Germany Archives - Page 27 of 62

Frederick August the Procrastinator

Frederick August, the King of Saxony, was one of history’s great procrastinators. While he began as one of Napoleon’s greatest foes, he soon became his greatest ally. In return, Napoleon elevated him from prince elector to king.

But by 1813, his alliance with Napoleon would cause him to lose the Battle of Leipzig. Though Frederick August was careful in attempting to side himself with the great forces who opposed him, a treaty that he had made with Austria eventually dissolved. Taken into captivity by the Prussians, Frederick August was forced to turn more than half of his territory over to his archrivals.

But why was Frederick August on the losing side of the Battle of Leipzig? Historians consider him to have been incapable of making decisions. He is credited with coining the phrase “no decision is better than a bad decision.”

During the revolt he spent his time sitting almost apathetically in the basement in the city hall of Leipzig. To add to the confusion, Frederick August was an exceptionally unpredictable monarch; very few rulers changed their mind so often.

Not only was he incapable of making decisions, but as soon as a decision was made it essentially would have lost all meaning in the moment of its creation, having already been undermined in significance and seriousness by the probability that Frederick August would again change direction.

“Don’t be pushy!”

Martin Wehrle, a German managment coach, writes career-articles for DIE ZEIT. In a recent article he advises: Nicht aufdrängen! – Don’t be pushy! He notes that many job applicants are far too aggressive, as early as in the initial sentences of their cover letter.

“Because I am a perfect fit for the position, I am sending you my application ….” Starting off like that almost guarantees an immediate rejection, writes Wehrle.

Instead of allowing the reader to make her own judgement, the applicant makes it for them. Personnel departments want to make their own decision who is right for the company. That’s what they get paid for.

Wehrle recommends: “Intelligent applicants act like witnesses before a jury. They don’t push the jury to a decision. Instead they simply state the facts, objectively.

The more objective the witness comes across, the more they are believed. The best applicants don’t speak for their application. Their application speaks for them.

“Pie in the sky“

Jemandem das Blaue vom Himmel versprechen – to promise someone the blue of the heavens – is to promise the unreachable. It is an attempt to persuade via promises which have”weder Hand noch Fuss – neither hand nor foot.

To exaggerate, to paint a rosy picture of future developments is not in any way convincing to Germans. This might be one of the reasons why they are so sceptical about utopias of every kind.

Every fifth DAX share

German investors have a safety first mentality when it comes to money. Their aversion to risk is often attributed to the economic turmoil of the 20th century. The hyperinflation of the 1920s and the devastation of two world wars have burned themselves into the nation’s psyche.

Since early 2009, the share prices of DAX-listed companies have tripled on average — an increase of €800 billion, or $860 billion. Germans park their money in safe investments like savings deposits or life insurance policies.

54.3 percent of shares in the DAX are held by foreign investors — more than ever before. U.S. investors are the biggest single group of foreign investors. Every fifth DAX share is owned by North American investors.

Anstupsen

anstupsen – to nudge, to prod.

In a January 2015 article in DIE ZEIT Tina Hildebrandt writes critically and with irony about the Merkel government engaging experts in order to study what makes the German people happy, and how to move them in that direction. Anstupsen is what the experts call their method.

The experts are developing kleine Entscheidungshilfen – little decision making aids – to prod German citizens in that direction. That is precisely the problem, Hildebrandt writes: “An administration should persuade, not nudge.”

The article demonstrates how quickly Germans get angry when one tries to push them in a certain direction even if only with the help of “little decision making aids.” The slightest suspicion that any action aims to get a decision is immediately counterproductive.

The Germans sense any form of nudge or prod as drängen – as pressure, as pushing. Germans want to be persuaded. And when they make a decision they reject any kind of outside influence.

Business failure is Personal Failure

The Handelsblatt Global Edition from April 23, 2015 reported: Philipp Gloeckler’s business idea was a failure, and he doesn’t mind admitting it. He had what he thought was the perfect concept, an impeccable business plan and great press coverage. Yet, his app, Whyownit, was a disaster.

This is how he found himself at the F***UpNight event in Berlin, a get-together where failed start-up entrepreneurs pick through the bones of their mistakes in the hope that they can do better next time.

“Business failure is often equated to personal failure in this country,” said Rolf Sternberg, a researcher at Leibniz University in Hanover, who recently co-authored a study on young entrepreneurs. “We would win a lot if we would accept failure as a new chance,” he added.

Other than SAP, the software giant founded in 1972, no German tech company has made it onto the global stage. Instead German entrepreneurs are better known for their pursuit of perfection, and finding success within established structures, such as the car industry.

“I am convinced we need to talk about mistakes,” said Béa Beste, whose toy app, which allowed users to subscribe to a toy delivery service for kids, collapsed with the loss of all her investor’s capital as well as her own €300,000 ($322,000). “The worst mistake is being afraid of mistakes,” Ms. Beste said.

Venture capital is scarce in Germany’s risk-averse, conservative economy, so entrepreneurs usually turn to bank loans for funding. But if their business fails and debts are called in, they must go through a lengthy insolvency process which can demand up to six years of “good conduct” before the slate is wiped clean.

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.

Root Cause Analysis

Root cause analysis is a problem solving method which identifies the original cause of error, as opposed to simply addressing the symptoms.

Root cause analysis is critical in those areas in Germany where sustainability is important, where seemingly minor mistakes can lead to major damage, where error occurs time and again, especially in technical areas. Every type of quality analysis relies on root cause analysis.

If products are returned as defective, roots cause analysis is employed immediately. Each and every form of research and development works at the root level. Where more is required than treating symptoms, root cause analysis comes into play.

Führen mit Auftrag

Führen mit Auftrag, a multifaceted leadership concept roughly translated as Leading by Mission, has been the foundational leadership principle in the German military over the last two hundred years. It has its roots in the famous Prussian Reforms of the early 19th Century when the Germans did a comprehensive root cause analysis of why they were so suddenly and thoroughly defeated by Napoleon‘s armies.

Führen mit Auftrag – leading by mission – is how Germans define Menschenführung or leadership of men. The officer issues to his troops a mission, a goal. It is generally formulated, includes a time component and an indication of forces required. It is then up to the next level to devise how they will complete the mission independent of their leadership.

Unique about Führen mit Auftrag is the degree of freedom on the tactical level given to those issued the mission. As long as they complete the overall mission, they decide independently which approach is best, including significant adjustments to possible changes in the situation. Required at the tactical level are flexibility, creativity and executing independent of next-level leadership.

Of critical importance to Führen mit Auftrag is that the tactical level understand clearly and thoroughly the strategic thinking of their commanding officer, and are trained to act independently of that commanding officer, yet in the spirit of his strategic intent.

Those on the tactical must also possess both good judgement and the will to make independent decisions. They must have a strong sense of responsibility and duty. The commanding officer, for his or her part, must make their strategic thinking clear, transparent and understandable for those on the tactical level.

“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.