Q&A

Question

“Is it accurate – and helpful – to refer to the American? What do a New Yorker, a recent Mexican immigrant in Texas, and a Californian have in common?“

Answer

Broad and deep consensus

This is an extraordinarily important question. Why?

If the answer is: “John, you cannot generalize about people. There is no such thing as the American or the German”, then CI, my work, your reflecting on intercultural differences has little to no value.

This foundational question is posed to me time and again. Since I intend to address it soon in a more systematic way, I’ll just give you some food for thought, in the form of questions and statements.

If a large, complex society functions well (see Germany, USA), then there must be a broad and deep consensus among its people about how it does some very fundamental things. See the ten topics CI currently addresses. There are more. What is meant is not a lowest common denominator in those things, but a deeply rooted belief about those things.

Immigrant influence

Although America is an immigrant nation, with newcomers arriving constantly and from different cultures, can you name which newcomer-cultures were immediately embraced by the dominant culture(s) within America?

Asked differently: If you are an American, when was the last time you – in the workplace – went up to a colleague who is a recent immigrant (or at least first generation American) and asked them about their culture, with the expressed intent to allow your own thinking (culture) to be influenced by that colleague’s culture?

American history makes clear that the dominant cultures within the U.S. invariably demand of immigrants that they assimilate.

Your success in other American companies

If you are capable at what you do, you are able to transfer immediately to another company within the U.S. and to perform the same or similar work at the same level – or higher – of proficiency. Why?

Because of your capabilites, yes. But primarily because you are an American and would be moving to another American company. Would this be the case if you were to move to a company in the same business sector, doing the same work, but in another business culture?

Let me finish by addressing one difference between Germans and Americans. The topic is Persuasion. The German logic is: “Arguments should speak for themself.” The American logic is: “Sell yourself first, then your product or service.”

People in boxes

If those two statements are true – the one for Germans, the other for Americans – would there be any significant variation – in the context of German-American collaboration – if the German giving a presentation were man or woman; young or old; Catholic, Protestant or non-believer; from Northern or Southern Germany; extrovert or introvert; trained in the sciences, engineering, law, economics or humanities; from a large or a small family; working in the automobile industry or chemicals or software or financial services; in a position high, mid or low in the organization?

Or flip it around. If the statement is fundamentally true about how American persuade, and an American were attempting to persuade a German audience, would it make any significant difference whether that American were male or female; young or old; etc.?

I believe not.

You see, we can “put people in boxes.” We can generalize. In fact, we do it all the time. We look for patterns in order to deal with complexity.

There are such things as national cultures. There are peoples. And peoples have charactistics. They have ways of thinking and acting. Our job is to understand those ways, discuss them, and find out how to best combine them. That is what our work is all about.

Question

In the U.S. market everything is done in a hurry. Shipments come from Germany. We in the U.S. want to know when the shipment will arrive. Germany: “I did my part, can’t help you.” We have to chase down the shipment. Where is it in the process? Our minds explode. Germany: “Just trust the system.” U.S.: “That is not an answer for us. Please, show me where it is in the process.” How can we get our colleagues in Germany to respond more quickly to our needs?

Answer

“Just trust the system” is the German way of saying: “Relax. Calm down. We’re working on it. Our internal processes function well.” American minds explode. It’s true. Those are not legitimate responses for Americans. Why?

Because German processes – the system – don’t work, don’t deliver results, don’t get shipments out in a timely manner? Maybe. But maybe not.

I’ll never tire of writing that Germany is the fourth-largest economy in the world, is the size of the US state Montana, and has only eighty million people. Which means that Germans do get shipments out, and on-time.

So, what’s at play here?

Well, possibly in this German company, in a particular division, the system is not delivering, cannot be trusted. Not all German companies, and not all divisions within German companies, are so-called hidden champions. Some, perhaps more than some, are simply slow, unresponsive, and bureacratic. “Our minds explode.”

But wait, it could also be that Americans don’t place much trust in processes. Relying on a process in crunch-time is never an option. Wait, what does that say about American processes?

And let’s keep in mind that cultures – i.e. USA and Germany – often have a different understanding of what urgent means. Urgency is also related to the so-called magic triangle – price, quality, schedule.

Question

Here in U.S. the customer is at the center of what we do. Our German colleagues do not think that way. They actually say: “You need to stand up to the customer re: what they need and how they should buy from us.”

Our response: “No, we are customer-centric. We cannot do that.” The German response is then: “Tell the customer that they should just try our product. They will like it.”

It comes down to who customers want to work with. Coming in cold, calculating, factual, analytical does not work with Americans. Every relationship is personal first.

How can we get our German colleagues to understand this?

Answer

The questioner states:

“Here in U.S. the customer is at the center of what we do. Our German colleagues do not think that way.”

Wait, stop!

