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The Ins And Outs Of German Business EtiquetteIf you’re working in Germany and deal with customers or suppliers as part of your role, at some point you are likely to come into a situation which puts you in contact with external business partners. So, let’s look at 5 popular scenarios you are likely to find yourself in, what you are likely to experience, and the best ways to conduct yourself.MeetingsMeetings in Germany, especially involving external participants, are usually scheduled long in advance and are expected to follow a set, planned agenda which is typically shared with both parties well ahead of the meeting.Important for Germans is that everyone arrives to the meeting on time and prepared, and follows the structure of the agenda. A disorganised meeting, or spontaneously bringing up a topic which was not earmarked for discussion, could make your German business partners either irritated or uncomfortable. They will have prepared well for the meeting, and as such they anticipate that it shall follow the pre-agreed agenda.Germans will rarely become irrational, uncontrollably emotional or raise their voices in a manner which is more common in Latin cultures. People are generally given the opportunity to speak, and interrupting them is considered rude.The German communication style is generally quite direct, and they are usually not afraid to speak their mind.

This may sometimes come across as curt, especially to cultures where causing offence or losing face is viewed adversely. In most cases, it is genuinely not meant this way. What Germans may lack in tactfulness and consideration for the other party’s feelings is usually made up for in honesty and being good to their word.NegotiationGerman business etiquette when negotiating is usually quite to the point, bypassing small talk and niceties and getting straight down to business.

• Cultural Comparisons 5 Daily Life in the USA vs. Germany. House and Home. Miscellaneous In the charts below you’ll find a simplified comparison of various customs and everyday culture in the United States and Germany ( Deutschland ).
• May your business activities with German companies be a re- sounding. Structural characteristics of German business culture, along with the wide.

It is normal to start the meeting with a coffee and a fairly informal (usually vaguely business related) topic, but talking in detail about personal life is usually off limits.A business negotiation with a German company is typically formal, professional but also approached in a consensual manner, while at the same time ensuring that any processes or internal company procedures are followed. Germans are usually pragmatic and look for a win-win situation, and do not usually get over-emotional or argumentative in a negotiation.Where negotiations can sometimes hit a stumbling block is if you are asking for something outside of the box or original scope of work, and the key decision maker is not present in the meeting. Germans work in a rational, process and procedure-driven environment.Their management, and with it the decision-making authority, typically is also a lot more hierarchical than some of the flatter structures seen in different work cultures, and as such any higher-level decisions may be deferred to a more senior person. Be prepared for this and ask up front that the decision makers are present for at least part of the meeting if this could be an obstacle to progress.Getting German companies to move on aspects such as payment terms and lead-times is usually tricky. Ditto for expecting them to work overtime or weekends to complete an order or provide a service. German labour up to middle-management level is heavily unionised and as such, it is often difficult to lay on extra shifts or overtime at short notice because it requires consultation with and approval from the works’ council.Germans place high value on formal contracts, even for orders and accounts worth relatively small amounts of money.

They will also see a contract as a very black and white document, with no shades of grey and little room for manoeuvre or flexibility. If there is something you wish to be negotiable or subject to change, ensure that this is stipulated as such in any contract, or tactically leave it out! CollaborationFor those of you who regularly read the Live Work Germany blog, you will already know that Germans can sometimes be challenging to deal with when it comes to expectations of British or American levels of customer service.On the one hand, you can usually expect a trustworthy, reliable partner who will generally keep his promises and deliver your product or service on time, or will honour the payment terms you have agreed. However, on the flip side, you will also most likely not encounter the greatest levels of flexibility. You need the lead-time bringing forward by 2 weeks? Or you need to make some last-minute changes after a contract has been signed or an order has been placed?

Then expect as part of regular German business etiquette to have a long discussion about why you were not able to plan or foresee this at the time.What you would perhaps see as necessary flexibility from a customer or supplier would in most cases be seen by a German as chaotic and disorganised planning.Quality and ExpertiseGerman companies rarely play at the cheap end of the market. This goes to figure when you consider the relatively high cost of manufacturing in Germany and the highly skilled and educated workforce.

Likewise for services: German consulting and expertise usually comes at a premium.It is likely that you are paying a premium price for a top-end product or service, and as such the level of expertise you should get from your German business partner should reflect that. Often the unique selling point of the manufacturer will be that their product or service will reduce your total cost of operation or annual spend on something, even though the unit cost may be higher than another similar product or service on the market.Also, it is worthwhile noting that agile career paths are less common in Germany than they are in other countries. Job rotation is not really practiced here.Career development in Germany is seen more in the light of expanding and developing an employee’s expertise in their particular field of specialisation. It is not unusual to have somebody who has been in the same role for over 15 years.In technical roles, it is also very common to have a technical expert at a senior level who is not an executive or senior manager but a real specialist in his or her field, often with a doctor title in the subject area in which they work.EntertainmentMeeting clients or suppliers for dinner is usually a fairly informal affair, insofar as it allows more personal topics to be discussed.

It is not usually used as a sales tactic to ply the customer or the supplier with alcohol to convince them to agree something in an underhand way.Dress code for these meetings is often more relaxed. While Germans enjoy to relax over a beer or a glass of wine, drunkenness is extremely rare.

Germans like to remain professional, even in an informal atmosphere. Excessive drinking for them is seen as dropping their guard.Don’t expect a great deal of spontaneity if your German business partners invite you for dinner. It will most likely be just dinner with one or two beers or a bottle of wine. Late nights are uncommon, possibly because Germans tend to start work earlier than in most other European countries and because they highly value their work-life balance and family time.Finally, my last tip would be, don’t expect a German to answer his phone or respond to email when he is on holiday. Vacation time is generally respected here as a time of rest and recuperation. The very sensible attitude is that a business or project is unlikely to go to the wall just because a key team member is on a beach in the Mediterranean for a couple of weeks!

