Agreements – understand-culture

Why is there no sense of urgency in Germany?

Question

“Why is there no sense of urgency in Germany?”

Answer

„Urgent“

MerriamWebster defines urgent as: calling for immediate attention, pressing. Among its synonyms are: burning, compelling, critical, dire, imperative, acute, immediate, crucial. Among its antonyms are: incidental, low-pressure, minor, negligible, trivial, unimportant, non-threatening, safe, stable.

When it comes to urgency, Americans and Germans can diverge in two fundamental ways:

What is urgent?

A situation which Americans might interpret as requiring urgent action might very well be one in which Germans do not see the urgency. This difference could be based on a few, several or many factors, each of which need then to be clarified between the two parties. A common, but not simple, situation is when a customer demands rapid reaction. Speed.

Because Americans and Germans differ in how they understand what makes for an optimal relationship between two business partners – customer and supplier – an American is far more likely to view a customer request as urgent, especially when that customer communicates their urgency, than a German would view that request.

How fast is responsive?

If Germans and Americans agree, at least to a working degree, that a situation requires urgent action, there are nonetheless differences in how both parties define what is fast, slow or just the right reaction time. We know that the two cultures define differently short- , medium- and long-term. This difference is equally at play when it comes to responding to a matter, problem, request, situation.

In other words, agreement on the urgency of the matter does not guarantee the same reaction times. For Americans it could be within three days (including weekends and holidays), whereas for their German colleagues it could be ten days (not including weekends and holidays).

Haste

Another way to look at this is to contrast what in each culture is considered to be haste or hasty action. MerriamWebster define haste as: rapidity of motion, swiftness, rash or headlong action, undue eagerness to act. Among its synonyms are: fastness, fleetness, speed, hurry, quickness, rapidity, rapidness, speediness. Among its antonyms are: slowness, sluggishness.

The Germans are no fans of haste. In fact, hasty action is in their culture often a sign of ill-preparedness, poor planning, acting before thinking. Germans are methodical, careful, thoughtful. They prefer to get whatever they do right the first time. Any kind of rework, and change in direction, they calculate into their original reaction time.

„To turn on a dime“ ― an American figure of speech meaning the ability to change directions quickly, deftly and whenever necessary ― is a quality Germans respect. However, for them it is often a strength necessary primarily because a suboptimal decision has been made.

Shared Logic

It is important to keep in mind that within a well-functioning society ― like the German and the American ― there is a shared logic in those areas which are fundamental to their respective stability, success and future.

A culture‘s, therefore business culture‘s, understanding of urgency is shared by all who interact with each other. Whether a given situation is urgent or not, and if so, to what degree, is defined by a common cultural understanding of what is important (urgent). And that understanding is shared by people on both sides of the transaction: colleague to colleague, team lead to team members, customer and supplier.

In other words, what in the American business context is considered urgent, or very urgent, or extremely urgent, or absolutely asap, might be considered in the German to be less so, or even not at all. As long as the two transactional parties are in synch with eachother, the urgency will be handled properly.

And vice versa. Now, Americans can often be perceived as not responding to the urgency of a situation, „urgency“ in the sense of the problem, which if not addressed, could lead to constant and long-term negative effects. Quality – whether it be in a physical product (craftsmanship) or in work results (competence) – is so critical to Germans, that almost anything related to it is urgent, permanently urgent, day-in and day-out.

Who‘s faster?

Stated simply, but accurately, Americans break down complexity into into its component parts in order to focus on what is essential. This allows for focus, rapid reaction, and calculated risk taking. Sharply delineated decisions – isolate and keep narrow in scope – can be made quickly, and revised just as quickly, depending on immediate outcomes as well as on external factors over which one may have little to no influence. Americans consider flexibility to be one of the most critical success factors of any human endeavor.

In contrast, Germans link decisions together. They then analyse the decision – in reality several decisions – carefully, methodically, taking into consideration many, if not all, influencing factors. Germans think through, then act.

When they do then decide, they remain firm, are not easily pushed off their path, consider external factors, but stay on course. For some they maintain their composure, for others they don‘t recognize when (or are too stubborn) to change course.

Who handles urgent matters more effectively?

