business – Page 6 – understand-culture

A Form of Risk Management

Breaking down complexity into its component parts, a common theme in American thinking, is also at play in American decision making. Individual decisions are always a part of larger decisions. They can be either grouped or isolated. Because Americans value focus and execution, they tend towards isolating decisions.

The more clearly defined the decision to be made, the more limited its scope, the greater the chances that it will be made intelligently and implemented effectively. Limited scope decisions are also a form of risk management. Their results can be evaluated quickly. They allow for flexibility and rapid reaction to changing parameters.

And if human action influences the very context in which one is operating, there is a point beyond which grouping decisions increases risk. From the American perspective systems are inherently risky. For if just a few key elements of a system are wrong, the entire system is wrong.

“… make a comeback“

The New York Times online. May 3, 2015. An interview with Diane von Fürstenberg, Belgian-born American fashion designer best known for her iconic wrap dress.

Interviewer: You’ve had such a roller coaster life of great successes, as well as some pretty dark times. How did you manage through all that?

von Fürstenberg: I’m still managing through it. First of all, let’s talk about success. I lived an American dream. I was very lucky because I was very successful at 25 years old. Now it’s very common for that to happen in Silicon Valley. But at the time, it was not so common, and I was a woman and I was very young.

Now we go to failure. What does failure mean? You didn’t make it? So you didn’t make it. But by not making it, maybe you learned something else. America is a society where you always have a chance and where you can always make a comeback. So I would say that failure sometimes could be your biggest asset.

Nuts and Bolts

In the U.S. business environment, managers expect to be kept informed of even small developments in projects under their supervision. In practice this means that managers are often cc’ed on routine emails relating to the „nuts and bolts“ of a project, even if the content of the email does not require input from the manager. This practice is done to ensure that the manager has situational awareness of his team members’ work.

“I work for Mary Smith”

When two colleagues meet and the one asks the other what they do in the company, it is typical for Americans to state who their boss is: „Oh, I work for Mary Smith.“ The next statement might be: „in the new product marketing“ or „in global supply chain“ or „in corporate finance.“

Americans work outwards from their work, their team, the organization in which the team is imbedded, and so on. It is also common in the U.S. to hear the statement that „your most important customer is your boss.“

American team leads have influence and power over their team: strategy, organizational structure, roles and responsibilities, and, of course, compensation and professional development. The relationship with the team lead is for the team member a very important one. It influences them very personally.

That working relationship, however, can also be one which extends beyond the workplace to their private lives. It‘s common for American colleagues to be friends, close friends, friends who do things together, whose spouses and children know each other. Americans mix their work and private lives. This can include the boss.

In fact, many Americans would say that the ideal team is made up of capable people, who work hard, support each other, reach their business goals, but in addition know and like each other outside of work. Colleague and friend. Boss and friend.

Signs That You’re a Micromanager

“Signs That You’re a Micromanager.” Muriel Wilkins. November 2014. Harvard Business Review.

“Absolutely no one likes to be micromanaged. It’s frustrating, demoralizing, and demotivating. Yet, some managers can’t seem to help themselves. The signs are clear:

You’re never quite satisfied with deliverables. You’re often frustrated because you would’ve gone about the task differently. You laser in on the details and take great pride in making corrections. You constantly want to know where all your team members are and what they’re working on. You ask for frequent updates on where things stand. You prefer to be cc’d on emails.

Wilkins suggest four things to reduce micromanaging:

Get over yourself. We can all rationalize why we do what we do and the same holds true for micromanagers.

Let it go. The difference between managing and micromanaging is the focus on the micro. Let go of the minutia.

Give the what, not the how. There’s a difference between sharing that expectation and dictating how to get to that result.

Expect to win. Be clear on what success looks like. Provide the resources, information, and support needed to meet those conditions. Give credit where credit is due.

Mr. Buffett drinks Cherry Coke

Every year, tens of thousands of investors trek to Omaha in Nebraska. The Berkshire annual shareholder meeting is known as the “Woodstock of Capitalism” for the fervor of the investors — some owning only a single share — who travel to Omaha just for the chance to listen to Mr. Buffett and his longtime business partner, Charles Munger.

Several questions zeroed in on politics. Mr. Buffett, a Democrat with a close relationship to former President Barack Obama, gave careful criticism of President Trump’s policies. He made the argument that the American Health Care Act, which passed the House this past week (May 2017), was no more than “a huge tax cut for guys like me.”

When a protester from Germany delivered a long speech criticizing Coke, sugar and capitalism itself, Mr. Buffett said he would continue to drink his favorite beverage, Cherry Coke.

Woodstock of Capitalism. Sports arena. Ca. 20,000 shareholders in the audience. Long Speech. Critical. Not just of Coke and sugar. But of capitalism, also. German.

Source: “Warren Buffett, at Berkshire Meeting, Condemns Republican Health Care Bill.” Michael J. de la Merced. New York Times. May 6, 2017.

Crushed by Negative Speeches

Frankfurt. May 2015. Employees at Deutsche Bank’s headquarters week became the latest powerful stakeholder to call for its chief executives to resign. The workers council’s target: Anshu Jain.

The Corporate Center workers council, a powerful body that represents the 2,500 employees had put out a flyer entitled “Wind of Change? Wind of Jain?”

The letter called on the bank’s co-chief executive Anshu Jain to resign, stating a radical new start would give the bank back some credibility and could give rise to a real spirit of optimism.

Mr. Jain is apparently no longer able to shake off the repeated criticism so easily. There were numerous negative speeches aimed at him from shareholders over the course of the recent general meeting.

All-Employee Meeting

The All-Employee Meeting – also called All-Hands or Town Hall Meeting – is an effective and important forum American management uses to communicate directly with their entire organization. Its goal is not so much to go into the details of the organization‘s strategy, but instead to lay out its broad lines.

The AEM also allows for a question and answer period which gives both management and employees a forum to spontaneously address topics of particular concern. In addition, the AEM serves the purpose of motivating the team to work harder, faster, smarter.

Feedback frequency

German teams maintain long lines of communication. Feedback takes place in a formal setting, once or twice a year, according to the company‘s official internal process. Seldom do German team leads give team members spontaneous, informal feedback. Germans focus on the details of their work and less so on where they stand individually in the team at any given time.

References

Conflict in a team affects its people. People have personal perspectives. Subjective, not objective. Both real and a factor. Opinion counts, for it is among the fundamental drivers of behavior.

Americans value as evidence both facts and personal opinion. See an American curriculum vitae (resumé). It always either cites or offers references. See the sales/marketing efforts of any American company. They always either cite or offer a customer list. See the American judicial system. It always allows for supporting witness testimony.