Ökostrom

Electricity: Germany is not rich in resources. Coal is no longer in abundance. There is no oil to be drilled out of the ground. There are too few mountain ranges offering hydropower. And the German population has rejected nuclear power as a long-term solution to its energy needs. In order to protect itself from the ups and downs of the international energy markets, Germany has long since focused on developing renewable energy sources.

Several laws since 1999 support the development of so-called Ökostrom or bio-energy, guaranteeing minimum prices for those utilities who produce it. Its planned outcomes – reduced dependence on fossil fuels, development of renewable resources, ensuring long-term energy supply – have begun to occur. The share of total electricity production attributed to renewables has been increased from 5.4% to 20.3% in the timeframe 1999-2011.

Gasoline: The Ökosteuer or ecology tax is also applied to gasoline and diesel fuel, making up roughly 10% of the price at the pump. The purpose of the tax is twofold: reduce consumption of what is a limited resource, and increase the efficiency of automobiles. Leading German economic institutes have documented the positive effect thusfar: less driving and the development of more fuel-efficient cars.

The laws passed were controversial. Many were skeptical that they would have the predicted effect. But since then large segments of the population are convinced that Germany is on the right path. Two changes of government have not challenged their effectiveness. Germans are proud of the fact that their electricity grids never fail, that they are shutting down all of their nuclear energy plants, and that their companies are producing cutting-edge renewable energy technologies.

The Fractal Factory

In 1995 Hans-Jürgen Warnecke, Head of the Fraunhofer Insititute in Munich from 1993 until 2002, published the anthology Aufbruch zum Fraktalen Unternehmen: Praxisbeispiele für neues Denken und Handeln – loosely translated as Breaking out into the Fractal Company: Concrete Examples of New Thinking and Acting. 

Warnecke instantly became known in the production world both in Europe and internationally. The book takes a deeper look at manufacturing processes addressing questions such as: On what principle are production processes based? How does change best occur in material flow processes? How can the quality of processes be improved?

Prof. Thomas Bauernhansl from the Institute of Industrial Manufacturing at the University of Stuttgart underscores the ongoing importance of Warnecke’s work:

“The concept of the fractal factory, which Hans-Jürgen Warnecke proposed in the 1990s, remains highly relevant and meaningful today for manufacturing companies. The visionary power of his organizational model can be seen at work in agile and flexible production structures.”

Klaus-Hardy Mühleck, considered one of the top experts among CIOs, stresses time and again the influences of Warnecke on his work.

A German strength

Bonn served as the capital of West Germany from 1949 until 1990 and was the seat of government for reunified Germany until 1999, when the government relocated to Berlin. The city holds historical significance as the birthplace of Germany’s current constitution, the Basic Law.

Founded in the 1st century BC as a settlement of the Ubii and later part of the Roman province Germania Inferior, Bonn is among Germany’s oldest cities. It was the capital city of the Electorate of Cologne from 1597 to 1794 and served as the residence of the Archbishops and Prince-electors of Cologne. The period during which Bonn was the capital of West Germany is often referred to by historians as the Bonn Republic.

Work efficiently

eRetail sector: The EU Department of Statistics states that Germany has the lowest food prices in Western Europe. This can be attributed to the large percentage – 40% – of discounters in the market, whose aggressive pricing force the other supermarket chains to hold the line on price.

Discounters are known for constantly offering sales. They have been able to maintain their margins by constant increases in efficiency and cost reduction. In addition, they stock on those products which move fast, maintain modest store sizes, choose inexpensive locations, and pay only for targeted advertising.

Business consultants: Every segment of the German economy strives to improve on efficiency. Process optimization, cost reductions, the focus on core competencies, improved product portfolios, increased competitiveness. All of these areas enjoy special attention of top management.

This is why business consulting continues to grow at a steady pace in Germany. Although its economy accounts for roughly 20% of Europe‘s output, consultants do more than 25% of their business for German companies.

Process-Pope

Klaus-Hardy Mühdeck, current CIO of ThyssenKrupp and former CIO of Volkswagen, is considered Germany’s Prozesspapst – literally process-pope. He is the first CIO to change his title to Chief Process Officer.

