Succeed in Business in Germany and Switzerland.

Interactions with the Germans and the Swiss may seem easy, but it’s important to understand their way of thinking and their approach to doing business.

When the news about the automobile megamerger finally reached the press in May 1998, it seemed like a deal made in heaven: Number one German Daimler-Benz was merging with American’s most innovative and consistently creative car manufacturer, Chrysler. The union Daimler-Chrysler would be able to provide customers on two continents with similar products and services; the total output of the resulting organization would be comparable to the total output of Denmark.

Soon, though, additional news coverage reported the unexpected departure of valued American executives leaving Detroit, and before long, the value of DaimlerChrysler shares had dropped below the value of Daimler shares before the merger. Beyond the slowdown in the automotive market, many have raised questions regarding the challenges of merging two markedly different national and corporate cultures. Is there a lesson to be learned for other partnerships? If it takes intercultural skills to conduct business across the ocean, what are they?

With companies like Novartis, BASF, Bayer and Veba Oil Refining and Petrochemicals, Germany and the German-speaking part of Switzerland play a major role in the chemical process industries. Many North American chemical engineers will, at some point in their career, interact with German-speaking chemical engineers. First interactions are often deceptively easy; after all, many of German and Swiss professionals speak very good English. Yet their approach to doing business and their way of thinking are significantly different. Not taking these differences into consideration can result in major challenges. This article provides tips for doing business in this part of Europe.

Scheduling your trip

Germans and Swiss highly value punctuality and effective time management. To create a good first impression, schedule your meetings at least two weeks ahead of the desired date, preferably up to four weeks before.

On your way to your meeting, give yourself enough time to compensate for traffic jams and other unforeseen events. If you do not know how long it takes to go from one place to another, ask.

Very few unforeseen events will be considered as acceptable reasons for being late by your German-speaking counterparts. Plan carefully.

When to go

From a business perspective, avoid visiting Germanspeaking countries during main celebrations, such as Christmas, Carnival (Fastnacht is the pre-Lent festival that keeps people partying for almost a week) and Easter. Organizations generally operate on a “light schedule” at such times, and you will have difficulties gathering all the people you need to meet. May is also a favorite holiday month due to several statutory holidays.

Finally, keep in mind that Germans and Swiss all get at least four weeks of vacation a year. Thus, businesses slow down noticeably during the summer months.

Clothing

Attention to detail is much appreciated in Germany and Switzerland, and this is reflected in the way people dress. You will find that people dress more conservatively than North Americans, with colors and styles that are distinctly European. You can create a good first impression by wearing clothes that demonstrate attention to detail (in particular, in the matching of colors and patterns). This becomes even more important if you are going to meet senior decision-makers. A well-made business suit is always a safe choice.

Bring an umbrella or some rain gear; rain often comes in the form of a chilling drizzle, even in the summer. Heat waves are not uncommon either and pose another challenge, as many buildings, especially older ones, are not air conditioned. 

Visiting businesswomen should wear business suits (either a skirt or slacks) and add tasteful, classic accessories to underline attention to details. Certain employee groups, for instance engineers, lab personel, plant workers, production, supervisors, etc., tend to dress according to their personal specialty in what might appear to be uniform-like sameness.

By contrast, many visitors to Germany are surprised about the casual dress code in the retail industry, the service industry and government offices.

Female engineers

In Germany, less than 5% of executive management positions are held by women. The number of female engineers in leading positions of power is even lower. The powerful Association of German Engineers recognizes this shortfall, and women are representing themselves in a separate committee to address issues such as access, career and management opportunities, and succession. It is important for a visiting female engineer to demonstrate her determination and competency early on. Do not be offended by behaviors of some male colleagues that could be interpreted as patronizing or stereotyping.

Business cards and greetings

The majority of young professional Germans speak English well and are generally eager to practice their language skills with native English speakers. As a result, most of your meetings and discussions will likely be conducted in English.

In Germany and Switzerland, deliberate steps, an erect posture, good eye contact, and a firm handshake will get you off to a good eye contact, and a firm handshake will get off to a good start and a memorable goddbye as well. If you have not met your counterpart before and you are only beginning to form a personal relationship, do not expect a profusion of smiles. Smiles may come when there is something to smile about, or over a relaxed meal and drinks,

Germans and Swiss tend to be more formal than North Americans. Therefore, greet your German-speaking counterparts as Herr (Mr.) or Frau (Ms) followed by the person's surname.

