Vorstandsvorsitzender and Vorstand

Germans companies have a Vorstand, or managing board. The Vorstandsvorsitzender is the head of the Vorstand, but not in the sense of a CEO, rather as a primus inter pares or first among equals. The CEO-principle is an Anglo-American construct.

German law governing publicly traded companies requires the naming of a Vorstand or managing board, but not of a Vorstandsvorsitzender. §77/78 AktG expects joint management and joint representation of the company. German law does not recognize the title of Vorstandsvorsitzender, chairman or head of the managing board or CEO. The law can, however, be interpreted to accept a company internal set-up allowing for a Vorstandsvorsitzender.

BMW: The formation of a managing board and its compensation – The managing board consists of several people and has a Vorsitzenden. Company governance directives define the cooperation within the managing board, in particular the roles and responsibilities of the various departments or divisions as represented by their individual board member.

BASF: The managing board. §7 Members. Members of the managing board are selected and deselected by the supervisory board. The managing board has at least two members. The supervisory board can name further managing board members. The supervisory board can select a managing board member to be the Vorsitzender, as well as another to be the Vice-Vorsitzender.

ThyssenKrupp: §3 – Vorsitzender of the managing board. The Vorsitzender is responsible for coordinating all of the areas represented in the managing board, and maintaining a cohesive approach to reaching the goals set by the managing board. The Vorsitzender can at any time request information from other managing board members pertaining to their area of the company. The Vorsitzender should be informed at the earliest possible time about any important decisions made by the other members of the managing board.

Baseball and pitch-calling

Steve Krah of the Elkhart Truth (newspaper in Indiana) wrote online: „More and more, catchers at the college and high school levels are seen peeking — or even staring — in the dugout to get the sign from a coach.

While some programs let their pitchers and catchers manage their own games, many others — especially NCAA Division I schools — take that off the battery mates’ plates.

Notre Dame pitching coach Chuck Ristano calls nearly every pitch as well as pick-off tosses and pitch-outs and sets the defense for the Irish.

`I want (the pitcher and catcher) to have some element of ownership in the game, but the reality is we have access to a lot more information than the kids do (like tendency and hitter spray charts),’ Ristano said. `We just want them to focus on executing their pitch.`’

Notre Dame employs a numbers system that is flashed to the catcher, who then consults a wristband chart that suggests which pitch and part of the strike zone to throw the pitch.“

LeBron James calls plays

Sunday, May 10, 2015. Sports Illustrated online. 

„Cleveland Cavaliers forward LeBron James says head coach David Blatt wanted him to inbound the ball on the final play of Sunday’s Game 4 but he overruled the coach. Instead, James hit a game-winning jumper as time expired to give the Cavaliers an 86-84 series-tying win.  

`To be honest, the play that was drawn up, I scratched it,’ James told reporters. `I just told coach, Give me the ball. We’re either going to go to overtime or I’m going to win it for us. It was that simple.

`I was supposed to take the ball out,’ James continued. `I told coach, There’s no way I’m taking the ball out, unless I can shoot it over the backboard and it goes in. I told him, Have somebody else take the ball out, give me the ball, and everybody get out of the way.’”

Deviation from mission

In the German military context, independent deviation from the Auftrag – mission – is permitted and expected, if the situation on the ground has changed, demands a rapid response, and the commanding officer cannot be reached.

The overall mission, however, may not be re-interpreted. The tactical approach is always subject to modification. This presupposes that the junior officers and their troops are fully informed of the overall strategy which the mission serves, allowing them to choose the best path to the goal.

Those considering deviation need to ask themselves: „How would I as the commanding officer react to the changes on the ground?“ Critical is acting in accordance to the spirit of the Auftrag, the mission.

Manager as Neutral Party

German team leads have an impersonal, business-like relationship with their team members. They maintain emotional distance from the team in order to guaranty neutrality and fairness. Especially when providing feedback on performance do they focus on results and not on the person.

This sachlich – impersonal, neutral, business-like – approach can be observed in the personal interaction between manager and team. When providing feedback German team leads are reserved, unemotional, their body language limited to a handshake. Neutrality is the key.

Whether discussing past performance or formulating new goals, the Germans focus on the facts, ideally on what is measurable. A discussion about development addresses professional skills and less so personal development. Critique is communicated in a respectful and serious way. Humour is considered disrespectful and unprofessional.

If the feedback discussion includes criticism, German managers strive to be particularly neutral, unemotional, fact-oriented. This reduces the potential for an escalation of emotions. The two parties should focus on performance. The discussion is impersonal and objective.

Rational / Personal

On the one side, the Germans strive hard to be objective, to reduce, even eliminate the subjective.

