history Archives - Page 9 of 16 - understand-culture

The Madman and the Bomb

The scene from the White House south lawn on August 9, 1974, is vivid in the nation’s memory. That morning, President Richard Nixon famously boarded Marine One for the final time, put on a wide grin and fired off a final double-V to the assembled crowd.

But one of the most interesting aspects of that day is what didn’t happen on the south lawn: Even though Nixon had more than two hours left in his tenure, the most critical tool of the modern presidency had already been taken away from him. He never noticed it, but the nuclear “football” didn’t travel with him as he boarded the helicopter, and later, Air Force One for his flight back to California.

Moreover, Defense Secretary James Schlesinger recalled years later that in the final days of the Nixon presidency he had issued an unprecedented set of orders: If the president gave any nuclear launch order, military commanders should check with either him or Secretary of State Henry Kissinger before executing them.

Schlesinger feared that the president, who seemed depressed and was drinking heavily, might order Armageddon. Nixon himself had stoked official fears during a meeting with congressmen during which he reportedly said,

“I can go in my office and pick up a telephone, and in 25 minutes, millions of people will be dead.” Senator Alan Cranston had phoned Schlesinger, warning about “the need for keeping a berserk president from plunging us into a holocaust.”

Do it yourself! (DIY)

Geh’ nicht zu Deinem Fürst, wenn Du nicht gerufen wirst – Do not go to your ruler, if you have not been summoned – this is nothing more than an order not to ride your boss’s coat-tails.

Selbst ist der Mann – Do it yourself! Only those who think for themselves can act for themselves, too. And he who is capable of thinking and acting independently is also ‘master of the situation’ – and has ‘everything under control’.

To be one’s own master – which Germans value very highly. The how? Please, no spoon-feeding!

Lincoln visits troops

President Abraham Lincoln was know for making unscheduled visits to Union officers and troops. Successful American leaders never lose touch with their people. Conversely, capable team members find ways to remain in constant communication with their team lead and other important members of management.

Führen mit Auftrag

Führen mit Auftrag, a multifaceted leadership concept roughly translated as Leading by Mission, has been the foundational leadership principle in the German military over the last two hundred years. It has its roots in the famous Prussian Reforms of the early 19th Century when the Germans did a comprehensive root cause analysis of why they were so suddenly and thoroughly defeated by Napoleon‘s armies.

Führen mit Auftrag – leading by mission – is how Germans define Menschenführung or leadership of men. The officer issues to his troops a mission, a goal. It is generally formulated, includes a time component and an indication of forces required. It is then up to the next level to devise how they will complete the mission independent of their leadership.

Unique about Führen mit Auftrag is the degree of freedom on the tactical level given to those issued the mission. As long as they complete the overall mission, they decide independently which approach is best, including significant adjustments to possible changes in the situation. Required at the tactical level are flexibility, creativity and executing independent of next-level leadership.

Of critical importance to Führen mit Auftrag is that the tactical level understand clearly and thoroughly the strategic thinking of their commanding officer, and are trained to act independently of that commanding officer, yet in the spirit of his strategic intent.

Those on the tactical must also possess both good judgement and the will to make independent decisions. They must have a strong sense of responsibility and duty. The commanding officer, for his or her part, must make their strategic thinking clear, transparent and understandable for those on the tactical level.

German Kleinstaaterei

Klein, small. Staaterei, many states. From roughly 1650 until 1850 Germany consisted of some 350 independent states, most very small, with only a few kingdoms such as Prussia, Bavaria, and Saxony. The Kaiser had little direct power over this patchwork of states. His influence was reduced to that of a moderator.

While England and France were well advanced in becoming unified centralized states, Germany remained a country of loosely affiliated independent territories. And although many of these territories developed their own modern governmental bodies, there was little progress made to coordinate or integrate them at the national level.

One of the causes of the German Kleinstaaterei was the German tradition of inheritance which divided up possessions among all male heirs, and not the just the oldest. This led to more and smaller states. Complicating matters was the tradition of dividing up the inheritance equally. This led to the creation of non-contiguous states with en- and exclaves.

Although two large states were formed – Prussia led by the Hohenzollern dynasty and Austria-Hungary led by the Hapsburg dynasty – both had non-contiguous territories which made it difficult for Germany to consolidate as a nation-state similar to England and France.

