business Archives - Page 37 of 40

External Expertise

Germans often involve external experts, who have a broader Überblick, in a critical decision making process. As a neutral party they can ensure that the most current analytical techniques are employed, thus minimizing the risk of errors causing serious harm. Even those Germans confident in their ability to execute a critical decision making process will refer time and again to the highest standards in their industry.

Expertise. Analysis performed by a neutral expert. Deep subject area knowledge. “She is considered one of the finest experts her field.”

The Germans believe that truly objective criteria and analytical approaches exist, that they can be identified and used. Germans constantly work towards objectivity. For them analysis can only be of value if objective.

Standards. English standard: something which is considered to be the best in its kind, a model, an example; the quality against which all is compared, measured; norm, measure, a plumb line.

Some of the highest standards for hygiene, for example, are found in German hospitals, restaurants and hotels. To receive several stars requires meeting those standards.

There are labels and awards for almost all products in Germany: Fair trade labels for products from the southern hemisphere; ecology labels for organic foods; safety labels for mechanical and electrical products used in the home or the workplace. All are based on norms and guidelines.

Fair Critical Feedback

Germans consider critical feedback to be unfair if it does not include concrete recommendations on how to improve on weaknesses. They believe that people can only improve on what they understand to be suboptimal. Critial feedback, the Germans believe, should therefore be communicated clearly, avoiding any use of politically correct language.

The more objective and impersonal the critical feedback is stated, the less chance it will be taken personally. Feedback experts in Germany go as far as to view personal relationships within teams as a barrier to honest, effective feedback. They often recommend neutral third parties to facilitate particularly critical feedback discussions.

Plumber, Electrician, Banker

In German companies the head of a department or project team assigns tasks to the team and to individual members, who carry them out ideally without any supervision. This logic is also at play in business relationships between customer and supplier.

When a German contracts a craftsman or mechanic – plumber, electrician, handyman – to do a job, he or she does not go beyond explaining the problem which needs to be solved. Everything else is left up to the person contracted to completed the job. The German customer expects the job to get done without any more input or oversight from them.

It‘s the same approach when one goes to the bank. The customer explains their financial situation, states their goals and then expects the financial advisor to do the rest, meaning come up with a financial plan. The bank employee, like the plumber, only contacts the customer if it is absolutely necessary.

Working independently

Many job advertisements will promise their employees the opportunity to work independently. An independent work environment, without constant oversight or having someone ‘looking over your shoulder’, is viewed very positively.

This is also an indicator of trust. Constant check-ins with one’s boss about the status of a project are neither necessary nor desired. In the German workplace, too many check-ins suggests an over-dependence on guidance on the part of the employee. Such ‘needy’ employees require a lot of ‘hand-holding’ – something which no German employer feels like doing.

Insurance protection

Germans love insurance policies. According to the magazine Stern, the average German household paid an average of 2,771 EUR annually for private insurances in 2002, 106 EUR more than in the previous year. They are clearly willing to spend on their security.

However, the avoidance of risks in this way is often not rational. According to Stern, every other German is insured for legal representation, yet only one in ten have disability insurance. Statistically, however, one out of four people will be unable to work for an extended period of time during their lifetime due to illness or an accident.

The investment counseling agency KSK-Südholstein makes a similar attest: “Germans love to be rooted and secure. That is why they are so keen on insurances. For this reason, there is an incredible variety of insurances available on the German insurance market.

Amongst these policies you will find some which are sensible, and others which really are not, because not every value must be insured. Much to the dismay of experts, there is a tendency in Germany to insure small amounts of damage with high initial ventures.”

Germans are critical of rankings

Germans prefer to measure performance less frequently, but when they do so then in detail and exact. The German media has taken to the trend of ranking, but most Germans criticize them for not being truly representative.

Several academic organizations have called for a boycott of university rankings. Ranking tv shows such as Simply the Best or The Top 10 are also criticized by the public for not being objective, for relying on viewer voting which is overly influenced by current events.

The ranking show Die ultimative Chartshow went on air in 2003, is based on reliable statistics and continues to command a loyal viewership. Das Politbarometer, The Political Barometer, broadcasts the results of its political polling each month and is watched carefully by citizens and political professionals alike.

Germans take ranking serious only if they are based on a serious methodology.

“We want negative feedback”

Statement made by a German working in the U.S.: “It bothers us Germans when our American bosses give is inflated feedback, meaning too positive. Negative feedback keeps us oriented on avoiding mistakes, and it sharpens our ability to remain self-critical.

How is someone supposed to remain clear-headed and self-critical if all they ever hear is great and super. Performance which is clearly suboptimal should not be sugar-coated. Management loses credibility that way.

And feedback loses its key purpose, which is to address primarily things that aren’t working well. At some point this will hurt us. The quality of our work will suffer.”

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.

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.

Harry’s Razors

Harry’s makes shaving equipment for men. Two American MBAs with experience in strategy consulting bought a German manufacturer in Thuringia (Thüringen in former East Germany), founded in 1920. Their goal is to challenge the world’s dominant products.

“Our team in Germany has been grinding high-grade steel into some of the world’s sharpest blades since 1920. Today, more than four hundred German engineers, designers, craftsmen, and production workers build and operate sophisticated, custom equipment that produces millions of precision blades per year. We’re excited to partner with our new team to innovate and continue to make the fine blades you deserve.

Our blades will get even better. Your shave will get even better. We’ll listen to your feedback about what makes a great shave and create products that deliver you that experience. In the end, we hope you’ll enjoy shaving even more.

We spent over a year meticulously crafting our first Harry’s line. Our blades are made by German engineers with decades of experience honing high-grade steel. Our handles were designed to blend timeless simplicity and modern ergonomics. Our shaving cream comes from the same chemists who make creams for high-end brands. The result: a set of modern shaving products made with respect for the tradition of a good, clean shave.”

Quality product combined with respectful marketing.

And John Otto Magee – creator of understand-culture – is a very happy Harry’s Razors customer. So happy that he recommends Harry’s to friends. All the time. Thanks, Harry’s. And special thanks to those great Germans in Thüringen !