business Archives - Page 89 of 92

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 !

Rules of the Game

Those who write the rules of the game, have the best chance of winning the game. Processes – how the work is done – make up the rules of the game. Within companies. Where the product is critical to success. Where “a better mousetrap” really can, for the most part, sell itself.

Let’s march it backwards. Customer. Product. Manufacturing. Product development. Science and engineering. German. The core is science and engineering. In Germany scientists and engineers are king. They enjoy the prestige. Herr Dr. Soandso. Even better, Herr Professor Dr. Soandso.

Let’s march it backwards. Customer. Solution and profitability. Problem and pain. Relationship management. Sales. Marketing. American. The core is understanding the market, maintaining a constant close relationship with the customer, understanding and meeting needs. The customer is king. Those close to the royal court are king-too. They enjoy the prestige. The insider. The trusted.

Germans want to have the say about process, about how the work is done. For them it is make or break, success or failure. It’s the name of the game. Americans are happy to concede it, as long as the Germans concede to them the customer.

Mistaken thinking, or at most half-thinking. On both sides.

German Leadership Style … wrong !

Here we go, another misreading of German leadership logic. See correction in ( … ):

“In Germany there is a clear chain of command in each department, and information and instructions are passed down from the top. (no, it goes in both directions) This does not mean, however, that German management is exclusively autocratic (not only not exclusively, not autocratic at all): while the vertical structure in each department is clear, considerable value is placed on consensus.

Equally, the German striving for perfection in systems and procedures carries with it the implication that the manager who vigorously applies and monitors these is showing faith in a framework that has proved successful for all.

Accordingly, German managers motivate staff by showing solidarity with them in following procedures. They work long hours (wrong), obey the rules (a cliché, often Germans will go against or ignore a process or procedure) and, though expecting immediate obedience (a terrible cliché, as if Germans were dogs), insist on fair play. For their part, German employees welcome close instruction (actually it’s the opposite, they want generally-formulated tasks, and not specifically/detailed-formulate orders): they know where they stand and what they are expected to do.”

Say what you do. Do what you say.

“Say what you do and do what you say”, that’s the motto of German engineer, Norber Rudat. I think 99.9% of Germans would agree with it.

But wait, wouldn’t everyone, from every culture, agree with it? Perhaps. But are other cultures as literal about it? And I don’t mean literal-minded, but instead meaning something literally as they say it.

For example, do Americans always mean exactly what they say? And do they always say exactly what they mean? What about other cultures: China, France, India, Italy, Japan, Mexico?

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.