Decision making is about what to do, how, and why. It’s also about decision making approaches. Here are key differences between the two approaches:
Scope
Germans think systematically. They view a decision in its broader and interconnected context. The scope of the decision is wider. German decision making, therefore, necessarily means making several decisions at the same time.
Americans consciously break down complexity into its component parts. This allows them to focus on what is essential. The scope of their decisions is narrower. Americans avoid interconnecting too many decisions.
Analysis
Germans regard an individual step in the decision making process as completed only when all relevant information has been gathered and analyzed with the help of rigorous analytical tools. Germans are scientific. They are skeptical of intuition.
Americans prefer gathering limited, but highly relevant, information. And doing so quickly. Breadth and depth of analysis must be justified by its value. Americans also have rigorous tools of analysis. However, they balance them with pragmatism. Americans trust their intuition.
Resources
Germany is not, and never was, a country abundant in resources. Germans strive to be economical. In what they make, in how they make it, and in how they use it. Suboptimal decisions require modification, which in turn draws on resources. Germans do their best to get a decision right the first time. Because that’s economical.
The United States is, and always was, a country abundant in resources. Americans strive less to be economical. In what they make, in how they make it, and in how they use it. Instead, Americans value rapid resource aggregation and deployment in order to quickly take advantage of opportunities. Because that’s good economics.
Time
Germans believe that the time allotted to a decision should be determined by the nature of the decision. And not dictated by either internal or external pressures. But rather by the internal rhythm of the decision-making process. Germans believe that a good decision making process leads to good decisions.
In the American business context it is quite often better to make a suboptimal decision quickly, than to make a better decision too slow or even too late. Suboptimal decisions can be corrected. For Americans, a decision making process is almost a contradiction in terms. People, not processes, make decisions.
Risk
Germans believe that an intelligent and correct decision, in line with the essence of the situation, both farsighted and aimed towards the future, is a decision which provides continuity, ensures quality and minimizes risk.
Because no analysis can be truly exact, and because no decision can be perfect, Americans are willing to take risks, as long as corrective measures can be taken quickly and flexibly.
