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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.

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.

Avoid Envy

German managers are careful not praise too often for fear that some team members could feel disadvantaged. Praise of a team member can quickly lead to envy, which in turn threatens team cohesion. A bonus awarded for good performance often leads to other team members claiming unfairness.

Furthermore, Germans do not feel comfortable working in an atmosphere of peer competition. German top performers would rather do without the praise and the bonus in order to safeguard a cooperative working relationship with their colleagues.

Envy: irritation, anger in response to the success of others; to crave for, to want what the other has in terms of material wealth, status, good health, attractive physical appearance.

Germans also believe that success of a team is often difficult to attribute to the performance of certain members. Praise in front of the team or any kind of reward can lead to an embittered discussion about how performance is defined and measured. Germans believe that it is too easy to mistakenly praise one colleague for work results produced by another. A feeling of unfairness, of injustice can arise quickly.

Command or Auftrag

A command, an order, an Auftrag are all forms in which military commanders communicate their intent. They are different in character, however. Commands and orders are strict, well defined, to be executed as stated. An Auftrag is the least strict in the sense of prescriptive, of defining the how as well as the what.

A command or order allows for little freedom in defining the how. A command defines the what and the how in detail. An Auftrag describes only the goal, thus allowing freedom to choose the best path to it. An Auftrag communicates intent, clearly and within the broader strategic context.

Depending on the situation, the line between an order and an Auftrag is in flux. The core of an Auftrag is the what. It can, though, include parameters such as the when and the where. The more detailed an Auftrag is about the how, the more it takes on the character of a command or order.

A “catastrofe”?

In 1996 the Germans decided to revise their rules for spelling (orthography). In 2004 and 2006 there were further revisions. In 2007 the changes became binding in all schools.

One of the goals was to modify (eindeutschen – germanize) those words rooted in a foreign language. Apoteke instead of Apotheke (pharmacy). Restorant instead of Restaurant. Katastrofe instead of Katastrophe.

The pushback from the Ministries of Education in several influential German states blocked it, however. But protests were also loud among the press, in important literary circles and among academia. The high point was when the Frankfurter Allgemeine Zeitung (FAZ) rejected the modifications and returned to the former rules of spelling.

In 2007 the attempt was made to implement the changes in the school system. Consistency was the overall goal. Certain spelling modifications could be ignored, however, if they simply made no sense.

Long and difficult consensus-building. Conscious ignoring of decisions made. Resistance to any kind of change. All this was at play in the German attempt to modify their rules for spelling.

Sabine Krome, a Member of the Council for German Spelling Reform at the fifteenth anniversary of the reform:

“The original intention of the reform was good. To bring German rules for spelling up to date, which had not been modified over the previous one hundred years. Had we known, however, how difficult the path would be to reach the results we have, it may have been better to wait another hundred years before taking on the task.”

Manager as Neutral Party

German team leads have an impersonal, business-like relationship with their team members. They maintain emotional distance from the team in order to guaranty neutrality and fairness. Especially when providing feedback on performance do they focus on results and not on the person.

This sachlich – impersonal, neutral, business-like – approach can be observed in the personal interaction between manager and team. When providing feedback German team leads are reserved, unemotional, their body language limited to a handshake. Neutrality is the key.

Whether discussing past performance or formulating new goals, the Germans focus on the facts, ideally on what is measurable. A discussion about development addresses professional skills and less so personal development. Critique is communicated in a respectful and serious way. Humour is considered disrespectful and unprofessional.

If the feedback discussion includes criticism, German managers strive to be particularly neutral, unemotional, fact-oriented. This reduces the potential for an escalation of emotions. The two parties should focus on performance. The discussion is impersonal and objective.

Humility

Bescheidenheit or humility is the character trait of a person who is unassuming, not demanding, seeks little for themself, who allows others to go ahead. From Latin prudentia, sapientia, scientia, discretio.

Bescheidenheit ist der Anfang aller Vernunft. Humility is the beginning of all reason. (Ludwig Anzengruber) Die wahre Ruhe der Gemüter ist Tugend und Genügsamkeit. True peace of mind is based on virtue and humility. (Christian Fürchtegott Gellert)

Abgehoben sein: to view oneself as above others; to lose grounding, to lose a sense of measure, proportion; unable to read situations realistically. Sarkasmus, sarcasm: biting, hurtful, condescending ridicule; to make fun of another person in a cutting way; to be mean, ugly.

Rational / Personal

On the one side, the Germans strive hard to be objective, to reduce, even eliminate the subjective.

Rational, logical, scientific. Filtering, screening, separating fact from gut feel, from intuition.

Communication: Say what you mean, mean what you say. Honest. Not meant personally. Persuasion: Separate message and messenger. Take yourself out of the equation. Decision making: Sober, scientific, self-skeptical. Feedback: The focus on weaknesses as authentically constructive input. Processes: Stripping down, compressing to the core, machine-like.

Yet, the Germans are personal, emotional, subjective.

Agreements: Think it through carefully. Your word is your bond.

Leadership: Hire talent. Train and equip. State mission. Then get out of the way. Product: Deep curiosity and concern for the user. Do it right. Customer: Do what is best for the customer, even if it jeopardizes the relationship.

Germans. Objective subjective. Rational personal. Perhaps a false dichotomy.

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.

Mitbestimmung

Mitbestimmung: to determine with, to co-determine, co-decide; to be involved in a decision making process; representatives of blue and white collar workers having a seat at top management levels.

German law guarantees that employees have a say in all issues affecting the workplace, including internal rules and regulations, work conditions, personnel policy and those decisions determining the future of the company.

Mitbestimmung has its roots in the 19th century, when workers associations were established to improve work conditions and to check the unlimited power of management. The associations evolved into labor unions, which by the end of the 19th century had the legal right to represent workers over and against management.

The creation of labor unions was supported politically not only for ethical reasons, to protect the interests of the worker. Both sides – labor and capital – wanted to establish mechanisms to balance out the interests of both in ways which would avoid stikes, protests and social unrest. This is the spirit behind Mitbestimmung.

Betriebsrat. Works council. Any company with five or more employees must by law allow the formation of a works council. These are elected democratically and represent the interests of all employees – both white collar (non-labor) and blue collar (labor). If management and the works council cannot agree on certain issue, the law requires that a neutral third party mediator be involved.

The interaction between management and works council can be either positive or negative. Well run companies have a very cooperative relationship, which contributes to company success. In other companies the relationship is contentious, especially in those struggling in the market. The works council can often block management attempts to downsize the workforce, close down plants or otherwise restructure in ways negative for the (white collar workforce) employees.

Gewerkschaften. Labor unions in Germany unite employees of one industrial sector. They mostly represent their members in wage negotiations which are obligatory for the whole sector (labor agreement). They have the right to strike, an instrument they use only when negotiations have broken down and after serious deliberation.