How to do business with Germans?

17 November 2020
Do business with Germans

Every day, a big number of companies try to enter the German market. It is one of the most attractive markets for almost all business branches.

Getting cultural background information can help understanding the feedback of the market and supporting business operations.

I summarized some basic information and practical tips based on my long experience in consulting foreign companies on their market entry in Germany as well as my educational and private background in this field.

Here are some characteristics of the German business culture including practical tips.

 

 Time

Time holds traditionally one of the highest values in the German culture. Germans are famous for not spending any of it lightly.

Punctuality can be seen as an indication of reliability. Keeping the schedule can help building a professional image of the company. Plans, agendas, and deadlines are set daily and will not be changed easily.

You should calculate a minimum of two weeks to set up an appointment even if your partner already has all the information and is willing to meet.

Usually, the duration of the appointment is set up in advance as well.

A lot of effort is given into planning of work and timetables to ensure no time is wasted, which often results in high efficiency.

Practical tips:

– No need to be early for the meeting, but never late – best is to be exactly on time

– Do your best not to reschedule

– Be well prepared for all conversations so you don’t waste time of your partner

– Answer emails or give requested information as soon as possible

 

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.

Unlike in many other cultures, feelings have no place in discussions. Interest and personal commitment will be shown by presenting as much data as possible on the project.

Small talk doesn’t tend to play as an important role in everyday life as in other cultures. Sometimes it is skipped at all, moving directly to the business talk.

Interpretation of nonverbal signals or another context is often ignored completely. It is the spoken word which has the highest value.

Practical tips:

– Always be ready to talk business, use your knowledge about your project and all the details

– Know your USPs (Unique selling proposition) and communicate them as soon as possible

– No need to fill in the time gaps with other subjects – if you do need to small-talk, subjects like weather, food or sports are your best choice

– 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. Sundays are reserved for the family and friends and there are usually no possibilities for appointments over the weekend.

Germans do not need a personal relationship to do business with you. Companies can build reliable, professional relations relying only on business related interactions.

Practical tips:

– Make sure that you stick to business related subjects first, until you get a hint from the other side

– Don’t call on the weekends or at evening after 6pm unless truly necessary

 

Following the rules and strict procedures

German business culture is quite a traditional one. The working processes which have proved to be good in the past will not be changed easily, no matter what advantages the change might bring.

The reputation of Germans being thorough and exact is very often right. Same high standards must be kept for each part of the business process. 

Practical tips:

– Know the rules relevant to your project and your role in it

– Inform yourself of the legal background and get advice from a German consultant

– Communicate in a suiting manner to your project and your position

 

The Business Etiquette

Following the etiquette will show respect to the other side as well as presents your company in a reliable, professional light. For example:

– Dress in a business manner. A suit for men and business jacket women is the best way to dress for an appointment. Even if it is a casual occasion, the choice of clothes should be conservative.

– There is no need for status symbols like expensive watches or jewellery – impressing with achievements is the better choice

– Eye contact is especially important while speaking

– A firm handshake was the main greeting type before Corona virus. At the moment, a smile and a short gesture with the hands is enough

– Sometimes, a group of people attending the meeting signals approval at the end by knocking the knuckles on the table

– A lot of communication is done in written and it will be stored to keep the record of decisions

– Never discuss yours or anybody else’s income – earnings are a private matter

– Gifts are not necessary and not usual. In case you would like to give a small present, it should be of good quality but not expensive – for example, a souvenir from your country or company’s marketing materials

– The usual way Germans talk and write to each other is with Herr (Mister) or Frau (Ms), followed by last name. Person holding a PhD is referred to as Dr (doctor) and his last name. Since business talks in English usually include first names, most German companies are used to that as well. You will be on the safe side if you choose the German way, at least at the beginning.

 And last but not least, never forget that the exception proves the rule.

 Wishing you a successful market entry in Germany!

 

Barbara Gjurgjan Lempa

European Pharma Partner