Business Culture …

                                                     Business Culture       61


2.1

Business Culture
Eric Lynn, LCT Consultants, Nuremberg


   `It takes time to do a thing well.' (German proverb)



      Recently, Bill, a new recruit to the Manchester subsidiary of a
      German corporation, was sent on a five-day seminar to Hamburg.
      It was his first visit to Germany. On arrival at the seminar hotel,
      he met his German colleagues and was taken aback at their
      seriousness and the formality of the atmosphere. Although he
      found the work interesting, and despite the fact that they seemed
      to loosen up in the bar in the evening, he began to wonder whether
      he had made the right decision in joining the company.



      It is Tuesday 15 March and Tony receives an angry call from his
      Munich headquarters asking for a set of quality reports that they
      claim they requested the previous November. On checking his files,
      Tony discovers the fax. It seems he had simply forgotten the
      deadline. `No problem,' he says, `I'll get them to you in the next
      couple of weeks.' He senses that this makes his German colleague
      even angrier.


 Here are two examples of misunderstanding due to differences in the
 way in which people work in Anglo-Saxon countries and in Germany.
 Differences are not a problem ­ not understanding why they exist and
 how they affect business relationships is.
    Culture is simply the way in which things are done in any one
 particular place. The place may be the United Kingdom, the United
 States, western Germany, eastern Germany, or anywhere else. It may
 also be a subgroup within a society such as a corporation. It is important
 because it is the driving force behind the way people deal with others
 with challenges, problems, work ­ life. Understanding the influence of
62        Business Structure and Practices

     culture on international business is vital because, whatever the tech-
     nology and whatever the benefits of a particular product, all business
     deals are made by people.
         People behave differently for a variety of historical, political, socio-
     logical and psychological reasons. If we ignore these differences we
     cannot hope to understand what motivates and drives our business
     counterparts from abroad, and we risk making very expensive mistakes
     and not achieving optimal results from those deals that we do pull off.
         This chapter looks at the way in which Germans do business and
     considers how Germans tend to manage their dealings with business
     partners both domestically and abroad. The most significant factors
     affecting German behaviour patterns and the driving forces behind these
     behaviours ­ values, society norms, historical factors ­ are covered. You
     will gain an understanding of the reasons for German behaviour to
     enable you to interpret specific situations appropriately, as well as to
     modify your behaviour when dealing with your German counterparts.
         The business culture of Germany in the early part of the 21st century
     is influenced by historical factors (eg the effects of the hyperinflation of
     the 1920s), political factors (eg the reunification of the country in 1990),
     sociological factors (eg the emphasis laid on specialization in the
     education system) and psychological factors which include not only these
     aspects but also the pressure from society to conform to accepted norms.
     Since late 1996, it has been more fundamentally influenced by a
     significant rise in unemployment, the rapid increase in the number of
     shareholders in the population (albeit from a very low base), changes
     in corporate law making it far easier for smaller companies to incorpo-
     rate, the spread in the use of the Internet and e-mail as a medium for
     business communication and the increase in inherited wealth of the
     younger generation. Furthermore, it is guided by the people active
     throughout all levels of business life whose actions are motivated,
     whether positively or negatively, by the values that underlie society.


Stereotypes

     Stereotypes exist about almost every ethnic or national group. Both
     Bill and Tony may have attributed some of these stereotypical behav-
     iours to Germans: they are humourless, aggressive, distant, stubborn,
     unfriendly sticklers for detail.
        People who have been fortunate enough to get to know their German
     business partners well, and who have been able to consider why they
     behave as they do, will have realized that these stereotypes are anything
     but true.
        Stereotypes and generalizations develop when one's own view of
     reality is imposed on a `foreign' (in this case German) situation. To a
     Briton or American used to a working atmosphere where fun is combined
                                            The Structure of Industry       63

