Germany – Page 2 – understand-culture

Vorstandsvorsitzender and Vorstand

Germans companies have a Vorstand, or managing board. The Vorstandsvorsitzender is the head of the Vorstand, but not in the sense of a CEO, rather as a primus inter pares or first among equals. The CEO-principle is an Anglo-American construct.

German law governing publicly traded companies requires the naming of a Vorstand or managing board, but not of a Vorstandsvorsitzender. §77/78 AktG expects joint management and joint representation of the company. German law does not recognize the title of Vorstandsvorsitzender, chairman or head of the managing board or CEO. The law can, however, be interpreted to accept a company internal set-up allowing for a Vorstandsvorsitzender.

BMW: The formation of a managing board and its compensation – The managing board consists of several people and has a Vorsitzenden. Company governance directives define the cooperation within the managing board, in particular the roles and responsibilities of the various departments or divisions as represented by their individual board member.

BASF: The managing board. §7 Members. Members of the managing board are selected and deselected by the supervisory board. The managing board has at least two members. The supervisory board can name further managing board members. The supervisory board can select a managing board member to be the Vorsitzender, as well as another to be the Vice-Vorsitzender.

ThyssenKrupp: §3 – Vorsitzender of the managing board. The Vorsitzender is responsible for coordinating all of the areas represented in the managing board, and maintaining a cohesive approach to reaching the goals set by the managing board. The Vorsitzender can at any time request information from other managing board members pertaining to their area of the company. The Vorsitzender should be informed at the earliest possible time about any important decisions made by the other members of the managing board.

German Kleinstaaterei

Klein, small. Staaterei, many states. From roughly 1650 until 1850 Germany consisted of some 350 independent states, most very small, with only a few kingdoms such as Prussia, Bavaria, and Saxony. The Kaiser had little direct power over this patchwork of states. His influence was reduced to that of a moderator.

While England and France were well advanced in becoming unified centralized states, Germany remained a country of loosely affiliated independent territories. And although many of these territories developed their own modern governmental bodies, there was little progress made to coordinate or integrate them at the national level.

One of the causes of the German Kleinstaaterei was the German tradition of inheritance which divided up possessions among all male heirs, and not the just the oldest. This led to more and smaller states. Complicating matters was the tradition of dividing up the inheritance equally. This led to the creation of non-contiguous states with en- and exclaves.

Although two large states were formed – Prussia led by the Hohenzollern dynasty and Austria-Hungary led by the Hapsburg dynasty – both had non-contiguous territories which made it difficult for Germany to consolidate as a nation-state similar to England and France.

The German Bund – created after the Napoleonic Wars – reduced the Kleinstaaterei to just under 40 independent states. But it wasn‘t until 1871 when Germany finally became a nation-state in the modern sense after Prussia defeated France and declared itself a Reich. In the years before the Franco-Prussian War, Prussia had consolidated most of the German states via war.

Parliamentary Democracy

In a parliamentary democracy the government is created out of and by the parliament. It is dependent on the support of the parliamentary party factions. The government, created by a majority coalition in the parliament, can also be deposed via a vote of Mißtrauen, mistrust. On the one side this gives the parliament a high degree of control over the government. On the other, however, the government can only govern by passing laws, which in turn requires strict discipline among the coalition parties in the parliament.

The presidential system is a different approach to democratic government. It‘s government – or administration, the executive branch of government – is elected directly by the people, and is therefore independent of the legislative branch, the Congress (Senate, House).

The United States is the most prominent example of the presidential system. There are also democratic forms of government which have aspects of both the parliamentary and presidential systems, such as France.

Germany is a classic parliamentary democracy. With one exception, federal elections have never produced a party with an absolute majority. Governments are always based on a coalition of two parties, who elect a chancellor to form a government. The chancellor then, in close negotiation with the coalition partners, chooses members for the cabinet. Traditionally these are the most powerful leaders of the coalition parties in the largest German states. They are power brokers in their own right and are considered to be capable of replacing the chancellor at any time.

Since all laws must be passed by a majority of the parliament, the government and its majority coalition in the parliament must work closely together. Any failure to pass a law is a clear signal of a possible break in the coalition.

Should the government, however, misuse its power over and against its colleagues in the parliament, the parliament can at any time dissolve the government via a vote of mistrust, which in turn leads to new elections. The government, should it not have the necessary support of parliament, has the same power to dissolve the parliament and force new elections.

In this sense, the chancellor‘s power is based on close cooperation not only with those cabinet members with their own independent political power base, but also with the influential factions in the parliament. The German chancellor is in the cabinet a primus inter pares, a first among equals.

Command or Auftrag

A command, an order, an Auftrag are all forms in which military commanders communicate their intent. They are different in character, however. Commands and orders are strict, well defined, to be executed as stated. An Auftrag is the least strict in the sense of prescriptive, of defining the how as well as the what.

A command or order allows for little freedom in defining the how. A command defines the what and the how in detail. An Auftrag describes only the goal, thus allowing freedom to choose the best path to it. An Auftrag communicates intent, clearly and within the broader strategic context.

Depending on the situation, the line between an order and an Auftrag is in flux. The core of an Auftrag is the what. It can, though, include parameters such as the when and the where. The more detailed an Auftrag is about the how, the more it takes on the character of a command or order.

