Army days handy for his winning ways
Being an officer in the German army may seem very different from being the regional chief executive of a company that sells washing machines and cookers. But Dirk Hoffmann, now a regional head of BSH Bosch and Siemens Home Appliance Group, has found that both careers demand similar management skills.
Hoffmann, an electrical engineer by training, rose to the rank of major over his 12-year army stint. During that time, he had to organise a wide range of people from various sections of the armed forces and suppliers to ensure that the troops had sufficient training, arms and food. Such management skills are handy as a top manager at the firm, which has 41 factories worldwide, including six in China.
In the army, discipline and morale are important. Hoffmann says he applies the same principles to his job: demanding discipline among the staff to deliver high-quality products and services while stoking morale by rewarding outstanding performers. He joined Siemens in Munich in 1993, then served as managing director of the company's Africa operations in Johannesburg and in 2006 became CEO of Asia-Pacific, Africa, and the Middle East. He moved the position to Singapore in 2009. The Post sat down with Hoffmann on a recent visit to Hong Kong to talk about how his army days influence his daily management strategy.
Why did you join Siemens?
When I was a major in the army in 1992, a headhunter approached me to join Siemens. I decided to join the business world and initially planned to stay for three years. But I have stayed for almost 20 years.
How does your management style differ across the different cultures in your brief?
In Hong Kong and Asia, the staff have a consistent high working spirit. They are very reliable. The staff enjoy life but at the same time they are also keen on their work. The challenge is to find the talent. Some markets such as Hong Kong and Singapore have almost full employment, so we have to fight to retain talent. We always promote good people; we train people to prepare them for bigger tasks; and we use the opportunities of a multinational company to allow them to have border-crossing career development.
In the Middle East, it is very family- and religion-oriented. You may find brothers, cousins, fathers and sons are working in the same or associated companies. The religion is important, so we have to make sure there is no inappropriate mixture of workers from different genders working in one room and make sure they have a proper area to pray.
In Africa, people in general 'work to live'. I remember there was one guy who worked in the warehouse who suddenly disappeared without any notice. Ten months later, he returned and applied for the same job. He explained he earned enough money to support his living for ten months so he returned home to take care of his farm, to go fishing and to have another baby with his wife. You can see not all Africans take jobs and money as their priorities.
Did you rehire him?
Yes I did. I had wanted to say 'no', as he seemed not reliable. But he had been a good staff [member]. He also explained he had to leave urgently as his wife was sick. Our warehouse also needed people, so I hired him again but told him he has to at least notify the company if he wants to quit.
You have to deal with staff who speak different languages. How can you make sure you communicate effectively?
Luckily, my staff here speak English so there is no problem. I like to learn the local language wherever I stay. I learned to speak Afrikanns when I was in Johannesburg. I learned French and Italian. I am trying to learn Mandarin.
Do you prefer sending senior supervising staff from the company's headquarters in Germany to outlying operations, or do you prefer to hire and promote locally?
We enhanced the programme to localise [staff] in these regions two years ago. We promote local people to positions that are as senior as possible to head the local operation. This is because only the people with local knowledge would know what products to make and what marketing strategies would work.
For example, Hong Kong and Asian customers and business partners are straight to the point in talking about business. In the Middle East, people may spend the whole day for social gathering, talking about the meaning of life and would only pick up the important business issue at the end of the day. In India. people may like to renegotiate again and again. Only the locals would know how to best manage a local office.
Then why are you, a German, heading the regional office?
I have an expiry date. I am here to carry out this expansion and localisation scheme, which is bringing higher efficiency and profits. When the localisation scheme is completed in a few years' time, I may return to the headquarters and let the locals run their offices.
There have been suicides recently at some mainland factories because of the harsh working conditions. What steps are you taking to prevent that from happening in your factories?
We have appointed a third party to conduct audits to make sure the staff have good working conditions and reasonable working hours. The staff can freely point out what areas need to be improved.
For economically valuable ideas and performance, we do award the outstanding staff with money. In the global sales community, every year, we will also choose 111 employees [which Hoffmann says is considered to be a lucky number] and their families to enjoy a trip.
Wage are rising dramatically in the mainland. Will you move your factories?
We do not intend to move the existing factories in China. In fact, we are busy expanding the manufacturing network. The unavoidable rise of workers' salaries and wages we try to counter-balance by continuous improvement of production efficiency and enhancing the value content of products.
As a regional head, what is your management nightmare? What makes you cry?
I only cry if my wife is unhappy. As a regional head I have to spend 60 per cent of my time travelling to different countries. That means it is hard for me to have a work-life balance. I always like to take my wife Birgit with me if possible. I don't have nightmares, rather, sometimes, sleepless nights about meeting the challenges.
23%
The percentage of the firm's global workforce in Asia. In terms of revenue, Asia contributes 14.1 per cent, versus 39 per cent for Western Europe