 with hard work, the German, for whom work is `serious business', may
 appear to be humourless, if judged by `foreign' standards (in this case
 British or American).
    Did the aggressiveness, personal distance or unfriendliness that Bill
 and Tony perceived really exist or did they misinterpret the signals? In
 his book How Real is Real?, Paul Watzlawick states: `The most dangerous
 delusion of all is that there is only one reality.' He also says: `Our
 everyday, traditional ideas of reality are delusions which we spend
 substantial parts of our daily lives shoring up, even at the considerable
 risk of trying to force facts to fit our definition of reality instead of vice
 versa.' How many readers can honestly claim never to have been guilty
 of this kind of attitude?
    Germans do tend to take longer to reach decisions. However, just
 because they favour analysing situations thoroughly rather than, for
 example, the pragmatic short-term, solution-oriented approach pre-
 ferred in Britain, can we really claim that they take too long to reach
 their decisions?
    The best thing to do with stereotypes when doing business abroad is
 to forget them! Meet the challenge with an open mind and with eyes
 wide open.

German values and behaviour patterns in
business
 Germany has enjoyed one of the most successful and envied economies
 since the founding of the Federal Republic in 1949. Companies have
 achieved success by hard work and efficiency ­ both highly valued char-
 acter traits. The quality of products is recognized throughout the world.
 Organization is tight and precise (well-ordered); everybody knows his
 function. Decisions are made after careful, thorough and precise analysis.
 Risks are minimized; security is a lifeline. Time schedules are strictly
 adhered to: punctual delivery means on the precise day! Formality is a
 necessary sign of respect. Business is serious business. These are the
 values that pervade society and are the foundation upon which German
 managers build.
    Forming successful business relationships with German companies
 does not entail taking all of these values on board, but recognizing their
 importance to your business partner. It may also mean modifying your
 behaviour in the interests of achieving your business goals.
    German business is male dominated. Although women account for
 approximately 40 per cent of the workforce, they are underrepresented
 in management ranks. Specific sectors such as fashion and advertising
 are an exception. A woman in a position of responsibility, although slowly
 becoming more common, may invoke surprise in her German (male)
 counterpart, which could lead to embarrassing situations whereby he
64        Business Structure and Practices

     assumes that she is a secretary or aide. The author even knows of one
     business deal that broke down when a Canadian businesswoman felt
     so insulted that she got on the next plane home. You may ask yourself
     whose fault this was. The only realistic answer is that both parties were
     guilty of ethnocentricity and attribution (assigning their own norms to
     the behaviour of someone from another culture).
        As most German managers you will meet will probably be male, they
     are referred to as male in this chapter. Please rest assured that this
     does not indicate any bias on the part of the author!

                                     Formality




                             Respect for     Respect for
                             status          authority




          Directness


                                      ORDER                         Punctuality
      Precision




                  Thoroughness                       Efficiency
                                    Hard Work

                                                                      Security
             Quality

     Figure 2.1.1 The web of German values


Managing people
     Important qualities expected of a manager in Germany include the
     ability to assert oneself, a willingness to work hard, the ability to lead,
     an analytical ability and a knowledge of the business area. A manager
     will usually have attained his position by rising through the ranks,
     having displayed these qualities. He will probably have at least one
     degree (65 per cent of German managers do) in which he specialized in
     engineering or business studies. He will initially have entered working
                                                  Business Culture       65