How a society feeds itself

How a society fundamentally defines the everyday working relationship between leader and led – between two levels of hierarchy – is imbedded in how that society feeds itself. In companies engaged in commerce.

If that working relationship does not function well, if it fails, not only is the respective project in jeopardy, the ability of companies to meet the needs of their customers is at risk. Defining and managing the line between strategy and tactics is in the business context critical to the profitability of every team within every commercial enterprise.

The American business tradition in practice involves a close working relationship between leader and led, between team lead and team.

The Chief Executive Officer (CEO) of an American company, for example, is the leader of the company. He or she manages directly the other managing board members, such as the Chief Financial Officer (CFO), the Chief Operations Officer (COO).

selbständig – independent

“The team at Minderleinsmühle opened up their hearts to me. From the first minute onward I felt very comfortable. In my area I work independently. My colleagues, however, are always there for me should I need help. Every day I learn something new.” Anna, Intern in Quality Control, 2019

Minderleinsmühle near Nuremberg, Germany. From their website:

“Our mueslis & cereals, pastries, sweets, chocolates and snacks stand for high-end quality, sustainability and best taste. Under leading of the Hubmann Family, the Minderleinsmühle was arisen from a craft mill with connected agriculture to an established manufacturer in the sector of organic food. As a grown enterprise with a vision, we unify craftsmanship and experience with technology and innovation.”

mitdenken auf Augenhöhe

“Bei aller Strategie bleiben wir menschlich: Wir hören zu, denken mit und kommunizieren auf Augenhöhe.” In English: “Yes, it’s about strategy. But more importantly it’s about people. We are people. We listen. We think with. And we communicate at eye-level.”

Think with. At eye-level. That’s it. The German logic. In black and white. Clear as a bell.

The quote is from gambit. A Germany-based marketing and communications agency. Specialists. Serving companies who build buildings. gambit understands architects and interior designers.

I stumbled across gambit when noticing how superb the Simonswerk website is. Created by gambit. Simonswerk. A German mid-sized company located near Hanover, with a strong presence in France, Italy, and most importantly in the United States.

And why the term gambit as the name of their agency? They provide the definition on their website: “gambit [gæmbit], n. (Schach) einleitender Schachzug, (in conversation) einleitende Bemerkung.”

From MerriamWebster: “A chess opening in which a player risks one or more pawns or a minor piece to gain an advantage in position; a remark intended to start a conversation or make a telling point.”

Walton about Wooden

In this very brief video, Bill Walton, describes the coaching philosophy of John Wooden. In the sense of how Wooden coached during the game.

John Wooden coached men’s basketball team at UCLA – The University of California at Los Angeles. He was most likely the most successful of all coaches at the university level.

Wooden did not coach his players during the game. He gave some general instructions. Instead, he allowed to apply what he had taught them during practice.

John Wooden always referred to himself as a basketball teacher. By the way, the official professional name for a soccer coach in the German Bundesliga is Fussball-Lehrer, literally soccer teacher.

Bill Walton was one of John Wooden’s, and basketball’s, greatest players. His finest game was the 1973 collegiate championship in which he scored 44 points, make 21 of 22 field goals.

German Leadership Style … wrong !

Here we go, another misreading of German leadership logic. See correction in ( … ):

“In Germany there is a clear chain of command in each department, and information and instructions are passed down from the top. (no, it goes in both directions) This does not mean, however, that German management is exclusively autocratic (not only not exclusively, not autocratic at all): while the vertical structure in each department is clear, considerable value is placed on consensus.

Equally, the German striving for perfection in systems and procedures carries with it the implication that the manager who vigorously applies and monitors these is showing faith in a framework that has proved successful for all.

Accordingly, German managers motivate staff by showing solidarity with them in following procedures. They work long hours (wrong), obey the rules (a cliché, often Germans will go against or ignore a process or procedure) and, though expecting immediate obedience (a terrible cliché, as if Germans were dogs), insist on fair play. For their part, German employees welcome close instruction (actually it’s the opposite, they want generally-formulated tasks, and not specifically/detailed-formulate orders): they know where they stand and what they are expected to do.”

Kareem about Wooden

One of the greatest scorers in the history of NBA basketball in the United States. Kareem Abdul-Jabbar, formerly Lew Alcindor. An intelligent, very thoughtful person. On and off the basketball court.

He, like so many other players at UCLA – University of California Los Angeles – who played under coach John Wooden, was greatly influenced by Wooden.

In this talk Abdul-Jabbar speaks about the great strengths of John Wooden. Not only in how he formed great basketball players and teams. But more importantly how he formed young men. And they were as players at UCLA young men between the ages of 18 and 22.

Why is this post listed under Germany instead of the USA? Because Wooden’s approach to coaching is more indicative of the German leadership logic than of the American.

Wooden did not coach his players during the game. He gave only some very general instructions. Instead, he allowed them to apply what he had taught them during practice.

John Wooden always referred to himself as a basketball teacher. By the way, the official professional name for a soccer coach in the German Bundesliga is Fussball-Lehrer, literally soccer teacher.

How to Be Like Coach Wooden: Life Lessons From Basketball’s Greatest Leader, by Pat Williams (2006, with David Wimbish): “He (Wooden) always focused on the details. He was a teacher who happened to be a basketball coach.”