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Sep 09

Benefits of Doing Business in Germany

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management, Culture training for Human Resources, Culture training for the Public sector No Comments »

Strategically positioned at the heart of Europe and a key player in both the EU and NATO, Germany has the fifth largest economy in the world. Its strongest exporting sectors – chemicals, vehicles, machinery and household goods – set standards of quality and efficiency not just within Europe but globally, making doing business in Germany a priority for international organisations worldwide.

Brandenburg gate Asier Villafranca i Benefits of Doing Business in Germany

© istockphoto.com/ Asier Villafranca

 

While politically Germany is a federation of regions, each with unique traditions and customs, German business culture is characterised by a set of core drivers that affect business interactions with German nationals in a number of ways.

Task Driven and Fact Focused

German businesspeople will usually prioritise tasks over relationships so the German workforce tends to be very committed, focused and professional. This is evident in the extremely high standard of technology in German flagship companies. When doing business in Germany you and your organisation can count on dealing with highly skilled individuals who will give their best to ensure all objectives and deadlines are met. All aspects of operations undergo careful planning which greatly reduces risk and uncertainty of doing business in Germany. Furthermore, the general preference for hard facts and extremely linear and logical thought processes when making decisions and planning guarantees end products of the highest standard.

Direct Communication Style

German business culture relies on a direct style of communication. As a result, while German businesspeople can be perceived as blunt and possibly rude, when doing business in Germany you will almost always get a prompt and honest answer to your questions. What may be perceived as a direct criticism should be instead seen as a constructive and objective comment, aimed at the project in question rather than the person responsible for it. Meetings, negotiations and other business interactions with German nationals will develop in a straightforward manner. Emphasis is usually placed on reaching a common solution that is at once technically efficient, cost effective and satisfying to all parties involved.

Excellent English Skills

Whatever the position of your German counterpart within the organisation, he or she will most likely be highly proficient in English. This helps eliminate the cross cultural risks of not sharing the same language when doing business in Germany, so global organisations relying on English as an international language can profit from the excellent English skills in Germany. Although they tend to have excellent English skills, your German business counterparts will appreciate you speaking German, particularly if you are selling them your product. As the famous German Chancellor Willy Brandt once said “If I’m selling to you, I speak your language. If I’m buying, dann müssen Sie Deutsch sprechen!”

The benefits of doing business in Germany stem from its strong economy and business sectors, the high level of skills of Germany’s workforce, as well as from the core values of German business culture. If your organisation is doing business in Germany, its success will depend on a sound understanding of these values and on the ability to decipher their influence on business interactions which you can gain through cross cultural awareness training courses and initiatives.

© Communicaid Group Ltd. 2010

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Aug 31

Challenges of Doing Business in Germany

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management, Culture training for Human Resources, Culture training for the Public sector 1 Comment »

Most people associate German business culture with efficiency, quality and high technical standards. With the fifth largest economy in the world and a great degree of openness to international trade and business, Germany has established itself as a key economic power on the global stage making doing business in Germany more attractive than ever.

Germany Flag wrangel i1 Challenges of Doing Business in Germany

© istockphoto.com/ Wrangel

 

Doing Business in Germany without adequate cross cultural awareness, however, is a risky proposition. The cultural values of German business culture at the root of the country’s economic success can also prove a source of cross cultural misunderstanding for global companies doing business in Germany. Cross cultural awareness training courses highlight the cultural risks your organisation is likely to encounter when doing business in Germany.

These stem from a number of factors, some of which are described in more detail below.

Hierarchical Company Structures

German business culture places a great value on hierarchy. German businesses therefore follow a strict hierarchical structure, where decisions tend to be made at the top and communication is usually vertical. Status is acquired and assigned on the basis of merit, and the highest positions in a German company will be held by the most technically qualified and experienced employees. For international organisations doing business in Germany this hierarchical structure can affect negotiations and meetings which may seem to take longer than expected. You may perceive the plethora of procedures and policies as excessively slowing things down and creating mistrust. In truth, your German counterparts are most likely looking closely at all details and waiting for decisions to be made at the appropriate level. While decision making processes may be slow, the final result will be of the highest quality, as German products are renowned to be.

