Ask the Pro: International Communications -<br>How Can American Companies Do a Better Job, Doing Business in Germany and Europe?
With Dr. Guido Quelle, President of Mandat Managementberatung GmbH
For an expert take on international communications, Suzanne Bates sat down with Dr. Guido Quelle, who has been in the consulting business as an entrepreneur, consultant, author and speaker for almost 20 years. His firm, Mandat Managementberatung of Dortmund, Germany, works with active business executives, entrepreneurs and directors who are committed to consistent growth. Dr. Quelle is the first European member of the Million Dollar Consultant® Hall of Fame of Dr. Alan Weiss. Quelle's third book "Plan Lead Grow - Systematic Approaches to Success" will be published in Summer 2009. Suzanne sat down with Guido to get his opinion on how American companies can be more effective in communicating with international counterparts and clients in Germany.
Q: How can American business people communicate more effectively with their German counterparts and clients?
A: The first suggestion would be to listen more. American business people have to listen more than they speak, especially to Germans. Second, which is related, is to observe rather than jump to conclusions and offer solutions. Number three is to take time to build relationships inside a company. For instance, if your company acquires a German company, take time to understand the political connections, and understand who is doing business with whom in the company, who asks who for what kind of information, etc. Take time to explain new challenges and new goals. Make yourself a person people trust, and not a wolf that comes in and eats everything he sees. In a situation such as an acquisition or merger, there is fear. You have to handle the fear, and you can handle it when you build relationships and trust.
Q: What other cultural aspects of German communication would be helpful for Americans to know?
A: In Germany it takes longer to build trust. Americans are more open, and have more courage. It's always easier to start a conversation in the U.S. When I first came to the U.S., I observed how the conversation never stops here! There's always conversation; people who don't know each other are talking about interesting things and shared interests. In Germany, we are hesitant before we open our doors like that; we need time.
Americans often communicate in superlatives. For instance, take the phrase "You'll dramatically improve your business." Such statements are not common in Germany. You have to be more understated; dramatic adjectives don't bode well.
Lastly, in Germany, we like to hear facts. Don't tell me a story, but give me facts and figures! We, as a culture, like to see proof for everything. If you say "We cut costs"; prove it. Especially if you're selling to a German company, you have to name the numbers and cite the figures if you're going to succeed.
Q: How can American companies be better at doing business in Germany?
A: There are different rules of employment in Germany. For example, in a layoff, you have to consider the person's personal situation. In Germany, we have to take into consideration whether or not people are married, have children, or are disabled. In Germany the clocks are ticking in another way.
There are often cultural differences that American companies have to take into account. One situation that highlights the differences is when Wal-Mart came to Germany and opened up a few retail locations. They had what I like to call a big "rah rah session" to get their new employees and customers engaged. Corporate leaders were singing "give me a W, give me an A" and trying to energize people. Meanwhile, every German native in the room is thinking "this is unthinkable!" We don't sing national anthems in the morning, we don't make "rah rah,". The corporate leaders had failed to realize that.
Q: What are some "business protocols" in Germany that Americans might not know?
A: Going back to Wal-Mart and their misunderstanding of culture; as we know, at Wal-Mart, they have packers at the end of the cash-out process. However, German customers don't like it when other people touch their purchases; they want control over the process. The greeter at the entrance was also a confusing thing for many Germans. Customers were irritated, thinking "who is that guy? What is he doing? Does he want something from me? Why is he standing there? Do I have to pay him?" These are all seemingly "small" things that ultimately contributed to Wal-Mart's demise in Germany. They closed, and sold their operations to another large German company, who understood the culture and the processes. Wal-Mart lost millions in Germany.
Q: What, in your opinion, are the barriers for American companies who do business or want to do business in Germany?
A: There is a perceived ignorance of American business people, in regards to Germany's specific management processes and methodologies. Many German business people have experienced or heard of an American company coming into the country, buying a company, and completely changing the rules. American businesses often think short term; one example is the practice of putting out quarterly reports. German companies, especially family-owned businesses regardless of size think long-term; quarterlies are not that important. I have observed some American companies take over German companies and switched from day one to day two to another management system. This creates resistance regardless of the quality of the new system; even if it's better, you have to take time to discuss the advantages and disadvantages. If the management of American and German companies take enough time to build a relationship and to understand each other better, a powerful symbiosis can be the result.