history

Entangling Alliances

As a nation-state, in their international relations, Americans warn against becoming involved in complexity. Thomas Paine (1737-1809) – an English-American political theorist-activist, author, and revolutionary – instilled non-interventionist ideas into the politics of the American colonies.

His work Common Sense (1776) argued in favor of avoiding alliances with foreign powers and influenced the Second Continental Congress to avoid forming an alliance with France.

George Washington’s farewell address restated Paine’s maxim: “The great rule of conduct for us, in regard to foreign nations, is in extending our commercial relations, to have with them as little political connection as possible. Europe has a set of primary interests, which to us have none, or a very remote relation.

Hence she must be engaged in frequent controversies the causes of which are essentially foreign to our concerns. Hence, therefore, it must be unwise in us to implicate ourselves, by artificial ties, in the ordinary vicissitudes of her politics, or the ordinary combinations and collisions of her friendships or enmities.“

Thomas Jefferson extended Paine’s ideas in his inaugural address on March 4, 1801: “peace, commerce, and honest friendship with all nations, entangling alliances with none.”

In 1823, President James Monroe articulated what would become the Monroe Doctrine: “In the wars of the European powers, in matters relating to themselves, we have never taken part, nor does it comport with our policy, so to do. It is only when our rights are invaded, or seriously menaced that we resent injuries, or make preparations for our defense.“

Short. Mid. Long.

Germans think mid- to long-term. Short-term thinking and action is almost always viewed negatively. Germans associate short-term with ungrounded, fleeting, incomplete. When they make decisions they want to know, at least anticipate, what the effect (Auswirkungen) will be in other areas, on other processes, on other colleagues. They strive to understand the mid to long term effects.

Middle High German vrist. Old High German frist: what is current, about to occur; time period in which something should happen; to postpone briefly. Kurz- , mittel- , langfristig means short- , mid- , long-term.

build a better mousetrap

“Build a better mousetrap, and the world will beat a path to your door” is attributed to the American writer Ralph Waldo Emerson from the late 19th century.

It may, however, be a misquotation of “If a man has good corn or wood, or boards, or pigs, to sell, or can make better chairs or knives, crucibles or church organs, than anybody else, you will find a broad, hard-beaten road to his house, though it be in the woods“.

The phrase “to build a better mousetrap”, has come to signify a false belief that companies need only build a better product for them to succeed, as if the sales and marketing of that product played an insignificant role. Americans rarely believe that a product can sell itself.

Buyer‘s Market

The United States has been growing since its birth. Growing in territory, in population, in economic output. For the most part the U.S. has striven for open markets, domestically and internationally. Americans also believe in meritocracy. People should benefit directly from their hard work.

Americans believe in competition. And America has always been a buyer‘s market, with supply outpacing demand. In such an environment, success cannot be attained without active effort to win customers. In America, sales and marketing are critical to success. Simply „building the better mousetrap“ is not enough.

An Amazon.com search on “Buyer’s Market” generates 13,959 results. Book titles include Solution Selling: Creating Buyers in Difficult Selling Markets by Michael T. Bosworth, The New Rules of Marketing and PR: How to Use Social Media, Online Video, Mobile Applications, Blogs, News Releases, and Viral Marketing to Reach Buyers Directly by David Meerman Scott and Buyer Beware: Finding Truth in the Marketplace of Ideas by Janet Parshall. 10.5 percent of native-born Americans between the ages 25 and 64 are employed in the sales industry.

Of Ducks and Salespeople

“We’re like ducks. We’re not good at either swimming or flying.” This was the response of a graduate student in Wirtschaftsingenieurwesens – a kind of combination of business and engineering, each of them in the lighter form – when asked what subject material her studies involved.

The duck metaphor reveals a conflict in German companies. Those working in sales & marketing are still looked down upon a bit as people who go from door-to-door selling a product (vacuum cleaners is the cliché) which they have neither developed nor manufactured. Even more, colleagues in sales & marketing often feel unfairly blamed when the company does not perform well.

Prestige in the German economy still goes to those who invent, develop and make physical products. Engineers and artisans are among the most highly respected disciplines.

The results of their work can be seen, held, put to work, and depending on their sophistication even marveled at. Whereas the success of capable sales & marketing people can be seen only in dry, impersonal numbers.

