business – Page 3 – understand-culture

“Way to go, Sue!”

Customer reviews can make or break a company in the USA. Especially now that the internet gives customers a way to instantly compliment or complain about service (and to make sure that their opinion is available for anyone to see) one good or bad review can drastically change the number of customers a company has.

In 2012, after Brandon Cook from New Hampshire posted a Facebook story about a Panera manager named Sue making a special order of clam chowder for his grandmother (and giving her a free box of cookies as well), the store became much more popular. Several people who would not otherwise have eaten at this restaurant went there, and commented about it online. Some of the Facebook comments that people made were:

Cyrus Twirpwhirler My family is eating at Panera tonight because of this story. Way to go Sue and Panera!

Snow Casey That is so cool, I’m a customer already, but I like them even more now.

Daniel Julian that is so cool!!! Have to visit Panera soon.

Processes and Communication

In the American business context the communication within and during a process is very important. In fact, the forward movement of a process is dependent on communication. Parties involved in the process must remove roadblocks, anticipate slow-downs. The process may not come to a halt.

Constant communication is the prerequisite for quick response time. Constant communication also secures a common understanding of the process’ goals. It motivates. Feedback within the process is given on a regular basis.

Not to be underestimated is also the value of communicating interim results upwards, to those on the next level of management who exert influence on the process in general, and who might also be the recipient of its ultimate results.

The Fractal Factory

In 1995 Hans-Jürgen Warnecke, Head of the Fraunhofer Insititute in Munich from 1993 until 2002, published the anthology Aufbruch zum Fraktalen Unternehmen: Praxisbeispiele für neues Denken und Handeln – loosely translated as Breaking out into the Fractal Company: Concrete Examples of New Thinking and Acting.

Warnecke instantly became known in the production world both in Europe and internationally. The book takes a deeper look at manufacturing processes addressing questions such as: On what principle are production processes based? How does change best occur in material flow processes? How can the quality of processes be improved?

Prof. Thomas Bauernhansl from the Institute of Industrial Manufacturing at the University of Stuttgart underscores the ongoing importance of Warnecke’s work:

“The concept of the fractal factory, which Hans-Jürgen Warnecke proposed in the 1990s, remains highly relevant and meaningful today for manufacturing companies. The visionary power of his organizational model can be seen at work in agile and flexible production structures.”

Klaus-Hardy Mühleck, considered one of the top experts among CIOs, stresses time and again the influences of Warnecke on his work.

Rules of the Game

Those who write the rules of the game, have the best chance of winning the game. Processes – how the work is done – make up the rules of the game. Within companies. Where the product is critical to success. Where “a better mousetrap” really can, for the most part, sell itself.

Let’s march it backwards. Customer. Product. Manufacturing. Product development. Science and engineering. German. The core is science and engineering. In Germany scientists and engineers are king. They enjoy the prestige. Herr Dr. Soandso. Even better, Herr Professor Dr. Soandso.

Let’s march it backwards. Customer. Solution and profitability. Problem and pain. Relationship management. Sales. Marketing. American. The core is understanding the market, maintaining a constant close relationship with the customer, understanding and meeting needs. The customer is king. Those close to the royal court are king-too. They enjoy the prestige. The insider. The trusted.

Germans want to have the say about process, about how the work is done. For them it is make or break, success or failure. It’s the name of the game. Americans are happy to concede it, as long as the Germans concede to them the customer.

Mistaken thinking, or at most half-thinking. On both sides.

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?

Manufacturing without compromise

How the German company innotool&greminger markets their medical products provides insight into how important internal processes – how the work is done – are to Germans.

Their website states Fertigung ohne Kompromisse: Perfektion im Produktionsprozess – literally Manufacturing without Compromise: Perfection in Production Processes. They then spell that out.

“In medical diagnostics and therapy the key to quality of results is Handwerkszeug (the tools of craftsmanship). It is no different in the manufacturing of medical products.”

Our solutions are based on expert technical staff, high-performing physical plant and systems, and automated production, optimized for manufacturing medical implants and delicate instruments. With the help of CAD-CAM software we maximize the potential of our knowhow. We deepen that expertise via modernization and continual training of our staff. For quality doesn’t happen by itself.”

Instead of emphasizing the quality of their products, innotool&greminger focuses on the production processes which determine that quality.

How the work is done

Germans are results-driven. The strength of their economy underscores this. For Germans work results and work processes are synonymous, inseparable, integrally linked with each other. Germans focus on the details of how the work is done.

Processes are, therefore, results. They are how the work is done. If something does not function properly, if a product has an imperfection, the Germans analyze rigorously how the work was completed.

All problems, product deficits, signs of diminished quality are from the German perspective a failure in work processes. If something new has been developed, Germans not look first at its benefits for the user, but how it is made. How something is done, processes, craftsmanship, approach is always the focus of Germans.

A subtle difference

Normierung – norm-ing – is defining a unified measurement (dimensions, proportions) for products and processes. Norms are not only practical, they save money. Up to 17 billion Euros per year, according to the German Institut of Norms (DIN).

DIN is well known to all Germans, even if they don’t think about it. DIN-norms were introduced to them as early as grammar school when they began to work with stardardized pape sizes such as the A4.

But what exactly is a norm?

The German Chamber of Commerce writes (loosely translated): “A norm is a rule (regulation, code of practice). It is legally accepted. It was established via a standarized process. It solves a problem, addresses a situation, addresses factual circumstances.”

Manufacturers can invoke or refer to a norm in order to save time and money. However, noone is obligated to follow a norm. They are often, nonetheless, written into production contracts, thus defining measurements and processes.

In that sense production proceeds deductively, base on theory or the norm. Industry norms are more firm, more binding, than industry standards, which are not generally accepted, which can be defined by manufacturer to manufacturer.

Interestingly, the English language does not distinguish between a norm and a standard. Perhaps this gives us deeper insight into German thinking.

DIN

The German Institute for Norms (Deutsches Institut für Normung – DIN) sets voluntary standards for material and immaterial things.

DIN norms are suggested typically by German industry. They are set only when all parties to the discussion are in agreement. DIN norms are to Germany what ISO and EN norms are to international and European industry respectively.

The first DIN norm was set in March of 1918. By 1927 the Germans had settled on more than 3,000 norms. In 1948 the number reached 8,200. As of 2012 there are over 33,000 DIN norms, most of which are in the areas of mechanical engineering, construction, air and space, information technology, environmental protection, optics and professional services.

Each year produces roughly 2,000 new DIN norms. Each and every norm is reviewed every five years as to whether it is necessary and or meets current standards. The DIN system has begun the process of integrating itself with European and international standardization systems.

Processes provide clarity

Processes provide clarity. They allow employees to concentrate on core activities. They lead to cost reductions by identifying and eliminating unnecessary work steps. Thinking in terms of processes – how the work should be done – strengthens conscientious work and allows for quality control.

Well documented processes are critical for orienting new employees. Processes make transparent, make understandable, each and every segment of complex work methods. They are the basis for optimization, for reducing mistakes, for root cause analysis of systemic errors. All of these benefits lead to increased product quality. Work processes, however, must be understood and accepted by those doing the actual work.

In Germany it is critical that processes do not take on the character of laws, but instead remain guidelines. German workers expect a certain level of freedom in terms of how they perform their daily tasks. Processes should not become a kind of straightjacket.