Process – understand-culture

Customer Reviews

Customer reviews can make or break a company in the US. Especially now that the internet gives customers a way to instantly compliment or complain about service (and to make sure that their opinion is available for anyone to see) one good or bad review can drastically change the number of customers a company has.

In 2012, after Brandon Cook from New Hampshire posted a Facebook story about a Panera manager named Sue making a special order of clam chowder for his grandmother and giving her a free box of cookies as well. The restaurant became much more popular. Several people who would not otherwise have eaten at this restaurant went there, and commented about it online. Some of the Facebook comments that people made were:

Cyrus Twirpwhirler: “My family is eating at Panera tonight because of this story. Way to go Sue and Panera! Snow Case: That is so cool, I’m a customer already, but I like them even more now. Daniel Julian: That is so cool!!! Have to visit Panera soon.”

Deviation from prozess goal

In 2011 PwC presented the results of its study Zukunftsthema Prozessmanagement – literally Future Topic Process Management, which surveyed its current state in German companies.

95% of executive management in Germany agreed that business process management was either important or very important to their success. Process management has become a critical function at the corporate level.

At the same time only 5% of those surveyed said that their process management was well developed. 46% of the companies did not have a clear plan on how to react to process deviation. Only 12% claimed to have an established mechanism for handling deviation from the most critical internal business processes.

While the study documents how much room for improvement there is in the area of process management governance, it was equally clear how flexibly German companies react to process deviation. Which, in turn, contradicts the cliché that Germans have a process for everything and always stick to the process.

Much unease

Americans become very uneasy whenever they see their German colleagues address processes with their characteristic intensity. German process discipline is almost synonymous with rigidity.

Another, more careful, look reveals, however, a contradiction. On the one side, German processes are generic, theoretical, complex and seemingly not fully focused on the goal. On the other, Americans have the sense that Germans expect processes to be followed by the letter. They ask themselves how they are supposed to follow a process which is hardly described?

German procedures are also generic and not spelled out. The Germans take this as a signal to decide independently, to make their own judgement, in a given situation. Instead of requesting input or permission from their manager, they either decide themselves or discuss with an experienced colleague how to handle a given procedure within the context of its process.

To the Americans this represents a severe breakdown in process discipline. They have little understanding, thus tolerance, for processes or procedures which allow for so much independent action when that action can lead to mistakes, errors, problems, to an domino effect.

Definition of processes

Ein Prozess ist ein Satz von in Wechselbeziehung oder Wechselwirkung stehenden Tätigkeiten, der Eingaben in Ergebnisse umwandelt. A process is a set of activities which are interrelated, interdependent, influence each other mutually, and turn inputs into results.

The Bavarian Ministry for Commerce defines a process as: „The sequence of all activities which are linked with each other and convert inputs – based on customer requirements, legal boundary conditions, market demands – into a desired outcome.“

Simply put, a process is a set of work steps, which are sequenced logically, that have a beginning and lead to a specific desired outcome.

Processes provide clarity

Processes provide clarity. They allow employees to concentrate on core activities. They lead to cost reductions by identifying and eliminating unnecessary work steps. Thinking in terms of processes – how the work should be done – strengthens conscientious work and allows for quality control.

Well documented processes are critical for orienting new employees. Processes make transparent, make understandable, each and every segment of complex work methods. They are the basis for optimization, for reducing mistakes, for root cause analysis of systemic errors. All of these benefits lead to increased product quality. Work processes, however, must be understood and accepted by those doing the actual work.

In Germany it is critical that processes do not take on the character of laws, but instead remain guidelines. German workers expect a certain level of freedom in terms of how they perform their daily tasks. Processes should not become a kind of straightjacket.

Deductive reasoning

In mathematics, if A = B and B = C, then A = C. Since all humans are mortal, and I am a human, then I am mortal. All dolphins are mammals, all mammals have kidneys, therefore all dolphins have kidneys.

Since all squares are rectangles, and all rectangles have four sides, so all squares have four sides. If Dennis misses work and at work there is a party, then Dennis will miss the party.

Purpose of processes

Procedures, policies, guidelines, compliance, and other types of structure. In the end, however, most business cultures would agree that the purpose of processes and procedures is to structure how the work should be done, and allow for repeatability, consistency, and quality control.

Processes as a success factor: If asked which are the key success factors in any enterprise most Americans would name: market/customer orientation, innovation, speed, price, service. Seldom, if ever, would they cite internal business processes.

If American customers were asked which factors are key to them when choosing a product or service they would name, among others, value and service. Value is the relationship between quality and price. It would never occur to them to say the internal business processes of the company whose product or service they are purchasing (or workmanship).

In other words, although American companies have many processes and procedures, Americans are not inclined to believe that these will ensure success.

Books about process

For “business processes and procedures” amazon(dot)com returned 1,800 titles. “business process management” yielded 26,000 books.

And “business processes” led to over 490,000 book titles.

Four hundred and ninety thousand. That’s a lot of books. Does this mean that Americans consider internal processes critical to the success of companies?

Checklists

Checklists. To-do lists. Cookbook-like recipes. “Americans don’t really understand what they are doing and why. They are not trained, nor are they allowed, to think independently. There is no real mitdenken, thinking with.”

Not uncommon sentiments among Germans who interact with Americans. A misperception. Partly. Partly not.

Checklists are practical, pragmatic. They free up the mind to concentrate on more important things. They allow for self-supervision, for checking, if necessary for double-checking. They minimize unforced errors. They structure work.

For folks who do the same thing, the same way, time and again, for years, with the same colleagues, checklists surely are unnecessary. These folks can think for themselves, independently. People same. Think same. Do same.

But what about those who do different things, at different times, in different ways and with different people? Checklists become both tool and metaphor for how to manage the differences, the change, the flux.

America is constantly challenged by flux. An immigrant nation. Influx of peoples from different backgrounds, with different skill sets, levels of education. Some craftsmen. Others semi-literate. Some rooted to the land and permanent. Others who move every couple of years.

Add to this the American belief in learning by doing, and checklists – in the sense of detailed descriptions of how to do the work – become a necessity, a helpful tool, management’s assistant.

Germans learn the checklists in their extensive theoretical training. Duales Ausbildungsystem. Dual training. Over many years. Only then are they permitted to do the work. Americans learn just enough to be permitted to learn by doing. Same goal. Two approaches. Timing about the same.

Oh, and let’s not forget. Sometimes government bodies simply impose checklists.

Day planners

Early in American history, it was not uncommon for people to use almanacs as day planners. Many of the founding fathers, including George Washington, would buy almanacs and then add their own blank pages to serve as a diary and record of their daily activities.

The first book that was specifically marketed for use as a day planner was published in Philadelphia in 1773 by Robert Aitken. It was called Aitken’s General American Register, and the Gentleman’s and Tradesman’s Complete Annual Account Book and Calendar, for the Pocket or Desk for the Year of our Lord 1773, and was unsuccessful in the publishing world. Nevertheless, by 1850 day planners and their various incarnations (diaries, scrapbooks, ledgers, account books, etc.) were extremely popular.

In 1900, business innovator John Wanamaker decided to produce day planners with his store catalog and advertisements from other companies. These planners became very widespread and were a contributing factor to Wanamaker’s business success.

Today day planners are still extremely popular. Although sales of paper planners are dropping, sales of electronic planners are strong, and there are still many organizations that successfully market day planners to the American public.