In addition, almost all professionals in sales & marketing transitioned into that discipline from another one, perhaps even from engineering. In fact, Germany doesn’t have a traditional Berufsgruppe – occupation category – for sales. There is no guild going back to the Middle Ages as there are for almost all other technical occupations. Thus the duck-metaphor. Neither fish nor fowl.

Nonetheless, the importance of the work “ducks” perform continues to increase in today’s global economy, where quality and technical prowess alone are not enough to sell a product.

Strategy Consultants

The approaches used by strategy consultants – also known as management consultants – are advanced versions of those taught in business schools: data-driven analysis with some degree of attention given to the non-quantifiable human factor. The goal is the standardization of best practices within client companies, drawing also on insights gained from other clients.

The management consulting sector has grown dramatically since the 1930s, when the Glass-Steagall Banking Act was passed, limiting affiliations between commercial banks and securities firms. Management consulting grew out of the demand for advice on finance, strategy and organization. In 1980, only five consulting companies existed, and each had 1,000 consultants worldwide. By the 1990s, however, more than thirty firms entered the market each with at least 1,000 management consultants.

In 1993, McKinsey had 151 directors. This figure dramatically increased to 400 by 2009. From 1993 to 2004, McKinsey revenues more than doubled with 20 new offices and twice as many employees. McKinsey grew from 2,900 to 7,000 consultants scattered across 82 offices in more than 40 countries. In 1963, Boston Consulting Group had two consultants. By 1970 1980, 1990, 2000 BCG had 100, 249, 676, 2370 and 4800 consultants on its payroll respectively.

The Lords of Strategy

Written in 2010 by Walter Kiechel, former managing editor at Fortune magazine and editorial director of Harvard Business Publishing, best-selling The Lords of Strategy describes the history of ideas in the field of management strategy over the past forty years through the rise of the strategy consulting firms McKinsey, BCG and Bain, as well as notable business schools.

A reviewer – Jeffrey Swystun – wrote on amazon.com that Kiechel “sees the best strategy consultants as objective intellectuals who see patterns of evidence and put them through conceptual frameworks to produce pragmatic insights“.

Trajectory

Germans view the past and the present as two points along a continuum. They establish a Weichen or course, path, trajectory. But not unchangeable. Neither automatic nor preordained.

Although people can affect real, even radical change, the Germans are realistic about the possible range of change. Every path has its past, where it came from. Seldom can people suddenly move in a totally different direction. Seldom do the Germans want to. Seldom are they persuaded when it is proposed.

Heimatfilme

For Germans the past is present, relevant, of great importance. The past explains who we are, where we come from, how the present has become the way it is. For them the past is not history in the sense of gone, over, goodbye, irrelevant. History is present and future, a part of their identity.

Old buildings, with their stairwells and staircases, ceilings and facades, and many other kinds of cultural monuments are protected in Germany by Denkmalschutz – laws requiring their protection and preservation – even if they are in dire need of reburbishment or reconstruction.

Entire sections of German towns can be placed under Denkmalschutz. History is heritage. Heritage is identity. The battle for and against Stuttgart 21 – a modernization of Stuttgart‘s main train station – went on for several years and became the prominent issue in recent state-wide elections in Baden-Württemberg.

Outdoor museums in Germany show how people of past epochs lived and worked. Castles from the Middle Ages with their fascinating guided tours are popular daytrip destinations. In every German village, town and city one finds remnants of the past. Town gates, walls, even moats, and chapels are integrated seamlessly into the modern.

In elementary schools children learn Heimatkunde – history of their local region. The Heimatfilm – movies set in a specific region such as Bavaria or the Black Forest – remain a constant in the German media landscape, keeping alive regional customs and traditions. Many detective tv series are regionally based, one week in Hamburg in the north, the next in Leipzig in the East, the one thereafter in Cologne in the Rhineland.

Break with Tradition

America is a nation of immigrants. Their forefathers and -mothers left everything they knew behind: country, language, customs, family, friends, traditions. Because they broke with the past – their own very personal past – they have less inhibition to further break away from traditions in order to plot a new course.

Between 1881 and 1920 two of the largest waves of immigration hit the United States. In those years more than 23 million immigrants arrived, the majority of them were from eastern and southern Europe. They were a long way from home.