Germans believe that it is unimportant who actually presents the arguments as long as the topic has been understood in both its depth and breadth, analyzed with stringent methods, leads to a logical and actionable conclusion, and is communicated in a structured and clear way. The presenter could be a junior member of the team.
business
Eric Schmidt – Google
The former Google CEO has reinvented himself as the prime liaison between Silicon Valley and the military-industrial complex.
General Thomas, who served in the 1991 gulf war and deployed many times to Afghanistan, spent the better part of a day showing Mr. Schmidt around Special Operations Command’s headquarters in Tampa, Fla. They scrutinized prototypes for a robotic exoskeleton suit and joined operational briefings, which Mr. Schmidt wanted to learn more about because he had recently begun advising the military on technology.
After the visit, as they rode in a Chevy Suburban toward an airport, the conversation turned to a form of artificial intelligence.
“You absolutely suck at machine learning,” Mr. Schmidt told General Thomas, the officer recalled. “If I got under your tent for a day, I could solve most of your problems.” General Thomas said he was so offended that he wanted to throw Mr. Schmidt out of the car, but refrained.
In an interview, Mr. Schmidt — by turns thoughtful, pedagogical and hubristic — said he had embarked on an effort to modernize the U.S. military because it was “stuck in software in the 1980s.”
Yes, Eric Schmidt is an American. But check out his last name. He is thoughtful, meaning intelligent. He is pedagogical, meaning can be pedantic. He is hubristic, meaning arrogant. Schmidt.
Personal nice. Professional better.
In small talk situations Americans seldom jump directly into the business subject matter. For Americans business is always to certain degree a personal matter. In fact, Americans prefer to work with people they like, and who like them.
Germans, on the other hand, can and will do business with you even if you have little or no personal relationship. Most importantly, they want to know if you are good at what you do. Personal is nice. Professional is better.
Mistrust, a Virus
Follow up in Germany is a sign of mistrust, of doubt in one’s reliability, in that person’s ability to deliver what they have promised. For Germans typically only commit if they are close to absolutely certain that they can execute.
Germans are very sensitive about mistrust, and do not deal with it well. A fictitious example: Small team. The members have their individual tasks, but need to collaborate at certain points. They work well together. The team lead can pay less and less attention to them. A new team member, though, begins to take advantage of the lead’s hands-off management style by looking for personal advantage.
The other team members become a bit unsettled. A few others also begin to think only of themselves. Mistrust creeps into the team, the points of contact become strained, collaboration more difficult. Their boss sees the signs and reacts by scheduling team meetings more frequently, checking on each team member’s work. Then come the emails and phone calls going into more detail.
The increased follow up strains relations. Several of the team members begin to look for alternative jobs within the company. A top performer is gone within a month. Others have sent out their resumés. Follow up can lead to mistrust, a virus with potentially deadly results.
Starting Point
The present is always the starting point for any action. The present is current, a result of what was decided, of what has been done, of action taken. To understand the present means to first understand how it became what it is, to understand its history.
Before Germans can be persuaded by any future action, they have to be convinced that the presenter has understood the present – the starting point – via its past.
Rarely the final step
Formal presentations are rarely the final step in a German decision making process. Rarely do German managers make a critical decision shortly after having listened to the presentation of various options.
Instead they will take time to reflect, discuss with their direct reports, get additional input from subject area experts, use colleagues at different management levels as sounding boards.
The act of persuasion in the German business context is seldom aimed at getting a specific decision. Truly persuasive argumentation seeks to influence, steer, route the thinking to or in the direction of a desired decision.
Process Rhythm
All processes have a rhythm, made up of the individual process steps, their sequence and the time allotted to them. Processes do not exist in a vacuum, however. Every process and its rhythm is subject to external factors.
Germans do their best to prevent external factors from influencing the rhythm of their processes, however. They believe that if a given decision making process has proven to be effective, if it has led to good decisions, it should not be interrupted or distracted.
If the decision is an important one, if the decision making process has proven to be robust, Germans will do their best to shield it from external factors.
Three inches high
Horst Brandstätter, the founder of Playmobil, dies at 81.
“Although a billionaire by the end of his life, he was a world champion in economizing, the younger Mr. Brandstätter (son Conny) said, citing as an example his father’s insistence on using cheap packs of cards for his favorite card game.
Mindful of his cash flow as the world oil crisis drove up the cost of plastics in the 1970s, Mr. Brandstätter summoned his chief designer and asked him to come up with toys that would use less plastic.
Mr. Beck came up with Playmobil, whose miniature models and environments are said to have been inspired by children’s drawings and the figurines of traditional Christmas crèches. At about 3 inches high, the figures have round faces, movable arms and legs, and hands that can grasp a pirate’s sword, a carpenter’s saw or a firefighter’s hose.”
Source: New York Times, June 11, 2015. By Alison Smale
74 Billion Dollars
On May 7th, 1998 Jürgen Schrempp, CEO of Daimler, and Bob Eaton, CEO of Chrysler appeared together at a press conference in London to announce a merger between the two companies. It was emphasized that this was not a takeover by one company of the other, but rather a fusion between equal parties. Schrempp deemed the merger of Daimler and Chrysler “a match made in heaven”.
After two years, Co-chairman Eaton announced his resignation, leaving Schrempp to be the sole head. In 2006 Schrempp passed this position on to Dieter Zetsche. By March 2007 the first speculations began to emerge that DaimlerChrysler would sell the ChryslerGroup.
Since the merger, Chrysler had reduced its net worth by 35 billion Euros, while the net worth of DaimlerChrysler has been reduced by another 50 billion by the end of Schrempp’s resignation in 2005. On May 14th, 2007 the sale of ChryslerGroup to Cerberus was announced. During a special general assembly on October 4th, 2007 it was officially decided to rename the company Daimler AG.
For Mercedes-Benz this merger to DaimlerChrysler AG seriously damaged the company’s image, which many attribute to quality issues and cost-cutting. The leading role which Daimler-Benz AG once had in the auto industry has still not been completely restored.
A study conducted by the consulting firm McKinsey estimated that the company’s value had dropped during Schrempp’s reign by 74 billion dollars.
Founderland
A willingness to take risks and a desire to make decisions are the basic requirements for starting a business. Germany is not a land of entrepreneurs.
According to Global Entrepreneurship Monitor (GEM), an annual joint publication of the University of Hannover and the Institute for Jobmarket and Career Research of the German Federal Agency for Employment, only 2.5% of adults in Germany started a business which they could live from. This placed Germany in spot 10 of the 22 compared.
Rolf Sternberg, an economist, considers one reason for the weak culture of entrepreneurship to be the widespread desire toward security:
“The tendency to strive towards security is much more prevalent in Germany than in Anglo-American countries”. This is the flipside of having a well-developed social security system.
Yvonne Stolpmann of Chamber of Commerce in Nürnberg summarizes the situation as such: “Those who give up a permanent position here stand to lose a lot of security. It’s different in the USA”.