Germany. Geography. Risk.

How a people understands risk is based on its experiences as a people, on the decisions it has made and on their ramifications. Decisions take place within a concrete context, within certain parameters, such as geography. Germany lies in the middle of Europe, has always had a number of neighbors, some friends, some foe, others neutral.

Germany’s topography offers little protection. In the East vast flatlands flow into the steppes of Russia. Never a maritime power, Germany to the north has only narrow access to the high seas. With the exception of the Rhine River, there are also no natural barriers in the West offering protection.The Alps to the south offer protection, however.

Compared to such countries as the U.S., China, Russia, Germany has limited natural resources. The U.S. is a continental nation, defended by oceans to the East and West. Great Britain, once a great power, has forever enjoyed the protection of the seas as an island nation.

Any mistakes Germany made in its relations with its neighbors and the powers beyond was felt directly by its people. Time and again in its history devastating wars were fought on German territory, decimating its population and ravaging its economy. For some of the wars the German people have themselves to blame. For others they were victims.

Risiko or risk from Italian risico: to do something involving a certain degree of chance, with possible negative effects; possibility of significant loss, failure.

Germans often say auf Nummer sicher gehen, literally to play the safe number, when they want to avoid unnecessary risk. Germans prefer to “check twice and be sure”. They check, test, question, analyze. They’re often considered to be overly detailed, risk averse, even pedantic in their approach. Being particularly careful may test one’s patience, but the Germans would rather be safe than sorry.

Or lieber den Spatz in der Hand, als die Taube auf dem Dach, figuratively “better a bird in the hand than two in the bush“.

Nuclear energy? No thanks!

The German anti-nuclear-energy movement began as a social movement back in the 1970’s. It was directed against civilian consumption of nuclear energy. In comparison to other European countries, the movement has also received both the strongest and most continuous support in Germany. The anti-nuclear-energy movement is strongly connected to the environmentalist movement: Greenpeace, BUND and Robin Hood, for example, categorically reject the use of nuclear energy.

The accident on Three-Mile-Island in 1979 and the catastrophe at Chernobyl in 1986 provided the movement with new fuel. In 2000, the Schroeder-Fischer government began the process of phasing out the use of nuclear energy throughout the country.

While in 2010 the Kohl-government was gearing up for an extension of the run-time of the remaining nuclear plants, the German reaction to the nuclear incident in Fukushima in 2011 forced Chancellor Merkel, an advocate of nuclear energy, to reconsider this decision. Germany now plans to phase out nuclear energy completely by May 30th, 2022.

Fukushima ultimately resulted in an acceleration of the phasing-out of nuclear facilities in Germany. One year after Fukushima Chancellor Merkel defended her decision: “As we have witnessed, risks emerged in a highly developed industrial country, which we never would have considered to be possible. That is what convinced me that we should accelerate the phase-out”.

Meanwhile, Japan continues to invest in the nuclear industry. Great Britain is planning the construction of a new atomic plant. Even in France Fukushima could not slow the success of the nuclear industry. And in the USA, Fukushima also had no significant impact on opinions on nuclear energy held by the President and other politicians.

The German anti-nuclear energy movement and the nation’s response to Fukushima demonstrate the unique understanding that Germans have of risk.

Citizens exposed

Towards the end of 2014, the German Postbank conducted a study with the goal of identifying the good policies which Germans enforce with regard to their financial matters. The results were summarized in article titled When it comes to money, Germans are bureaucrats who are afraid to take risks:

“Like a pillar of economic wisdom, the desire to have a higher income looms above all other factors. The remaining results are actually more reflective of the ‘financial illiteracy’, which the Germans are already often credited with.

In this way, the study exposed the citizens as being fearful bureaucrats, who above all just want to increase their personal wealth through taxation, saving, and maintaining better control of their finances, rather than earn money through smart investing, or saving for retirement.”

Risikoscheu – A fear of risks: The attribute of a decision-maker to prefer the path of lesser risk – and thereby most minimal loss – when confronted with several alternatives which have an equal anticipated gain. This may mean waiting longer for the same reward, or even settling for a lesser gain, if the chances are greater that it will be received.

Complexity costs money !

March 13, 2015. Frankfurter Allgemeine Zeitung (FAZ), Germany’s leading daily newspaper. Wirtschaft (business section). Page 20. An image takes up almost the entire bottom half of the page. All sorts of computer equipment wires tangled up in a ball.

