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Managing Business Managing Business Relationships In Relationships In Germany Germany Copyright Copyright 2015 by 2015 by Bill Drake Bill Drake All Rights Reserved All Rights Reserved For Delivery of this full seminar online or onsite Please contact [email protected]

Building Effective Business Relationships In Germany

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The German business and social environment is complex and it is easy to act on the wrong assumptions based on what you think you know about Germans. This presentation, and the accompanying full-length Kindle ebook, will give anyone, whether business person, professional, or intelligent traveler, the opportunity to be more effective and to experience Germany with a relaxed set of valuable insights.

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Page 1: Building Effective Business Relationships In Germany

Managing Business Managing Business Relationships In GermanyRelationships In Germany

Copyright Copyright 2015 by 2015 by Bill DrakeBill Drake

All Rights ReservedAll Rights Reserved

For Delivery of this full seminar online or onsitePlease contact [email protected]

Page 2: Building Effective Business Relationships In Germany

History & WorldviewHistory & Worldview

Charlemagne & early gloriesCharlemagne & early glories Separate paths; mother Separate paths; mother

language, no fatherlandlanguage, no fatherland From Romans to ReformationFrom Romans to Reformation Rise of Prussia & NationalismRise of Prussia & Nationalism The German sense of VolkThe German sense of Volk

Page 3: Building Effective Business Relationships In Germany

Quick SketchesQuick Sketches

Sophisticated, cosmopolitan Sophisticated, cosmopolitan RhinelandersRhinelanders

Inventive, industrious FranconiansInventive, industrious Franconians

Page 4: Building Effective Business Relationships In Germany

Quick SketchesQuick Sketches

Cautious, businesslike SwabiansCautious, businesslike Swabians Talented, independent BavariansTalented, independent Bavarians

Page 5: Building Effective Business Relationships In Germany

German Economic German Economic EnvironmentEnvironment

Historical factors & relationshipsHistorical factors & relationships Limited natural resources, great Limited natural resources, great

inventiveness & adaptabilityinventiveness & adaptability Import dependence & innovation,Import dependence & innovation, 4th strongest economy in the world4th strongest economy in the world Industrial & technology basesIndustrial & technology bases

Page 6: Building Effective Business Relationships In Germany

Core CharacteristicsCore Characteristics

Reserve & FormalityReserve & Formality Law & OrderLaw & Order Diverse Intellectual, Artistic, & Diverse Intellectual, Artistic, &

Physical PleasuresPhysical Pleasures Loyalty & DedicationLoyalty & Dedication Punctuality & PrecisionPunctuality & Precision

Page 7: Building Effective Business Relationships In Germany

Core German ValuesCore German Values

Sense of belonging - 28%Sense of belonging - 28% Zugehörigkeit; GebörgenheitZugehörigkeit; Gebörgenheit Family & other social unitsFamily & other social units

Work, fraternal, interest, occupationalWork, fraternal, interest, occupational

Communities, Teams, UnitsCommunities, Teams, Units Das VolkDas Volk

Page 8: Building Effective Business Relationships In Germany

Core German ValuesCore German Values

Security - 24%Security - 24% Sichere LebensumstandeSichere Lebensumstande Lessons of the pastLessons of the past Information, Commitments, ProcessInformation, Commitments, Process Background, Pedigree, ReferencesBackground, Pedigree, References

Page 9: Building Effective Business Relationships In Germany

Core German ValuesCore German Values

Self-Respect & Being Respected - Self-Respect & Being Respected - 19%19%

Selbstachtung (self-attention); Selbstachtung (self-attention); Selbstvertrauen (being true to self)Selbstvertrauen (being true to self)

Anerkannt und respektiert werdenAnerkannt und respektiert werden Titles, Formalism, RitualTitles, Formalism, Ritual Position, Prerogatives, AuthorityPosition, Prerogatives, Authority

Page 10: Building Effective Business Relationships In Germany

Additional Core Additional Core ValuesValues

Warm relationships with othersWarm relationships with others Enge Beziehungen zu anderen MenschenEnge Beziehungen zu anderen Menschen

Fun & Enjoyment in lifeFun & Enjoyment in life Die Welt und das Leben geniesenDie Welt und das Leben geniesen

Accomplishment, Self- fulfillment, Accomplishment, Self- fulfillment, Exciting life.Exciting life.

Leistungfahig sein, Selbstenfaltung, Ein Leistungfahig sein, Selbstenfaltung, Ein abwechslungsreiches Leben.abwechslungsreiches Leben.