life as a specialist and have proved his ability by producing quality
solutions to specific problems, very often displaying the persuasive
powers necessary to get himself noticed.
   British (but not American) managers may be surprised to read that
the ability to assert oneself is considered a quality. Both Britons and
Americans may be surprised that analytical ability and knowledge of
the business area are considered so important, having probably had a
broader education that has prepared them for the world at large and
endowed them with more general skills. They have learned to take the
eagle's perspective, get the big picture, motivate others, take decisions
and come up with and try out innovative ideas. They are supported by
specialists who possess necessary technical knowledge.
   The roots of these differences are sociological and lie in the German
education system. From an early age, children learn facts according to
a structured plan. They learn to think analytically and they learn the
importance of detailed knowledge. They are not trained to be innovative
or to question the status quo. They also learn that they have to speak
up for themselves if they want to get noticed in class and get good grades:
self-assertiveness. The system trains young people to realize the
importance of personal success but does not train them to work together.
   Recent years have brought some changes in people's attitude to the
traditional values of hard work and security, at least superficially. One
of the cornerstones to the oft-quoted Wirtschaftswunder (economic
wonder), which saw Germany rise from the ashes following World War
II to become the strongest economic power in Europe, was a willingness
to work hard. Working hard was not only a question of belief, being
seen to work hard was also partially an issue of social status and
acceptance. It was not, and still is not, uncommon for a leader to place
a higher priority on his profession than on his family, although this
cannot be generalized. The increase in personal wealth, partially due
to a rise in income levels and partially due to an increasing number of
people inheriting wealth from relatives who are now ageing, is resulting
in a reassessment of the value of work per se. For many people in the
younger generations (aged 20­45), life no longer revolves around work
as it did during the 1950s, 1960s, 1970s and even the 1980s. Finding
time to participate in leisure activities is becoming an increasing priority
for them. This is, however, paradoxical. While there is without doubt a
greater emphasis on leisure time, an immense pressure to work hard
and produce results, which will be passed down through the ranks, still
exists and, due to today's faster-changing business world, may even be
stronger than in the past. The Ellenbogengesellschaft (elbow society),
frequently spoken of in the German management press, in which
advancement and success come with assertiveness, is very evident.
   The security which came with the economic growth during the second
half of the 20th century provided not only financial security, but also a
66        Business Structure and Practices

     general feeling of security which is an instrinsic need in German society.
     The general aversion to risk taking has appeared to diminish since 1996
     with the broader spread of private shareholding and the more recent
     turbulence of the stock markets. However, it still displays itself in
     management practice where managers need to feel secure in the
     knowledge that tasks they have delegated are carried out appropriately;
     they are responsible for the success of any project under their leadership.
     They tend to exercise a great deal of control over subordinates, demand-
     ing regular interim progress reports, but generally hand over responsi-
     bility for the approach taken to the task.
        Until relatively recently, motivational skills were not considered
     significant. Money and the satisfaction of carrying out a task successfully
     were considered sufficient motivation. Success is expected and praise
     is rare. Failure and mistakes, on the other hand, are not tolerated ­
     they reflect not only on the person who made the mistake, but also on
     the manager responsible. Two responses are common: one is to criticize
     the culprit (possibly in front of colleagues); the other is to sweep the
     problem under the carpet, protect the culprit from outside influences
     by keeping him busy with tasks that will not be too challenging, thus
     protecting the reputation of the manager responsible. The realization
     that undermotivated employees cost a company a great deal of money
     is resulting in an increasing emphasis on motivational skills in manage-
     ment training programmes.
        In general, expectations of working people have been changing in
     recent years as they have become better off and more able to take
     advantage of a wide variety of leisure activities. They are demanding
     more from life than job security (which they are slowly beginning to
     realize no longer exists) and at work are demanding increased responsi-
     bility and fulfilment. At the same time, the recent rapid rise in unem-
     ployment is resulting in a somewhat vain attempt by many employees
     to seek the kind of job security that existed until the late 1980s, and
     this reflects the fundamental importance of security for German
     employees.

Authority
     A German manager derives his authority from his position, which he
     will probably have attained having proved his professional competence,
     either technically or commercially. Whether or not he possesses the
     necessary people skills to motivate subordinates, he expects personal
     and professional respect to be shown because he is a manager. He has
     earned this respect with the promotion that has given him his position.
     Respect for authority is a German value. Authority is automatic. This
     manifests itself in the way decisions are reached in meetings. Open
     discussion is accepted. Anyone can contribute as long as they have
                                                  Business Culture       67

 something to add to the theme under discussion ­ otherwise they are
 not expected to participate actively. The manager will weigh up the
 arguments, make his decision and delegate tasks. For him, there is no
 question but that his decisions will be implemented regardless of
 whether the person chosen to carry them out agrees. An employee will
 accept the decision and does not expect to participate in the decision-
 making process. Only senior people are in a position to question a
 manager's competence and decisions.
    British and American managers in charge of German employees
 frequently express frustration at their subordinates' seeming inability
 to make decisions for themselves ­ but they are simply not accustomed
 to doing so.
    German managers responsible for joint groups containing British or
 American employees are sometimes overcome with disbelief and frustra-
 tion when they find that their decisions are not being carried out, failing
 to understand that, to Britons and Americans, respect for authority is
 not automatic. Furthermore, they may not realize that qualified British
 and American employees expect to share in the decision-making process
 before being asked to implement the results.

