Agreements – Page 14 – understand-culture

Personal liability

Germany is a country based on the rule of law. And there are many laws in Germany. The Germans abide by them. For Germans, rules and regulations are one way to reduce risk of personal liability. This can make working with Germans difficult for non-Germans. A conditional German yes might very well be based on the fear of being made personally responsible for the outcome of an agreement.

Working with Germans or setting foot on German soil immediately involves coming in contact with German laws. Why are escalators in Germany so slow? Because the store owner is liable for any accidents.

Bus drivers in Germany will only let passengers enter or exit at designated bus stops, even if it is only ten meters away. For legal reasons. When sending an email to a group of friends the other email addresses should not be visible. Personal email addresses are private and protected by Datenschutz, information privacy protection laws.

Computers often need repair. Employees of companies are not permitted to take action, unless they are in the IT department. If repairing leads to further damage, the employee is personally liable. For it is not their job, but the employer‘s, to repair company equipment.

The same goes for cleaning. Rolling up your sleeves and cleaning dirty windows in your office is a nice gesture, but not a good idea in Germany. The employee is liable for any injury incurred during the cleaning. The company‘s insurance company certainly will not pick up the costs. And the company can even charge the employee for not focusing on the work they are paid for.

German laws also prescribe clearly in which locations what kinds of commercial space can be used for. Many an organization has learned the hard way that the space they rented cannot be used for the purposes they intended.

“Sitting out“

Former German Chancellor Helmut Kohl was often innaccurately portrayed as the master of Aussitzen (sitting out) by journalists and political elites alike. Instead of approaching a problem directly, it was said that he would wait until it would either resolve itself or people would lose interest in it.

But even with Kohl’s retirement from politics,“sitting out“ political issues supposedly has not gone out of style. At least according to Stern maganzine, which claims that Angela Merkel has become the new representative of this style of governing. As Wochenmagazin wrote in March 2010: “Angela Kohl – wait it out, weigh it out, sit it out. Chancellor Merkel reveals herself ever more strongly to be an adept pupil of the greatest sitter-outer Helmut Kohl”.

More accurate is that Kohl was and Merkel is a master of thinking things through, patience, and building consensus.

74 Billion Dollars

On May 7th, 1998 Jürgen Schrempp, CEO of Daimler, and Bob Eaton, CEO of Chrysler appeared together at a press conference in London to announce a merger between the two companies. It was emphasized that this was not a takeover by one company of the other, but rather a fusion between equal parties. Schrempp deemed the merger of Daimler and Chrysler “a match made in heaven”.

After two years, Co-chairman Eaton announced his resignation, leaving Schrempp to be the sole head. In 2006 Schrempp passed this position on to Dieter Zetsche. By March 2007 the first speculations began to emerge that DaimlerChrysler would sell the ChryslerGroup.

Since the merger, Chrysler had reduced its net worth by 35 billion Euros, while the net worth of DaimlerChrysler has been reduced by another 50 billion by the end of Schrempp’s resignation in 2005. On May 14th, 2007 the sale of ChryslerGroup to Cerberus was announced. During a special general assembly on October 4th, 2007 it was officially decided to rename the company Daimler AG.

For Mercedes-Benz this merger to DaimlerChrysler AG seriously damaged the company’s image, which many attribute to quality issues and cost-cutting. The leading role which Daimler-Benz AG once had in the auto industry has still not been completely restored.

A study conducted by the consulting firm McKinsey estimated that the company’s value had dropped during Schrempp’s reign by 74 billion dollars.

Check with Colleagues and Manager

Agreements of substance and importance have effects, ramifications, influence on the work of others. And since Americans work in teams, many of them in several teams at any given time, they are not inclined to enter fully into an agreement until they have checked out what those effects might be.

Why invest additional time discussing the details of a potential agreement, if one or two aspects of it are counter to their other responsibilities? Instead, Americans will check with key colleagues in those organizations potentially influenced by the agreement. In many cases, they will also briefly discuss the case with their direct manager.

This approach is often mistakenly interpreted as a sign that many Americans are either incapable or unwilling to make decisions on their own, without having to run to their boss for permission.

American team leads ultimately carry all responsibility for what occurs within their organization, and are therefore keenly interested in what obligations their team members make in their – the team leader’s – names.

On their Own

To be given a task in Germany is a form of advanced praise. It signals that one has the ability to complete it properly. It is a sign of competence. Every new task is also an opportunity to demonstrate that ability, perhaps even to surprise the boss and other colleagues with exceptional work results.

For Germans define themselves very much through their work. Recognition for solid work is for many just as important as compensation. A job well done in the German context, however, is work done independently, on one’s own. Help now and then from the team lead or advice from colleagues are seen as bothersome, unnecessary, possibly even hostile, as a form of doubt that the personal can do solid work, on their own.

Lästig, bothersome. Germans find follow up annoying, both for the team member who has to report on the status of their work, as well as for the team lead who has to ask if the work is being done properly. Both parties believe that they have better things to do. Namely, their work.

Figures of speech: Viele Köche verderben den Brei. Too many cooks ruin the porridge. Dazwischen Funken. Literally, to radio in intermittently. Figuratively, to stick your nose in someone else’s business.

Disagree and commit

Number 25. From 37signals, the company behind the project management software called Basecamp. Classiv American thinking: think, debate, persuade … decide, then commit and support. One of the founders, Jason Fried, is a very interesting person.

First-mover advantage

First-mover advantage is gained by the first significant player in a market segment who gains control of resources that other participants in the market cannot match. Amazon had a first mover advantage over Barnes & Noble. Amazon maintained its advantage by partnering with Borders and extending product offerings into apparel, electronics, toys and housewares.

Rarely is a project, large or small, completed within schedule, within budget and meeting fully, much less exceeding, the specifications of the customer. The business world is seldom that simple. In the American business context quality is more likely to be sacrificed than schedule or budget. Americans expect products and services on-time, and at the price they agreed to. Quality – in the sense of completeness – can be made up for with extra effort.

When it comes to that magic triangle – schedule, budget, quality – the first two usually trump the third, in the U.S.

Trump. A card of a suit any of whose cards will win over a card that is not of this suit —called also trump card; a decisive overriding factor or final resource.

“Good things need their time”

The German expression Gut Ding will Weile haben – good things need their time – states that things which are supposed to turn out good will need some time. This becomes clear especially when important decisions are to be addressed:

“Quality before speed: Merkel pulls the brakes at the introduction of new supervision of European banks.” (Handelsblatt 17.2.2015)

“The German Handball Federation President Bauer: “Quality comes before speed.“ (Lahner Zeitung 20.6.2014)

“NPD-Ban: Quality before speed.” (Hamburger Abendblatt 9.12.2011)