DOING BUSINESS WITH GERMANS

Country Briefing
Contents

CORE VALUES OF GERMAN BUSINESS CULTURE ........................................................................ 3

COMMUNICATION PATTERNS........................................................................................................... 6

MANAGERIAL STYLE ............................................................................................................................... 8

MEETINGS AND NEGOTIATIONS ...................................................................................................... 9

BUSINESS ETIQUETTE .......................................................................................................................... 12

NON VERBAL COMMUNICATION ................................................................................................. 15

SOCIALISING IN BUSINESS ................................................................................................................. 17

GOLDEN RULES ..................................................................................................................................... 19

FURTHER READING: ............................................................................................................................. 22

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CORE VALUES OF GERMAN BUSINESS CULTURE

As Luthers home country, Germany displays some of the characteristics typically associated

with Protestant societies, including the values of personal responsibility and of setting a good

example. The Germans have a genuine civic sense of duty and defend common values. They

consult experts before taking decisions and seek to obtain a consensus.

Germany is -in general terms- an individualistic society, but despite that, they work well in

teams, with the prime goal of achieving efficiency while also protecting the personal space of

each person, who is expected to assume responsibility for his task. A profound sense of

enterprise is deeply entrenched in the education and conscience of the German people.

The Germans have a real sense of civic duty and defend common values. They consult

experts before taking decisions and above all seek to achieve consensus. This can usually be

seen in their labour relations, characterised by a high degree of pragmatism and a willingness

to avoid conflicts. This is the German co-determination model (Mitbestimmung) involving

what are often very powerful trade unions.

The need for security, prudence and foresight are other important traits which are often

encountered in Germany. Above all else, German consumers seek a product which is

reliable, tried and tested and which they will not regret once they have purchased it.

Corporate social responsibility is viewed as being of great importance here and is taken

seriously by all stakeholders

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Where a recognized, clearly stated risk exists, the Germans will firstly seek to reduce it in as

far as this is possible before beginning work on the project. They seek to retain control over

events, and to avoid situations of uncertainty, gambles or unnecessary changes.

German perception of time is linear and monochronic. Each task is completed in turn, in the

most logical or prudent order possible. Discussions concerning planning and organisation at

the pre-project stage play a major role. Even if the process may appear slow, it is necessary

for the Germans to map everything out in detail before they begin.

In Germany, the rules are scrupulously adhered to. The Germans fear the consequences

which may arise when people dont keep to the rules. Any change involves a change in rules

and procedures first. Sometimes this can be seen by foreigners as a lack of flexibility, but

Germans are not comfortable handling the unexpected and this is their way to avoid risk.

Contracts are extremely important and must be applied to the letter. If circumstances

change, the contract must be renegotiated.

The hierarchical distance in business is not very great in Germany, particularly between

middle management and operational teams. Each persons prerogatives are respected and

joint decision-making is usually favoured over vertical decision-making. In this environment,

experts enjoy a certain degree of prestige and their opinions are listened to carefully by the

manager, who himself will often be from a technical background. However, when it becomes

necessary to obtain a final ruling on an issue, the managements decision will be respected by

all.

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In business dealings, the Germans appreciate a certain degree of formality, which they see as

structurally sound and reassuring.

Personal autonomy is a very highly protected value and it should not be reduced, interfered

with or invaded by others. Working life and private life are usually kept strictly separate.

Privacy is very important and when a door is closed you should knock before entering.

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COMMUNICATION PATTERNS

The German communication style is frank, open and direct. Truth comes before diplomacy

and facts over emotions. Many foreigners are surprised by German directness and honesty.

Arguments are logical, weighty and thought out well.

Their speech style is serious, often unsmiling. Germans do not seek humor in a work

context, even when a joke may lighten the atmosphere. However, once a basis of trust has

been established, German business partners are very committed to the relationship and may

even open up their arsenal of (German) humour.

On the other side, Germans are good listeners because they are disciplined and always

willing to learn more. They have a long attention span when absorbing information and

especially like plenty of background information. Simple messages may sound incomplete to

German ears.

Reliability and commitment are two important German values, which are reflected in part in

business communication. Germans usually take a long time to establish a business

relationship. The apparent cold distance at the beginning will most probably vanish over

time.

Compliments tend to embarrass most Germans; they expect to neither give nor receive

them. Never press them into giving one. Especially in a work environment, it is assumed

everything is satisfactory unless one hears otherwise.

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The volume of verbal communication in is lower than in Latin countries. Never shout to

make yourself understood.

Since family life and business are very much separated in Germany, wait to ask questions

about family and personal matters until your communication partner has clearly indicated

that she/he wants to go in that direction.

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MANAGERIAL STYLE

In Germany, the management style is consensual. The manager is expected to leave his staff

the room for manoeuvre they require and to consult them when taking decisions. Superiors

expect employees to complete their task on their own, but will exert some controlling

function, such as periodically checking in with the employee.

Other qualities required to be a good manager in Germany are the ability to assert yourself,

a sense of organisation, a keen analytical spirit and a very high level of technical expertise.

