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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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Apr 26

Multicultural Teams: Cross Cultural Approaches to Time Management

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 »
clock with chinese signs i1 Multicultural Teams: Cross Cultural Approaches to Time Management

© istockphoto.com/PeterFrank

 

Everyone has heard the expression “Time is money”. This saying has an equivalent in most languages, demonstrating that the concept of time plays an important role in business cultures across the globe.

Modern Western business, in particular, considers the efficient use of time as a measurement of success. For example, if a project is not completed by the agreed date, the company will lose profit and its reputation will suffer. However, other cultures take a different approach to time management. Some Eastern cultures, such as India and Japan, tend to favour the coordination of tasks rather than tackling them sequentially.

Cross cultural awareness training provides an introduction to the concepts of time and how they differ across cultures, providing you with a better understanding of what to expect when working with international counterparts.

One cross cultural theory about time that intercultural training covers was developed by Edward T. Hall, an American anthropologist and cultural expert. Hall distinguished between monochronic and polychronic views of time. For example, when doing business in Germany or the US, both monochronic cultures, you will find that your counterparts tend to consider that time is wasted unless decisions are being made and actions are carried out. The task is the priority and communication between colleagues is often direct and to the point.

However, in polychronic cultures like India, time is not perceived as a number of slots where each is presented by a definite task that needs to be tackled sequentially. Instead, when doing business in India, you will find their polychronic approach to time is much less driven by a need to get things done on time and more by the fact that things are done and harmonious relationships are maintained throughout the process.

The difference in these cross cultural approaches can create significant challenges for anyone working in a multicultural team. When your multicultural team members have attitudes to time that are similar to yours, coordinating projects can be relatively problem-free. However, when your team members from different cultures view time differently, issues relating to planning, decision-making or project deadlines can often lead to frustrations caused by miscommunication and mismatched expectations.

For example, a German working on a multicultural team with Indian nationals may become frustrated by what he perceives to be indirectness or lack of urgency in his colleagues. Conversely, the Indian team members may feel that their German counterparts come across as being pushy and fail to consider the harmony of the team.

Another clear illustration of contrast between these two attitudes to time can be found in comparing the American and Japanese modes of production. The American model, credited to Ford, is a linear production line, with one task following another until the product is finished. The Japanese, however, initiated the ‘just-in-time’ model, credited to Toyota, in which production is synchronised to allow the company to minimise waste and be responsive to demand.

These are just a few examples that show how attitudes to time can present challenges and benefits for multicultural teams. The challenges and advantages that different attitudes to time can create are numerous and can have a clear negative or positive impact on multicultural teams and the success of the projects that they work on. By participating in a Cross Cultural Training course such as Working across Cultures or Intercultural Training Germany, multicultural teams can develop strategies to not only cope with their differences but harness them for more effective team working and productivity.

© Communicaid Group Ltd. 2010

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