Decision making, problem solving and security
 Risk avoidance and thorough analysis are the main concepts here.
 German managers tend to feel uncomfortable with situations over which
 they have no control (hence their control over decisions in meetings).
 As taking risks implies less than complete control, they attempt to
 control the risk by analysing all potential new projects thoroughly before
 making decisions. Why?
     The reasons are historical, psychological and economic. Germans
 associate risk with the possibility of failure ­ something they have
 learned to avoid since their school days. Young people grow up in a
 system where mistakes are punished by negative grades and failure is
 punished by having to resit a school year. They learn to fear making
 mistakes. It is not uncommon, when presenting a new idea to Germans,
 to hear the response: `What if it does not succeed?' They enter working
 life taking a low-risk strategy of avoiding undertakings that are not
 `guaranteed' to achieve success. Before achieving their current status
 they will have learned how to balance risks and potential benefits
 conservatively, and this is done by objective analysis.
     Written documentation assists Germans in feeling more secure about
 unknown entities. A document is generally considered objective proof
 that thought has been given to the idea, which does not of course indicate
 that people will believe everything that is put on paper. Having read
 an analysis, they normally like to sit on the idea for a while and consider
 it in peace. Decisions take time, longer than in Britain and much longer
68        Business Structure and Practices

     than is standard in the United States. However, once Germans commit
     themselves, they do not generally turn back.
        There are also significant historical and economic factors explaining
     the German aversion to risk taking. The rampant inflation of the 1920s,
     with its immediate economic and later disastrous political consequences,
     has taught Germans to be extremely careful when investing, as well as
     to place faith in the status quo as long as it is serving them well. Having
     embarked on cooperation, they tend to remain loyal as long as they feel
     secure about the quality and conditions of the business relationship,
     which does not prevent them from attempting to renegotiate terms.
        German managers like to seek long-term agreements that give them
     the security of being able to plan for the next few years. This has its
     roots in the structure of German industry, with family-owned, medium-
     sized companies that have grown over a period of decades by continu-
     ously reinvesting profits as the powerhouse. The still relatively small
     number of incorporated companies were in the past owned predomi-
     nantly by the banks and other financial institutions. Their interest lay
     in perpetuating a system in which the company could continue to
     operate. Here again, surpluses were pumped back rather than distrib-
     uted to shareholders. Although the banks have now divested many of
     their industrial investments, the core idea of the corporation providing
     a stable unit of working life still persists, although the reality may in
     fact be quite different. Contrast this with Britain and the United States,
     where the proportion of private shareholders, who expect results and
     dividends every year, is far higher. Planning periods therefore tend to
     be shorter.
        The rapid increase in the number of private shareholders in recent
     years is slowly resulting in attitudinal changes among German man-
     agers. The concept of shareholder value has now entered the business-
     person's vocabulary and returns on investment comparable with some
     leading Anglo-Saxon corporations are now being demanded by industrial
     leaders. While this rise in the number of people investing in shares
     indicates an increasing willingness to take risks and look for higher
     returns, risk aversion is still relatively strong among the same people
     in their corporate role as employees.
        The German approach to problem solving is similar. If a unit ceases
     to work or a device under development is not functioning as expected,
     all components that might possibly be connected with the malfunc-
     tioning piece are analysed in detail until the cause is found. People can
     then feel secure in the knowledge that their solution is right. This is in
     stark contrast to the pragmatic `get the unit working again as soon as
     possible' approach that tends to be favoured in Britain and the United
     States. It is hardly surprising that these differences result in countless,
     enormously expensive conflicts in US-German and British-German
     projects each year. A recent cooperation between German and US
                                                   Business Culture       69

