Why we still aren’t ready and why it seems we never will - Germany keeps snoozing in coziness

Made in Germany, for a long time the top argument to sell a product. Proud customers around the world swear by “deutsche Wertarbeit”, but how long can we keep living by this overtaken, success of the old days. Don’t get me wrong, we sure have a traditionally strong position as high quality manufactures and that is still what we are, but as other nations, global players, hidden champions and rising stars have done their homework and laid out their strategical groundwork for the indispensable change, the digitalization, Germany is still snoozing in coziness. Even with the experiences of the last months and I bet “remote work” or “home office” have very good chances to get voted “word of the year”, I still have the feeling the management of many companies still doesn’t understand the urge to initiate the change or even start transforming.

So let’s talk about, what is holding us back!

#1 The monster

As every transformation it is comprehensive, it forces us to step away from the known, the familiar - the supposingly successful method, it effects every tiny corner of a company and yes, it is expensive. I can absolutely understand that this “project” is overwhelming. Where do I start, how do I do it? Unfortunately, that is no reason not to start at all. 

#2 Attitude

Not many manufacturing companies are still owned and steered by their founders and owners, who most of the times have the mindset to maintain and develop their lifetime achievement. This often leads to a management that is only interested in a short-time success, but not in a long-term strategic reorientation, as this way often shows its success and profitability after years.

Furthermore, German entrepreneurs are known for their “playing it safe” mentality. They are mostly risk shy and prefer alleged stable business models. We are focusing on steady efficiency but starting to risk getting left behind. Digitization is not taking a risk, it is taking a chance to participate and be successful within the indispensable way of making money in the future.

#3 Infrastructure

Besides the problem, that we do not have the setting of adequate bandwith settings in Germany, many people forget, that digital transformation does not only include the production. The administration side must be set for the change as well. I often see, that those two parts of a company still aren’t working together, even more competing. A bloated administration is still a common drag shoe, forgetting that the production is the actual core competence center and the place where value is being added and revenue generated. If a company does not prepare the basis for its digital transformation as a whole, any effort that is being made is being doomed to failure.

Implementing new ways of working, especially as comprehensive and future orientated as the digitization needs time and even more time. It is essential to create a vision, a masterplan for every aspect of the company.

Take small steps for the implementation – plans are made to identify deviations. Take advantage of the numerous options to exchange experiences with other companies and take the time to visit companies that are already ahead of the game. Last, but not least get yourself experts on your side as your sparring partner and to help you tackle the beast. They don’t only know what and how it needs to be done, even more they are impartial, giving you the possibility to see things from different angles and get people on board, who might have slowed you down so far.

What are your experience on this? What do you think is holding your company back to start the transformation process? Do you have an opinion on why we Germans appear to struggle so much with this turnaround? Leave me a comment and start a discussion!