Germany

Germany Essentials

1 Expected qualities for managers in Germany include: the ability to assert oneself, a
willingness to work hard, the capacity to lead, an aptitude for analysis and a good level
of technical expertise.

2 The style of communication in German workplaces is very formal; even people who have
worked together for years use the polite 'Sie' form of address.

3 Value is placed on clarity, honesty and respect; you say what you mean and you mean
what you say.

4 There is a desire to do things the correct way.

5 Punctuality is important - being even a few minutes late is considered rude.

6 Presentations should be concise. Be prepared to answer technical questions.

7 When selling, highlight the features and performance of a product rather than its look
and image.

8 Germans are good listeners and will ask detailed questions.

9 Low-risk, sound, high-tech projects are the most likely to attract German investors.

10 Decision-making can be slow with opinions sought from various outside 'experts'.

© Country Navigator www.countrynavigator.com 1

 The German Mindset

Germans are proud, competitive and ambitious. Society is highly structured and life is conducted
according to a set of rules. Focus is on the long term, and on achieving stability. Germans enjoy
a high standard of living and take their personal time seriously; nowadays there is an increasing
trend for Germans to take more frequent shorter holidays instead of one long one. In general,
most people keep their private and work lives separate. Germans are highly educated and
cultured; Germany is the best-read country in Europe and the arts play a big role in many lives.
Germans are also active, enjoying the outdoor life to the full, with many people practicing sport
regularly.

Characteristics of Society

Germany is an efficient, orderly, productive, scientifically and technically advanced European

country. It is also a country with a rich cultural tradition in the arts and philosophy.
Divided into East and West between 1945 and 1990, Germany's population remains unevenly
spread, with the poorer, eastern area more sparsely populated than the prosperous west. The
reunified Germany has a population of about 80.9 million. While the population density is high,
both East and West Germany have had negative population growth rates for years. The
population is rapidly aging.
Germany has a distinctly hierarchical society, with classes established to fill organisational roles
and give structure and order. Equal rights for all are guaranteed by law but may not be practiced
in the marketplace. Women still have a strong bias to overcome in both pay and power.

Lifestyle & Aspirations

Germany is one of the most culturally rich countries in Europe, with even small towns having
their own theatre, orchestra and museum and a lively programme of festivals throughout the
year. Germany is the best-read country in Europe. People here are also passionate about the
outdoors and the environment. Leisure time is very important to Germans, who enjoy nine
federal holidays a year and an annual holiday of up to six weeks.
Most popular leisure activities include:
 Walking and hiking: In and around the cities there is a wealth of excursions available that
can be reached by good paths and tracks and which are worth exploring. Reconnoitring the
surrounding area on bicycles or inline skates has also become very popular.
 Winter sports: Practically everybody skis in the Alps in winter and even around the
northern cities - in fact, anywhere with forest or a small hill - there are excellent cross
country ski trails.
 Music: Germany is a nation of amateur musicians and choirs, with orchestras and music
societies in every town.
 Festivals: The country has a lively festival calendar, with Carnival in February the most
prestigious event. The Oktoberfest in Munich - the world's greatest beer festival - is
legendary.
 Beer: Germany is famous for its fine beers and there are Kneipen (pubs) everywhere serving
their own brews. Sitting outside in a beer garden on a long summer's evening is a popular
activity.

© Country Navigator www.countrynavigator.com 2

  Travel: One quarter of all Germans spend their annual holiday in their own country.
Germans vacationing abroad tend to favour Spain, Italy and Austria. Roughly half of all
Germans book an organised holiday through a tour operator.
 Membership of local clubs: Germany has numerous associations and a wide range of local
clubs ('Vereine', eg 'Sportverein', 'Musikverein'). These number at least 345,000 and have a
total membership of 70 million.
 Sports: Watching sport, from soccer to cycling and tennis.
 Further education: There is a rich programme of evening classes at low cost and many
people develop new skills after work.