 engineers developing a telecommunications chip was abandoned, not
 for technical reasons or because of challenges in meeting the tight
 delivery deadline, but because neither side could come to terms with
 the other's approach to solving the technical problems. The Americans
 would try to get over hiccups by finding a solution that worked, did not
 necessarily rule out future problems and did not get to the root of the
 original problem. The Germans would immediately stop further develop-
 ment until they had found and solved the cause of the problem. Both
 sides traded insults and allegations and both were convinced that theirs
 was the only approach ­ until they became aware that they were simply
 using different approaches that could be combined to good effect to
 produce a better solution.
    This craving for security and `objective' information displays itself in
 other ways. Employers and potential partners demand documents
 confirming one's qualifications, and therefore ability, to do the task. Just
 as it is almost inconceivable for a company to employ someone without
 having seen degree and diploma certificates, as well as testimonials
 from previous employers, a potential business partner will want to see
 documentation about a company and its products to help him feel more
 secure with a new, unknown and therefore risky undertaking.
    The tightly woven social security net is highly valued throughout
 society, providing the necessary security for survival in old age or in
 case of misfortune. High quality is a must, as it guarantees reliability.
 This is not merely a matter of pride in producing a quality product, it is
 the security of knowing that it will function as and when needed. Safety
 standards and emission controls are extremely tough. Germans like to
 be secure in the knowledge that the risk of accidents is minimized and
 that the quality of their descendants' lives will not be compromised by
 environmental damage.

Presenting and negotiating
 The key concepts are clear organization, thorough analysis and serious,
 reputable argumentation. Thorough analysis includes a historical
 overview to add credence to your experience as well as detailed analysis
 of the path you have taken to reach your conclusions. The bottom line
 is important, but is only persuasive if the audience can see that it has
 been reached scientifically by carefully weighing up all possible alterna-
 tives. Presenters persuade by demonstrating their credibility through
 their Fachkompetenz (professional abilities) and proving their mastery
 of the complete situation. Presentations tend to be formal, which does
 not mean that there is no place for humour. However, the humour should
 be relevant to the theme and not laid on too thickly.
    Although the relationship plays a significant role in negotiations,
 Germans tend to be more impressed with quality, reputation and
70        Business Structure and Practices

     reliability. Relatively little time is spent on small talk, the motto being
     `let's get on with business'. Formality towards and a respectable distance
     from your counterpart are expected. This distance takes the form of
     recognition of his status (Herr Dr Peter Schmidt generally expects to
     be addressed as Herr Dr Schmidt, not Herr Schmidt and certainly not
     Peter) and not appearing to push too hard for a close relationship (he
     has the authority to make a decision and will expect this to be explicitly
     recognized).

Teamwork
     Unlike people in Anglo-Saxon countries, Germans do not learn to work
     together from an early age. The German concept of a team is more often
     than not a group of experts who work together on a specific task to
     reach a specific goal. Working together may imply adding their input
     following individual work on the topic of their expertise.
        Only recently have German workers begun to take the Anglo-Saxon
     concept on board: working together, jointly coming up with creative
     solutions to new challenges. Although belonging to and having the
     security of a group is very important to Germans, at higher levels of
     management they tend to work alone.

Communication style
     German verbal communication patterns are one of the greatest sources
     of confusion to others. In brief, they are very direct, short and to the
     point, and can thus appear to be abrupt and demanding. The content of
     the message is more important than the means by which it is trans-
     mitted. The word `muß' (have to) is used much more frequently than in
     English. Germans whose command of English may be very good, but
     who lack an understanding of the undertones of communication styles
     with English-speaking people, tend to translate directly, producing
     English expressions using German communication patterns (see section
     below on language).
        While Britons and Americans tend to value their independence and
     consider being asked rather than ordered to carry out a task as a sign
     of respect, Germans accept authority more readily and, although they
     may prefer to be asked, they will do something despite being ordered
     to. When faced with the German pattern of getting straight to the point,
     many non-Germans, and especially Britons who are accustomed to
     receiving instructions put in the form of a request, feel put upon and
     talked down to. Understatement will generally not be understood.
        In German, the `please' may be replaced by an acceptably friendly
     tone. They are also prone to forget it when speaking English.
        The US anthropologist Edward T Hall uses the concept of high- and
     low-context cultures to explain these differences in style. In low-context
                                                   Business Culture       71

