words – Page 11 – understand-culture

Vorstandsvorsitzender and Vorstand

Germans companies have a Vorstand, or managing board. The Vorstandsvorsitzender is the head of the Vorstand, but not in the sense of a CEO, rather as a primus inter pares or first among equals. The CEO-principle is an Anglo-American construct.

German law governing publicly traded companies requires the naming of a Vorstand or managing board, but not of a Vorstandsvorsitzender. §77/78 AktG expects joint management and joint representation of the company. German law does not recognize the title of Vorstandsvorsitzender, chairman or head of the managing board or CEO. The law can, however, be interpreted to accept a company internal set-up allowing for a Vorstandsvorsitzender.

BMW: The formation of a managing board and its compensation – The managing board consists of several people and has a Vorsitzenden. Company governance directives define the cooperation within the managing board, in particular the roles and responsibilities of the various departments or divisions as represented by their individual board member.

BASF: The managing board. §7 Members. Members of the managing board are selected and deselected by the supervisory board. The managing board has at least two members. The supervisory board can name further managing board members. The supervisory board can select a managing board member to be the Vorsitzender, as well as another to be the Vice-Vorsitzender.

ThyssenKrupp: §3 – Vorsitzender of the managing board. The Vorsitzender is responsible for coordinating all of the areas represented in the managing board, and maintaining a cohesive approach to reaching the goals set by the managing board. The Vorsitzender can at any time request information from other managing board members pertaining to their area of the company. The Vorsitzender should be informed at the earliest possible time about any important decisions made by the other members of the managing board.

Line between Strategy and Tactics

An Auftrag implies a certain distance between team lead (who issues the mission) and team member (who completes the mission). This distance is part of a shared logic. The focus is on the mission and less so on the relationship between team lead and team member. The team lead transfers responsibility for the mission‘s completion to the team member.

The team lead as Auftragserteiler – mission issuer – focuses primarily on issues at a higher level than on the particular missions of the team. The team member as Auftragserfüller – mission completer – is willing and capable of defining the how and completing the mission in the spirit of the Auftrag. The team member takes ownership of the mission, works independently, is in a sense more partner than employee of the team lead.

Naturally team leads and members are constantly adjusting the line between what is strategy (responsibility of the team lead) and what is tactics (responsibility of the team member). In the German context, however, this line is set rather high, meaning the team lead formulates the mission consciously in general, less specific terms. This gives the team member maximum freedom on the tactical level.

And although there will be variations in where German team leads and members draw that line between strategy and tactics – based on the people involved, their experience working together and the nature of the work – the logic remains constant:

The German lead purposely avoids adding to the mission statement any kind of recommendations or specifications about how the mission should be executed (tactics). The how is the responsibility of the team member. It is expected of her/him that they complete the mission independently and without unnecessarily drawing on the team lead‘s time and energy.

Ockham’s Razor

Isolate: To cause a person or place to be or remain alone or apart from others; to identify something and examine or deal with it separately.

Simplicity: The quality or condition of being easy to understand or do; the quality or condition of being plain or natural; a thing that is plain, natural, or easy to understand. Late Middle English. From Old French simplicite or Latin simplicitas, from simplex.

Sophistication: The quality of being sophisticated; development to a high degree of complexity; the quality of being aware or and able to interpret complex issues; the characteristic of having, revealing, or proceeding from a great deal or worldly experience and knowledge of fashion and culture. From medieval Latin sophisticatus, “tampered with”.

Elegance: The quality of being graceful and stylish in appearance or manner; the quality of being pleasingly ingenious and simple; neatness.

KISS: The acronym for “keep it simple, stupid” is attributed to Kelly Johnson, an engineer at the U.S. weapons company Lockheed. Although there are several other variations, the principle states that systems work best if they are kept simple. Complexity should be avoided. Johnson had given a team of design engineers a set of tools, then challenged them to design a jet aircraft which can be repaired by an average mechanic under war conditions with these tools only.