The exchange of business cards follows the hand-shake. Do not slide your card on the table, since this is considered inappropiate. Bring an ample supply of cards. It is not necessary to have them translated, and a simple conservative design and format indicating any title or professional designation you have is appreciated. When you receive busuness cards, take note of titles indicated and use them. Titles like Herr Doktor Frau Direktor or Professor Mueller mean a lot to your German-speaking counterparts, and you should use them until asked not to. In many cases, the  most senior person (by rank or by age) introduces others. However, you might not always be supplied with names and titles of all participants present; when this happens, take the initiative and ask.

Communicating with your German-speaking counterparts

Since most meetings will probably be conducted in English, recognize that your German-speaking counterparts are making a significant effort by speaking your language and help them by following these tips:

•           What sounds perfectly reasonable and suitably po-lite in German can translate rather curtly and appear much too direct in English. While it may sound like an attack, it may not have been meant as one, so do not react too quickly, and ask for clarifications instead.

•           Conversely, when you convey ideas in subtle or in-direct ways, Germans and Swiss may misinterpret this as deceptiveness. They would rather you “say it like it is.”

•           Avoid sports English (e.g., “doing an end run,” “bench strength,” “fumbling,” etc.), since these phrases mean nothing to most Germans, who are not familiar with baseball and football.

•           Beware of communicating through gestures. The gesture that means OK in North America could be offensive, especially in the former East Germany.

•           Chewing gum and leaving your hand in the pocketsof your pants while talking is judged as impolite.

•           Avoid humor. The application of humor is cultural, and what Germans find funny is likely to seem strange to you, and vice versa. To avoid offending people, refrain from joking until you start understanding what they find funny. Don’t judge; just try to begin understanding what may be happening.

When discussing technical topics, define the meaning of key technical words early. The German language is very precise — for example, it has eight different words for “comfort,” all expressing different forms of comfort — comfort of a chair, being comfortable with someone, etc. Your German-speaking counterparts will likely expect the same level of precision when they speak English. Pay very close attention to the technical words you use, and make sure you are using the correct or the agreed-upon word. If you don’t, you will at best create a misunderstanding; at worst, your expertise and knowledge will be questioned. A Canadian environmental engineering firm almost lost a German contract because its representative was using “water purification” and “water treatment” interchangeably.

Meeting prospective clients

In a meeting, the conversation will quickly turn to the business at hand, probably more quickly than you are used to. Germans and Swiss tend to stay focused on the professional aspects of meetings and might even consider initial conversations about the weather and sports inappropriate. In many meetings, Guten Tag (“Good Day”) may be the only chitchat. Attention will then be drawn to proper introductions followed by a company orientation or review before coming to the core of the subject matter. Business environments vary greatly from sector to sector. Large organizations tend to be more hierarchical than private or medium-sized firms; in those, leadership often stays with the founder or the family of the owner. In general, business protocol reflects more formality and procedural steps than in North America. 

The need for privacy is reflected in larger personal distances during conversations, doors being kept closed both at home and at work, and the positioning of office furniture. Do not try to rearrange your chair to fit your compfort level, as this would be considered inappropiate.

Business meals and entertainment

Hospitality includes business luncheons and, less frequently, the evening meal. Germans value their leisure time and honor family commitments, so employees are not expected to entertain out-of-country guests after hours.

During business luncheons, conversation jumps from business to politics to culture and — a true German passion — to travel. Whether the invitation is for a local Gasthaus (inn) with regional specialties and entertainment, where you can still expect to be seated with strangers at one very long table, or the home of your potential business partner, you are likely to be offered wine or beer with your meal.

The European way of eating prevails, with both hands on the table, your right hand using the knife,  and the left exclusively handling the fork at all times. Heartily expressed cheers call for a Prost (“Cheers!”) and are exchanged frequently and with firm eye contact.

An appropriate gift for your host or hostess is a bouquet of flowers (odd numbers only, and no red roses or chrysanthemums), a box of chocolates or other fancy sweets, or a bottle of wine or whiskey. 

Making the sales presentation

In order to be taken seriously by German and Swiss business people, you need to do your homework before setting out to impress a prospect with the latest product or service. To an overwhelming degree, corporate leaders in German and Swiss corporations are engineers, lawyers or technical specialists who need data, charts and statistics to make a decision.

A good presentation for German and Swiss audiences usually contains about twice as much data as a typical North American presentation. It will be important to make allowances for translations of specific materials and documents. Top decision-makers often have PhDs (rather than MBAs), so they can absorb and indeed expect more technical information than their North American counterparts. When you are in Germany or Switzerland, leaf through one of the many professional magazines or check newspaper advertising to get a sense of the importance of providing plenty of technical and factual data to convince prospects.