 cultures, people have a need for information to be transferred in great
 detail and very explicitly. High-context cultures, on the other hand,
 favour inference more than explicitness. Germany is a very low-context
 culture requiring explicit, to-the-point information. The United States
 is medium to low context, whereas Britain is medium to high context.
    The widespread use of e-mail, particularly for international intra-
 corporate communication and for day-to-day communication in inter-
 national projects, is resulting in numerous conflicts, with many Britons
 and Americans complaining about the Germans' `rudeness' and `lack of
 respect' for their counterparts. While these complaints may appear
 justified if viewed only from the perspective of the receiver, the style of
 messages sent, in fact, needs to be viewed from the perspective of the
 sender (German), in addition to the context of international e-mail
 communication as a whole.
    E-mail is a fast and easy-to-use communication medium. Conse-
 quently, it is frequently used quickly, without too much thought concern-
 ing the process. E-mail in itself is able to display almost no personal
 context between the parties communicating. It is therefore in itself
 direct. Added to the very direct German communication style, the result
 to the British, who value indirectness, and even Americans, who,
 although they too tend to value directness, also value a personal touch,
 may appear too hard hitting. The consequence tends to be unnecessary
 conflict. The solution is not to jump to conclusions about your German
 counterpart's intentions, but to recognize the directness as standard
 and to clarify his intentions by asking.
    Make allowances for non-native speakers of the language. If faced
 with this seemingly abrupt communication style, it is useful to check
 back on what your counterpart really meant to say before making a
 value judgement.
    Small talk plays a less significant role in building a business relation-
 ship in Germany than it does in the United States and is far less
 important than in Britain. It is normal to get down to business very
 soon after meeting a new prospect for the first time.


Hidden differences
Time
 Punctuality is absolutely essential in business dealings with Germans.
 A 9 o'clock appointment means precisely 9 o'clock. To arrive late (without
 genuine extenuating circumstances, which are of course understood) is
 unacceptable. To arrive earlier than 8.58 might be interpreted as an
 infringement on your counterpart's time. This also applies to social
 appointments.
72        Business Structure and Practices

        Business in Germany tends to be highly organized and regulated.
     Business people generally work under a great deal of pressure and
     organizing their diaries helps them relieve this. It may be difficult to
     get an appointment at short notice, so it is advisable to plan ahead. It
     is also not unusual to arrange specific appointments for telephone calls.
     Germans like the security of knowing what will happen when, and prefer
     to plan their day in sequence, dealing with one thing at a time.
        Punctuality is also considered an indication of reliability and reputa-
     tion. Deadlines exist to be adhered to. Once fixed, they are only changed
     if circumstances make it impossible to meet them. Elaborate excuses
     for failing to meet a deadline only serve to exacerbate the problem.

Language
     This precision is also a feature of the language. It is structured and
     contains an abundance of rules stipulating sentence structure. This
     naturally mirrors German communication patterns.
        Germans who speak English are also prone to succumb to a number
     of language pitfalls (known as false friends), which may lead to mis-
     understandings if both parties are unaware of them. Some of the most
     common are:
     l `muß' (`have to'), which can give the impression that the speaker is
       giving orders;
     l `problem', which literally means `problem' but is also used in place of
       theme, topic, issue, matter, due to the German habit of concentrating
       on possible difficulties;
     l `aktuell' (`current', `up-to-date'), which if translated as `actually' can
       give the impression that the speaker is stating his view of the real
       position very forcefully;
     l `eventuell' (`possibly'), which if translated as `eventually' can give the
       impression that the speaker is trying to delay making a decision;
     l `seriös' (`reputable'), which is often mistakenly translated as `serious'
       and may leave the impression that the speaker doubts your intentions.