Are the Germans not customer-oriented? Seriously. Only eighty million people. Country no bigger than the US-state of Montana. Yet, fourth-largest economy in the world.

Either there are a lot of really dumb customers out there buying stuff from the Germans. Or German products are so great that a lack of customer-orientation does not matter. Or, maybe just maybe, the Germans are customer-oriented.

So, is the American perception wrong that the Germans are not customer-oriented? Or could it be that Americans and Germans define customer-orientation differently? And when we say Americans and Germans we mean also American customers and German customers.

According to UC’s content under the topic Customer, for Germans to serve is to consult. In Germany, both customer and supplier strive for a balanced relationship. In fact, it is considered by both parties to be an obligation and a duty to provide advice, to consult.

Yet, often we here in the U.S. are faced with situations in which the approach taken by our German colleagues leads to an unbalanced relationship.

Their actions, reactions, positions do what is in the best interest of the company with our headquarters back in Germany, and often not what is best for the customer or the overall relationship with the customer.

In fact, our American customers are often treated as if they are serving us, instead of the other way around. And this despite increasing competition and fast changing markets which present viable alternatives to the solutions we are currently providing.

When challenged and presented with all the arguments from the customer’s perspective, I often find that the situation can be changed, that a customer-friendly solution can be identified.

This however, is achieved only after we in the U.S. have demonstrated that we have challenged the customer and established what is actually required to solve their problems and meet their needs.

How do we combine the power of the consultative approach with maintaining a high degree of service- and customer-orientation, while at the same time increasing speed to create a competitive advantage?

Question

Germans enter into an agreement only after they have gathered all of the relevant information up-front. In the U.S. business context, however, speed and rapid reaction time are critical success factors. How can we reconcile the two approaches?

Answer

First: explain to your German colleagues as often as possible how mission-critical rapid reaction time – speed – is in the U.S. business context. Use concrete examples how speed led to new business, to profitable business, to business growth. It is not enough to simply repeat how important speed is in the U.S. market. Provide examples of wins and losses, and the role reaction time played.

Second: always acknowledge the rightness and legitimacy of the German logic. Honor the strengths of the German approach of gathering all relevant information up-front in order to decide whether to make a commitment. Remember, when German commit, they commit. They will do their absolute utmost to live up to their commitments. 

Third: discuss with them, as partners, how you can together reconcile the two strengths – American speed with German reliability. 

For example, ask your German colleagues what information they need up-front in order to commit to an early-stage piece of a commitment. In other words, break down a larger commitment into pieces or stages. Then move, together with your German colleagues, stage for stage. Do not be shy about asking them what kinds of information are critical vs. nice-to-have.

In addition, always give your German colleagues a sense for the risk involved when breaking down a commitment into smaller pieces. The American logic of breaking down complexity into its component parts – see CI’s content on the topic Persuasion – then focusing only on the key parts, is their way of not only maintaining focus, but also of managing risk. 

Compared to Americans, Germans are risk-averse. When coaxing your German colleagues to move faster, for example, by asking them to make mico-commitments, provide them with your assessment of risk. Simply say:

“Look, colleagues, we’re breaking this commitment with the customer, or potential customer, into smaller commitments. This allows us together to move faster, while at the same time reducing risk. What (truly critical) information do you need from us in order to enter into this micro-commitment?”

Fourth: this may sound not only counter-intuitive, but also potentially dangerous for business, but do your best to manage the time expectations of your customers or potential customers. Americans are too speed-oriented. Rapid reaction is often unnecessarily important. The importance of speed is often a result – a bad result – of poor planning, of nervousness, of allowing oneself and one’s team or project to be driven faster than necessary. 

Yes, it takes real courage to say to the customer: “We can hit that date. But frankly, if you will be patient, if you will give us a bit more time, we will deliver even better results than you are expecting. How critical is the due date you are requesting to your needs? Please be patient with us.

We mean this respectfully, but isn’t it often better to receive great results a little bit later than less-than-great results quickly? We want to be fully in synch with your schedule, but we also need to coordinate with our colleagues in Germany. Would it possible to sit down and do into a little more detail about your schedule pressures, and the parameters within which we are operating?”

Question

“Why is there no sense of urgency in Germany?”

Answer

„Urgent“

MerriamWebster defines urgent as: calling for immediate attention, pressing. Among its synonyms are: burning, compelling, critical, dire, imperative, acute, immediate, crucial. Among its antonyms are: incidental, low-pressure, minor, negligible, trivial, unimportant, non-threatening, safe, stable.

When it comes to urgency, Americans and Germans can diverge in two fundamental ways:

What is urgent?

A situation which Americans might interpret as requiring urgent action might very well be one in which Germans do not see the urgency. This difference could be based on a few, several or many factors, each of which need then to be clarified between the two parties. A common, but not simple, situation is when a customer demands rapid reaction. Speed.

