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The Image of Exclusivity

In his May 12, 2015 article Taking the Fast Lane in the Handelsblatt Global Edition, Christian Schnell (schnell means fast in German) wrote about Porsche’s success in the U.S.

“Porsche keeps setting sales records in the United States, with double-digit percentage growth over four years. Of 190,000 Porsche’s sold last year, 47,000 were delivered to U.S. customers. The brand, part of the Volkswagen Group, has grown sales by double-digit figures for four years straight.”

Porsche is a niche player. It has a U.S. market share of only 0.4 percent. “It shouldn’t become much more than that to protect the car’s image of exclusivity, in Porsche’s view.”

“We have not set a figure as a target. Instead, we want to get a sense of how much we can expand the brand,” said Porsche-CEO Matthias Müller. “We’d rather sell a car less than one too many.”

Schnell noted: “At other companies, such elitist thinking has led to conflicts.” In 2014 the chief executive of Ferrari, Luca die Montezemolo, said he only wanted to build 7,000 cars per year. “The statement angered Sergio Marchionne, CEO of Ferrari’s parent company Fiat.” Not long thereafter, Montezemolo was out of a job.

It was an incident which the Porsche-CEO could not understand. “If Mr. Marchionne thinks he can turn Ferrari into a mass market brand I can only say: ‘A very warm welcome’.”

Business Majors

Business has long been a cornerstone of American culture. The American Dream is typically associated with the ability to start with almost nothing, and through the virtues of business, to rise to great wealth and social stature.

Although the U.S. is no longer the country with the largest rate of social mobility in the world Americans still hold business savvy and an ability to rise in social stature in high prestige.

The most popular major for American university students is business, with approximately 22% of graduates. Science and engineering are the least popular majors, with approximately 5% of American students choosing engineering, and only 1.4% choosing physical sciences.

As a result of this business prestige, in every American engineer you’ll find a businessperson – someone who’s always looking to get the best for less, and will never consider quality without also considering the cost necessary to achieve it.

Mechanicians. Musicians. Metaphysicians.

“The Yankees, the first mechanicians in the world, are engineers – just as the Italians are musicians and the Germans metaphysicians – by right of birth. Nothing is more natural, therefore, than to perceive them applying their audacious ingenuity to the science of gunnery.” Jules Verne

Does Verne mean with gunnery the making of weapons? And does he mean with them the Yankees (Americans) or the Germans?

Verne (1828–1905) was a French novelist, poet, and playwrite best known for is adventure novels and his great influence on the literary genre of science fiction.

When German engineers are bored

Engineering in Germany is prestigious. As a field of study it ranks among the most respected. Germany‘s economy, its sophisticated technical products, rely on an abundance of first-class engineers. More than 20% of all first-year university students major in a technical field.

No other European country has a higher percentage of engineers among the workforce than Germany. Nonetheless, industry and the media constantly warn of decreasing numbers of Germans willing to enter the engineering profession.

In order to attract more women to the engineering sciences, German schools and universities organize so-called Girls Day, hoping to fascinate young women with the prospects of a technical career. Engineers begin their careers with a yearly salary of roughly 45,000 Euros. Graduates in the humanities, in contrast, earn about 31,000 Euros per year.

Made in Germany

England in 1887 required all products imported from Germany to be labeled „Made in Germany.“ At the time German products were considered to be of substandard quality. Germany was a late-comer to the industrial revolution, much later than England. A famous German engineer admitted that German products were “cheap and nasty.”

Many were enraged, but it led to a national discussion and a quality offensive. At the beginning of the 20th Century, and especially in the post-World War II era, „Made in Germany“ took on a new meaning: high quality, newest technology. It became synonymous with West Germany‘s economic miracle of the 1950s.

The Germans recognized the importance of such a label, of the reputation of their products. They became particularly proud of their technical and economic achievements. Germans continue to view their products as having high quality, often as being the best in the world. From the early 1980s until recently Germany was the world‘s leading exporter.

The label “Made in Germany” is used less today than in the past, however. A minimum amount of a product’s parts must be produced in Germany before it can boast “Made in Germany.”

Modern German industrial and technology companies, however, have segmented their supply chains to include manufacturing sites and suppliers in many parts of the world. Nonetheless, the label “Made in Germany” remains a key, positive element in the self-understanding of every German.

“March to our own beat”

WordPress software powers 70 million websites. Just about half of the biggest blogs in the world run on WordPress. Automattic – owner of WordPress – is not your typical Silicon Valley Web start-up.

“We march a little to our own beat, and sometimes it’s out of sync with Silicon Valley — and that’s been to our advantage and disadvantage,” co-head Toni Schneider said.

“We don’t get sucked into the latest thing, while some of our competitors are distracted by the latest shiny object. The disadvantage is sometimes we’re against the grain of what everyone else is excited about, and people ask ‘Why don’t you have x yet?’ — but we go at our own pace.”

Another way that Automattic is unusual is its extraordinarily low rate of staff changeover. It currently has 106 employees — and it has only ever hired 118 people.

Automattic was founded by Matt Mullenweg. From Houston. An American with a German background.

Quality is key

When it comes to the so-called magic triangle – schedule, budget, quality – Germans will almost always sacrifice one of the first two, or both, before reducing quality. The German customer, whether internal or external, expects nothing less. They will wait, and might even pay more if necessary, as long as they receive what they have ordered, or better. Germans expect completeness and quality.

Germans respect – and enjoy – work completed properly and presented in good form. For they are critical people always looking for what is not quite right, even if it has little to no effect on the purpose of the work: Spelling mistakes, scratches, inconsistent file formats, unclear graphics, creaky joints, unnecessarily sharp edges, dripping faucets. A job completed and well done requires no rework, no improvement, deserves only praise, is a work of art. Satisfaction.

Aus einem Guss

Germans like to work on problems, whole, not half problems. Work results handed off to the next colleague or department should be complete results. The closer to complete, the greater the level of respect the Germans show.

Products and services aus einem Guss – from one mold – are near-perfect, durable, reliable, innovative, consistent, no surprises, do not require finishing off, polishing, rework. They are the result of individual work steps which flow together into a whole, an entirety. German politicians refer to their legislative proposals as coming aus einem Guss. German companies do the same, especially those who develop and produce complex, sophisticated products.

Church bell chimes are made from the same cast iron mold. Otherwise they don‘t sound right. When Germans say something is aus einem Guss – from one mold – they mean it has been well thought out and executed. It is the opposite of thrown, tied, glued, patched, bolted, copy and pasted, together.

Figures of speech: Etwas dem letzten Schliff geben. To give it that extra polish. Ohne Kratzer. Without a scratch. Das ist eine runde Sache. That is well-rounded, meaning good job. Etwas abrunden. To round something off, in the sense of complete it. Der Ball ist noch nicht rund. The ball is not yet round, meaning incomplete. Flickenteppich. Hodgepodge. Pfusch. Botched, fumbled, fudged. Zusammen geschustert. Cobbled together.

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.

German Engineers – Quotes

“The way in which one handles risk distinguishes between a serious engineer and a speculator and gambler.” Adolf Münzinger, agricultural economist, 1876 – 1962.

“Every person is an artist, whether trashman, nurse, medical physician, engineer or farmer.” Joseph Beuys, German sculptor, 1921 – 1986.

“A German engineer strolls into a primeval forest with a few tin cans and comes out later with a locomotive.” Felix Wankel, inventor of the rotary engine, 1902 – 1988.

“Engineers are the camels on which the business people ride.” Author unknown