The background colors are dark, heavy. “KOMPLEXITÄT. Kostet Unternehmen im Durchschnitt 10% ihres Gewinns.” (COMPLEXITY. Costs companies on average 10% of their annual profit)

Page 21. To the right. Another image. Again, just about the entire bottom half of the page. A young woman, perhaps thirty years old, sits in jeans and a blouse, with a tablet in her hands. Half-smiling, focused. The background colors are yellowy, bright, hopeful. “EINFACH. Hilft sparen.” (SIMPLICITY. Helps saving).

At the bottom left of the secon ad: the well-known SAP logo with their motto: Run Simple. SAP. German. One of the world’s leading enterprise software companies. The message: We know how to handle complexity. Let us do it for you.

Theoriekapitel

Theorie is theory. Kapitel is chapter, as in a book.

In German universities it is expected not only in B.A. and M.A. theses, but also in course term papers, that the second chapter, after the introduction, be devoted to theory, the so-called Theoriekapitel.

In it the author demonstrates that she is aware (conscious) of the complexity of the subject matter, that she understands that subject matter in the broader context of current research on it, and most importantly that she can durchdringen (penetrate) that complexity.

Analysis

A separation of a whole into its component parts; the identification or separation of ingredients of a substance; a statement of the constituents of a mixture; proof of a mathematical proposition by assuming the result and deducing a valid statement by a series of reversible steps; an examination of a complex, its elements, and their relations; a method in philosophy of resolving complex expressions into simpler or more basic ones.

In their curriculum vitae (resumé) German job applicants highlight their analytical abilities, knowing well that German employers value those skills especially.

Holistic

Especially important to Germans is explaining connections, relationships and interdependencies. This signals that the presenter has understood the subject matter in its entirety. A holistic understanding, in turn, is based on a clear, methodical, systematic approach.

In contrast, a particularistic approach – breaking down complexity into its component parts and focusing on the most important – gives the Germans the impression that the whole has not been sufficiently understood.

Germans are taught at a young age to look for connections, relationships and interdependencies. Teaching methods and materials in primary schools stress analysis and discussion of the bigger picture. An approach based on particulars and examples is used with only younger pupils.

The focus on the system – on relationships and interdependencies – is further developed at the university level. Both at the beginning and the end of any presentation, whether written or oral, the subject and the analysis results are placed in their overall context, including analysis from related fields of study.

Turnkey systems

A turnkey solution is a total solution which allows the user to “turn a key and the system is ready to go”. Originating in the IT sector, turnkey systems include all necessary hardware and software. They are typically developed by original equipment manufacturers (OEM).

Germans prefer turnkey systems, as the receiver of the system, whether they are in the buiness-to-consumer or business-to-business context. Conversely, Germans prefer to develop and market turnkey systems. In fact, many German manufacturers will go as far as to make their own tools and machines, in order to make the products they then sell.

Auskunftspflicht

Auskunft, information. Pflicht, obligation. Auskunftspflicht. The obligation to inform.

When persuading (presenting, informing, describing), the Germans believe that they have an obligation to present all of the facts. The good, the bad. What works, what doesn’t work.

They do not believe that they should wait until critical questions are raised, exposing the negative or downside of what they are presenting or proposing. Competent, professional and honest are those who forthrightly reveal the less positive.

Are Germans more honest than others? Perhaps. Perhaps not. Who can judge? Not our topic.

If you are presenting to Germans, and they find that you have not forthrightly addressed serious weaknesses in your argument, proposal, concept, solution, they can draw one of two possible conclusions. Either you are not fully competent. You did not identify and address those weaknesses. Or you are well aware of them, do not have a solution, and have therefore attempted to hide, ignore or avoid the discussion.

Neither conclusion reflects positively on that presenter. The German audience is not only not persuaded. Far worse, the presenter has lost credibility. Germans have a shared logic. The presenter should address both the positive and the negative. And not wait for critical questions which tease out the negative. Auskunftspflicht. The obligation to inform.

Low Prestige

Sales is given low prestige in Germany. People in general do not like to sell. Germans even less so. High prestige in the German business world is enjoyed by the natural sciences, engineering, manufacturing, law, and until recently, banking and finance. The disciplines of sales, including account management, and marketing enjoy less prestige.

King in Germany is knowledge, research and development, invention, production. Germans in general believe that a product should sell itself. Who needs sales/marketing? Verkaufen – German for selling – begins with ver, the prefix to many German verbs which have a negative meaning.

See Heinz Erhardt, one of post-war West Germany’s most beloved comedians and actors.

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