history – Page 14 – understand-culture

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.

Searing

Searing: Very hot; marked by extreme intensity, harshness, or emotional power.

The United States is an immigrant country. More accurately stated: a younger, more recent immigrant country. For the history of mankind is the history of man moving, settling, then picking up and moving again.

There were and are reasons for why people moved and continue to move to the United States. Many seek greater freedom of thought, of religion, of way of life. Economic opportunity was/is certainly a motivation for many, if not most. And there are those who wanted to break out of the inflexible structures of their native country.

The immigrant experience is searing. It is of great emotional intensity, forming who we are as individuals, families, ethnic communities, and as a nation. The stories, the emotions, the choices made are passed down from generation to generation.

Oddly, but understandably, an American of German descent will say: “I’m German,” meaning, “My ethnic heritage is German,” in a deeper sense, “My national cultural hard-wiring is American and German,” just as it is for others: American and Italian, American and Irish, and Vietnamese, and Mexican, and Polish, and so on.

A searing experience. People left behind all that they knew. Language, culture, traditions, friends and relatives. The risks were both high and not entirely known. The immigrant experience leads to a complex relationship with what was once home. For people take their culture with them. National culture changes only slowly and painfully.

Immigrants admire, respect, long for their home. But they also leave it behind, in some ways they reject it. Americans have always seen America as the New World. Not just a new settlement, a new country. But a new world, as if mankind were starting afresh, anew. It is a part of the American self-understanding to believe that you can strike out on a new path, question old ways, methods, traditions.

Realistic for Americans means that the present is a starting point to the future, a new starting point towards a new future, possibly different and better than the past. Yes, the present is the result of the past, but not locked into a pre-determined, unalterable trajectory. The past, therefore, has less relevance. There is less need to explain how the present was arrived at.

Whereas for Germans realistic means “keeping your feet on the ground,” maintaining a sober view of the situation, not deviating too much from known ways; “knowing where you come from.” For Americans realistic means developing a vision, imagining new possibilities, stretching beyond, reaching for more and greater things.

Native American Oral Tradition

When European explorers and settlers first arrived in America, there were hundreds of different American Indian nations. Although these tribes had different languages and cultures they shared a rich oral tradition.

The stories that these nations passed down recorded everything from history to cultural beliefs and even to science and technology. Studies by anthropologists David Pendergast and Clement Meighan have shown clear evidence that Native American oral traditions contain real history, and Stephen J. Augustine, the Hereditary Chief and Keptin of the Mi’kmaq Grand Council, has said about the oral tradition that

“(The Elders) did joke with each other and they told stories, some true and some a bit exaggerated, but in the end the result was a collective memory. This is the part which is exciting because when each Elder arrived they brought with them a piece of the knowledge puzzle.

They had to reach back to the teachings of their parents, grandparents and even great-grandparents. These teachings were shared in the circle and these constituted a reconnaissance of collective memory and knowledge. In the end the Elders left with a knowledge that was built by the collectivity.”

Many of the newcomers to America came from cultures that preferred written factual documents over spoken storytelling, and contact with the natives soon blended the two traditions. Now most education and oration in the US contains both forms of information: anecdotal and factual.

Bismarck’s Treaty System

Otto von Bismarck was Chancellor of the German Reich from 1871 until 1890. He is best known for a complex web of treaties with the other European powers – France, Great Britain, the Austro-Hungarian Empire, Tsarist Russia. These treaties allowed Germany to grow industrially and militarily without provoking attack by any combination of those rival powers.

Bismarck’s diplomacy ending the Balkan Crisis of 1879 increased Imperial Germany’s international prestige, at the same time limiting Czarist Russia‘s influence in that region. Anticipating a frustrated Moscow, Bismarck wisely sought protection from Austro-Hungary via a mutual defense treaty signed in 1879, a treaty relationship which would hold until the end of the First World War.

In 1881 Bismarck pulled off another diplomatic coup by reducing tensions with Tsarist Russia and signing a treaty of mutual defense with Moscow, thereby preventing a possible anti-German coalition between Russia and France. Bismarck extended this system of alliances in 1882 by crafting a treaty involving the German Reich, Austro-Hungary and Italy, adding Rumania in 1883, defending against a possible French-British alliance against Germany.

Unfortunately, this complex, brilliantly devised system of treaties would fall apart not long after the young and impulsive Kaiser, Wilhelm II., took power and decided that Bismarck‘s time had come to an end. Wilhelm II. went on to antagonize and provoke Europe‘s powers in all the ways in which Bismarck had worked so hard to avoid. In August 1914 the Great War began.

Warning: It’s complicated.

Robber Barons

Robber Barons was the name given to exceptionally successful business people in America during the late 19th and early 20th century. Most of the Robber Barons came from humble backgrounds, and started businesses at times when many industries were beginning to grow substantially.

Robber Barons were both admired as people who became rich and powerful, yet hated as monopolists who exploited their workers. In fact, these Barons were able to create such a large divide between rich and poor that Jay Gould, a gold and railroad Baron, once allegedly said “I can hire one-half of the working class to kill the other half.”

In 1890, the Sherman Anti-Trust Act was passed, the first law enacted to limit the exploitation scope of the Robber Barons’ business practies. The Sherman Act outlawed monopolies and anything which unreasonably restricted trade, such as price fixing. Over the following decades, more business regulations were enacted, bringing the reign of the Robber Barons slowly to an end.