In an interview with Computerwoche – Computer Week – in 2006 Mühdeck described his fascination with process management: 

“Processes network functions, no more and no less. Throughout my entire career I have been involved in processes. In most companies it is under the board member responsible for strategy. But the trend is clear. CIO’s are defining processes and systems.”

It is the CIO, says Mühdeck, who is the bridge between the demands of the company and the systems platforms and company-internal processes. CIOs need to be able to communicate with and understand the areas of development and manufacturing. 

You can only truly understand a company’s processes if you understand how the various functions and departments actually work.

German house

Wirkung. Effect. Wirkungsgrad. Difference between output and input. Wirtschaftlichkeit. Difference between goals reached and resources used.

In most German buildings – residential or commercial – the lights in the hallways go off automatically after a short amount of time. Switches on the walls near the doors and in the middle of the hall allow one to turn the light back on. Germans refer to the lights being on as brennen, burning, as in a candle, oil lamp or burning fuel.

Germany, with 80 million inhabitants and large portions of its territory devoted to agriculture, is the size of the American state of Montana. Germans are well versed in maximizing the use of space. Rarely is there a house or apartment in a German city or town with an attic or basement which has not been renovated for use as an additional bedroom, study or storage space.

German supermarkets, too, are rather compact. As are the packaging of consumers items, often fit to the size of the content. No oversized breakfast cereal boxes or potato chip bags.

During the cold months down blankets at night keep old and young warm and comfortable while the heat is turned down or even off. Down blankets are expensive, but they last for many years.

When walking, cycling or driving by new house construction one can see stacks of insulation material waiting patiently to make their contribution to energy conservation, their necessity legislated by state and local building codes. In fact, the German government provides generous subsidies for renewable energy sources: wind, solar, biomass.

As for electricity-gulping air conditioning, you’ll find very few residential homes outfitted with it. The majority of office buildings allow you to simply open the windows. Hazy, hot and humid weather comes to the northern and middle European climate for only a few weeks a year. The nights always cool down, allowing for buildings to take in natural air conditioning.

Made in Germany

England in 1887 required all products imported from Germany to be labeled „Made in Germany.“ At the time German products were considered to be of substandard quality. Germany was a late-comer to the industrial revolution, much later than England. A famous German engineer admitted that German products were “cheap and nasty.”

Many were enraged, but it led to a national discussion and a quality offensive. At the beginning of the 20th Century, and especially in the post-World War II era, „Made in Germany“ took on a new meaning: high quality, newest technology. It became synonymous with West Germany‘s economic miracle of the 1950s.


The Germans recognized the importance of such a label, of the reputation of their products. They became particularly proud of their technical and economic achievements. Germans continue to view their products as having high quality, often as being the best in the world. From the early 1980s until recently Germany was the world‘s leading exporter.

The label “Made in Germany” is used less today than in the past, however. A minimum amount of a product’s parts must be produced in Germany before it can boast “Made in Germany.”

Modern German industrial and technology companies, however, have segmented their supply chains to include manufacturing sites and suppliers in many parts of the world. Nonetheless, the label “Made in Germany” remains a key, positive element in the self-understanding of every German.

German Engineers – Quotes

“The way in which one handles risk distinguishes between a serious engineer and a speculator and gambler.” Adolf Münzinger, agricultural economist, 1876 – 1962.

“Every person is an artist, whether trashman, nurse, medical physician, engineer or farmer.” Joseph Beuys, German sculptor, 1921 – 1986.

“A German engineer strolls into a primeval forest with a few tin cans and comes out later with a locomotive.” Felix Wankel, inventor of the rotary engine, 1902 – 1988.

“Engineers are the camels on which the business people ride.” Author unknown

Mr. German Man is direct

An American woman. Married to a German man. How her husband is very direct. And about how Americans learn to be indirect, especially when giving negative feedback.

Warning ! This woman is a youtuber. And an American on top. So, she is more than a bit animated. And frankly, she could have made her points in about two minutes instead of seven and a half.

Watch the first three minutes.

Mr. German man loves insurance

An American woman. Married to a German man. About how her husband, and his friends, are enthusiastic about insurance. And about how shocked they were to hear that she, and her American friends, never even heard of such kinds of insurance.

Begin watching at minute 5:00.

Warning ! This woman is a youtuber. And an American on top. So, she is more than a bit animated. And frankly, she could have made her points in about two minutes instead of seven and a half.

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