efficiency

Work efficiently

eRetail sector: The EU Department of Statistics states that Germany has the lowest food prices in Western Europe. This can be attributed to the large percentage – 40% – of discounters in the market, whose aggressive pricing force the other supermarket chains to hold the line on price.

Discounters are known for constantly offering sales. They have been able to maintain their margins by constant increases in efficiency and cost reduction. In addition, they stock on those products which move fast, maintain modest store sizes, choose inexpensive locations, and pay only for targeted advertising.

Business consultants: Every segment of the German economy strives to improve on efficiency. Process optimization, cost reductions, the focus on core competencies, improved product portfolios, increased competitiveness. All of these areas enjoy special attention of top management.

This is why business consulting continues to grow at a steady pace in Germany. Although its economy accounts for roughly 20% of Europe‘s output, consultants do more than 25% of their business for German companies.

German house

Wirkung. Effect. Wirkungsgrad. Difference between output and input. Wirtschaftlichkeit. Difference between goals reached and resources used.

In most German buildings – residential or commercial – the lights in the hallways go off automatically after a short amount of time. Switches on the walls near the doors and in the middle of the hall allow one to turn the light back on. Germans refer to the lights being on as brennen, burning, as in a candle, oil lamp or burning fuel.

Germany, with 80 million inhabitants and large portions of its territory devoted to agriculture, is the size of the American state of Montana. Germans are well versed in maximizing the use of space. Rarely is there a house or apartment in a German city or town with an attic or basement which has not been renovated for use as an additional bedroom, study or storage space.

German supermarkets, too, are rather compact. As are the packaging of consumers items, often fit to the size of the content. No oversized breakfast cereal boxes or potato chip bags.

During the cold months down blankets at night keep old and young warm and comfortable while the heat is turned down or even off. Down blankets are expensive, but they last for many years.

When walking, cycling or driving by new house construction one can see stacks of insulation material waiting patiently to make their contribution to energy conservation, their necessity legislated by state and local building codes. In fact, the German government provides generous subsidies for renewable energy sources: wind, solar, biomass.

As for electricity-gulping air conditioning, you’ll find very few residential homes outfitted with it. The majority of office buildings allow you to simply open the windows. Hazy, hot and humid weather comes to the northern and middle European climate for only a few weeks a year. The nights always cool down, allowing for buildings to take in natural air conditioning.

Embarrassing clichés

This video is full of rather embarrassing clichés. And those clichés say more about the people repeating them than they do about the people they purport to describe.

Germany has the third-largest economy on the planet with only ca. eighty-five million people. Many of their companies dominate their markets. As if the German people did not know how to solve problems.

As one German commenter wrote: “I really don’t get how we are one of the most productive and powerful economies in the world while having to agree with this 100% at the same time.”

Oh wait, maybe because the maker of the video, Daniel-Ryan Spaulding, is an American comedian based in Berlin, and not, for example, an engineer working in any of the many world-class German companies.

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.

German inventions

Did you know that these ten important everyday items were actually invented by Germans? From transportation to information technology, Germany made some of the most crucial inventions of our time!

YouTube comments:

“Fritz Haber invented the Haber-Bosch process which converts atmospheric nitrogen into ammonia needed for fertilizers which aided in feeding millions. Unfortunately, the same process was used in the war effort in WW1.”

“Helmut Gröttrup was not only co-inventor of the smart card, but also an outstanding rocket engineer. During World War II, he worked in the German A4 (aka V-2) rocket program under Wernher von Braun. From 1946 to 1950 he headed a group of 170 German scientists who were forced to work for the Soviet rocketry program under Sergei Korolev.”

“Thanks for the Aspirin!”

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

Efficiency

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

German Approach

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.