The world’s third
largest economy – behind the USA and Japan – Germany is a major
business partner for many countries worldwide, and a lot of
businesses want to play an active role in this market. To be
successful, however, you need more than tough negotiation skills.
As in any other part of the world, you will be more likely to seal
a deal when you are informed about cultural differences and
expectations.
Below are eight handy tips to follow when conducting business in
Germany.
1. Work is work
Germans generally draw a strict line between their professional and
private lives. Outside office hours they’re unlikely to want to
receive work calls. But then, who does? Business meetings are
usually well structured, have clear set agenda items, and all
discussion points are noted down in minutes.
2. First be formal
Germans prefer to keep business meetings formal. They quickly get
to the point, without a lot of “small talk”. It’s normal to refer
to colleagues as Herr (Mr) or Frau (Ms), followed by their surname.
Germans will do so even if they have worked with you for many
years. However, those with overseas experience are likely to be
comfortable with the Anglo-Saxon preference for first
names.
3. Outright is best
Don’t be offended if Germans give very blunt “yes” or “no” answers.
It’s part of their culture to be straightforward. This can differ
from Japan where people tend to avoid making contacts lose face by
saying “no”. Germans are usually not very keen on a lot of “hype”
or false promises; it’s best to be open, forthcoming and
direct.
4. Firm handshakes
It’s polite to start and end meetings with a firm handshake, and
most Germans consider it correct to do so at subsequent meetings.
So when you meet people, don’t be afraid to take the initiative to
shake hands.
5. Punctual perfection
Punctuality is important. Don’t be late for meetings or phone
calls. If you cannot attend, make sure you don’t cancel at the last
minute. Like all business people, Germans expect deadlines to be
met, and it’s normal for them to question why projects are not
running on time.
6. Preparation pays
When conducting business in Germany, it pays to back your arguments
with hard facts, statistics or market research data. So don’t enter
meetings unprepared or hand in proposals that are not well thought
through. Clients will go over them thoroughly before making any
decision, and will follow up with you if something does not seem to
be quite right.
7. Process is process
Germans pride themselves on being process driven. Don’t expect
clients to return your proposals quickly – they will be thoroughly
analysed first. If dealing with bureaucracies, expect to wait.
Paperwork abounds, different offices will need a visit, and systems
must be followed.
8. Education is highly regarded
Germans place a high value on solid qualification and technical
understanding. So if you have academic qualifications, list them on
your business card. Doctorates not normally found in other
countries carry weight in Germany – for example, Doctors of
Marketing or Engineering.
We hope you’ve enjoyed our first part of “doing business around the
world”. Next, month, we’ll provide you with some valuable tips and
tricks when doing business in China – so stay tuned.
In the meantime, check out some of the links before you visit
Germany and learn some of the hard facts about the country.
Hard facts about Germany:Population: 82.2
million
Currency: 1 euro = 100 cents
GNP per head: US$ 40.415
Human Development Index: 22 (Japan 8)
correction lar. china is on its way to overtake Japan as the
world second largest economy. so china is third and germany is
fourth lar lol