Humility

Bescheidenheit or humility is the character trait of a person who is unassuming, not demanding, seeks little for themself, who allows others to go ahead. From Latin prudentia, sapientia, scientia, discretio.

Bescheidenheit ist der Anfang aller Vernunft. Humility is the beginning of all reason. (Ludwig Anzengruber) Die wahre Ruhe der Gemüter ist Tugend und Genügsamkeit. True peace of mind is based on virtue and humility. (Christian Fürchtegott Gellert)

Abgehoben sein: to view oneself as above others; to lose grounding, to lose a sense of measure, proportion; unable to read situations realistically. Sarkasmus, sarcasm: biting, hurtful, condescending ridicule; to make fun of another person in a cutting way; to be mean, ugly.

Mitbestimmung is Controversial

Although Mitbestimmung – codetermination: the legal right of workers to be represented at the highest levels of management – is foundational to the German social market economy, its merits are debated constantly.

Business (companies and their associations) believes that Mitbestimmung has been taken too far. The many different interests represented makes it too difficult to find consensus. It is an inefficient way to run profitable companies.

In October 2004 Germany’s two largest chambers of commerce (BDI and BDA) demanded reform of the Mitbestimmung. Their main argument was the pressures due to increasing internationalization of their companies. They referred to Mitbestimmung as an historical mistake.

There exists in Germany, however, a cultural and political consensus favoring Mitbestimmung. Germans believe that it provides for stability in companies. Employees identify themselves with them. Productivity is kept at high levels.

An historical mistake?

Praise and Motivation

Germans believe that too much praise can lead employees to „rest on their laurels“, to not continue to work at a high level of intensity. In order to avoid that effect, Germans praise good work in moderate terms. This signals that there is more upside potential. It aims to motivate.

Germans seldom score work results as near perfect or perfect. „Close to perfect“ is the best one can expect. German business psychologists see a weakness in this approach, though. They believe that more praise would increase employee motivation and thus productivity.

Sich auf seinen Lorbeeren ausruhen. To rest on one‘s laurels. To relax after having produced good work results; after success to not strive for more. During the Middle Ages laurels were a sign of fame. The winner of a jousting tournament or a battle had a laurel wreath placed on their head.

Deflation. When the price for products and services decreases; when money loses its value. German economic and monetary policy aims to maintain the value of goods and services, but most importantly to prevent inflation. When it comes to praise, Germans take a conservative, restrictive, deflationary approach.

Deflationary. In feedback discussions the Germans consciously use deflationary terms. Honesty and transparency are seen as guarantees for effective, clear communication. „Say what you mean and mean what you say“ is the German logic. People should speak their minds freely and without inflationary euphemisms.

Den Tag nicht vor dem Abend loben translates into „Don‘t praise the day until the night has arrived“; don‘t count your accomplishments before the day is over; don‘t be confident of something until it has actually happened.

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?

Bürgermeister and more

Governors in the German states are called Ministerpräsident or Minister President or Premier. They are president of those ministers, who run the various departments of a state. The state parliaments have the same structure as the Bundestag, Germany‘s national parliament.

The minister president is a colleague among the members of the state parliament‘s largest elected faction and is elected by his or her colleagues to form a government, typically a coalition of two parties.

The minister presidents, like the chancellor, manage and coordinate the work of the ministers, who, however, lead their departments independently. The minister president is a primus inter pares, a first among equals.

Like the ministers at the federal level, the ministers at the state level are powerful political figures from the regions of the state. Each is capable, and in most cases willing, to become minister president. The acting minister president, therefore, has to balance out carefully the interests of these power brokers.

Germans mayors are called Bürgermeister. Again, like the chancellor and the minister presidents, the Bürgermeisters are selected by their colleagues in the largest elected party in their city councils. They form a city government, typically a coalition of two parties.

And like the chancellor and the minister presidents, the mayor is a primus inter pares, managing powerful local politians who head up the city‘s most important departments.

Plumber, Electrician, Banker

In German companies the head of a department or project team assigns tasks to the team and to individual members, who carry them out ideally without any supervision. This logic is also at play in business relationships between customer and supplier.

When a German contracts a craftsman or mechanic – plumber, electrician, handyman – to do a job, he or she does not go beyond explaining the problem which needs to be solved. Everything else is left up to the person contracted to completed the job. The German customer expects the job to get done without any more input or oversight from them.

It‘s the same approach when one goes to the bank. The customer explains their financial situation, states their goals and then expects the financial advisor to do the rest, meaning come up with a financial plan. The bank employee, like the plumber, only contacts the customer if it is absolutely necessary.

Mitbestimmung

Mitbestimmung: to determine with, to co-determine, co-decide; to be involved in a decision making process; representatives of blue and white collar workers having a seat at top management levels.

German law guarantees that employees have a say in all issues affecting the workplace, including internal rules and regulations, work conditions, personnel policy and those decisions determining the future of the company.

Mitbestimmung has its roots in the 19th century, when workers associations were established to improve work conditions and to check the unlimited power of management. The associations evolved into labor unions, which by the end of the 19th century had the legal right to represent workers over and against management.

The creation of labor unions was supported politically not only for ethical reasons, to protect the interests of the worker. Both sides – labor and capital – wanted to establish mechanisms to balance out the interests of both in ways which would avoid stikes, protests and social unrest. This is the spirit behind Mitbestimmung.

Betriebsrat. Works council. Any company with five or more employees must by law allow the formation of a works council. These are elected democratically and represent the interests of all employees – both white collar (non-labor) and blue collar (labor). If management and the works council cannot agree on certain issue, the law requires that a neutral third party mediator be involved.

The interaction between management and works council can be either positive or negative. Well run companies have a very cooperative relationship, which contributes to company success. In other companies the relationship is contentious, especially in those struggling in the market. The works council can often block management attempts to downsize the workforce, close down plants or otherwise restructure in ways negative for the (white collar workforce) employees.

Gewerkschaften. Labor unions in Germany unite employees of one industrial sector. They mostly represent their members in wage negotiations which are obligatory for the whole sector (labor agreement). They have the right to strike, an instrument they use only when negotiations have broken down and after serious deliberation.

Political Consensus

Gerhard Schröder was chancellor of the red-green – Social Democrats plus Green Party – government from 1998 til 2002, and then after reelection from 2002 til 2005. In his first term the Social Democrats and the Greens had a majority in the Bundesrat, the Upper House, where the sixteen German states are represented to co-decide with the federal government on national policy. The Schröder government had little difficulty passing the legislation they had proposed during the election campaign.

In 2002 the situation began to change, however. Federal elections led to another majority for the Social Democrats and the Greens. But at the state level they lost their majority within a few years. The opposition – Christian Democrats and Free Democrats – had gained the majority in the Bundesrat and were able to block legislation proposed by the Schröder government.

Nonetheless, Schröder‘s coalition was able time and again to craft legislation in a way which served the interests of those state governments led by opposition parties. His government was able to compromise and collaborate with those critical German states led by the Christian Democrats and Free Democrats.

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