Rational, logical, scientific. Filtering, screening, separating fact from gut feel, from intuition.

Communication: Say what you mean, mean what you say. Honest. Not meant personally. Persuasion: Separate message and messenger. Take yourself out of the equation. Decision making: Sober, scientific, self-skeptical. Feedback: The focus on weaknesses as authentically constructive input. Processes: Stripping down, compressing to the core, machine-like.

Yet, the Germans are personal, emotional, subjective.

Agreements: Think it through carefully. Your word is your bond.

Leadership: Hire talent. Train and equip. State mission. Then get out of the way. Product: Deep curiosity and concern for the user. Do it right. Customer: Do what is best for the customer, even if it jeopardizes the relationship.

Germans. Objective subjective. Rational personal. Perhaps a false dichotomy.

“Uncharted territory”

At a press conference held together with Barack Obama, German Chancellor Angela Merkel is quoted as having stated “the internet is uncharted territory for us all”, when asked about the internet surveillance program Prism.

While this statement was received with particular amusement in the web, it also demonstrates a certain German reservation in the face of innovation. One might even call this a resistance towards profound change when it comes to the internet.

That the German federal government is not acting to expand their communication of political content over web platforms is also apparent in their Facebook presence – their profile has only existed since late February, 2015. According to senior communications adviser Seibert: “We did not take [this step] too soon, but we did take it.”

Stringency

Analysis. Latin analysis, Greek análysis: to pull apart, dissolve into parts; to study something by taking it apart and considering its individual components; investigation into the particulars of a whole.

Analytical thinking is in those professions critical where a system is understood via its parts. A psychoanalyst pulls apart the patient’s past experiences. The financial analyst considers the entire spectrum of transactions in order to get into the details of specific market movements. Police investigative work, all approaches in medicine, every type of research and development must employ sophisticated methods of analysis.

Stringent. Latin stringens: strict; convincing based on logical arguments; logical, clear, without internal contradiction.

Stringent analytical methods are particularly important in the academic fields, whether the natural sciences, engineering sciences, economics or the humanities. Master’s or Ph.D. theses in Germany are not accepted without meeting high standards of analytical stringency. All professions based on deep analysis depend on stringent methods.

Penetranz. Penetration: Latin penetrare: to place into; to enter into, get into, to move in a certain direction.

To be penetrating has a negative connotation in Germany: overly direct, bearing in on a point, intense. A certain perfume can be too penetrant. A person who dominates a conversation, making long speeches and moralizing is penetrant.

In the positive sense penetrant means dogged, focused, determined, working to understand something at as deep a level as possible. Like an archeologist who digs deeper, forever searching for evidence, for insight into the lives of our human ancestors. The same goes for analysts of any kind, for the medical profession, for linguists, historians and research in all of its forms.

Heinrich Schliemann (1822-1890) comes to mind, the German archeologist who discovered the ancient cities of Troja and Mykenes. Many years of painstaking research led to archeological and historical proof that these two cities had in fact existed.

External Expertise

Germans often involve external experts, who have a broader Überblick, in a critical decision making process. As a neutral party they can ensure that the most current analytical techniques are employed, thus minimizing the risk of errors causing serious harm. Even those Germans confident in their ability to execute a critical decision making process will refer time and again to the highest standards in their industry.

Expertise. Analysis performed by a neutral expert. Deep subject area knowledge. “She is considered one of the finest experts her field.”

The Germans believe that truly objective criteria and analytical approaches exist, that they can be identified and used. Germans constantly work towards objectivity. For them analysis can only be of value if objective.

Standards. English standard: something which is considered to be the best in its kind, a model, an example; the quality against which all is compared, measured; norm, measure, a plumb line.

Some of the highest standards for hygiene, for example, are found in German hospitals, restaurants and hotels. To receive several stars requires meeting those standards.

There are labels and awards for almost all products in Germany: Fair trade labels for products from the southern hemisphere; ecology labels for organic foods; safety labels for mechanical and electrical products used in the home or the workplace. All are based on norms and guidelines.

Independent. Self-managing.

In many job postings German employers promise eigenständiges Arbeiten – literally independent work, meaning the freedom to do the work with little influence from next-level management. Selbständiges Arbeiten – self-managing work without constant status checks, without anyone “looking over your shoulder”, is highly attractive to German employees and job-seekers.

It is a sign of trust in the person’s ability. Constant feedback to the boss on the progress of work is neither necessary nor desired. Too much communication between levels of hierarchy is in the German context a sign of Unselbständigkeit – inability to work independently, self-managing. They need to be “taken by the hand” (hand-holding). And noone in Germany, neither team lead nor member, wants to waste time doing that.

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