Strong Departmental Rivalry

When doing business with German companies, you should be aware that you may come across strong departmental rivalry. This may be actively encouraged by German managers in order to get the best out of their employees and staff. While it arguably contributes to a competitive product and high levels of efficiency, it means that you should be sure of communicating and sharing information with exactly the right parties and people within the German company with which you are doing business. Make communication channels clear from the start and ensure you are aware of who the key decision makers are on the German side.

Direct Communication Style

German businesspeople tend to communicate in a very direct manner. They will give you their opinion openly and straightforwardly and they will expect the same from you and your colleagues. Humour does not tend to be valued or used in business, so be aware that using humour can be inappropriate and unprofessional. You and your organisation need to be aware of this cross cultural difference as your German counterparts can otherwise be seen as blunt and undiplomatic. In negotiations, you should read any criticism as a constructive contribution to improve the outcome, rather that an attack of the person in charge. If you are working under a German manager, don’t expect praise, as a good job done is the minimum you will be required to do.

Understanding German business culture and developing the cross cultural skills to decipher its influence on business relationships with your German counterparts makes the difference between a profitable venture and a failed one when doing business in Germany. Cross cultural awareness can help you tip the balance of negotiations with German businesses in your company’s favour, greatly contributing to your company’s global success. Cross cultural awareness should form part of the know-how of all internationally focused organisations and can be developed and harnessed through Communicaid’s bespoke cross cultural training solutions.

© Communicaid Group Ltd. 2010

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Jul 07

Strictness, Discipline and Efficiency – Can Germany’s Cultural Values Lead Them to Success in the World Cup?

Cross Cultural Training, Cultural training for Relocation, Culture, Culture training for Business & Management, Culture training for Human Resources, Culture training for the Public sector No Comments »

The title of dark horse of this World Cup undoubtedly belongs to Germany. Everyone was talking about Spain, Italy or Argentina as possible contenders, and no one gave a second thought to a team that, although strong, does not have the stars or the charisma that tend to attract the attention of the football world. Adding insult to injury, literally, a Ballack–less German team did indeed look less than impressive on paper and without many chances of success.

A little bump in the group stages against Serbia served to confirm all the skeptics’ opinions that Germany were not good enough to go all the way. Fast forward two weeks and Germany have outplayed small teams Australia and Ghana, and downright humiliated world-powerhouses England and Argentina. And as Germany gets ready to try and beat European champions Spain in the second World Cup semifinal tonight, the world has been left admiring the Germans’ impressive path to success.

 

Germany Flag wrangel i1 Strictness, Discipline and Efficiency – Can Germany’s Cultural Values Lead Them to Success in the World Cup?

© istockphoto.com/wrangel

 

How could a team with no Rooney, Ronaldo or Messi possibly have any chance to make it to the semifinal, let alone score four goals per match a staggering three times in the tournament? Perhaps the names Müller, Schweinsteiger and Friedrich are not as easily recognised as they don’t belong to global football stars, but these players, and the whole of the German team, have succeeded where other teams with charismatic superstars have not.

One of the German strengths is that they are, indeed, a team. Speaking right after their thrashing of Argentina, captain Philipp Lahm summarised their victory in one accurate phrase: ‘Better teams beat better players’. While Argentina boasts amazing footballers such as Tévez and Messi, who is undoubtedly the best player in the world, Germany’s players are simply good. Yet they complement each other perfectly and play for German glory, not their own. Coach Löw has intelligently managed to find good players and put them in their preferred position in order to develop an efficient goal-making machine that looks the most convincing of the World Cup so far.

Indeed, the German team is very German in their approach. Core German cultural values are discipline, efficiency, hard work and planning. In Germany, things tend to be done properly and on time while expectations are always high. These are well-known traits of German culture, yet expats who are living and working in Germany may still find it hard to adapt to these values. Doing business in Germany is undoubtedly profitable as the country is well known for their very high standards, efficiency and discipline. To completely understand how these values impact business in Germany and take full advantage of them, anyone building relationships or communicating regularly with German counterparts should undergo a cross cultural awareness training course.

Communicaid offers intensive cross cultural awareness training and language training that will give you the competitive edge you need to harness the famous German values and qualities of efficiency, planning and common sense.

The German football team has definitely been the most entertaining and exciting to watch in this World Cup full of unfulfilled promises and flopping superstars. Now we must wait until the game tonight to see how Germany’s efficiency fares against the Spanish team who has also performed well this World Cup.

© Communicaid Group Ltd. 2010

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