Certainly each would claim that they do. And each side has valid arguments. But, in many cases they are comparing apples with oranges, or perhaps more accurately, apples with pears. Americans isolate, analyze pragmatically, move fast, react just as fast, change course as often as is necessary in order „to get the job done.“

Germans connect, analyze deeply and stringently, more slowly, but when they do, they do so on many fronts at the same time. They stick to their course or action, and change only if convincing arguments can be made that their original decision making was flawed.

From the American perspective, the Germans can be terribly slow, plodding, unresponsive, almost incapable (or unwilling, or both) of responding with a sense of urgency. From the German perspective, Americans are often cowboys, „shooting first, then asking questions“, or „going through the wall with their heads“, hasty, impatient, making mistakes left and right and calling it euphemistically „turning on a dime.“

clearly define roles and responsibilities

Question

“Although I have worked with German colleagues for 15+ years in a global context, I still see the strong push from them to clearly define roles and responsibilities. This occurs with people who have already established trust and confidence in working together, as well as with new colleagues, and when timelines are short.

Where does this need for such clarity come from, even prior to beginning any work towards the objective? How can we balance this need with the need to react faster in the market?“

Answer

I can attest that in the German business culture there is a very high need to define as clearly as possible who does what, meaning roles and responsibilities. German organizational charts should be taken very seriously, for example. They are always up-to-date, carefully constructed, and accurate in portraying how a German team is set-up.

And yes, the Germans come together on a regular basis to establish and maintain a common understanding of who does what, and who does not do what. Why?

Germans work independently

For one, the Germans work – and like to work – independently. They define the team structure, the tasks to be completed, roles and responsibilities, lines of communication, key processes, etc., then they go to work. The frequency, duration, depth and nature of their communication during the work is different than in a comparable American team.

The more independent the team members work, the more important it is to clearly define roles and responsibilities up front. If done well, it leads to speed, quality and efficiency. A high level of clarity about roles and responsibilities is especially important when timelines are tight.

This is not a paradox. Nor is it a paradox when German colleagues who know and trust each other well also focus intensely on first clarifying roles and responsibilities.

Germans encroach

There is another purpose, I believe, in the German context for putting so much time (as judged from the American perspective) into clarifying who does what. The Germans have a tendancy to enroach on each other’s area of responsibility, on each other’s mandate, work scope, roles and responsibilities.

Merriam-Webster defines encroach as: To gradually move or go into an area that is beyond the usual or desired limits; to gradually take or begin to use or affect something that belongs to someone else or that someone else is using.

The path to success (promotion, prestige, higher pay) in German companies is usually via size. The larger your organization, the larger its revenues, the more people it has, the greater its scope (roles and responsibilities), the better.

Germans can be very territorial, which means they are to a certain degree wary of each other. They are careful to “protect their garden”, as they say. Protect from encroachers.

I believe – without being a psychologist of the German people – that it is very important for Germans to be able to say: “This is my job. It belongs to me and to no one else. I own it. And no one else will take it away from me.”

Americans don’t encroach

Americans, on the other hand, also value the importance of clarity in who does what. They approach it more fluidly, however. They prefer to get only a required degree of clarity in order to then get started with their tasks quickly, knowing that through the actual work they will gain on-going clarity about roles and responsibilities.

Secondly, Americans are far less inclined than Germans to encroach on each other’s work scope. Americans in the workplace certainly aren’t angels, nor are the Germans devils. But Americans have very low tolerance for internal bickering about who does what.

American team leads reserve the right anyway to “move players around on the field”, meaning making constant adjustments to who does what.

Finally, the way in which teams in the American business culture operate requires that flexibility in roles and responsibilities. Any restrictions or overly-defined internal rules inhibit rather than enable rapid-reacting teamwork.

Depending on the team, individual tasks meld together, overlap, work so closely hand-in-hand that clear lines of delineation between them would be difficult to define.

Two cultures. Two approaches to clarifying who does what. Plenty of potential for misunderstanding, problems, suboptimal collaboration.

“How can we balance this need with the need to react faster in the market?”

I think you may know my response to the question. Sit down together. Address the issue. Step 1 – Understand the respective cultural approaches. Step 2 – Combine the inherent strengths of both.

