Decision-Making – understand-culture

German consensus-style decision-making

Question

“As a practical matter, how does German consensus-style decision-making differ from the American top-down approach? Is it more efficient? Does it produce better results? Is it easier to implement because of the buy-in of all the parties? Can these factors even be measured?“

Answer

Well, you can’t get more practical than making decisions and implementing them.

You ask three questions. 1. Differences between German consensus-building and American top-down decision making? 2. Which is more effective, and easier to implement? For every decision is only as good as its implementation. 3. Can decision making styles be measured?

Question 1 – Differences. This is a very complex topic. Please see my analysis on the divergences between Germans and Americans in their decison making in the lefthand navigation.

Question 2 – Effectiveness. Both countries, societies, economies are successful. Not without problems, not without ups and downs, but still the largest and fourth-largest economies on the planet, with more than a handful of first-rate global companies. So we can safely say about both cultures – therefore business cultures – that they know how to make decisions and implement them.

Which approach to decision making is more effective is an extraordinarily complex question, and would have to be considered on a case-by-case basis. I would not want to be the person who has to come up with a method for such analysis.

But that comparison is not all that relevant, anyway. American and German collaboration is not about judging which approach is better, but instead about first understanding the differences between the approaches, in order to define how best to combine their inherent strengths. “In order to”: the reason for, the task, goal, the great pay-off.

Imagine what Germans and Americans could achieve if they truly understood their respective decision making logics, then sat down to map out how they make decisions together! This is the true high art form of working across cultures.

Question 3 – Measureable. I’m not sure if “measure” is the right term. But there certainly are indications – let’s even call them KPIs (key performance indicators) – for decision making processes which work and those which do not work. See the five divergences between German and American decision making which I address. These can be understood as KPIs.

German fear of letting go

Question

There are a lot of benefits to doing product development regionally. But our colleagues in Germany are not open to that. Nothing is made in U.S. We buy internally from Asia or Europe. Why? The German fear of letting go. We had no other choice but to find a source in the U.S. Under the radar, of course. How can we convince our German colleagues to let go a bit of control?

Answer

Who likes to let go of control?

Sincerely, folks, I can fully understand the perspective of headquarters in any company operating globally. All those regions, far away, foreign cultures, unfamiliar markets, colleagues who you may or may not trust as competent, constantly coming up with all sorts of half-baked ideas about how “the company can make a lot of money.”

Especially when it comes to product development. Remember, the German economy is the fourth largest in the world with only about 80 million people. And the strength, the core, of the German economy is their science and technology, in the end their products.

And what is at the core of a product? It’s development: science, engineering, manufacturing. Who wants to give up, or even share, that core?

Now, if you are sourcing within the company from other regions, then your German colleagues will have to react at some point. Because if that sourcing goes well – technically just as good as what comes out of Germany, and less expensive, and more flexible to the needs of your customers – well then Germany will have to respond to that company-internal competition.

“Let’s give it a shot“

Question

One line I often hear in the U.S. is „let’s give it a shot“, and „this is simple, let’s make a small commitment and see how it goes.“ Is the core thought here to get the foot in the door and build the relationship with a small, low-risk try-out?

Answer

That is a very interesting﹣and accurate﹣observation. Although we at CI have not yet begun a research project on the topic of relationship management, I am confident that it is a clear difference, and important one, between Germans and Americans.

Let me explain what I think is at play here.

Persuasion is in the end always about asking the receiver of the message to make a decision: to respond with „yes“ or „no“ to the product or service offered. Or to the idea, concept, suggestion, proposal offered within a team.

The bigger the yes-no question is, the greater is the risk that the receiver will tend to say „no.“ Conversely, the smaller the yes, the less risky, thus, more likely one will get a yes.

Americans might be more inclined than Germans﹣again, we at CI have not yet done the analysis ﹣to move the relationship with the customer forward via incremental steps, via small yesses. It is not only a trust-building measure. It makes it difficult for the customer at a later stage to say „no“ after having said „yes“ several, or even many, times.

This American inclination is also consistent with another, much stronger, inclination in the U.S.: trial-and-error. As long as the risk (or investment) is not too high, Americans are willing to „try things out“, or as you write to „give it a shot.“

Low-risk try-outs can be of very high value. They produce experience (data), which can help the decision-making process. And frankly, many things simply have to be tested in order to know if they work. There is a reason why so many companies in the U.S. offer potential customers a trial period. Whether it be a physical product or service, „Try it out!“ helps to get the sale. „See for yourself!“ is effective.