Working with the Germans

Germans are focused on two objectives: product quality and product service. They have a strong
desire to be the best and are highly orientated to customer satisfaction. The process of
production is important, as is the end result. Order, planning, a lack of risk and technical detail
are all highly valued.
Expect detailed negotiations with many experts called in; a great deal of due diligence on any
deal; protracted decision-making; lengthy contracts; and detailed follow-up. Be prepared to work
hard at building relationships.
German work teams have often been described as a group of individual experts working towards
a common goal. The benefits of teamwork and synergy are well respected by Germans but they
also need to feel individual areas of competence are not being excluded.

Making a Good Impression

You will make a good impression by coming across as an expert in your subject, who has
thoroughly researched the German market and is able to answer detailed technical questions.
You will be smartly dressed, a straight-talker, efficient and decisive. Academic qualifications
impress Germans.

Business Etiquette

Humour is often said to be out of place in German business. Business is taken seriously and
meetings tend to be formal, but this does not mean that people are humourless. A humorous
remark that is relevant to the situation is more likely to break down barriers than to create them.
Germans are sometimes perceived as distant and hard to get to know. As they place a high value
on their private sphere and draw a clear line between business and pleasure, it simply takes
longer to get behind the barrier of the real person.
Business cards
Prepare to exchange plenty of business cards, especially at first meetings or with people you
don't know yet. Business cards in general will include the professional title and rank of the
cardholder. It is recommended to use the professional title (Doktor, for example) until your
counterpart asks you to stick to their family name only. Since education is highly respected in
Germany, it is appropriate to include any title above bachelor degree level on your card. If your
company has been around for many years, the date of its founding should be on your business
card, too.

© Country Navigator www.countrynavigator.com 3

 Body language
In business the brief and firm handshake is common. Direct eye contact is often interpreted as a
sign of being trustworthy in what you say and mean. Maintaining eye contact shows attention
and strengthens your message to your German counterpart. Avoid touching and keep gestures
restrained.
Recognition of personal space is a matter of etiquette and status. In offices, doors are often kept
closed to express a preference for working undisturbed. It is expected to 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 recognised by the size, position and quality of furniture of the office.
To signal 'good luck', Germans make two fists with thumbs tucked inside other fingers and then
make a motion as if they are pounding lightly on a surface. To signal the number 'one' or say
that something is great, hold the thumb upright.
Communication style
The German communication style is very direct, short and in general very quickly to the point, to
the point where it can seem abrupt, although this is not intended. Germans tend to be quite
frank. Feelings and the emotional aspects of business are downplayed. Reliability and the
integrity of the business are high priorities. The features and performance of a product are more
important than its looks and packaging.
Be sure you can back up your claims with lots of data. Case studies and examples are highly
regarded.
Small talk is not traditional. Germans tend to like people who are very clear about their
expectations and getting down to business is the norm. In explanations, however, they often find
it necessary to lay a proper foundation and provide a historical context.
Gift giving
It is not necessary to give expensive gifts. Provided they are of good quality, items such as pens,
or imported liquor will be more than adequate. If you present wine or beer, it will be more
appreciated if they are types not so readily available in Germany. Gifts made in your home
country would be good, perhaps with your company logo. When it comes to clothing, a sport shirt
with your company logo might be appreciated, but in general clothing is not considered
appropriate as a gift. The same goes for perfumes or soaps, on the grounds that they are too
personal.

Business Meeting Culture

The purpose of a meeting will be to present and discuss proposals, to clarify the methodological
approach and to agree on what is true, correct or helpful, and to agree on actions to be taken by
individuals.
In meetings, small talk is kept to a minimum. Meetings will run to schedule, so make sure
everything on the agenda can fit into the allocated time. Prepare thoroughly, get ready for lively
debate during a meeting and follow up with precision.
Planning a meeting
Preparation is taken very seriously. Agenda items are researched in detail. Important issues may
be pre-discussed on a bilateral basis. The agenda, as well as meeting time and location, a list of
participants and the goals and purpose of a meeting, is sent out by the host prior to the meeting.
Experts might be consulted before the meeting; they might also be invited to attend. Participants
will generally be punctual and arrive some minutes before the meeting starts. The meeting will
run to schedule regardless, and will often finish at the appointed time, whether or not its goal has
been achieved.