Here are some tips for adapting your presentation for a German-speaking audience:

•           Start with a historical perspective of your companyand its products or services.

•       Stick to the facts and understate rather than over-state your claims. Unsubstantiated claims are viewed quite negatively in both Germany and Switzerland.

•        Your presentation should have a readily apparentstructure, moving the audience logically from the beginning to the end
.•           Use clear language and summary points.

•           Avoid icebreakers or jokes when you start yourtalk. Instead, come to the point rather quickly and give your audience an opportunity to see as well as hear your presentation. Illustrations, brochures and samples — anything substantiating your claims of quality (the most important selection criterion in Germany and Switzerland) — work in your favor.

•           Maintain eye contact as you speak and stay con-nected with your audience.

•           Do not seek frequent approval. Do not rephraseyour points several times in order to obtain verbal confirmation, as this could be mistaken for insecurity or lack of knowledge.

•           Do not interpret solemn faces, serious counte-nance and the absence of lively body language as signs of disapproval or opposition. German-speaking audiences tend to be less inclined to display their thoughts or emotions.

•           Comments addressed to you might sound rathercritical. This should probably be interpreted as interest and seriousness on the part of the listeners. Swiss and Germans do not generally see a need to acknowledge the positive and therefore move straight to the unresolved or problematic.

Negotiating

Germans tend to use empirically based logic and their approach generally appears slow, methodical and analytical to North Americans. Respond to their reputation as persistent and tough negotiators by allowing time and energy to debate facts, details and structure within a larger framework. Motivated by longer-term business planning and a tenacious pursuit for high-quality goods and services, Germans will react positively to a negotiating strategy that reflects these values. For example, do not overprice your product to provide a significant discount later; instead, identify a price range that reflects a reasonable profit expectation on top of a demonstrated cost and stay within that range.

Research your potential client thoroughly; there is no such thing as being over-prepared. You should understand the needs of your customers in detail in order to provide a solution that they will want to buy.

Observe spoken or unspoken requests for privacy, and do not interpret those as a negative sign during the course of negotiations. By North American standards, negotiations may seem formal and aloof. Take your cues from your German-speaking counterparts and recognize that it makes perfect sense to the other team to hold back during these times, thereby implying serious intent, as well as wanting to create an efficient business environment.

Find out where the power lies. Do not assume that the friendly junior engineer who does most of the speaking necessarily has the negotiating power. The top person is the Geschaeftsfuehrer (business leader), which is approximately equivalent to a company president. A Generaldirector is a general manager (CEO) of a substantial enterprise, while a Direktor is a top-level manager. Senior participants are often in the background but could play a decisive role in decision-making. It is not unusual to have several department heads (Abteilungsleiter) with more peripheral connections to your subject area present during talks.

While many Germans and Swiss speak English, they are generally unfamiliar with the complexities of English “legalese.” You may need to use a translator at that point.

Once an agreement in principle has been reached, you may be surprised by the amount of time needed to get a final contract for signing. Since a verbal contract is binding in Germany and in Switzerland, this should not be a cause for concern. Drafting a contract that meets the German/Swiss need for precision with language that leaves little room for ambiguity and obtaining agreement in a hierarchical system often requires more time than in North America.

After the deal

There is a German saying that trust is not of particular importance unless it is lost. It takes time and will to build a business relationship where mutual consideration and trust figure prominently. Traditionally, customer loyalty was the reward for reliability and firstrate service commitment, and the high quality of German and Swiss products is a result of the high expectations of their national customers. Therefore, make sure that the products shipped to Germany or Switzerland meet all the specifications listed in the contract, no matter how inconsequential they may seem to you. Discuss any nonconformities before sending your products over; if your German or Swiss clients find out that one of the specs is not met when they receive the shipment, they may misinterpret your actions as trying to pass them substandard products, and their trust in your competency will be significantly diminished. The same high standards of quality need to be demonstrated with respect to services delivered to German and Swiss clients. For example, a report that contains spelling mistakes will likely be considered substandard.

Final thoughts

Doing business in Germany and Switzerland often seems easy to North Americans, because Germans and Swiss have similar concepts of timde and generally speak very good English. This apparent facility often comes back to haunt North Amercan engineers, because it actually hides some significant differences in the way business is conducted. To avoid the cross-cultural issues, learn about the German and Swiss way of doing business. Good luck, and Auf Wiedersehen !