The German Bund – created after the Napoleonic Wars – reduced the Kleinstaaterei to just under 40 independent states. But it wasn‘t until 1871 when Germany finally became a nation-state in the modern sense after Prussia defeated France and declared itself a Reich. In the years before the Franco-Prussian War, Prussia had consolidated most of the German states via war.

Führen im Auftrag – Quotes

“The mistakes of senior commanders are often rectified by the troops below.” Carl von Clausewitz (1780-1831), Prussian General, author of On War.

“In reality, the Germans owe their final victory to the enormous amount of independently-minded and innovative junior-officers in all positions all the way down to the very lowest ranks.” Russian General Woide on the Franco-Prussion War of 1870/71

“War demands iron discipline of troops and exceedingly tight coordination of forces. In the heat of battle, however, of highest importance are officers and soldiers trained to think and act independently and spontaneously.” Prussian officer training manual of 1906

“Führen mit Auftrag is an extraordinarily broad and involved term, which includes all-encompassing aspects of current doctrine concerning the essence of war, characteristics of leadership, tactics, the leadership of troops, the relationship of senior to junior officers to each other and to soldiers, as well as training and education. In addition, these aspects are formulated systematically in a way which allows them to both mutually support each other and to make them inseparable.” An American Officer (1987)

The Allies and Mitbestimmung

“Herewith the establishment of works councils is permitted within all of Germany.”

German Mitbestimmung – co-determination, employee participation in high-level company decision making – is a tradition, law and an institution which most certainly is a source of headaches for American business partners and investors. At the same time the works councils are a source of great pride and self-understanding for all German labor unions as well as for many German citizens.

And although German Mitbestimmung had had a long tradition in Germany, it was the Western Allies, primarily the Americans and the British, who insisted immediately after World War II that the newly established West German state reinstitute it.

After their takeover of power in January 1933 the National Socialists had outlawed the Mitbestimmung, and forced all labor unions to be unified within the so-called Deutsche Arbeitsfront – literally German Workers Front. The goal was to prevent any potential resistance to the regime from among the working class.

With strikes in 1905 in the coal mining Ruhr region the unions had won the right to establish works councils. In the years thereafter the councils gain increasing influence. During the Weimar Republic these gains were written into law.

The works councils represented the economic and social interests of the workers over and against management. It was no surprise, therefore, that the Nazis saw in them potential opposition to their demand for absolute power. In 1934 the Nazis banned all independent unions and works councils.

It was no surprise, therefore, that what had been a thorn in the side of the Nazis was reinstated by the Allies. Kontrollratsgesetz Nr. 22 – Allied Law No. 22 – in the Spring of 1946 put works councils back in business.

Since then there has been no better instrument to prevent total control by management. Those who pick a fight with a works council go against the self-understanding and pride of the German movement for worker rights.

Mitbestimmung is Controversial

Although Mitbestimmung – codetermination: the legal right of workers to be represented at the highest levels of management – is foundational to the German social market economy, its merits are debated constantly.

Business (companies and their associations) believes that Mitbestimmung has been taken too far. The many different interests represented makes it too difficult to find consensus. It is an inefficient way to run profitable companies.

In October 2004 Germany’s two largest chambers of commerce (BDI and BDA) demanded reform of the Mitbestimmung. Their main argument was the pressures due to increasing internationalization of their companies. They referred to Mitbestimmung as an historical mistake.

There exists in Germany, however, a cultural and political consensus favoring Mitbestimmung. Germans believe that it provides for stability in companies. Employees identify themselves with them. Productivity is kept at high levels.

An historical mistake?

“… when not to obey”

Here are two famous quotes illustrating the German/Prussian military tradition emphasizing the need for officers to exercise judgment even if it means disobeying orders:

The first historic anecdote involves Friedrich Wilhelm von Seydlitz, a Prussian cavalry commander, who reportedly told his king during the Battle of Zorndorf (1758): “Tell the King that after the battle my head is at his disposal, but meanwhile I will make use of it.” This reflects the attitude that obedience alone is not enough; an officer must think critically and may need to disobey orders for the greater good.

Another related quote references a Prussian officer being told by Prince Frederick Charles (1868-1940): “His Majesty made you a Major because he believed you would know when not to obey his orders.“ This illustrates the principle that obedience has limits and military leaders must sometimes disobey orders based on the situation.

These quotes capture the essence of Auftragstaktik, the Prussian concept of mission-type orders, where the officer is entrusted with the freedom to decide the best way to achieve the goal.

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.