Not specific enough?

Ok. Get clarity on who does what at a basic level, the fundamentals. Talk it through thoroughly. Your German colleagues will expect it. Do it with them. It won’t kill you. In fact, it will give you deeper insight into how they work.

Then remain in constant dialogue for the duration of your collaboration on those areas not clearly defined: the overlaps, the hand-offs, the grey areas. That’s where the potential for misunderstanding and friction will occur.

It’s also where the critical questions of your teamwork will pop up. It’s where collaboration actually takes place. It’s where you’ll either succeed or fail together.

Respond more quickly

Question

In the U.S. market everything is done in a hurry. Shipments come from Germany. We in the U.S. want to know when the shipment will arrive. Germany: “I did my part, can’t help you.” We have to chase down the shipment. Where is it in the process? Our minds explode. Germany: “Just trust the system.” U.S.: “That is not an answer for us. Please, show me where it is in the process.” How can we get our colleagues in Germany to respond more quickly to our needs?

Answer

“Just trust the system” is the German way of saying: “Relax. Calm down. We’re working on it. Our internal processes function well.” American minds explode. It’s true. Those are not legitimate responses for Americans. Why?

Because German processes – the system – don’t work, don’t deliver results, don’t get shipments out in a timely manner? Maybe. But maybe not.

I’ll never tire of writing that Germany is the fourth-largest economy in the world, is the size of the US state Montana, and has only eighty million people. Which means that Germans do get shipments out, and on-time.

So, what’s at play here?

Well, possibly in this German company, in a particular division, the system is not delivering, cannot be trusted. Not all German companies, and not all divisions within German companies, are so-called hidden champions. Some, perhaps more than some, are simply slow, unresponsive, and bureacratic. “Our minds explode.”

But wait, it could also be that Americans don’t place much trust in processes. Relying on a process in crunch-time is never an option. Wait, what does that say about American processes?

And let’s keep in mind that cultures – i.e. USA and Germany – often have a different understanding of what urgent means. Urgency is also related to the so-called magic triangle – price, quality, schedule.

Ask our German colleagues to respond more quickly without annoying them

Question

How can we ask our German colleagues to respond more quickly without annoying them?

Answer

Explain to your German colleagues what time looks like in the specific situation. Lay out the cause-and-effect relationships, i.e. if late by this much time, then this happens.

Prepare, and inform them about, contingency measures you will need to implement in order to react to the negative consequence of lack of speed.

Ask your German colleagues if there is anything you can do to help them to move faster. Offer suggestions on how you might be helpful in speeding things up.

Finally, and very importantly, reflect on your need for a speedier response from your German colleagues. Is speediness truly important? Who and/or what is driving speed as a priority? Is it a real or a perceived need?

Is your customer – whether corporate-internal or -external – really demanding it? In fact, why not ask your customer? Do you have the courage to ask your customer what is truly important to them?

If you do not have the courage, why not? What kind of business relationship is it if you feel that you cannot ask such questions?

Perhaps there are good reasons for you to be patient and/or for you to ask your customer to be patient. Perhaps because you and they will receive a higher quality result from Germany. “Patience is golden” and “Haste makes waste.”

Clarity up-front

Question

“Before making a commitment our German colleagues like as much clarity as possible up-front. However, developing opportunities in the U.S. business context is an ongoing, interative process together with the customer. The goal is to understand and define their needs.

In other words, the nature of the commitments with the customer can change during the process of iteration. Add to this the American inclination – and it is a shared logic among both customers and suppliers in the U.S. – to take a “Yes, let’s give it a try” approach.

How can we get the two logics to work together in order to serve the customer?”

Answer

The question imbedded in the question above is the following:

Entering into commitments in the American business context is an on-going, iterative process. Americans, both customers and suppliers, reserve the right to at any time back out of a commitment or to end it at any stage.

This is why an iterative approach is taken. Iteration – moving in smaller, incremental steps – allows for flexibility, for changing direction, for adjusting to changing parameters. In the American culture there is seldom such thing as a commitment written in stone.

This is why a high level of communication between customer and supplier is critical to the success of that relationship. Both parties are operating in a dynamic environment with all sorts of factors over which they have little or no control.