Information circulates vertically. The Germans tend to work in a segmented manner. You

may therefore frequently need to contact several people to obtain information concerning a

project or case.

Critique is normally given verbally and in a one-on-one setting. In general, Germans are not

accustomed to the use of the sandwich technique, packing the negative between positive

buffers. They may be distrustful of your opinion and believe you are trying to manipulate

them.

Personal offices in Germany may already start at middle management level. Size and position

of the offices are, as in most cultures in the world, indicators of status and power.

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MEETINGS AND NEGOTIATIONS

Germans have their own particular style of conducting meetings and negotiations,

and you may find that procedures with big companies are much more formalized than in

your country. It is generally advisable to adopt a more formal approach with Germans at

meetings and to note the following German characteristics, to which you must react

appropriately:

German business meetings follow precise and detailed agendas that are established

beforehand.

Meetings always aim for decisive outcomes and results, rather than providing a forum

for open and general discussion.

Punctuality is of great importance. Even in large cities, arriving late is not easily

excused, although traffic jams can be a problem. And arriving late may mean a delay of

only 3 minutes. So, in case you should be held-up somewhere, by all means call.

Germans will arrive at the meeting with a disciplined appearance.

They will observe a hierarchical seating and order of speaking.

They will arrive well informed as to the business to be discussed, and they will expect

you to be as well.

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 They will present logical, often weighty arguments to support their case.

They do not concede their case or arguments easily, but tend to look for common

ground. This is often your best approach for making progress. Head-on collision with

a sizeable German company seldom leads to results.

They compartmentalize their arguments, each member speaking about his or her

specialty. They expect your side to do the same.

They do not interfere with a colleagues remarks and generally show good teamwork

attitude. They do, however, argue with each other in private between sessions. As

they are not poker-faced or simulating, it is often possible to detect a difference of

opinion among them by their facial expressions or body language.

They like to go over details time and time again. They wish to avoid

misunderstandings later. You must be patient.

They are willing to make decisions within meetings, but they are always cautious.

They generally stick to what they have agreed to orally.

If you are selling to them, they will question you on German strong points: quality of

goods, delivery dates and competitive pricing.

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 They will write up their notes carefully and come back well prepared the next day. It

is advisable for you to do the same.

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BUSINESS ETIQUETTE

In business, turning up for a surprise visit without having an appointment is usually very

much frowned upon. Make appointments for meetings 3 or 4 weeks well in advance.

The regular working week runs from Monday to Friday, with business hours between 8:00

or 9:00 a.m. to 4:00 or 5:00 p.m. At management level many hours of overtime are put in

and are often even expected, but the lower they are in the hierarchy, the more employees

tend to stick to regular working hours. This is especially true for civil servants.

The preferred times for business appointments are between 9:00 a.m. and noon or between

2:00 and 5:00 p.m. Do not schedule appointments on Friday afternoons, since some offices

close by 2:00 or 3:00 p.m. July and August are favourite vacation times (with far less staff in

offices), and little business is done from Christmas through the first three days in January.

Be also aware of weeks with regional festivities, like the Carnival in the Rhine-Main Area

before Lent, or the Oktoberfest in Munich, where little work gets done.

When greeting, either in business or in a private context, both men and women shake hands

firmly and briefly and maintain direct eye contact. Limp handshaking may be seen as a sign of

weakness. Men of older generations often wait for a woman to offer her hand first before

they shake it. For both sexes, refrain from touching other parts of the body, i.e. elbows or

shoulders, while shaking hands.

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Stand up while greeting or being introduced and remember shaking hands again at your

departure.

When several people are being introduced, take turns shaking hands. It is impolite to reach

over someone elses handshake. Never keep your left hand in your pocket while shaking

with the right.

Germans like to get close before greeting. They avoid shouting hellos across a

crowded room or waving dramatically. In formal situations a polite distance is maintained,

but physical contact is not always avoided in public spaces. When you bump into a German

colleague in a corridor, apologies are restrained rather than effusive.

Only family members and close friends address each other by their first names. There is

more flexibility in the younger generations, especially in the media, IT and creative

businesses, but the general rule is that people use the formal Sie to address each other. You

will often find that colleagues who have worked together for years still maintain this level of

formality.

It is important to use professional or academic titles (i.e. Herr Doktor Mller). When speaking

to persons who do not hold professional titles, use Frau or Herr (Mr. Ms) and the surname.

Frulein (originally Miss) currently is not used anymore, not even with younger women and it

may be considered an insult.

When entering a large office space or a warehouse with many people you will not directly

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converse with, it is nevertheless polite to greet the people you pass with a nodding of the

head and brief eye contact.

Birthdays are important in Germany and mostly honoured by the whole department or team

at work, which will usually buy a card and a small present together. If you happen to know

the birthday of your German business partner, try to remember it and give your

congratulations.

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NON VERBAL COMMUNICATION

About five seconds of silence in a conversation is the maximum. After that, somebody will

try to fill the silence. This is by far much longer than in Latin countries, but also longer than

in Great Britain or the U.S. Try not to interrupt a person while speaking, it is considered bad

manners.

