German Business Culture
Before entering any new market, it is advisable to get some background information about the culture where your product or services will be presented on. This can help understand the feedback and support with adaptation of business decisions.
Here are some of the main characteristics of the German business culture out of my experience with practical tips to each one.
Time
Time holds traditionally one of the highest values in the German business (and private) culture. Germans are famous for not spending any of it lightly.
You should see punctuality as an indication of reliability. If you are always punctual this can help a lot in building trust at the beginning of business relations. Plans, agendas and deadlines are set daily and are not likely to be changed during the process (see above).
Practical tips – don’t be too early for the meeting, but never late - best is to be exactly on time, do your best not to reschedule, be well prepared for the talks so you don’t waste time of your partner
Following the rules and strict procedures
It is a very pleasant characteristic for doing business. Once you are familiar of the rules regarding your project you can also rely that those will be followed in further steps.
Practical tips – know the rules relevant to your project, inform yourself of the legal background, get advice from a German consultant if needed, know your role in the meeting, reach out in a suiting manner to your project and your position…
Direct communication
If there is a problem, it will be discussed with no inhibition or shame. Germans have a very civilized culture of debate in everyday life. It is never taken personally if the other person holds a different opinion. An objective discussion with exchange of arguments is a part of an every-day life. Very often it ends by accepting the fact that the other person has a different opinion, without any hard feelings.
Practical tips – always be ready to talk business, use your knowledge about your project, there is no need to wait and fill in the time gaps with other subjects, Know your USPs and communicate them as soon as possible, don’t take it personally if you get questioned to the last detail about your product
Separation of private and public spheres
Germans are well known for not mixing private and business life. Personal life will usually not be discussed in a business context at the beginning. Sundays are reserved for the family and friends and there are usually no possibilities for appointments over the weekend.
Practical tips – Make sure that you stick to business related subjects first, until you get a hint from the other side.
The Business Etiquette
Following some rules will show respect to the other side as well as presents the company in a reliable, professional light. Here are some of them:
- Dress in a business manner, always. A business jacket for both men and women are the best was to go. Even if it is a casual occasion, the choice of clothes should be more conservative.
- There is no need for status symbols like expensive watches or jewelry
- Handshake was the main greeting type before Corona. Now a smile and a short greeting gesture with the hands is enough to greet when meeting
- Eye contact is very important while speaking
- All important communication is done in written (Emails). It is used to maintain a record of decisions and discussions
- no discussions on the income
- Gifts are not necessary and not usual
- Formalities are important, most of all titles. The usual way Germans talk to each other is with Herr (Mister) or Frau (Misses) and last name. If someone holds a PhD than he is titled as Dr (doctor) and his last name.
And last but not least, never forget that the exception proves the rule. You might make different experiences - hints from above should give you that first background information to better understand your German partner.
Wishing you all successful market entry in Germany!
Best,
Barbara
Interrelations - International Business Relations
https://interrelations.eu/