Germans have experienced times of acute shortage. These have left their stamp on the German product philosophy. Efficiency is a key product characteristic. Efficient in its development, manufacturing, and use. Examples
efficiency
Efficiency
German Approach
Germans have experienced times of acute shortage. These have left their stamp on the German product philosophy. Efficiency is a key product characteristic. Efficient in its development, manufacturing, and use. Examples
American Approach
The USA remains one of the resource richest countries in the world. Although efficiency is among the key characteristics of any product, output almost always outweighs efficiency. Examples
American View
Americans have become aware of the importance of efficiency, and progress is being made. At the same time, U.S. companies have been successful nonetheless. Their experience is that products, indeed, can be profitable despite weaknesses in efficiency.
German View
Germans find Americans to be wasteful of resources. The trend of the last years to supersizing is considered to be irresponsible and lacking in self-control. Oversized houses, automobiles, meals served in restaurants reinforce the impression that America is not interested in doing things in an efficient way.
Advice to Germans
You will identify many areas where Americans can be more efficient. And bringing your German sense of efficiency into those areas can improve results.
But keep in mind that your working relationship is not exclusively about results as measured by efficiency. It is also about the relationship itself. A working relationship is one part work and one part relationship.
Advice to Americans
Anticipate the importance of efficiency in all that the Germans do, develop, produce. Anticipate also their view of American approaches as often being inefficient.
Listen carefully and take seriously their input on how to do things efficiently. It’s one of their great strengths. Profit from it. At the same time, remind your German colleagues that efficiency is not everything. Often output really does trump efficiency. But make the case.
Efficiency
The USA remains one of the resource richest countries in the world. Although efficiency is among the key characteristics of any product, output almost always outweighs efficiency. Examples
Pareto
The Pareto principle: Also known as the 80-20 rule, stating that in many situations approximately 80% of the effects come from 20% of the causes.
Vilfredo Pareto, an Italian economist, documented in the early 1900s that 80% of the land in Italy was owned by 20% of the population. Pareto went on to observe that 20% of the pea pods in his garden contained 80% of the peas. It has become a common rule of thumb in business that 80% of sales come from 20% of clients.
The 80-20 rule could be a metaphor about the American approach to many things, or at least about an element or aspect of the Americans approach. Americans tend not to be perfectionists. Not because they do not recognize and honor striving for the best. But because in many cases attaining, reaching, accomplishing that extra 5% is in many cases “simply not worth it”.
Worth. Value. Does the customer want that extra degree of engineering excellence? Is it necessary to calculate that many digits behind the decimal point? Is that depth of analysis necessary in order to make a decision?
80% is often enough. For Americans, depending on the situation, 60% is enough. Depending on the risk-benefit relationship, even less is enough.
Food and obesity
Despite the fact that over 30% of Americans are considered obese, they continue to expect and consume very large portions of food. This is part of a culture that glorifies and celebrates things that are large. Large homes, large cars, and large food portions are made possible by America’s abundant wealth and natural resources and celebrated as a key aspect of American culture. Bigger is better.
McDonald’s revolutionized the restaurant sector by applying an assembly line model to their hamburger restaurant. This process produces food of predictable quality in an efficient manner. In order to be profitable, non-fast food chains like the Cheesecake Factory must quickly produce food products of predictable quality without wasting ingredients or resources such as water and electricity. These restaurants have set up processes that rely upon training low-skilled workers how to create high-quality products by following strict processes.
„Bigger is better“: Many travelers have noted that American food portion sizes are much larger than portions in other countries in Europe and Asia. A medium sized drink or meal in America is the equivalent of a large in many Asian or European countries. Mainstream America tends to value size and price over the quality of a food product. Most fast food chains give customers the option of super-sizing a meal for a small fee ($0.50 – $1.00). Super-sizing increases the apparent value of the meal because it increases the size (and calorie count) for a small sum of money.
Some corners of American society have begun to strive for healthier, more sustainable portion sizes. One notable example is the controversial decision by New York City Mayor Michael Bloomberg to limit soft drink sizes. The law bans the sale of sugary drinks larger than 16 ounces and is aimed at curbing obesity and unhealthy habits that ultimately increase medical costs and decrease worker productivity.
Another initiative aimed at encouraging Americans to make better eating choices is the federal law that forces food chains with more than a certain number of store locations to post calorie information on the menu. This law was part of the Affordable Care Act, also known as „Obamacare.“
Houses people love to hate
According to the U.S. Census Bureau „The average new American home last year was 2,480 square feet, an increase of 88 square feet from 2010.“ These excessively large single-family homes are often referred to as „McMansions“ due to their relatively low cost and massive size.
By comparison, this is more than double the average home size in France and Denmark. The average size of a house in the United Kingdom was 818 square feet in 2009. Large homes consume large amounts of electricity, water, and other resources.
Americans tend to fill these large homes with numerous large things such as high capacity washing machines, clothes dryers, and kitchen appliances. Americans tend to keep the temperature of their home around 70 degrees Fahrenheit regardless of the temperature outside or amount of energy required to do so. Although some utility companies are encouraging Americans to use more efficient lighting, inefficient lighting and appliances remain the norm in most of the country.