Because Americans and Germans differ in how they understand what makes for an optimal relationship between two business partners – customer and supplier – an American is far more likely to view a customer request as urgent, especially when that customer communicates their urgency, than a German would view that request.

How fast is responsive?

If Germans and Americans agree, at least to a working degree, that a situation requires urgent action, there are nonetheless differences in how both parties define what is fast, slow or just the right reaction time. We know that the two cultures define differently short- , medium- and long-term. This difference is equally at play when it comes to responding to a matter, problem, request, situation.

In other words, agreement on the urgency of the matter does not guarantee the same reaction times. For Americans it could be within three days (including weekends and holidays), whereas for their German colleagues it could be ten days (not including weekends and holidays).

Haste

Another way to look at this is to contrast what in each culture is considered to be haste or hasty action. MerriamWebster define haste as: rapidity of motion, swiftness, rash or headlong action, undue eagerness to act. Among its synonyms are: fastness, fleetness, speed, hurry, quickness, rapidity, rapidness, speediness. Among its antonyms are: slowness, sluggishness.

The Germans are no fans of haste. In fact, hasty action is in their culture often a sign of ill-preparedness, poor planning, acting before thinking. Germans are methodical, careful, thoughtful. They prefer to get whatever they do right the first time. Any kind of rework, and change in direction, they calculate into their original reaction time.

„To turn on a dime“ ― an American figure of speech meaning the ability to change directions quickly, deftly and whenever necessary ― is a quality Germans respect. However, for them it is often a strength necessary primarily because a suboptimal decision has been made.

Shared Logic

It is important to keep in mind that within a well-functioning society ― like the German and the American ― there is a shared logic in those areas which are fundamental to their respective stability, success and future.

A culture‘s, therefore business culture‘s, understanding of urgency is shared by all who interact with each other. Whether a given situation is urgent or not, and if so, to what degree, is defined by a common cultural understanding of what is important (urgent). And that understanding is shared by people on both sides of the transaction: colleague to colleague, team lead to team members, customer and supplier.

In other words, what in the American business context is considered urgent, or very urgent, or extremely urgent, or absolutely asap, might be considered in the German to be less so, or even not at all. As long as the two transactional parties are in synch with eachother, the urgency will be handled properly.

And vice versa. Now, Americans can often be perceived as not responding to the urgency of a situation, „urgency“ in the sense of the problem, which if not addressed, could lead to constant and long-term negative effects. Quality – whether it be in a physical product (craftsmanship) or in work results (competence) – is so critical to Germans, that almost anything related to it is urgent, permanently urgent, day-in and day-out.

Who‘s faster?

Stated simply, but accurately, Americans break down complexity into into its component parts in order to focus on what is essential. This allows for focus, rapid reaction, and calculated risk taking. Sharply delineated decisions – isolate and keep narrow in scope – can be made quickly, and revised just as quickly, depending on immediate outcomes as well as on external factors over which one may have little to no influence. Americans consider flexibility to be one of the most critical success factors of any human endeavor.

In contrast, Germans link decisions together. They then analyse the decision – in reality several decisions – carefully, methodically, taking into consideration many, if not all, influencing factors. Germans think through, then act.

When they do then decide, they remain firm, are not easily pushed off their path, consider external factors, but stay on course. For some they maintain their composure, for others they don‘t recognize when (or are too stubborn) to change course.

Who handles urgent matters more effectively?

Certainly each would claim that they do. And each side has valid arguments. But, in many cases they are comparing apples with oranges, or perhaps more accurately, apples with pears. Americans isolate, analyze pragmatically, move fast, react just as fast, change course as often as is necessary in order „to get the job done.“

Germans connect, analyze deeply and stringently, more slowly, but when they do, they do so on many fronts at the same time. They stick to their course or action, and change only if convincing arguments can be made that their original decision making was flawed.

From the American perspective, the Germans can be terribly slow, plodding, unresponsive, almost incapable (or unwilling, or both) of responding with a sense of urgency. From the German perspective, Americans are often cowboys, „shooting first, then asking questions“, or „going through the wall with their heads“, hasty, impatient, making mistakes left and right and calling it euphemistically „turning on a dime.“

Question

“How can we get German colleagues to list upfront all of their concerns before saying no?”

Answer

Perhaps you should anticipate their concerns, then build your arguments into your request, thereby demonstrating that you have done your homework, and that you have taken their perspective into consideration.

Secondly, perhaps you should not confront Germans with yes-no questions, to which you expect them to respond with a yes immediately, without them having time to understand the request, and to do some serious reflecting on whether they should agree with it or disagree. 

In other words, there are alternative ways of introducing your request, maybe as a thought, as a suggestion, as something to collaborate with them on.