So, reducing risk is one reason. A second reason is that trial-and-error is deeply imbedded in American thinking. A third reason might be the American tendency to take complexity and break it down into its component parts.

Reducing complexity is a form of risk management. Americans are sceptical of large, complex, systematic solutions, whether they be products, services, or approaches in general. They’re seen as too risky. See CI’s thoughts on this under Learn_Persuasion_Analytical.

Why do Germans believe that there can be only one right solution?

Question “Why do Germans believe that there can be only one right solution?”

Answer

„Alle Wege führen nach Rom“

„There‘s more than one way to skin a cat“, an American idiom which communicates that there are different ways to reach the same goal, to complete a task, to „get the job done.“ When Germans are asked for an equivalent idiom they always say „All roads lead to Rome.“

But do the two idioms really have the same meaning? First let‘s understand the meaning of „All roads lead to Rome“ via its history.

During the days of the Roman Empire everyone was to know that Rome was the center of all life. Every road in the Roman Empire either led directly to Rome, or was linked to one of the major roads which did lead directly, or more directly, to Rome.

Not only did this fact help to point out the dominance of Rome in the Roman Empire, it also enabled trade. One of the reasons that the Roman Empire lasted several centuries was because travel was easy. „All roads lead to Rome.”

But not only trade. Also Roman troops. „All roads lead to Rome“ signaled that no matter what one did, no matter how one tried to get around it, one had to do things the Roman way. The well-planned and -guarded Roman road system was designed to make sure that the provinces couldn’t organise resistance against the Empire.

In modern times the phrase „All roads lead to Rome“ has since taken on another meaning, that something is set up so that disparate means will eventually achieve the same goal. The key word is „eventually“, for not every path to Rome was equally fast, efficient, affordable and safe.

Americans are a pragmatic people. They care far more about the results than they do about the method. They believe strongly that there are several, if not many, ways to „get the job done.“ As an immigrant people, with a multi-ethnic society, the pursuit of the „one right solution“ would be close to impossible.

Nor could that pursuit be reconciled with the American deeply-held understanding of freedom, individualism, individual rights. And the American experience has demonstrated that the varied, flexible, situation-specific approach to „skinning a cat“ also leads to success.

Scientific

There Germans are very strong in the natural sciences, mathematics, physics and engineering. They have a national cultural inclination to take a scientific approach to whatever problems they address. Science aims to discover the truth, the solution, the correct answer. It is a pursuit.

Germans believe that there, indeed, can be only one truly best approach, one best solution, one optimal way to do something. In that they are not wrong. Although all roads did lead to Rome, not all were equal. Depending on the situation, one route was best. Put another way, the parties traveling should try to identify which route was right, best, optimal. A pursuit.

So for the Germans, the „one right solution“ is the best solution at any given time. And because the pursuit of that route‘s optimization never ends, at a later time there will be another „one right solution.“

But also human

The Germans are human beings and not scientific machines. It should be of no surprise that such a capable, ambitious and self-confident people would view their approach to a given task as „the right solution“, the best route to Rome, the optimal way to „get the job done.“

And their success verifies to and for them that this is the case. Until proven otherwise they, understandably, are not always willing to consider „another route.“ Why take the risk? Why change things? The English figure of speech would be „never change a winning team.“

Unless, of course, another approach has the potential to become the new optimal way. That is where an additional factor, or motivation, comes into play. It, too, is deeply human.

Fear

What if an alternative approach also leads to the same, or better, results? And what if the logic embedded, or at the root, of that approach is not familiar, or even foreign, to the Germans and the logic behind their approach?

If there is a competition of approaches, and the one wins over the other, then the consequences for the losing side are significant. Those on that side need to adopt and adapt to the other logic, to the other approach. And if that approach is unfamiliar (not from the same family, meaning culture), it can be difficult to learn it, to take on, even to understand. For any culture, not just the German, this all means change, insecurity, risk.

„All roads lead to Rome“ also meant that the provinces, areas subjugated militarily by the Roman army, remained subservient to Rome. Command and control over the roads (transportation, logistics, troop movements) was synonymous with power. Rome as headquarters, the provinces as regions.

Power

The discussion, often battle, over the „right way“ to do something – internal processes, IT systems, product development, go-to-market strategies – is not only about businesses working more effectively, it is about power.

This is even more true when different cultures come together to collaborate. Colleagues in mono-cultural companies – or companies in which one culture dominates – share the same logic behind their approaches. Variations in approach are no more than variations on the same theme.

