Germans too tight, but British too relaxed, says law firm survey

Significant cultural differences between the German business community and US and UK investors can be overcome if there is the chance of making a profit.

So say respondents to a survey published by City law firm Linklaters.

The survey of more than 100 business executives, investment bankers, and journalists from the US, the UK and Germany found that 76% of UK respondents see strong differences in German/Anglo-Saxon approaches to doing business, mainly because of their self-perception of 'being flexible'.

Two thirds of US respondents also saw marked differences, but put it down to a perceived German disposition 'to create hierarchies and rigid structures'.

However, half of UK respondents do not see this as anissue.

The survey also found that foreigners can misconstrue German directness.

'Germans take things a little more literally and will be very direct and straightforward, which people misinterpret as being abrupt,' one British investment banker said.

By contrast, the British were criticised for being too lax in their approach to business.

'The British are very relaxed, including how they run the business,' one US investment banker complained.

The British and Americans were characterised as having a more short-term outlook than the Germans.

According to one British executive, the US/UK system of corporate reporting 'leads to more short-term deals to meet targets'.

Potential foreign investors voiced concerns that regional differences within Germany add an extra level of complexity to business dealings there.

One British business executive said: 'Germany doesn't really have a nationalistic identity; it's run on different regions.

Some are protectionist, so it is difficult to approach the German market as a whole.

You need a different approach in different regions.'

Linklaters merged with German giant Oppenhoff & Rdler last week.

Between them, both firms have worked on five of the ten largest German merger and acquisition deals, including Vodafone-Mannesmann.

Neil Rose