American homes tend to be found on large plots of land, especially in affluent suburban areas. These lots are usually landscaped and planted with decorative plants and grasses that must be mowed, watered, and maintained. Mowing large lawns requires large tractors that, in turn, consume large amounts of gasoline. Watering lawns is a very inefficient process during hot summer months when much of the water evaporates before it has a chance to absorb into the soil.
Increasing home efficiency: In November 2010 the Obama Administration announced a program that provides funds to help Americans make their homes more energy efficient. The funds are used, for example, to insulate attics or put double panes on windows to trap heat in the winter and cold air in the summer months.”
Many local utility companies now send “efficiency packs” to new customers that include water-saving nozzles for faucets, energy efficient light bulbs, and suggestions on how to save energy during the warmest and coolest months.
The U.S. government also provides rebates for new commercial and residential wind and solar power projects. These initiatives have a dual function. They are aimed at bolstering the U.S. economy by creating jobs in the renewable energy sector. And they are also aimed at reducing greenhouse gas emissions by increasing energy efficiency. America is striving to be more “green.”
Air conditioning
Air conditioning in the U.S. is present in almost every home and building. It is often run 24 hours a day in commercial buildings. Large airports are air-conditioned 24 hours a day throughout the entire year. Americans often use substantial amounts of money during hot summer months and cold winter months to keep the temperature in their home around 70 degrees Farenheit. These practices represent a focus on the output – comfort – over other considerations such as environmental toll, cost, etc.
The U.S. Department of Energy recently passed increased standards for heating, ventilation, and air-conditioning (HVAC) equipment used in homes. These new standards will gradually take effect over the next several years and will require newly installed heating and cooling equipment to be higher efficiency equipment. Although this act shows that the government is serious about curbing energy use in American homes, enforcement will be difficult.
Some companies have realized that they spend large amounts of money heating, cooling, and lighting empty offices during nights and weekends. Many have adopted technologies that program equipment to automatically switch off at certain times of the day.
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.
Efficient and inefficient
Many of the most popular brands of children’s toys in the U.S. are wooden toys manufactured by fairly small companies. Compared to mass-produced plastic toys from China, they are inefficient to produce and more expensive to ship. Quality and design is the focus, not speed or quantity.
American-made tools: The websites of popular American toolmakers such as Snap On and Craftsman include many statements about non-negotiable product quality and safety but make no mention of efficiency. Production of American products often maximizes quality and safety while giving much less attention to efficiency of production.
U.S. health care: The delivery of health care in the United States is perhaps the best example of disregard for efficiency in exchange for safe, high-quality output. According to a report from the Institute of Medicine, „about 30 percent of health spending in 2009 – roughly $750 billion – was wasted on unnecessary services, excessive administrative costs, fraud, and other problems.“
The reasons for this waste are complex, but the underlying logic is that in the health care sector (and in most other industries), Americans view a safe, comfortable, and positive output as the primary goal of their activities; therefore, efficiency is often ignored.
U.S. military: The U.S. military spends vast sums of money to achieve the strategic goals of the nation. For example, it costs the U.S. an estimated $1 million dollars to outfit a single soldier in Afghanistan for a year. The U.S. has spent more than $1 trillion dollars fighting wars in Iraq and Afghanistan since 2001. The key focus of military operation is achieving the strategic objective (or output); efficiency and costs are rarely discussed. If they are discussed, they are always secondary to achieving the mission.
Federal hiring process: President Obama signed a memorandum in February 2010 ordering the Office of Personnel Management to streamline the federal hiring process. Although implementing this order will vary across different agencies, the act symbolizes a concerted effort to add efficiency to what was previously an incredibly slow and ineffective process.
Hotel chains: Many companies cannot focus exclusively on output while neglecting efficiency. Hotel chains have started to encourage customers to conserve water (thereby increasing efficiency) by re-using towels and not changing linens every day. These campaigns are often marketed as „eco-friendly.“ They are aimed at lowering costs and increasing the company’s efficiency. The output must be of good and uniform quality, but if the company does not operate efficiently, then it will not be profitable.
Assembly line: With the assembly line Henry Ford revolutioned the automotive industry and the way products are produced in almost every industry. This new manufacturing process made building cars more efficient. Because of the increase in efficiency, the cost to produce a car went down and when production costs were lowered, so was the retail price of the cars. Today, almost all products – from faucets to airplanes – are produced in some form of assembly line.
German efficiency
Germany is known for producing high-quality goods, but did you know that the Germans rarely work overtime and usually leave the office at 5PM?
This video cites four reasons for why the Germans are very efficient in what they do. It’s a bit simplified, but it their core the messages are accurate.
One clearly false statement is that for Germans the path to the goal is of secondary importance. In Germany the process used to reach a goal is seen as one side of the coin, with the other side being the outcome
The voice is computer-generated, but clear. The statements about Japanese business culture are not relevant for us, at least not yet on UC.