Collaboration in companies with several cultures involves a more complex discussion and debate about which approach to take, which method is best, about the „right solution.“

And since the Germans focus very strongly on „how the work is done“, they instinctively recognize that power is rooted in who has the say about the „right solution“ understood as process, method, approach, about the „road.“

The discussion about the „one right solution“, therefore, is at a far deeper level a debate, a battle, about who has the say about the route, way, road.

German thoroughness and American speed and flexibility

Question

“Ok, we understand the idea that the overall goal of integration is bringing together the best of both worlds – German approach and American approach. For example, German thoroughness and American speed and flexibility. But how do we react when we find ourselves bringing together the worst of both worlds – sloppy work and far too slow?”

Answer

This is not the easiest of questions to respond to. There is no specific point of entry. It is clear that collaboration is not going well. I suspect that the organization has not been addressing culture. Or that if it has, then most likely not in the right way.

I would have to know much more about the situationt in order to provide any meaningful advice. So let me just make a few general points.

Par for the course
That is a figure of speech. The MerriamWebster Dictionary states: “the score standard for each hole of a golf course; an amount taken as an average or norm,an accepted standard.”

I hope that my statement – that your problem is “par for the course” – is consoling. For the problem you are experiencing is no surprise, is rather normal, and in many ways healthy. No one on either side is doing anything wrong.

Don’t panic. Remain calm. Continue to engage with each other. You’ve entered into a complex relationship. It requires time and patience to work things out.

Human Beings
Always remember, especially in the “heat of the battle”, that you are colleagues. You are in this together. You succeed or fail together. This is personal. And it should be personal. You are human beings and not machines. We human beings make machines. And we live in the Machine Age. But we ourselves are not machines. We do not interact with each other as if we were parts in a machine.

Subject Matter
Begin – together – identifying the key points of difference. Literally, what you are fighting about, what you are struggling over. Proceed point-for-point. Don’t be afraid to let the emotions out. Don’t try to suppress them. But always be honest and sincere with each other. And, at all costs, do not be political with each other. Do not treat each other as means to an end, but instead as ends in and of themselves.

Culture
Then, point-for-point, engage with each other about the your respective logics, about the deep-lying drivers of your thought and therefore of your action. Explain to each other how you think, why you think that way, where it comes from.

This will not be easy. Most of us don’t usually reflect on this. We think that our approach is universal and not country- or culture-specific. Identifying and then reflecting about our deeper-lying drivers is difficult enough. Explaining them to colleagues from another culture is even more of a challenge. We are simply not used to doing it. It is unfamiliar to us.

Germans and being right

Question

“Why in Germany is there such a focus on being right?”

Answer

Competitive, Capable

Although the Germans are a people of only eighty million, their economy is ranked fourth behind the United States with three hundred million, the Chinese with one billion three hundred and forty million, and the Japanese with one hundred and thirty million.

The Dax30 are some of the most successful global companies. The Germans continue to be among the world‘s leaders in critical industries: automobiles, chemicals, pharmaceuticals, electronics, telecommunications, and especially those based on mechanical engineering.

Many experts believe that the great strength of the German economy lies in its so-called Mittelstand, an umbrella term for small- to medium-sized companies. Many of these family-owned business enjoy very high market shares, some dominating their particular markets worldwide.

During the financial crisis in the United States and Europe it is the German economy which continues to enjoy consistent growth. Its government is forecasting a balanced budget again in the year 2016. And despite discussion and debate about the merits of austerity measures, the German economy is the envy, and perhaps for some countries, the model of how to work.

As a people, the Germans are indeed battlesome, quarrelsome. As Northern Europeans their history as a people is deeply rooted in centuries of conflict, some initiated by them, many not.

The German strive for excellence. On the athletic field they have proven their ability to win. In the modern Olympic games the Germans have consistently ranked among the top medal winners, despite their modest population size. The most popular sport in Germany is soccer. There, too, they produce winning teams.

The Germans are a competitive and capable people. They like to win.

Zukunft sichern

Zukunft, a noun, means the future. Sichern, a verb, means to secure. In their domestic political debates all German parties address what Germany needs to do in order to secure its future. For foreign ears this can sound a bit exaggerated, purposely alarming. But it is meant literally and taken seriously by the German people.

German society involves a significant role of the government. Social services are many and expensive. The Germans are generous with each other. These services, however, can only be financed by a strong economy, which, in turn, requires that German companies offer products and services which command high prices and high margins.