© Country Navigator www.countrynavigator.com 4

 During a Meeting
Meeting members will give a firm handshake and make formal introductions to people they do
not already know. People are introduced by their titles, family name and their technical and
hierarchical responsibility.
First meetings can be relatively formal and reserved. People need to get to know each other and
especially their positions and knowledge first. The exchange of business cards will be helpful in
order to keep names and check titles and responsibilities. Calling each other by first names will
take time.
After a quick review of the agenda, the business of the meeting will begin. Meetings are usually
led by the senior person and are formal and structured. Meetings only between peers tend to be
more open to discussion and debate.
Communication will tend to be direct, unemotional and comprehensive. Direct communication is
perceived as respectful rather than rude.
Thinking tends to be very analytical and proposals and ideas will have been thought through in
some detail in advance.
Listeners look for logic and consistency in thinking and talking. They will discover very quickly
whether a speaker is qualified to speak about a topic or not.
Technical expertise is valued and respected and often deferred to. Participants who are not well-
informed will usually keep quiet. As business is seen as a serious endeavour, participants in
general will pay close attention and often ask detailed questions.
Conflicts that could have been prevented - but are not - are considered wasteful and inefficient
and are very much discouraged. Ideally, differences will be resolved in advance or dealt with
later.
Following a meeting
Minutes will be taken and distributed. Action plans should be clear, specific and in writing.
Schedules and plans will be followed rigorously.
If circumstances change, the action plans or contracts should be renegotiated, and not just
changed in an informal way.

Motivating Others

Until very recently, motivational skills were not considered significant when managing teams in
Germany. Money and the satisfaction of carrying out a task successfully were considered
sufficient motivation. Success is expected and praise is rare. The ability to assert oneself is
considered a quality and therefore expected from all employees. But multinationals in Germany
have brought their own culture, with American-style incentive programmes in operation. Target-
driven incentive schemes are in operation, linked to compensation.
Performance-related pay was introduced in the late 1990s to the public sector, administered
according to a complex formula which evaluates the employee and has to be carried out
regularly.

© Country Navigator www.countrynavigator.com 5

 Effective Presentations

A formal but friendly approach is best. Choose a delivery style that conveys authority and
expertise. Your goal is to inform, not to entertain. Showmanship is not necessary and will in any
case damage your reputation; Germans do not like flashiness.
Prepare a logical structure which allows room for the presentation of background context and a
summary. Lots of evidence to back-up proposals and ideas is expected. The use of case studies
and examples is valued as well as the use of visuals. Presenters persuade by demonstrating their
credibility through their professional abilities and proving their mastery of the complete situation.
It's important to introduce yourself at the beginning and be clear why you are there - your
professional expertise, your experience etc.
Audience Expectations
The German listener expects clarity, competence/expert knowledge, hierarchy, logical structure,
proof and substantive content. Presentations are expected to be concise and to the point, and to
run to time. Say at the beginning of the presentation how long it is going to take, and stick to
this. Handouts should contain supporting facts and figures and contextual information - there is
no need to include all this in the actual presentation.
Audiences will ask detailed and technical questions and they may not wait until the presentation
is finished, so prepare to be interrupted.

Managing Relationships

German management style can be described as consensual, product- and quality-oriented,

export-conscious, loyal and committed. Change occurs slowly and tradition is sometimes hard to
break with, so be prepared for a long process if you are trying to implement culture change in a
company.
Germans are very private people and it takes time to build personal relationships, particularly
with the formal setup in most offices. You will find them polite and sometimes a little distant, but
open and direct when they want to make a point. It is important to recognise this as a typical
way of communicating.

© Country Navigator www.countrynavigator.com 6