For pointing or indicating objects, the index finger may be used, although pointing at persons

is considered impolite

To get someones attention, raise your hand, palm facing outward, possibly with the index

finger extended.

The whole body posture while seated is often more closed and reserved than in Latin or

Anglo-Saxon countries, although one has to distinguish according to the importance of the

occasion.

The standard space between you and your conversation partner should be around 70 - 80

cm. Most Germans will feel uncomfortable if the distance is less than that and will try to re-

establish it.

Direct eye contact is important and maintained considerably longer than, for instance, in the

U.S. Holding eye contact is a sign of respect and attention, interrupting it too often may be

interpreted as bad manners. This is also valid for communication between women and men.

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While there is more flexibility and individuality in a private setting, dress codes in the

German workplace are dictated by their corporate cultures, an in general, are quite formal

and standardized. Bank and insurance companies, for example, tend to be more conservative

in dress, and this means a two-piece dark suit and tie. Women should wear either business

suits or conservative dresses in dark colours and avoid flashy patterns. Ostentatious

jewellery or accessories should be avoided as well.

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SOCIALISING IN BUSINESS

Business breakfasts are still quite uncommon, but more often a business lunch (between

noon and 2 pm) is preferred.

AT business lunches, an alcoholic beverage (beer or wine) may be ordered, but refrain from

having too many or drinking hard liquor. Dont start eating before your hosts have wished

you Guten Appetit! (Enjoy your meal!). Also wait and see if they would like to make a toast.

When visiting a restaurant, men should enter first, but hold open the door for a

woman. This is considered good manners and not a form of gender discrimination. In a

formal setting, the eldest or highest ranking person usually enters the room first.

Lunch with business colleagues generally involves social conversation. Do not discuss

business during lunch or dinner unless your German host initiates the conversation.

Very important business meetings connected with a meal may also be scheduled for the

evening. If you are invited, you can assume that your host will take care of the bill (the same

is expected from you if your company has invited). You may offer to pay, but expect your

host to decline your offer. Insist on paying only when you have made the invitation.

An invitation to a business dinner in a private home underlines the esteem for

the guest or the importance of the deal and is uttered only very seldom.

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When you informally go out for lunch or dinner with your colleagues, be prepared to pay

your own bill or split one.

Even in the context of friendly business situations, gift-giving is often inappropriate.

Everything that might oblige the recipient is either taboo or downright illegal. However,

when negotiations have been successfully concluded or if you have become friends with a

German business contact, a small present e.g. a souvenir from your home country, some

chocolates for the office staff, flowers for a helpful assistant etc. might be acceptable.

Employees in government institutions are strictly forbidden to accept anything, though.

However, should you visit a private house on a business matter, always bring a gift. The most

suitable is a bouquet of flowers for the hostess, which should not be too large or too small.

The flowers should be unwrapped when you hand them over. Avoid red roses. Alternatively,

a fine bottle of wine is also a good option. Personal gifts like perfume or clothing for women

and men should never be given.

Do not ask for a tour of your host's home, it would be considered impolite. After an

invitation, a thank-you call or e-mail will be very much appreciated.

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GOLDEN RULES

Remember:

Germans are generally punctual, organized and efficient. You must match these

qualities.

Whatever you promise a German, you must deliver.

When Germans criticize your actions, it is to help you avoid making mistakes.

Accept their criticism as being constructive.

You may also point out their errors frankly, but make sure you are right.

Put as much in writing as you can.

Give serious answers to serious questions. Germans are uneasy when confronted

with flippancy or (in their eyes) inappropriate humour.

Be well prepared on the issues. They usually are.

Display trust and expect it from them.

They like consensus. Consult all people concerned before embarking on a course of

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 action.

Say what you mean, mean what you do, and do what you say. Avoid irony or

sarcasm.

Subordinates should be helped, advised and monitored, but once you have explained

a task, leave them alone to get on with it.

Respect privacy at all times, both with regard to the person and the companys

activities. Information does not flow freely in Germany.

Remember to shake hands a lot and use proper greetings on meeting and departing.

Use the formal version of you (Sie), unless someone specifically invites you to use the

informal Du form. It is usually best to let your German counterpart take the initiative

of proposing the informal form of address.

Avoid:

Displaying too much eccentricity.

Interrupting unfinished tasks or giving Germans too many tasks simultaneously.

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 Falling into the trap of oversimplification.

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FURTHER READING:

CULTURE-GENERAL:

Kiss, bow or shake hands. Terri Morrison & Wayne A. Conaway. Adams Business Media.

2nd. Edition

When Cultures Collide. Richard D.Lewis. Nicholas Brealey International. 3rd. Edition.

CULTURE-SPECIFIC FOR GERMANY:

Germany and the Germans: the united Germany in the mid- 1990s Katharina & John

Ardaugh (Penguin)

Doing Business with Germans: their perception, our perception Sylvia Schroll-Machl

(Vandenhoeck & Ruprecht)

Germany, unraveling an enigma Greg Nees (Intercultural Press)

Culture shock Germany Richard Lord (Graphic arts Center)

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