business – Page 8 – understand-culture

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.

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.

United Breaks Guitars

In 2008, United Airlines baggage handlers damaged Dave Carroll’s guitar. After the airline refused to pay to fix the damage to his instrument, he and his band wrote a song called “United Breaks Guitars” and put it on YouTube.

Within two days it had more than 24,000 views (and more than 14 million views by 2015), and it was estimated that the bad press cost United Airlines around $180 million the following year (2009).

This incident also inspired Carroll to co-found Gripevine – a company that helps customers use social media to expose their complaints and convince companies to give better service.

Customer Reviews

Customer reviews can make or break a company in the US. 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 restaurant 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 Case: 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.”

Do it Yourself

Often German managers would rather complete a certain task themselves instead of passing it on to a team member. Many do repairs in their house, fix their cars, and some sit in their office at home until late into the night.

For those with limited financial resources, doing things yourself might be a question of economics. For others, there is a German reason: they often have a clear picture in their mind of how the final product should look. That they don‘t hand it off to a team member is not a sign of mistrust or lack of confidence.

Instead, Germans are skeptical that the other person will fully understand what is expected. By the time they have explained the task and how the final outcome should look, they most likely will have completed half of the work.

For the team member will create her own picture of the final product. Two pictures of what the work should look like. A dilemma for every customer-supplier relationship.

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?

“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.

Not a consumer’s job

Harvard Business Review. October 31, 2001. Tom Davenport, Business Professor at Babson College: Was Steve Jobs a Good Decision Maker?

„He (Jobs) also didn’t believe in analytical decisions based on extensive market research.“ Quoting The New York Times’ obituary:

„Mr. Jobs’s own research and intuition, not focus groups, were his guide. When asked what market research went into the iPad, Mr. Jobs replied: ‘None. It’s not the consumers’ job to know what they want.’”

Steve Jobs was not of German descent. It was known, however, that he had great respect for German design and technology. He and his family, it was reported, had debated for weeks what brand of washer they should choose. His arguments won out. They purchased a Miele.

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.

Consult the customer

Communication with the customer about expectations is a primary role of American business. For example, a senior consultant at a major American strategy consulting firm described collaboration as an attribute that is “built into the very culture of our consulting firm.” New consultants are selected for their ability to understand and respond to the needs of their clients.

The website of a leading strategy consulting firm tells future clients that “custom solutions yield the greatest competitive advantage and value for our clients. We ground each solution in how our client’s organization actually works and in the client’s unique position in the marketplace.”

In order to understand the client’s unique situation and demands, the consultants work side-by-side with the client’s employees and listen to their concerns.

A report from the Center for the Study of Social Policy about customer service describes the complex interplay of factors involved in customer satisfaction. One finding of the report is: “Successful customer service companies listen to, understand, and respond—often in unique and creative ways—to the evolving needs and constantly shifting expectations of their customers.“