There is no getting around this reality. It is in the air that Americans breath. No German, or any other culture’s, approach will change it. Nor should it be changed. It is the American approach and it works well for them.

Key will be, as always, to help the German colleagues to understand this deeper-lying logic in the U.S. You have no other choice than to take the time to explain the American logic.

Once they have understood that logic, or at least are open to its legitimacy, you need to then discuss with them a joint response. Define together, on a case by case basis, how you both interate with customers – American colleagues in the U.S. – and how you will then iterate across the Atlantic.

If you and your German colleagues have a common understanding of the cultural differences between Germans and Americans regarding agreements, information needs, whether up-front or iterative, then you can work out the details.

Accept the German need to have a lot of information up-front. Don’t fight their logic. Work with it. For example, break down commitments into micro-commitments. Then ask your German colleagues what information they need up-front in order to commit to an early-stage piece of a commitment.

In other words, break down a larger commitment into pieces or stages. Then move, together with your German colleagues, stage for stage. Do not be shy about asking them what kinds of information are critical vs. nice-to-have.

A final point:

Germans do not feel comfortable with the American “Yes, let’s give it a try” approach. In fact, learning-by-doing is viewed negatively in German. It’s a sign for: not having learned something, not being trained properly; taking unnecessary risk; making things up as you go along; poor planning.

You need to explain to your German colleagues the following key points regarding learning-by-doing:

First: in many situations there is no other choice but to experiment.

Second: often the risk, the downside, of learning-by-doing is minimal.

Third: Americans customers, as Americans, feel comfortable with learning-by-doing. It has led to positive results for them. They learn important things. Which often has made the efforts very worthwhile.

Germans prefer to deliver complete results

Question

Germans prefer to deliver complete results, even if late, over incomplete results, but fast. In addition, their frequency of follow-up is low compared to the U.S. How can American colleagues maintain constant and accurate overview of the agreements made with their German colleagues, including factoring in new agreements the Germans may have entered into?

Answer

First, ask yourself when is it truly necessary to do follow-up. Americans do a lot of follow-up purely out of nervousness and anxiety. Start with taking a critical look at your own logic.

Second, when entering into individual agreements with your German colleagues, discuss and agree on the frequency of follow-up. Be sure to point out to them the American logic regarding follow-up. Sensitize them to the cultural difference.

Continually explain to your German colleagues the nature of the American business environment, especially the important of follow-up in maintaining an on-going overview of commitments, priorities, decisions, projects.

Third, when following up with your German colleagues simply ask them if the follow-up frenquency is still good, effective, working well. Yes, literally ask them. Give them a chance to signal to what the right frequency is. At the same time, explain to them the parameters within which you are operating, which, in turn, require follow-up.

Fourth, at an appropriate time reach out to your German colleagues and ask them to explain to you how Germans fundamentally handle follow-up. Ask them literally what the German logic is. Chances are your German colleagues will ask you about the American logic.

Always acknowledge the rightness and legitimacy of their logic. Honor the strengths of the German approach to follow-up. Remember, Germany has the fourth-largest economy in the world with only about 80 million people. They are certainly doing a whole lot of things right. Which means that how they handle agreements in general, and follow-up specifically, works and leads to success.

A final point: you must have all sorts of shared documents which inform both sides of the Atlantic Ocean about projects, customer interactions, and such. It should be technically possible to simply add another piece of information, another parameter.

Name it Follow-up. Then give it some pieces: project name; customer involved; information needs of customer, of US, of Germany; what information, in what form, why, by when, sent from whom, to whom.

And be sure to have a space for “factoring in new agreements the Germans – or the Americans – may have entered into.”

German verbal agreement binding character

Question

In the German context does a verbal agreement have the same value – binding character – as a written agreement?

Answer

In the German context there is no higher level of commitment than making a written agreement. The written word in the German culture is extroardinarily binding. It is a reason why Germans are so careful about signing their name to an agreement.

A verbal commitment has almost as high a level of commitment – binding character – as a written agreement. In general, as a culture, when the Germans say and/or write yes, they consider themselve to have given their word. It is binding. And not in the American sense of different levels: 98%, 68%, 38%, 18%, 8%, even -8% and so on.