There is nothing original about KISS, however. To Leonardo da Vinci is attributed “simplicity is the ultimate sophistication”. Mies van der Rohe, widely regarded as one of the masters of modern architecture, stated time and again that “less is more”. Antoine de Saint Exupéry, the French aristocrat, poet, writer (The Little Prince) and pioneering aviator has been quoted: “It seems that perfection is reached not when there is nothing left to add, but when there is nothing left to take away.”

William of Ockham (1288-1348), an English Franciscan friar and one of the major figures of Medieval thought, wrote that “among competing hypotheses, the one that makes the fewest assumptions should be selected”.

Margins of Error

The United States has enjoyed the most favorable margins of error. Risk-taking could flourish under such circumstances.

It is protected by two natural barriers, the Atlantic and Pacific Oceans. Its neighbor to the north – Canada – is culturally a cousin and has never been a threat. Its neighbor to the south – Mexico – was defeated in wars and lost large pieces of territory to the U.S. It, too, has never posed a threat to the security and stability of the U.S.

The indigenous population – the American Indians – were driven from their territorial homelands, killed in wars, placed on reservations. The nation has access to immense natural resources, chief among them land.

Margin of error: An amount (usually small) that is allowed for in case of miscalculation or change of circumstances.

Risk (noun): A situation involving exposure to danger, the possibility that something unpleasant or unwelcome will happen, a person or thing regarded as likely to turn out well or badly, as specified, in a particular context or respect; a person or thing regarded as a threat or likely source of danger; a possibility of harm or damage against which something is insured; the possibility of financial loss.

risk (verb): Expose (something or something valued) to danger, harm, or loss; act or fail to act in such a way as to bring about the possibility of (an unpleasant or unwelcome event); incur the chance of unfortunate consequences by engaging in (an action).

Decision-timid

Enscheidungsscheu – literally decision timid. In simple English: afraid to make a decision.

„Mit dem Kopf durch die Wand” – trying to go through the wall with their head. Impatience. „Die Hausaufgaben nicht gemacht” – haven’t done their homework. Aktionismus. Actionism. Cowboy mentality.

Germans see these as American tendancies, and believe that they are based on a lack of training, technical competence and methodology. “They simply have not learned these things,” is their explanation.

On the other hand, Americans view the German approach as time-consuming and academich-philosophical. German decision making can come across as decoupled from the goal which is to take. Germans, from the American perspective, take subjective factors too little into consideration. Their analysis is too complex, going well beyond the needs for making a decision.

Americans see their German colleagues as overly careful, far too scientific and schematic-tool oriented. They are reluctant to consider input based on experience and common sense.

Germans give the impression of striving to complete the perfect analysis, which in turn should be some kind of guaranty for the perfect, and therefore risk-free, decision. All of these are signs to Americans that their German colleagues in the end are simply afraid to make the tough decisions.

Think first. Then act.

Germans often have the impression that their American colleagues gather too little information before making a decision. Valuable information sources are not tapped into. Comparisons are made “on thin ice.” Early indications based on subjective sources are not questioned critically.

All these reservations go against the German belief in erst denken, dann handeln – think first, then act. For richtig denken – literally right or correct thinking, in the German context means holding down (controlling) the natural impulse to act until the situation has been analyzed and the consequences of actions thought through.

It should be of no surprise, therefore, that Germans often see American analysis as insuffiently stringent. They see a narrow and incomplete focus on only certain aspects of the decision to be made. They fear that the Americans overestimate their ability to do a sauber – clean analysis.

This is underlined by what the Germans believe is an American tendancy to take subjective information too strongly into consideration. They are surprised when their counterparts do not use those tools and standards which have proven to be successful.

