MANAGEMENT STYLE

German management, as it has evolved over the centuries and has established itself since World War II, has a distinct style and culture. Like so many things German, it goes back to the medieval guild and merchant tradition, but it also has a sense of the future and of the long term. The German style of competition is rigorous but not ruinous. Although companies might compete for the same general market, as Daimler-Benz and BMW do, they generally seek market share rather than market domination. Many compete for a specific niche. German companies despise price competition. Instead, they engage in what German managers describe as Leistungswettbewerb, competition on the basis of excellence in their products and services. They compete on a price basis only when it is necessary, as in the sale of bulk materials like chemicals or steel. The German manager concentrates intensely on two objectives: product quality and product service. He wants his company to be the best, and he wants it to have the best products. The manager and his entire team are strongly product oriented, confident that a good product will sell itself. But the manager also places a high premium on customer satisfaction, and Germans are ready to style a product to suit a customer's wishes. The watchwords for most German managers and companies are quality, responsiveness, dedication, and follow-up. Product orientation usually also means production orientation. Most German managers, even at senior levels, know their production lines. They follow production methods closely and know their shop floors intimately. They cannot understand managers in the United States who want only to see financial statements and the bottom line rather than inspect a plant's production processes. A German manager believes deeply that a good-quality production line and a good-quality product will do more for the bottom line than anything else. Relations between German managers and workers are often close, because they believe that they are working together to create a good product. If there is a third objective beyond quality and service, it is cooperation--or at least coordination-with government. German industry works closely with government. German management is sensitive to government standards, government policies, and government regulations. Virtually all German products are subject to norms--the German Industrial Norms [Deutsche Industrie Normen--DIN]--established through consultation between industry and government but with strong inputs from the management associations, chambers of commerce, and trade unions. As a result of these practices, the concept of private initiative operating within a public framework lies firmly imbedded in the consciousness of German managers.

MEETINGS
Business Meeting Etiquette . Appointments are mandatory and should be made 1 to 2 weeks in advance. . Letters should be addressed to the top person in the functional area, including the person's name as well as their proper business title. . If you write to schedule an appointment, the letter should be written in German. . Punctuality is taken extremely seriously. If you expect to be delayed, telephone immediately and offer an explanation. It is extremely rude to cancel a meeting at the last minute and it could jeopardize your business relationship. . Meetings are generally formal. . Initial meetings are used to get to know each other. They allow your German colleagues to determine if you are trustworthy. . Meetings adhere to strict agendas, including starting and ending times. . Maintain direct eye contact while speaking. . Although English may be spoken, it is a good idea to hire an interpreter so as to avoid any misunderstandings. . At the end of a meeting, some Germans signal their approval by rapping their knuckles on the tabletop. There is a strict protocol to follow when entering a room. . The eldest or highest ranking person enters the room first. . Men enter before women, if their age and status are roughly equivalent. Business Negotiation . Do not sit until invited and told where to sit. There is a rigid protocol to be followed. . Meetings adhere to strict agendas, including starting and ending times. . Treat the process with the formality that it deserves. . Germany is heavily regulated and extremely bureaucratic. . Germans prefer to get down to business and only engage in the briefest of small talk. They will be interested in your credentials.

. Make sure your printed material is available in both English and German. . Contracts are strictly followed. . You must be patient and not appear ruffled by the strict adherence to protocol. Germans are detail- oriented and want to understand every innuendo before coming to an agreement. . Business is hierarchical. Decision-making is held at the top of the company. . Final decisions are translated into rigorous, comprehensive action steps that you can expect will be carried out to the letter. . Avoid confrontational behaviour or high- pressure tactics. It can be counterproductive. . Once a decision is made, it will not be changed.