The key to this, from the German perspective, is maintaining a very high level of intellectual and technical expertise. They are acutely aware of how critical it is to their future to train and develop people strong in the natural sciences, mathematics, and especially in engineering.

For Germans, ideas matter. Ideas are the core, the source of their expertise. Knowledge secures their future, not only of their economy and their companies, but also as individuals in their jobs within those companies.

Discussing and debating important issues, topics, subjects is something the German people take very seriously. Depending on the subject matter, they could see them as affecting directly their future, as individuals, companies, as a people.

Could it be that the subjects, topics, issues, questions which Germans consider to be absolutely essential (core) to their success (Zukunft, future) are not necessarily the same as those considered to be core by the Americans?

In other words, those topics which Germans get competitive (argumentative) about might very well be non- or less-core topics for Americans, leading Americans to think, and perhaps say: „Just relax, folks. This is important, but not a life-or-death issue. Let‘s reach some common ground here, then move on.“

Intellectual Curiosity

The Germans are an exceptionally curious people. They want to explore, ask, inquire, in the end understand. They want to move ever closer to the truth.

Some of modern Western civilization‘s greatest thinkers were German: In the natural sciences such as chemistry and biology, in mathematics and certainly in physics, but equally so in philosophy, theology, history, economics, political theory, sociology, and the law. The German approach to higher education, the Universität, of the 19th century was the model for the modern American university.

The Germans are known for being complex, analytical and systematic thinkers. They take pride in, they value highly, the ability to durch die dicksten Bretter bohren, literally to drill through the thickest boards. Conversely, the Germans have little respect or patience for those who take a superficial approach to any questions, task or endeavour.

Stubborn

The Merriam-Webster dictionary defines stubborn as „unreasonably unyielding; difficult to handle, manage, or treat.“ It lists the following similar words (synonym): adamant, bullheaded, dogged, hard, hardheaded, inflexible, intransigent, opinionated. stiff-necked. The opposite (antonym) of stubborn is: acquiescent, agreeable, amenable, compliant, flexible, pliable, yielding.

Indeed, the Germans can be stubborn. Some individual Germans can be particularly inflexible. It could even be argued that stubbornness is a German character trait. We will leave that question to the psychologists and sociologists.

The Germans also have a tendancy to be know-it-alls. Their term is Besserwisser, from besser better and wisserknower, from Wissen knowledge. See the link below.

But, if we are honest with ourselves, we should ask „Who likes to be wrong?“, especially on important matters. In fact, stubbornness can be a positive character trait if it means „holding your ground“ or „defending a principle“ or „staying focused on what is right, good, effective.“

Argument vs. Counter-Argument

Depending on how a given culture communicates, interacts, discusses and debates, the Germans can come across as insisting on being right. „Why do they always have to be right?“, one asks in frustration and exasperation. This could be influenced, therefore misperceived, simply by how Germans communicate.

A contributing factor is the Germans belief in the value of dialectical thinking: thesis, antithesis, synthesis. Stated in an overly simplified way, Germans, consciously or unconsciously, discuss topics in terms of a statement made by one person, this then countered or challenged by the other person, in the hope of arriving at a higher level of understanding. What for the Americans is an argument, is for the Germans a discussion.

Discussions with Germans can, indeed, take on the character of a debate. They are taught to think this way, in their schooling, in their place of work. Germans believe in the value of rigorous thinking and debating. Therefore, they can come across as argumentative, a term with a negative meaning, simply because they discuss via argument and counter-argument.

Americans reluctant to make decisions

Question

Our American colleagues appear to be reluctant to make decisions on their own. Either they will not make a decision or if they do, they will do so only on the condition that they get the final OK or the final sign-off from their boss. Why is this so?

Answer

The explanation for this would be too long and too complicated for this Q&A context. Let me direct you to CI’s content on the topics of decision-making and on leadership for a deep dive on the topic.

For now, however, let me offer a key insight into the difference between American and German leadership logic that might prove helpful. The American leadership model is more top-down, hierarchical, and command-and-control, than most Americans realize or care to admit. American team members are often not empowered to make decisions. Team leads might reach their conclusions independently and make a recommendation to their boss, but in the end, it is the boss alone who signs off on the final decision, she makes the final call.

The Germans have another leadership logic. They give their people more freedom and autonomy to make decisions. German team members expect, and often demand, that responsibility. And it is given to them. Thus, they feel empowered to make decisions without consulting their team lead.