business Archives - Page 2 of 9 - understand-culture

Germans consult. Americans serve.

A big source of misunderstanding between Americans and Germans, rarely made explicit, is about whether business should inherently be customer-centric, supplier-centric, or somehow balanced, as our fourth column in this series explains.

Germans and Americans alike will of course say they care about their customers. But they associated different meanings with that notion. And that often leads to misunderstandings and frustration. American providers of business services proudly offer exactly that: a service. By contrast, German providers view their proposition less as a service and more as a consultation. The difference is subtle, but consequential.

Continuous improvement

Manufacturing automobiles is based on complex production processes. Chassis are formed out of high tensile steel, which are then fitted and painted. Each and every step in the process is made up of smaller, more exact process steps.

All of this cannot work without those involved following processes. Operating on checklists will not lead to road-worthy automobiles.

German cars are known worldwide for their quality, possibly the best in the world. Could that technical quality be based on the quality of processes? Could the strict adherence to well-defined processes be a key to success?

Eric Schmidt – Google

The former Google CEO has reinvented himself as the prime liaison between Silicon Valley and the military-industrial complex.

General Thomas, who served in the 1991 gulf war and deployed many times to Afghanistan, spent the better part of a day showing Mr. Schmidt around Special Operations Command’s headquarters in Tampa, Fla. They scrutinized prototypes for a robotic exoskeleton suit and joined operational briefings, which Mr. Schmidt wanted to learn more about because he had recently begun advising the military on technology.

After the visit, as they rode in a Chevy Suburban toward an airport, the conversation turned to a form of artificial intelligence.

“You absolutely suck at machine learning,” Mr. Schmidt told General Thomas, the officer recalled. “If I got under your tent for a day, I could solve most of your problems.” General Thomas said he was so offended that he wanted to throw Mr. Schmidt out of the car, but refrained.

In an interview, Mr. Schmidt — by turns thoughtful, pedagogical and hubristic — said he had embarked on an effort to modernize the U.S. military because it was “stuck in software in the 1980s.”

Yes, Eric Schmidt is an American. But check out his last name. He is thoughtful, meaning intelligent. He is pedagogical, meaning can be pedantic. He is hubristic, meaning arrogant. Schmidt.

Say what you do. Do what you say.

“Say what you do and do what you say”, that’s the motto of German engineer, Norber Rudat. I think 99.9% of Germans would agree with it.

But wait, wouldn’t everyone, from every culture, agree with it? Perhaps. But are other cultures as literal about it? And I don’t mean literal-minded, but instead meaning something literally as they say it.

For example, do Americans always mean exactly what they say? And do they always say exactly what they mean? What about other cultures: China, France, India, Italy, Japan, Mexico?

Personal nice. Professional better.

In small talk situations Americans seldom jump directly into the business subject matter. For Americans business is always to certain degree a personal matter. In fact, Americans prefer to work with people they like, and who like them.

Germans, on the other hand, can and will do business with you even if you have little or no personal relationship. Most importantly, they want to know if you are good at what you do. Personal is nice. Professional is better.

Optimal e-mail frequency

Under the title Optimum Follow-up Frequency for New Leads Samuel Smith, a consultant and blogger on business and online marketing, posted the following advice:

„A good e-mail marketing effort doesn’t inundate your customers with hard sales pitches. Following up quickly is the first step. Schedule your first follow-up email to go out two hours after your customer submits his or her information.

From here, you may want to gradually slow your e-mail frequency and aim for about three content emails for one purely promotional email. Depending on your budget, you could aim, at the high end, for sending four emails a week, but with a smaller budget, you can send an email every two or three days and have similar success.

Once a potential customer has been receiving email from you for a couple of months, it’s okay to drop off the number of emails to once a week. The optimum e-mail frequency reminds customers several times over that your product has value to them.“

They’ll remember your product.

Still a Priority

An additional purpose of follow up in the American context is to signal to the other parties that the agreement is still of high priority. No or late follow up can be interpreted as a signal that the agreement is no longer important to the other party.

Americans place a very high value on flexibility, on the ability to respond to the needs of the market, of customers, of changing situations. Big decisions are broken down into smaller ones. Isolating individual decisions allows for rapid reaction as well as rapid revision. Up to the minute overview of agreements is essential.

Follow-up is omnipresent in American life. The preference setting of email programs, social network accounts, as well as information sources can be set so that information is pushed immediately to the user.