Barriers
     Germans are often perceived as distant and hard to get to know. They
     are not. It simply takes longer to get behind the barrier of the real
     person. They value their private sphere and draw a clear line between
     business and pleasure. They require time to come to terms with new
     people who enter their lives and will slowly search for ways of getting
     to know you. If they feel that a stranger is trying to get too close too
     quickly they feel threatened and may block. In their own time they open
                                                  Business Culture       73

 up and will begin to talk about their family and interests. First names
 and the familiar `Du' form will follow. Once you have been permitted to
 enter someone's life, a deep, meaningful friendship, which is valued
 greatly, will follow. We can liken the German approach to building
 relationships to a pineapple ­ a relatively hard outer surface that takes
 a while to penetrate, but with a welcoming rich interior! The Anglo-
 Saxon approach is more akin to a peach ­ a soft, welcoming outer surface
 that goes relatively deep, but with an extremely hard core that is very
 rare for outsiders to penetrate!
    Humour is often said to be out of place in German business, but
 nothing could be further from the truth. It is true that business is taken
 very seriously and that meetings tend to be formal, but this does not
 mean that people are humourless. They do not appreciate humour for
 its own sake and slapstick in business is out of place. However, a
 humorous remark that is relevant to the situation at hand is more likely
 to break down barriers than to create them. Outside the office, Germans
 like to laugh as much as anyone else.
    Recognition of personal space is a matter of etiquette and status. In
 offices, doors are more often kept closed than open. This does not mean
 that nobody may enter, but generally expresses a preference for working
 undisturbed. It is expected that colleagues and visitors will knock before
 entering. Executives generally prefer visitors to enter via the secretary's
 office. The importance of a person in the hierarchy can often be
 recognized by the size and position of the office. The larger the office,
 the higher the rank. Corner offices and those on the top floor are
 generally reserved for those having the greatest amount of responsibility.

Status symbols
 Germans take great pride in their achievements and are not ashamed
 to demonstrate their success. The most obvious status symbol is the
 car, which is frequently used to judge the degree of success that a
 business partner is having. Mercedes, BMW and Audi are the three so-
 called `noble brands' driven most frequently by successful business
 people. If you wish to create a positive impression and you hold an
 appropriate position within your organization, it might be advisable to
 hire one of these makes from the airport. If you are not a senior manager,
 get a car further down the range.
    The size of your house and its location are also indications of status.
 Not so obvious are vacation destinations. Many top managers, however,
 are content to spend their time off at a quiet location in Germany or
 one of its neighbours.
74        Business Structure and Practices

Conclusion

     With the increase in the volume of business globally and the improve-
     ment in communications technology, outside influences on German
     business practice are growing. The gradual merging of the eastern and
     western German cultures, the increase in the number of German
     companies involved in international mergers and acquisitions, greater
     participation in international projects (with the resulting exposure to
     other successful ways of doing business), increasing competition from
     low-wage, high-technology countries abroad, the exposure of the New
     Economy in everyday life, the rising cost of maintaining the social
     security system and increasing demand for quality leisure time by
     employees are some of the significant changes that are slowly beginning
     to cause a shift in the mindset of German managers and employees.
     Cultures can be seen as paradigms ­ which shift.
        Doing business in Germany is a challenge. Like all successful coun-
     tries, Germans possess a firm conviction that their way of doing things
     is the best way. This by no means indicates that they are unwilling to
     accept alternatives or to try out new ideas. It does mean, however, that
     you need to present very convincing and solid arguments in order to
     persuade them to change. To be successful (ie to obtain the optimum
     results from a business relationship with a German company), thorough
     preparation is essential. This includes research, preparation of docu-
     mentation in a manner that will appeal and learning to communicate
     at their level. It means accepting idiosyncratic behaviour and avoiding
     the trap of judging their procedures and standards on the basis of your
     own. Above all, it requires the will to succeed, and patience.