Leadership – Page 7 – understand-culture

Command or Auftrag

A command, an order, an Auftrag are all forms in which military commanders communicate their intent. They are different in character, however. Commands and orders are strict, well defined, to be executed as stated. An Auftrag is the least strict in the sense of prescriptive, of defining the how as well as the what.

A command or order allows for little freedom in defining the how. A command defines the what and the how in detail. An Auftrag describes only the goal, thus allowing freedom to choose the best path to it. An Auftrag communicates intent, clearly and within the broader strategic context.

Depending on the situation, the line between an order and an Auftrag is in flux. The core of an Auftrag is the what. It can, though, include parameters such as the when and the where. The more detailed an Auftrag is about the how, the more it takes on the character of a command or order.

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?

“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.”

Kareem about Wooden

One of the greatest scorers in the history of NBA basketball in the United States. Kareem Abdul-Jabbar, formerly Lew Alcindor. An intelligent, very thoughtful person. On and off the basketball court.

He, like so many other players at UCLA – University of California Los Angeles – who played under coach John Wooden, was greatly influenced by Wooden.

In this talk Abdul-Jabbar speaks about the great strengths of John Wooden. Not only in how he formed great basketball players and teams. But more importantly how he formed young men. And they were as players at UCLA young men between the ages of 18 and 22.

Why is this post listed under Germany instead of the USA? Because Wooden’s approach to coaching is more indicative of the German leadership logic than of the American.

Wooden did not coach his players during the game. He gave only some very general instructions. Instead, he allowed them to apply what he had taught them during practice.

John Wooden always referred to himself as a basketball teacher. By the way, the official professional name for a soccer coach in the German Bundesliga is Fussball-Lehrer, literally soccer teacher.

How to Be Like Coach Wooden: Life Lessons From Basketball’s Greatest Leader, by Pat Williams (2006, with David Wimbish): “He (Wooden) always focused on the details. He was a teacher who happened to be a basketball coach.”

German Leadership Style … wrong !

Here we go, another misreading of German leadership logic. See correction in ( … ):

“In Germany there is a clear chain of command in each department, and information and instructions are passed down from the top. (no, it goes in both directions) This does not mean, however, that German management is exclusively autocratic (not only not exclusively, not autocratic at all): while the vertical structure in each department is clear, considerable value is placed on consensus.

Equally, the German striving for perfection in systems and procedures carries with it the implication that the manager who vigorously applies and monitors these is showing faith in a framework that has proved successful for all.

Accordingly, German managers motivate staff by showing solidarity with them in following procedures. They work long hours (wrong), obey the rules (a cliché, often Germans will go against or ignore a process or procedure) and, though expecting immediate obedience (a terrible cliché, as if Germans were dogs), insist on fair play. For their part, German employees welcome close instruction (actually it’s the opposite, they want generally-formulated tasks, and not specifically/detailed-formulate orders): they know where they stand and what they are expected to do.”

Line between Strategy and Tactics

An Auftrag implies a certain distance between team lead (who issues the mission) and team member (who completes the mission). This distance is part of a shared logic. The focus is on the mission and less so on the relationship between team lead and team member. The team lead transfers responsibility for the mission‘s completion to the team member.

The team lead as Auftragserteiler – mission issuer – focuses primarily on issues at a higher level than on the particular missions of the team. The team member as Auftragserfüller – mission completer – is willing and capable of defining the how and completing the mission in the spirit of the Auftrag. The team member takes ownership of the mission, works independently, is in a sense more partner than employee of the team lead.

Naturally team leads and members are constantly adjusting the line between what is strategy (responsibility of the team lead) and what is tactics (responsibility of the team member). In the German context, however, this line is set rather high, meaning the team lead formulates the mission consciously in general, less specific terms. This gives the team member maximum freedom on the tactical level.

And although there will be variations in where German team leads and members draw that line between strategy and tactics – based on the people involved, their experience working together and the nature of the work – the logic remains constant:

The German lead purposely avoids adding to the mission statement any kind of recommendations or specifications about how the mission should be executed (tactics). The how is the responsibility of the team member. It is expected of her/him that they complete the mission independently and without unnecessarily drawing on the team lead‘s time and energy.

selbständig – independent

“The team at Minderleinsmühle opened up their hearts to me. From the first minute onward I felt very comfortable. In my area I work independently. My colleagues, however, are always there for me should I need help. Every day I learn something new.” Anna, Intern in Quality Control, 2019

Minderleinsmühle near Nuremberg, Germany. From their website:

“Our mueslis & cereals, pastries, sweets, chocolates and snacks stand for high-end quality, sustainability and best taste. Under leading of the Hubmann Family, the Minderleinsmühle was arisen from a craft mill with connected agriculture to an established manufacturer in the sector of organic food. As a grown enterprise with a vision, we unify craftsmanship and experience with technology and innovation.”

Führen im Auftrag – Quotes

“The mistakes of senior commanders are often rectified by the troops below.” Carl von Clausewitz (1780-1831), Prussian General, author of On War.

“In reality, the Germans owe their final victory to the enormous amount of independently-minded and innovative junior-officers in all positions all the way down to the very lowest ranks.” Russian General Woide on the Franco-Prussion War of 1870/71

“War demands iron discipline of troops and exceedingly tight coordination of forces. In the heat of battle, however, of highest importance are officers and soldiers trained to think and act independently and spontaneously.” Prussian officer training manual of 1906

“Führen mit Auftrag is an extraordinarily broad and involved term, which includes all-encompassing aspects of current doctrine concerning the essence of war, characteristics of leadership, tactics, the leadership of troops, the relationship of senior to junior officers to each other and to soldiers, as well as training and education. In addition, these aspects are formulated systematically in a way which allows them to both mutually support each other and to make them inseparable.” An American Officer (1987)

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.

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.