Page 11: Building Effective Business Relationships In Germany

US - German ValuesUS - German Values

US GERUS GER Belonging Belonging 7.9 7.9 28.628.6 Respect Respect 29.9 29.9 19.019.0 Security Security 20.6 20.6 24.124.1 Warm relationships Warm relationships 16.216.2 7.9 7.9 AccomplishmentAccomplishment 11.411.4 5.4 5.4 Self-fulfillmentSelf-fulfillment 9.6 9.6 4.8 4.8

WHAT ARE THE IMPLICATIONS FOR PROJECT WHAT ARE THE IMPLICATIONS FOR PROJECT PLANNING & MANAGEMENT STRATEGIES?PLANNING & MANAGEMENT STRATEGIES?

Page 12: Building Effective Business Relationships In Germany

German Business German Business StyleStyle

Matter-of-fact & to the pointMatter-of-fact & to the point Subtle acknowledgment of statusSubtle acknowledgment of status Attention to details & rulesAttention to details & rules Future-oriented decision makingFuture-oriented decision making

For a full-length Germany country study in downloadable Kindle format go tohttp://www.amazon.com/Cultural-Dimensions-Expatriate-Life-Germany-ebook/dp/B002KE45RS

Page 13: Building Effective Business Relationships In Germany

Socializing With Socializing With GermansGermans

Not overtly friendlyNot overtly friendly Formal mannersFormal manners Handshakes & introductionsHandshakes & introductions Developing relationshipsDeveloping relationships

Page 14: Building Effective Business Relationships In Germany

Proper Social Proper Social BehaviorBehavior

Cultivated manners & Cultivated manners & presentationpresentation

Important social calling ritualsImportant social calling rituals Queuing & other territorial matters Queuing & other territorial matters

Page 15: Building Effective Business Relationships In Germany

The German Family The German Family UnitUnit

Emerging role of womenEmerging role of women Place of the elderlyPlace of the elderly Stability of the homeStability of the home

Page 16: Building Effective Business Relationships In Germany

German ChildraisingGerman Childraising

Gender & role conditioningGender & role conditioning Exercise of authorityExercise of authority Group vs. Family pressuresGroup vs. Family pressures Important life eventsImportant life events

Page 17: Building Effective Business Relationships In Germany

What a Child is Taught What a Child is Taught - Bertholt Brecht- Bertholt Brecht

God sees everythingGod sees everything Save for a rainy daySave for a rainy day Useless people amount to nothingUseless people amount to nothing Don’t serve yourself firstDon’t serve yourself first Keep quiet and be respectfulKeep quiet and be respectful

Page 18: Building Effective Business Relationships In Germany

Everyday German LifeEveryday German Life

Housing & DressHousing & Dress ““Setting a good table" Setting a good table" German hospitalityGerman hospitality

For Delivery of this full seminar online or onsitePlease contact [email protected]

Page 19: Building Effective Business Relationships In Germany

German class German class structurestructure

Aristocracy alive, well, quietAristocracy alive, well, quiet Achievement & social statusAchievement & social status Three separate kinds of schoolsThree separate kinds of schools Identifiable upper class and jet-setIdentifiable upper class and jet-set

Page 20: Building Effective Business Relationships In Germany

Religion and cultural Religion and cultural traditionstraditions

Protestants dominate the NorthProtestants dominate the North Catholics dominate some Rhineland Catholics dominate some Rhineland

and all the Southand all the South North inclined to serious view of lifeNorth inclined to serious view of life South tends to stress enjoying lifeSouth tends to stress enjoying life Highly institutionalized church Highly institutionalized church

Page 21: Building Effective Business Relationships In Germany

Strong Popular Strong Popular CultureCulture

Festivals, holidaysFestivals, holidays Old fertility symbolsOld fertility symbols Good luck ritualsGood luck rituals Fairytales, magicFairytales, magic

Page 22: Building Effective Business Relationships In Germany

The Arts in GermanyThe Arts in Germany

Arts are highly esteemedArts are highly esteemed Arts is a respected professionArts is a respected profession Popular love of music, theater, Popular love of music, theater,

dancedance Strong regional popular culturesStrong regional popular cultures

Page 23: Building Effective Business Relationships In Germany

Education In GermanyEducation In Germany

Primary through secondary educationPrimary through secondary education Academic secondary track (Gymnasium)Academic secondary track (Gymnasium) Universities for the fewUniversities for the few

Page 24: Building Effective Business Relationships In Germany

The Dual System of The Dual System of Vocational TrainingVocational Training

Apprenticeship training programApprenticeship training program 80% of youth not university-bound80% of youth not university-bound On-the-job training a major featureOn-the-job training a major feature Intermediate & final examinationsIntermediate & final examinations

Page 25: Building Effective Business Relationships In Germany

The German The German Sozialstaat (Social Sozialstaat (Social

State)State)