In the end Germans see their Americans colleagues as too pragmatic, too inaxact. Insufficient results are accepted too quickly. This is very difficult for Germans to accept as a people which places so much emphasis on avoiding errors via accepted tools and standards, errors which could be the source of a Systemzusammenbruch – literally system collapse. Germans see themselves sliding into danger which can only be stopped through analysis performed twice or even three times over.

comprehensive

Comprehensive: covering completely or broadly. First known use 1614. Synonyms: all-embracing, all-inclusive, broad-gauge, compendious, complete, encyclopedic, cover-all, cyclopedic, embracive, exhaustive, full, global, inclusive, in-depth, omnibus, panoramic, thorough, universal. Antonyms: imperfect, incomplete, partial.

Analysis and Intuition

Good decision making in the American context means a healthy balance between objective analysis and intuition.

Intuition: The ability to understand something immediately, without the need for conscious reasoning; a thing that one knows or considers likely from instinctive feeling rather than conscious reasoning. Late Middle English denoting spiritual insight or immediate spiritual communication. Latin intueri, to consider.

Empiricism. Observation. For Americans, intuition is experience-based knowledge, called on immediately. Intuition is more than a spontaneous thought, a “gut reaction”, a hunch. Americans trust the judgement of the experienced, the wise, of those “who have been there”.

But not to the exclusion of objective analysis. Americans are constantly coming up with new ways to quantify what is deeply human, what in its essence cannot be quantified. It’s a question of balance. When to go with the objective analysis, when with intuition? Can they be combined?

Star Trek. A brilliant television series. Late 1960s. Deeply human, created with little frills, eye-candy, special effects. Instead it tapped into the human imagination, the greatest source of special effects. Kirk is intuition. Spock is reason. Tension between the two. But it worked.

Intuition

Intuition. Latin intuitio: immediate understanding, recognition, seeing; to understand a situation, problem, dilemma immediately and without discussion or reflection. “Dein Verlangen nach Intuition blockiert den natürlichen Fluss der Wahrnehmung.” Your desire to be intuitive blocks the natural flow of perception. (Irina Rauthmann, German writer)

“Intuition, sprunghafte Einsicht, deren Schritte nachzuholen sind.” Intuition, sudden and erratic understanding whose steps need to be retaken. (Dr. phil. Manfred Hinrich, German philosopher, professor, journalist, author of childrens books)

“Intuition ist der natürliche Gegenpol zur Konzentration – nutzen sollte man beides, jedes zu seiner Zeit.” Intuition is the natural opposite of concentration. Both should be used, but at the right time. (Rüdiger Keßler, German philosopher)

“Intuition ist Intelligenz mit überhöhter Geschwindigkeit.” Intuition is high speed intelligence. Unknown.

Stringency

Analysis. Latin analysis, Greek análysis: to pull apart, dissolve into parts; to study something by taking it apart and considering its individual components; investigation into the particulars of a whole.

Analytical thinking is in those professions critical where a system is understood via its parts. A psychoanalyst pulls apart the patient’s past experiences. The financial analyst considers the entire spectrum of transactions in order to get into the details of specific market movements. Police investigative work, all approaches in medicine, every type of research and development must employ sophisticated methods of analysis.

Stringent. Latin stringens: strict; convincing based on logical arguments; logical, clear, without internal contradiction.

Stringent analytical methods are particularly important in the academic fields, whether the natural sciences, engineering sciences, economics or the humanities. Master’s or Ph.D. theses in Germany are not accepted without meeting high standards of analytical stringency. All professions based on deep analysis depend on stringent methods.

Penetranz. Penetration: Latin penetrare: to place into; to enter into, get into, to move in a certain direction.

To be penetrating has a negative connotation in Germany: overly direct, bearing in on a point, intense. A certain perfume can be too penetrant. A person who dominates a conversation, making long speeches and moralizing is penetrant.

In the positive sense penetrant means dogged, focused, determined, working to understand something at as deep a level as possible. Like an archeologist who digs deeper, forever searching for evidence, for insight into the lives of our human ancestors. The same goes for analysts of any kind, for the medical profession, for linguists, historians and research in all of its forms.

Heinrich Schliemann (1822-1890) comes to mind, the German archeologist who discovered the ancient cities of Troja and Mykenes. Many years of painstaking research led to archeological and historical proof that these two cities had in fact existed.