Question

“Our impression on the American side of the Atlantic is that the German business culture is reluctant to commit to projects which have unknowns and are not guaranteed to succeed. In our business culture we are under constant pressure to produce results. We Americans can appear to be pushy, emotional and fiery. How can we reconcile the two approaches?”

Answer

Let’s consider this question from a high level, without going into the details. What are the questions within this question? I think they are the following:

The first is commitment. We know that Americans and Germans take different approaches to commitments. How they define them. How they decide whether to enter into them. If agreed to, how they maintain and fulfill them. What are those differences and how do they influence collaboration?

The second is risk, the two culture’s respective understanding of risk. Well, what are those differences and how can American and Germans get a common understanding of the risks involved in individual projects?

The third is pressure. More specifically, the pressure to produce results. In the U.S.: What results? In what form? How quantified? When are they expected? Can these be answered and explained to the German colleagues so that they understand the situation on the ground in the U.S.?

The fourth is about Americans coming across to Germans as pushy, emotional and fiery. Can the three topics above be so explained by the American colleagues such that their German colleagues will understand and be open to searching for ways to reconcile the two respective – and successful – approaches?

And let’s remember what the term reconcile means. Let’s go to MerriamWebster online: “1. to restore to friendship or harmony; 2. to make consistent or congruous; 3. to accept something as unpleasant; 4. to check against another for accuracy.”

Interestingly, each one of these four definitions applies the task at hand:

Get into harmony, into synch, with your German colleagues. In order to do that you need to constantly explain the logics operating in the U.S. Make your responses to customers consistent with both the American and the German approaches, in other words an integrated approach.

There is no other option. Integration means compromise, which in turn is always a bit unpleasant. Constantly check with each other, and with the customer, that things are accurate, meaning accurate in meeting the needs of your customers, but within the key parameters of how you do business.

The customer is not king. And the customer does not want a supplier, especially in a sophisticated and complex business, to be a serf. Serious customers want serious suppliers. And serious suppliers are not s

Question

“Would it be beneficial to set up the scope of an agreement? In other words, to get clarity among all parties to an agreement what the expectations are? For Example: the team will have check-ins to share project progress even without aspects being fully complete.”

Answer

It is true that Americans have a much higher frequency of status-checks than do Germans. For Americans, an agreement actually kicks off the collaboration. And collaboration in the U.S. means a lot of back and forth, a lot of engagement, high levels of communication. That’s how Americans work in teams.

And it is true that Germans have a much lower frequency of status-checks. For Germans, an agreement actually kicks off each party to the agreement working on their part of that agreement. And collaboration in Germany does not mean a lot of back and forth, does not mean a lot of engagement, does not mean high levels of communication. 

That is not how Germans work. They first get clarity on who does what. Then they as individuals get to working doing the what. They come together only when necessary. Ideally when each is finished with their part, with their deliberable. 

So, if you feel that check-ins, also called status meetings, are important, propose to your German colleagues: when they should take place, for how long, who should participate, and most importantly why the status meeting is necessary, how it adds value.

But be prepared for your Germans colleagues to ask why all of this is necessary. You need then to explain to them how Americans work in teams, that much of it is iterative, tactical, flexible, less structured.

They will tell you how they as Germans work in teams. You should find a happy middle ground.

Question

“As a practical matter, how does German consensus-style decision-making differ from the American top-down approach? Is it more efficient? Does it produce better results? Is it easier to implement because of the buy-in of all the parties? Can these factors even be measured?“

Answer

Well, you can’t get more practical than making decisions and implementing them.

You ask three questions. 1. Differences between German consensus-building and American top-down decision making? 2. Which is more effective, and easier to implement? For every decision is only as good as its implementation. 3. Can decision making styles be measured?

Question 1 – Differences. This is a very complex topic. Please see my analysis on the divergences between Germans and Americans in their decison making in the lefthand navigation.

Question 2 – Effectiveness. Both countries, societies, economies are successful. Not without problems, not without ups and downs, but still the largest and fourth-largest economies on the planet, with more than a handful of first-rate global companies. So we can safely say about both cultures – therefore business cultures – that they know how to make decisions and implement them.

Which approach to decision making is more effective is an extraordinarily complex question, and would have to be considered on a case-by-case basis. I would not want to be the person who has to come up with a method for such analysis.

But that comparison is not all that relevant, anyway. American and German collaboration is not about judging which approach is better, but instead about first understanding the differences between the approaches, in order to define how best to combine their inherent strengths. “In order to”: the reason for, the task, goal, the great pay-off.

Imagine what Germans and Americans could achieve if they truly understood their respective decision making logics, then sat down to map out how they make decisions together! This is the true high art form of working across cultures.

Question 3 – Measureable. I’m not sure if “measure” is the right term. But there certainly are indications – let’s even call them KPIs (key performance indicators) – for decision making processes which work and those which do not work. See the five divergences between German and American decision making which I address. These can be understood as KPIs.