possession of control, authority, or influence over others; a controlling group; physical might; mental or moral efficacy; political control or influence; the number of times as indicated by an exponent that a number occurs as a factor in a product; a source or means of supplying energy; the time rate at which work is done or energy emitted or transferred. From Anglo-French poer, pouer, from poer to be able, from Vulgar Latin *potēre, alteration of Latin posse potent.

Influence: An ethereal (other worldly) fluid held to flow from the stars and to affect the actions of humans; an emanation of spiritual or moral force; the act or power of producing an effect without apparent exertion of force or direct exercise of command; corrupt interference with authority for personal gain; the power or capacity of causing an effect in indirect or intangible ways. Latin influere to flow in.

Importance of sales/marketing: Americans place very high value on market- and customer-orientation. And orientation means listening to, understanding and interpreting, the needs of the customer. Meeting customer needs is the path to success.

Which means understanding and interpreting is the basis for making and delivering products and services. Understanding and interpreting requires proximity to and dialogue with customers. These are the primary functions of sales (account management) and marketing.

In its purest form, sales/marketing listens, interprets, then passes back into the organization to those responsible for the product/service portfolio. Who, in turn, pass back to colleagues in product development. Who, in turn, pass back to research and development.

From this perspective, everything flows from sales/marketing back into the organization. This puts sales/marketing in the lead.

United Breaks Guitars

In 2008, United Airlines baggage handlers damaged Dave Carroll’s guitar. After the airline refused to pay to fix the damage to his instrument, he and his band wrote a song called “United Breaks Guitars” and put it on YouTube.

Within two days it had more than 24,000 views (and more than 14 million views by 2015), and it was estimated that the bad press cost United Airlines around $180 million the following year (2009).

This incident also inspired Carroll to co-found Gripevine – a company that helps customers use social media to expose their complaints and convince companies to give better service.

Craftsmanship

America history is made up of waves of immigration, the earliest ones bringing with them and maintaining the deep European tradition of craftsmanship. That focus on how the work is done – imbedded in what later became processes and procedures – gave way, however, to Taylorism, mechanization, mass production, and eventually to the outsourcing of manufacturing to low-wage countries.

That tradition – the European medieval guilds – craftsmanship, caring about how the work is done – is being reintroduced to the United States via its current reindustrialization. German companies, for example, are not only increasing manufacturing capacity in the U.S., they are importing their methods for training skilled workers. European, more precisely, German craftsmanship is returning to America.

Importance of price: No business culture gladly admits that price is a critical success factor. The U.S. business and consumer sectors are both strongly influenced by price. Americans buy and sell more on price than on craftsmanship.

Empirical

Inductive: Latin inducere, from in + ducere to lead. To induce means to: move by persuasion or influence; call forth, effect; cause the formation of. Inductive reasoning begins with observing particulars.

Should the particulars indicate a pattern, a conclusion might be drawn or inferred. The particular is the starting point. To infer means: to derive as a conclusion from facts or premise; guess, surmise; involve as a normal outcome of thought; point out, indicate, suggest, hint.

Deductive: Latin deducere, to lead away, from de- + ducere to lead. To deduce means to: infer from a general principle; trace the course of. Deductive reasoning draws a conclusion about particulars based on general or universal premises. The general is the starting point. A premise is something assumed or taken for granted, presupposed, believed.

Empirical: Originating in or based on observation or experience; relying on experience or observation alone often without due regard for system and theory; capable of being verified or disproved by observation or experiment. Latin empiricus, from Greek empeirikos, doctor relying on experience alone, from empeiria experience.

Inductive reasoning

Jennifer leaves for school at 7:00 a.m. Jennifer is always on time. Jennifer assumes, then, that she will always be on time if she leaves at 7:00 a.m.

Every windstorm in this area comes from the north. I can see a big cloud of dust caused by a windstorm in the distance; so, a new windstorm is coming from the north.

Bob is showing a big diamond ring to his friend Larry. Bob has told Larry that he is going to marry Joan. Bob has bought the diamond ring to give to Joan.

The chair in the living room is red. The chair in the dining room is red. The chair in the bedroom is red. All chairs in the house are red.

Process procedure

Process: Progress, advance; something going on; a natural phenomenon marked by gradual changes that lead toward a particular result; a series of actions or operations conducing to an end; the whole course of proceedings in a legal action. Middle English proces, from Anglo-French procés, from Latin processus.

Procedure: A particular way of accomplishing something or of acting; a series of steps followed in a regular definite order; a set of instructions for a computer that has a name by which it can be called into action; a traditional or established way of doing things. French procédure.

Process or procedure: Americans define a procedure simply as a subset of a process. A procedure describes how one executes a specific task within a process. Again, the what and the how are spelled out clearly. American procedures typically have the following elements: purpose and application, individual steps, parties responsible, and the documentation, so that the individual actions taken can be accessed at a later time.

Americans draw a clear line between a process and a procedure. A process describes broadly what an organization, group, small team or individual team member needs to do. A procedure describes not only a specific task within that overall process, but also how that task is to be executed.

An American procedure can be formulated broadly or narrowly. A broad formulation allows for some interpretation and creativity in executing a procedure. A narrow procedure description seeks to avoid interpretation. One should stick to the procedure strictly.

William Edwards Deming

William Edwards Deming (1900-1993) was an American statistician and physicist, as well as a pioneer in the field of quality management. In the 1940’s he developed the process-oriented perspective of business activities, which were later introduced into various tutorials on quality management.

However, for many years Deming’s discoveries received very little attention in the U.S. Not so in Japan. There his insights were of great interest to leading industry managers. Why? The explanation given is that in the U.S. a maximization of production volume was the primary focus of industry following the worldwide reduction of production capacity following WWII.

This was possible to do without problem in the un-damaged USA. War-torn Japan, however, had limited resources for production, which pulled the optimization of processes into the foreground.

Deming’s story is initially a comparison between the U.S. and Japan. Yet the reasons why Japan’s industries became so process-oriented surely provide insight as to how Germany became to be so process-focused as well.

Listen to the first 3.5 minutes of Steve Jobs: