External Factors

Decisions are not made in a vacuum. American decision-making allows itself to be influenced by external factors. External customers, company-internal partners, suppliers, changing management priorities, budgets and manpower all can have impact on individual decisions. American decision making aims to be market-driven.

Market-driven in the U.S. means making decisions based on the market‘s rhythm. If necessary, Americans will skip over steps in their decision making approach.

To turn on a dime: To take a very tight turn, used especially for a vehicle; to change direction quickly. A dime is the smallest in size of American coins.

Experience: To encounter or undergo (an event or occurrence); to feel (an emotion); practical contact with and observation of facts or events; the knowledge or skill acquired by such means over a period of time, especially that gained in a particular profession by someone at work; an event or occurrence that leaves an impression on someone (a learning experience).

Down and dirty: Americans are not perfectionists. The goal is seldom the optimal decision, but instead the most effective decision under the given circumstances. Often timely decisions, even if suboptimal, are the best decisions. They can be corrected.

Avoid philosophical discussion

Americans do not engage in a discussion about the essence of a decision to be made. If a discussion does takes place about the decision in and of itself, however, it is strictly for the purpose of defining who and/or what is to be served by making a good decision.

Americans invest less time on identifying how a particular decision fits into the broader picture. Their approach to all decisions is primarily motived by pragmatism. Decisions lead to actions, which in turn lead to further decisions to be made. Americans avoid getting weighted down in what they view as over-analysis. Forward movement is of priority.

American Entrepreneurs

Scottish-American Andrew Carnegie led the expansion of the American steel industry in the late 19th century with the Carnegie Steel Company. Carnegie established public libraries throughout the United States, the United Kingdom, and other English-speaking counties.

He funded approximately 3,000 libraries in 47 states in the United States, Canada, the United Kingdom, Ireland, Australia, New Zealand, the West Indies and Fiji. He donated 50,000 British pounds to help establish the University of Birmingham in 1899.

British- and Irish-American Henry Ford founded the Ford Motor Company and was sponsor of the development of the assembly line technique of mass production. His development of the assembly line allowed many middle class Americans to afford and buy automobiles. Ford left most of his wealth to the Ford Foundation.

William “Bill” Gates is the former chief executive and current chairman of Microsoft, the world’s largest personal-computer software company. He co-founded Microsoft with colleague, Paul Allen. He is one of the best-known entrepreneurs of the personal computer revolution. After studying the work of Andrew Carnegie and John D. Rockefeller, Gates sold some of his Microsoft stock in 1994 to create the William H. Gates Foundation.

In 2000, Gates and his wife combined three family foundations and founded the Bill & Melinda Gates Foundation, which is currently the largest transparently operated charitable foundation in the world.

The American culture admires risk-takers. They are considered to be courageous, ingenious, hard-working, forward thinking. The American experience is one of trial and error. It begins with how parents raise their children to try things, to attempt more than before, to experiment. A mistake is only one when one doesn‘t learn from it. Trial and error is moving forward, is getting better at something. It is synonymous with learning by doing.

WBS

WBS stands for work breakdown structure. Wikipedia defines it as: „A hierarchical and incremental decomposition of the project into phases, deliverables and work packages. It is a tree structure, which shows a subdivision of effort required to achieve an objective; for example a program, project, and contract.

In a project, the WBS is developed by starting with the end objective and successively subdividing it into manageable components in terms of size, duration, and responsibility (e.g., systems, subsystems, components, tasks, subtasks, and work packages) which include all steps necessary to achieve the objective.“

Wikipedia goes on to claim that WBS was developed by the United States Department of Defense and was introduced by the U.S. Navy in 1957 to support the development of the Polaris missile program.

Breaking down complexity into its component parts in order to focus on what is truly critical is hardly a development of any human organization of the 20th Century. Surely it is has been fundamental to human thinking for quite some time.

How fast?

The American tendency to work at a fast pace and aim for rapid results continues to confound Germans. They have difficulty identifying a logical and structured plan for action amongst their business dealings, and where Americans see hard work and flexibility in action, they suspect only chaos. When Germans feel overrun by American ‘decisionism’ and see their standards of quality and the rhythm of their own style of working as becoming endangered, this confusion can quickly transform into irritation.

“A bad decision is better than no decision.” There are few Americans likely to disagree with this popular saying. Germans, however, would tend towards saying the exact opposite. Sometimes even a good decision will find no supporters.

From the American perspective, it is the client who is the most significant factor in determining  the deadline for a given decision. Americans value a client-oriented business model. Because Americans tend to operate under the assumption that this same dynamic exists in in Germany as well, they find it difficult to understand why their German colleagues would risk upsetting a customer over time wasted during the decision-making process.

Priorities and time factors can change during the process of making any decision. Americans prefer to divide this process up into multiple sub-processes or steps. The sequence of these steps must remain flexible – meaning that it should be possible to change their order, or even skip a step or two in between if necessary. From this point of view, the structured discipline of the German decision-making process can appear exceedingly rigid and in-flexible – occasionally appearing as though it would directly conflict with the purpose of the decision itself.

It is almost as though the decision-making process would be more important than the final decision. To Americans, the German approach of assigning so much importance to the process of making a decision as to possibly loose perspective of the final decision itself can seem rather paradoxical. For this reason, one might suspect that simple indecision is being masked by a seeming concern for ‘attention to detail’.

Of course the German understandings of process and customer relations play a role here (according to the motto: ‘The client wants a solution from us. Our processes guarantee a solution, so the client knows that he can wait.’) But surely there must be something more involved; Germans can see that during the process of making an important decision one must also make a series of decisions which are smaller, but not insignificant to the bigger picture. These decisions are key elements of a systematic (or self-perpetuating) approach, each de facto requiring more time for consideration.

Ultimately, whether or not the rebounding American approach – making quick decisions, then revising them just as quickly – is actually faster typically depends on the related events. ‘Wir haben mit Äpfeln und Birnen zu tun’ – you can’t compare apples and oranges (or pears). Nevertheless, there will always be those colleagues who will continue do do so, and continue to bicker.

Pareto

The Pareto principle: Also known as the 80-20 rule, stating that in many situations approximately 80% of the effects come from 20% of the causes.

Vilfredo Pareto, an Italian economist, documented in the early 1900s that 80% of the land in Italy was owned by 20% of the population. Pareto went on to observe that 20% of the pea pods in his garden contained 80% of the peas. It has become a common rule of thumb in business that 80% of sales come from 20% of clients.

The 80-20 rule could be a metaphor about the American approach to many things, or at least about an element or aspect of the Americans approach. Americans tend not to be perfectionists. Not because they do not recognize and honor striving for the best. But because in many cases attaining, reaching, accomplishing that extra 5% is in many cases “simply not worth it”.

Worth. Value. Does the customer want that extra degree of engineering excellence? Is it necessary to calculate that many digits behind the decimal point? Is that depth of analysis necessary in order to make a decision?

80% is often enough. For Americans, depending on the situation, 60% is enough. Depending on the risk-benefit relationship, even less is enough.

“Paralysis by Analysis“

‘Paralysis by analysis’ – a phrase often used in the American business context – describes over-thinking that leads to a reluctance to make a decision, and in doing so exhausts the available time in which to act.

In Aesop’s fable The Fox and the Cat the fox boasts of hundreds of ways of escaping while the cat has only one. When they hear the hunting dogs approaching, the cat climbs quickly up a tree while the fox in his confusion was caught. The moral: “Better one safe way than a hundred on which you cannot reckon.” In Hamlet, Shakespeare writes of Hamlet’s flaw of thinking too much: “sicklied over with the pale cast of thought.”

Analysis: ‘In the final (or last) analysis’ means when everything has been considered. This phrase is used to suggest that a statement expresses the basic truth about a complex situation. Late 16th century. Medieval Latin from Greek analusis, from analuein unloose.

Reluctance: Unwillingness or disinclination to do something. Ambivalence: The state of having mixed feelings or contradictory ideas about something or someone. Hesitation: The action of pausing or waiting before saying or doing something.

“Lead, don‘t moderate“

Consensus: General agreement, unanimity, judgment arrived at by most of those concerned; group solidarity in sentiment and belief. From Latin consentire, cōnsēnsus agreement, from cōnsentiō meaning literally feel together.

For Americans, businesses, and therefore the teams within them, are not democracies. American team leads do not feel obligated to reach consensus within their leadership group in order to set strategy or to make a decision. Both sides of the relationship – leaders and led – are in agreement that the lead is paid to set strategy, make decisions, not to be a moderator.

Team members, as specialist in their areas, want and expect to be listened to. They want their input to have impact on the decision to be made, the strategy to be set. But they will and can not insist, without possibly damaging their working relationship with the team lead.

Decisive: having the power or quality of deciding; resolute, determined; unmistakable, unquestionable. Synonyms: firm, intent, purposeful, resolved, set, single-minded, do-or-die, hell-bent.

Team Lead as Defender

Team leads are also expected to defend the team against criticism, whether internal or external. The lead is „out in front“, shielding the team from attack, „taking personal ownership“ of the problems. An American team lead does this also out of self-interest. For any and all criticism of the team is direct criticism of that team lead. „Your success is my success“ has an opposite. „Your failure is my failure.“

To „take ownership means“ to take responsibility for one’s actions; not blaming others. To „take the heat“ means to listen and accept criticism or blame. Take „the bull by the horns“ means to confront a problem head-on, as it is, and deal with it openly.

“If your actions inspire others to dream more, learn more, do more and become more, you are a leader.”, John Quincy Adams – America‘s sixth president, 1825-1829.

“No man will make a great leader who wants to do it all himself or get all the credit for doing it.”, Andrew Carnegie (1835-1919), an American industrialist who led the expansion of the American steel industry in the late 19th century and who was one of the highest profile philanthropists of his era, whose 1889-article on wealth remains a major advisory for those who aspire to lead philanthropic lives.

“I work for Mary Smith”

When two colleagues meet and the one asks the other what they do in the company, it is typical for Americans to state who their boss is: „Oh, I work for Mary Smith.“ The next statement might be: „in the new product marketing“ or „in global supply chain“ or „in corporate finance.“

Americans work outwards from their work, their team, the organization in which the team is imbedded, and so on. It is also common in the U.S. to hear the statement that „your most important customer is your boss.“

American team leads have influence and power over their team: strategy, organizational structure, roles and responsibilities, and, of course, compensation and professional development. The relationship with the team lead is for the team member a very important one. It influences them very personally.

That working relationship, however, can also be one which extends beyond the workplace to their private lives. It‘s common for American colleagues to be friends, close friends, friends who do things together, whose spouses and children know each other. Americans mix their work and private lives. This can include the boss.

In fact, many Americans would say that the ideal team is made up of capable people, who work hard, support each other, reach their business goals, but in addition know and like each other outside of  work. Colleague and friend. Boss and friend.

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