Wages, Working Conditions and Wages, Working Conditions and BenefitsBenefits

Collective Bargaining Collective Bargaining AgreementsAgreements

For a full-length Germany country study in downloadable Kindle format go tohttp://www.amazon.com/Cultural-Dimensions-Expatriate-Life-Germany-ebook/dp/B002KE45RS

Page 26: Building Effective Business Relationships In Germany

The German Social The German Social Safety Net SystemSafety Net System

A comprehensive social netA comprehensive social net Mandatory insurance plansMandatory insurance plans Maternity, Family, Social Welfare Maternity, Family, Social Welfare

ProgramsPrograms

Page 27: Building Effective Business Relationships In Germany

German German Management/Labor Management/Labor

RelationshipRelationship

The unique German industrial The unique German industrial relations systemrelations system

The Empire (1871-1918)The Empire (1871-1918) The Weimar Republic (1919-33)The Weimar Republic (1919-33) The Codetermination Act of 1976The Codetermination Act of 1976

Page 28: Building Effective Business Relationships In Germany

Codetermination and Codetermination and Industrial DemocracyIndustrial Democracy

The Works CouncilThe Works Council CodeterminationCodetermination Labor MovementLabor Movement Employers OrganizationsEmployers Organizations

Page 29: Building Effective Business Relationships In Germany

Basic Social ViewsBasic Social Views

Great sense of communityGreat sense of community Thrift and "enjoyment of the Thrift and "enjoyment of the

moment" not seen as moment" not seen as oppositesopposites

Work frequently seen as an end Work frequently seen as an end in itselfin itself

Recognition of impersonal forcesRecognition of impersonal forces

Page 30: Building Effective Business Relationships In Germany

Basic German BeliefsBasic German Beliefs

Man's destiny is controlled by Man's destiny is controlled by man's actionsman's actions

Fact is more important than faceFact is more important than face Factual honesty is considered Factual honesty is considered

more important than politenessmore important than politeness

For Delivery of this full seminar online or onsitePlease contact [email protected]

Page 31: Building Effective Business Relationships In Germany

German Business German Business EnvironmentEnvironment

Competition & cooperation - in Competition & cooperation - in competitioncompetition

No substitutes for degrees, No substitutes for degrees, competencecompetence

Navigating office bureaucraciesNavigating office bureaucracies A “Respect Culture”A “Respect Culture”

Page 32: Building Effective Business Relationships In Germany

Universal German Universal German AssumptionsAssumptions

Ordnung müss seinOrdnung müss sein Sauber funktioniertSauber funktioniert Bleiben auf dem boden der Bleiben auf dem boden der

tatsachentatsachen

Page 33: Building Effective Business Relationships In Germany

Making Presentations Making Presentations To GermansTo Germans

Obtain detailed background on Obtain detailed background on participantsparticipants

Footnote & document everythingFootnote & document everything Don’t over-elaborate; be efficientDon’t over-elaborate; be efficient Intelligent presentation appreciatedIntelligent presentation appreciated Anticipate quiet “killer” questionsAnticipate quiet “killer” questions

Page 34: Building Effective Business Relationships In Germany

Making Proposals To Making Proposals To GermansGermans

Germans respect numbers - use Germans respect numbers - use them carefullythem carefully

Demonstrate your homeworkDemonstrate your homework Demonstrate capability to Demonstrate capability to

deliverdeliver Stick carefully to all schedulesStick carefully to all schedules

Page 35: Building Effective Business Relationships In Germany

Selling To GermansSelling To Germans

Stress meeting UNIQUE German needsStress meeting UNIQUE German needs Choose comparisons carefullyChoose comparisons carefully Opening & intended final positions are Opening & intended final positions are

typically very closetypically very close Processes tend to rise to crescendoProcesses tend to rise to crescendo Don’t worry about snickers & whispersDon’t worry about snickers & whispers

Page 36: Building Effective Business Relationships In Germany

Self PresentationSelf Presentation

Don’t be too modest; don’t bragDon’t be too modest; don’t brag No irony or sarcasm - they backfire too No irony or sarcasm - they backfire too

easilyeasily Be very careful how you give & take Be very careful how you give & take

criticismcriticism Avoid emotional argumentsAvoid emotional arguments Avoid being too friendlyAvoid being too friendly

Page 37: Building Effective Business Relationships In Germany

Interacting Interacting EffectivelyEffectively

Study backgrounds carefullyStudy backgrounds carefully Prepare extensively for every interactionPrepare extensively for every interaction Brief subordinates/associates Brief subordinates/associates

thoroughlythoroughly Be informed about & use titles and Be informed about & use titles and

functionsfunctions Do not take unfriendliness personallyDo not take unfriendliness personally

For Delivery of this full seminar online or onsitePlease contact [email protected]