U.S. Companies in Germany out perform German firms

Andreas Back tells Frankfurter Allgemeine Zeitung, "Another major aspect is the U.S. corporate culture, which usually involves short lines of decision, quick decision-taking, less bureaucracy and a profit- and target-oriented management style. Shareholder value is a more important factor in the management of U.S. companies than in Germany." He goes on to say, "German companies still pursue a far more complex approach where profit is not always the main goal." This is the heart of the matter. Profit will drive innovation and improvement while also being there to pay for it as well. Profit is a push and a pull factor. We seek it, so we innovate, and when we have it we can afford to improve. Spare us from European style socialism. Spare us from any kind of socialism, frankly.

Back: "Many German companies have already introduced a more American management style."
FAZ: "Does this lead to the general conclusion that the U.S. management style also leads to higher profitability?"
Back: "If you want to boil it down to a clear formula and disregard all the nuances, yes, you can say that."