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Isn’t that what management is paid for?

Americans and Germans have very different expectations about how to manage interpersonal conflicts when they arise, which can lead to huge misunderstandings. As part of an ongoing series of articles, an American consultant living in Germany offers some advice.

When Germans and American collaborate, there will be conflict. This is normal. However, their respective approaches to conflict resolution differ. These differences, if not understood and properly balanced, can hinder just and lasting conflict resolution. And unresolved conflict threatens collaboration and success.

Get to the Roots

When German managers are asked to resolve a conflict, they aim to resolve it in a long-term, sustainable way. Their goal is to document a resolution which can be used time and again whenever a similar type of conflict occurs. Germans seek a best practice resolution and not one which is too tailored to the specific conflict.

At the same time Germans do not like being pushed into a decision. They demand time to think things over. Germans feel uncomfortable being asked to do something for which they have not prepared.

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.

Chief Slowdown Officer

Lex Fridman interviews Jeff Bezos about making decisions:

YouTube comments:

“I think this is very liberating for perfectionists, most decisions are not permanent and you can pick another door if necessary, if they are one way door decisions then you can allow for some perfectionism.”

“I’m the same age as Bezos. Also studied engineering and moved into management. What he’s talking about is, basically, exactly what we were taught in our control systems engineering classes back at university. Almost all engineer managers of our age group say the same thing.”

“I think everyone fails to understand the message of this discussion. It’s not about decision-making mechanisms, it’s about truth-seeking and the idea that no matter what the debate is about the objective should always be to try to get as close as possible to the truth to make the decision that resembles closest to the truth. That’s the whole point of this conversation, to leave the ego aside and search for truth.”

Designed in U.S. Made in China

American businesses have a history of designing products in America, but then sending the designs to companies abroad, especially to third world countries, to be assembled. Why would a first world country, with the capacity for better materials and production processes, outsource the building of their products to lesser developed nations? The answer is simple: cost.

One of the most common countries for assembling American-designed products is China. In 2011, there was an article in Forbes titled “Buying from China is in Fact Buying American.” In this article, the author talks about his friend Johnny, a middle class American who owns a couple of small restaurants.

Most of the cooking utensils and furniture in Johnny’s restaurants were made in China. Like most middle-class Americans, he shopped at stores that sold primarily Chinese-made merchandise. Johnny’s reason for using these Chinese-assembled products: they were cheap and “good-enough.”

The article went on to talk about different American companies that sell products that are made in China (Apple, Dell, Gap, Hasbro, Nike, etc.) and how, according to a San Francisco Federal Reserve study, an average of 55% of the value of American imported goods from China goes to American companies and workers.

This is compared to 36% for American goods in general. Not only can companies that outsource to China sell their goods at a cheaper price, but they actually make a lot more money in the process.

Warranty

Warranty: A real covenant binding the grantor of an estate and the grantor’s heirs; a collateral undertaking that a fact regarding the subject of a contract is or will be as it is expressly or by implication declared or promised to be; something that authorizes, sanctions, supports, or justifies; a usually written guarantee of the integrity of a product and of the maker’s responsibility for the repair or replacement of defective parts. Middle English warantie, garantie, to warrant.

U.S. federal law establishes minimum legal standards for warranties on products. Some companies, however, offer warranties (for purchase or for free) that exceed the legal minimum by covering a broader array of problems the buyer might face.

For example, Apple’s standard iPhone warranty includes one year of hardware repairs and 90 days of telephone support. However, an extended warranty can be added that provides full hardware and phone support coverage for two years. Private companies also offer warranties on electronics and other high value goods.

Every Toyota vehicle is supported by a 36-month/36,000-mile limited warranty coverage. In addition, most individual Toyota parts have 12-month coverage, a fairly standard warranty for new vehicles.

Most manufacturer warranties for electronics, appliances, etc. cover only products that fail due to defects in construction or malfunctions of the item’s hardware. Some consumers want more protection, so retailers like Best Buy offer protection plans that go beyond the manufacturer’s warranty. Best Buy‘s Geek Squad Protection Plan, for example, covers normal wear and tear, no lemon policy, accidental, and damage from handling. Since these plans cover a much wider spectrum of potential problems, they tend to be quite expensive.

In order to remain competitive, American retailers offer generous return and exchange policies. Most companies print their policy directly on the receipt and use phrases like „easy returns and exchanges,“ „no hassle returns“ or „100% satisfaction guarantee.“ Some companies, like outdoor supplier REI, allow customers to return products for a full refund or exchange at any time for any reason.

Many retailers (WalMart, Target) do not require a receipt for returns or exchanges. If no receipt is available, stores generally refund the credit on gift cards that can only be used at the store.

These generous policies highlight the importance that American consumers assign to customer-centered policies that are clearly communicated and executed in a friendly manner. Retailers, on the other hand, encourage buyers to spend first and think later. They give consumers confidence that satisfaction with a particular product or brand is guaranteed.

Upgrades

There are a lot of American websites that describe ways to make use of old products after upgrading to newer models. If you type “creative ways to reuse things” into Google, you are met with over 20 million websites with such titles as “40 Awesome Ways to Reuse Old Stuff” and “534 Ways to Reuse Things You’d Normally Throw Away.” These sites have suggestions for reusing everything from bicycles to wrenches, and even to fruit peels.

Some of the suggestions listed on these websites include: Using an old bicycle as a sink stand. Turning an old cassette tape into a coin purse. Bending old wrenches into wall hooks. Cutting old credit cards into guitar picks. Turning an old suitcase into a chair. Grinding old egg shells to make sidewalk chalk.

“March to our own beat”

WordPress software powers 70 million websites. Just about half of the biggest blogs in the world run on WordPress. Automattic – owner of WordPress – is not your typical Silicon Valley Web start-up.

“We march a little to our own beat, and sometimes it’s out of sync with Silicon Valley — and that’s been to our advantage and disadvantage,” co-head Toni Schneider said.

“We don’t get sucked into the latest thing, while some of our competitors are distracted by the latest shiny object. The disadvantage is sometimes we’re against the grain of what everyone else is excited about, and people ask ‘Why don’t you have x yet?’ — but we go at our own pace.”

Another way that Automattic is unusual is its extraordinarily low rate of staff changeover. It currently has 106 employees — and it has only ever hired 118 people.

Automattic was founded by Matt Mullenweg. From Houston. An American with a German background.

Business travel

Business travel via airplane or automobile remains extremely common in America despite rising airline ticket and gasoline prices. Businesses remain committed to approving business travel, appreciating the importance of face-to-face contact.

Although companies often work to cut costs, they are increasingly thinking about travel in terms of its carbon footprint. These companies are responding to customers’ increasing demands for sustainable business practices. Some companies are scheduling longer, less frequent business trips to cut down on air travel or using communications technology to decrease the need for frequent air travel.

Germany the world’s most innovative economy

October 2018. Germany is currently in the driving seat when it comes to innovation – thanks in part to the speed it’s developing new technologies like driverless cars.

In the World Economic Forum’s latest Global Competitiveness Report, Germany came top as the world’s most innovative economy, with a score of 87.5 out of 100 in the Innovation capability pillar – one of the 12 drivers of a country’s productivity.