Get by that initial German-No response

Question

“How can we best get by that initial German-No response?”

Answer

First, never assume that the German-No is hard and fast. Often it is simply their immediate response to a question which has been stated to them requiring yes or no. In other words, they feel that they have to make an immediate decision.

Just as an American-Yes can range from 98% to 68% to 38% to 18% in terms of level of commitment, so can a German-No be anywhere in that range.

Second, in order to get an initial sense for roughly where the German-No is in the commitment range ask in a friendly and polite way:

“Why not?” or “Ok, but can you, please, tell me what the barriers are to you giving me a yes?” or “Ok, I understand. Well, what can I do in order to make it easy for you to say yes?”

Third, take whatever responses you get – the reasons for the no – and work on each one individually. Think of what it is like to whittle down a stick with a penknife, stroke for stroke, cut for cut, shaving for shaving. In other words, overcome each no-reason, one after the other, patiently, but persistently.

Germans gather information up-front

Question

Germans enter into an agreement only after they have gathered all of the relevant information up-front. In the U.S. business context, however, speed and rapid reaction time are critical success factors. How can we reconcile the two approaches?

Answer

First: explain to your German colleagues as often as possible how mission-critical rapid reaction time – speed – is in the U.S. business context. Use concrete examples how speed led to new business, to profitable business, to business growth. It is not enough to simply repeat how important speed is in the U.S. market. Provide examples of wins and losses, and the role reaction time played.

Second: always acknowledge the rightness and legitimacy of the German logic. Honor the strengths of the German approach of gathering all relevant information up-front in order to decide whether to make a commitment. Remember, when German commit, they commit. They will do their absolute utmost to live up to their commitments.

Third: discuss with them, as partners, how you can together reconcile the two strengths – American speed with German reliability.

For example, ask your German colleagues what information they need up-front in order to commit to an early-stage piece of a commitment. In other words, break down a larger commitment into pieces or stages. Then move, together with your German colleagues, stage for stage. Do not be shy about asking them what kinds of information are critical vs. nice-to-have.

In addition, always give your German colleagues a sense for the risk involved when breaking down a commitment into smaller pieces. The American logic of breaking down complexity into its component parts – see CI’s content on the topic Persuasion – then focusing only on the key parts, is their way of not only maintaining focus, but also of managing risk.

Compared to Americans, Germans are risk-averse. When coaxing your German colleagues to move faster, for example, by asking them to make mico-commitments, provide them with your assessment of risk. Simply say:

“Look, colleagues, we’re breaking this commitment with the customer, or potential customer, into smaller commitments. This allows us together to move faster, while at the same time reducing risk. What (truly critical) information do you need from us in order to enter into this micro-commitment?”

Fourth: this may sound not only counter-intuitive, but also potentially dangerous for business, but do your best to manage the time expectations of your customers or potential customers. Americans are too speed-oriented. Rapid reaction is often unnecessarily important. The importance of speed is often a result – a bad result – of poor planning, of nervousness, of allowing oneself and one’s team or project to be driven faster than necessary.

Yes, it takes real courage to say to the customer: “We can hit that date. But frankly, if you will be patient, if you will give us a bit more time, we will deliver even better results than you are expecting. How critical is the due date you are requesting to your needs? Please be patient with us.

We mean this respectfully, but isn’t it often better to receive great results a little bit later than less-than-great results quickly? We want to be fully in synch with your schedule, but we also need to coordinate with our colleagues in Germany. Would it possible to sit down and do into a little more detail about your schedule pressures, and the parameters within which we are operating?”

Get German colleagues to list concerns up-front

Question

“How can we get German colleagues to list upfront all of their concerns before saying no?”

Answer

Perhaps you should anticipate their concerns, then build your arguments into your request, thereby demonstrating that you have done your homework, and that you have taken their perspective into consideration.

Secondly, perhaps you should not confront Germans with yes-no questions, to which you expect them to respond with a yes immediately, without them having time to understand the request, and to do some serious reflecting on whether they should agree with it or disagree.

In other words, there are alternative ways of introducing your request, maybe as a thought, as a suggestion, as something to collaborate with them on.