There are those who would argue that the Germans haven’t always gotten things right when looking back through history. However, there are some things that they have held on to, which have become invaluable to the way they do business. The corporate culture in Germany is unlike any other in the world, including the United States. While there are valuable aspects to both ways that businesses are run, there are some elements that make Germany a model to be followed.Extreme FormalityProfessionals in Germany are extremely formal. If a meeting is set to start at a certain time, it will start at that time, no matter how many attendees are there or not. The truth is that most attendees will probably be there, ready to go, because they are just as formal.

Starting a Business in Germany Germany is home to tens of thousands of businesses ranging from small sole proprietorships to large conglomerates. In fact, a large part of the reason for the prominence of Germany’s economy on the world stage can be linked to the small and medium sized businesses (SMEs) of the Mittelstand.

Germans stick to the agendas created for their meetings. They expect that those they do business with will be just as formal as they are. In a corporate setting, they use formal and professional names and titles, rather than being on a first name basis with one another.Contrast this with the United States. Many times, you hear a presenter say, “Let’s just wait another minute to see if we can get a few more people to show up,” before starting a meeting. How to use wordle. Depending on the company and the individuals who run it, agendas are often a guide that does not have to be precisely followed. People in the workplace speak to each other as friends, using first names, nicknames, and talking about each other’s personal lives.If a meeting is set to start at a certain time, it will start at that time, no matter how many attendees are there or not.Serious ProfessionalismSeeming like you’ve got it all together simply isn’t good enough in German corporate culture.

You really have to have it all together to make it work. Professionalism is taken very seriously when it comes to business in Germany. Titles, diplomas, references, and certificates are mandatory, and people with those things demand more respect than those who are “less” than them. Those professionals must present actual logic when showing a business plan, rather than just presenting an awesome proposal.In contrast, there are many professionals who “work their way up” in their line of business in the United States. They may not have a degree, and may not have the proper credentials for their job. However, with experience, dedication, and hard work, they could gain titles that demand more respect.

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Do they always get that respect? It depends on which industry they are in and what type of culture is distinct to that industry.Professionals must present actual logic when showing a business plan, rather than just presenting an awesome proposal.Precise Work EthicIn German corporate culture, you will not find something that is second best. In fact, the label, “Made in Germany” is synonymous with the very best in quality. Individuals will pay more for products or services if they come from Germany and have that label. Though the label was actually not an original idea from Germany, companies in the country have adopted it and use it to promote their products.With such high quality products comes a little bit more time that other companies and individuals will have to wait for the end product.

Germans tend to be more thorough and detail-oriented than others. They avoid risks and strive for the very best results with every project they complete. What’s more impressive is that although they do this, they always meet their deadlines. If your company is expecting a product from Germany, you can count on it being there on time.Unfortunately, there are those in the United States who are not quite as punctual. Procrastination seems to make its way in, making companies scramble to get things done in a short amount of time. In some situations where deadlines are met, the end product has to be redone.

In other cases where the end product turns out great, it might be a little late. The good news is that many companies are understanding and would rather have a good product a little later, rather than a poor product on time.In fact, the label, “Made in Germany” is synonymous with the very best in quality.

Individuals will pay more for products or services if they come from Germany and have that label.Direct CommunicationIn dealing with German professionals, don’t expect to be on the receiving end of a polite conversation. While they don’t intend to be rude, they do intend to be blunt and direct.

They won’t be particularly subtle and they aren’t afraid to provide honest and constructive criticism. Additionally, this direct communication is how they show the importance of their position in the workplace.Americans may not be quite as rude. Of course there will always be those who simply don’t care, but as a general society, feelings are cared about. In presenting new ideas, Americans try to make sure that others understand them, but that they are not offended by any part of the presentation. Some may try to be assertive with their position and title at work, but many try to be down to earth and blend in with their “lesser” coworkers.While they don’t intend to be rude, they do intend to be blunt and direct.Complete LoyaltyGermans are loyal.

They expect that their dealings will be fair, and they are always fair in their dealings. If a German tells you that he will think about an offer, a concept, or a business deal, that is exactly what he means. He truly just wants to think about it and make an honest decision. Germans also don’t like to be pressured into making decisions.

Just as they are loyal and will not pressure another company, they expect the same loyalty and fairness. When a negotiation reaches a deadlock, they will do what it takes to make a fair settlement.Too often, those in the corporate world in the United States do not take this same approach. Some individuals are simply trying to climb the corporate ladder and will do what it takes to get to the top. If this means breaking loyalties and doing something that is not very fair, they are likely to do it.If a German tells you that he will think about an offer, a concept, or a business deal, that is exactly what he means. He truly just wants to think about it and make an honest decision.Which Way Is the Right Way?With so much to compare and contrast, some may wonder, “Which way is the right way?” The truth is that there are good points to be made for both the German and American corporate cultures. Americans are a little more laid back, but that doesn’t necessarily mean that it isn’t working for them. What’s certain, however, is that the world can learn a lot from German corporate culture.

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They didn’t earn so much respect from around the world with the “Made in Germany” label by running things inappropriately.With conviction, honesty, hard work, and dedication to the end product, German corporate culture is something that companies all throughout the world should model their companies after, but only if it works for them. Taking a deeper look at the contrast between American and German business models can help you decide which type of culture will work for your company, and what the outcome will be.