Most doctors offices send out reminders to patients of their upcoming appointments via traditional mail, email and even voicemail. When one turns on the television five minutes prior to the show they want to watch, one sees a reminder indicating that the program they are want to watch is about to be shown. Banks offer depositors the option of immediate notification via email or text message of any changes to their balance.

Follow-up is in many cases simply a reminder.

frequent follow-up

Interestingly, typing „frequent follow-up“ into Google leads to 179 million results. The first ten pages with ten results each all refer to healthcare:

Long-Term Follow-up of Asymptomatic Healthy Subjects. Frequent follow-up as data gathering and continued care. Colonoscopy Overuse A Result Of Frequent Follow-Up. Follow-up see eMedicineHealth. Is There a Benefit of Frequent CT Follow-up After EVAR?

The term follow-up in the medical space is about: care; staying on top of a problem; remaining proactive; constant monitoring; reacting to a changing situation.

Business leader cults

The concept of cult is common in American society. A cult figure is a popular individual who has strong appeal, someone whose reputation is inflated in contrast to their success. The cult of personality or charismatic authority arises when an individual employs mass media in order to establish an idealized image of oneself to the public.

Many American companies – especially those operating globally – link their CEO personally with their products and services. These CEOs are the first and most important salesperson of the company. They maintain a personal dialogue with investors, customers, and key suppliers. They are a constant presence in the media. CEO as CMO – Chief Message Officer.

Some strive for and achieve a kind of cult status. See the late Steve Jobs – Apple, Bill Gates – Microsoft, Jeff Bezos – Amazon, Sergey Brin and Larry Page – Google, a few years back Jack Welch – General Electric, Lou Gerstner – IBM, further back Lee Iacocca – Ford.

The American comedian Bill Burr challenges this in a humorous and entertaining way:

Closing Techniques

Wikipedia lists the following kinds of closes (asking for and making the sale, getting the order):

Alternative Choice

Alternative Choice close, also called the positive choice close, in which the salesperson presents the prospect with two choices, both of which end in a sale. “Would you prefer that in red or blue?”

Apology

The Apology close, in which the salesperson apologizes for not yet closing the sale. “I owe you an apology. Somewhere along the line, I must have left out important information, or in some way left you room for doubt. We both know this product suits your needs perfectly, and so the fault here must be with me.”

Assumptive

The Assumptive close, also known as the presumptive close: in which the salesperson intentionally assumes that the prospect has already agreed to buy, and wraps up the sale. “Just pass me your credit card and I’ll get the paperwork ready.”

Balance Sheet

The Balance Sheet close, also called the Ben Franklin close, in which the salesperson and the prospect build together a pros-and-cons list of whether to buy the product, with the salesperson trying to ensure the pros list is longer than the cons.

Cradle to Grave

The Cradle to Grave close, in which the salesperson undercuts prospect objections that it is too soon to buy by telling them there is never a convenient time in life to make a major purchase, and they must therefore do it anyway.”

Direct

The Direct close, in which the salesperson simply directly asks the prospect to buy. Salespeople are discouraged from using this technique unless they are very sure the prospect is ready to commit.

Indirect

The Indirect close, also known as the question close, in which the salesperson moves to the close with an indirect or soft question. “How do you feel about these terms” or “how does this agreement look to you?”

Minor Point

The Minor Point close, in which the salesperson deliberately gains agreement with the prospect on a minor point, and uses it to assume that the sale is closed. “Would the front door look better painted red? No? Okay, then we’ll leave it the colour it is.”

Negative Assumption

The Negative Assumption close, in which the salesperson asks two final questions, repeating them until he or she achieves the sale. “Do you have any more questions for me?” and “do you see any reason why you wouldn’t buy this product?” This tactic is often used in job interviews.

Possibility of Loss

The Possibility of Loss close, also known as the pressure close, in which the salesperson points out that failing to close could result in missed opportunity, for example because a product may sell out, or its price rise.

Puppy Dog

The Puppy Dog close, in which the salesperson gives the product to the prospect on a trial basis, to test before a sale is agreed upon.

Sales Contest

The Sales Contest close, in which the salesperson offers the prospect a special incentive to close, disarming suspicion with a credible “selfish” justification. “How about if I throw in free shipping? If I make this sale, I’ll win a trip to Spain.”

Sharp Angle

The Sharp Angle close, in which the salesperson responds to a prospect question with a request to close. “Can you get the system up and running within two weeks?” “If I guarantee it, do we have a deal?“