The Rhineland business model. I’d never even heard of this until a while ago. It’s hugely different to the Anglo-Saxon (or Anglo-American) business model promoted by Reagan and Thatcher Here’s a definition…. "The Rhineland business model and the leadership practices associated with it can be defined as a management approach based on concepts of cooperation, consensus, social justice, and serving the interests of multiple stakeholders. Chief concern is the long-term sustainability of an enterprise. A Rhineland firm views itself as an interdependent part of a wider community that offers a lasting place for each of its members rather than simply as a moneymaking machine for investors. Under the Rhineland model, a firm’s success derives from taking a long-term perspective in making decisions; developing a skilled and loyal workforce; and offering innovative products, services, and solutions of high quality. The objective is not to maximize profits in the short term but to generate long-term value for all stakeholders." I might not have heard of the Rhineland model but I now realise the agency I worked at for years had a Rhineland company as a client. They came to this country with a very expensive product no one thought they could sell. Yet they operated with a clear plan and in the way described above. They were, and remain, the best run company I have ever worked for. BMW. The Rhineland model. The way forward. Oh… hold on.… two wars, one world cup etc etc
I advocated that in a chapter in a book back in 1997, prior to the election of the New Labour government under Blair. I didn't think the Blair government would go for a socialist alternative, so thought this was an option they could and would go for. Unfortunately they didn't
Good work. It just seems so obvious that this is how capitalism should work. Unless of course you're intent on raking it all in for yourself.
I work for a German company who have this as their ethos. "Maximum" is never mentioned, it's all about "optimum" and yes basically it's just a commonsense approach, but the thing with commonsense is, it's not very common. I'm 25 years in next year.
Worked in a German factory in the 70s when the class war was in full swing over here. Unions had members on the board helping to make decisions that benefited everybody. Every day you were given a meal (on night shift it was the kind you got on a flight brought in from the airport). On other days you stood in a queue in the canteen and just took your place, one day you might sit next to a floor sweeper, the next the MD. everyone felt important and got on with the job. In the UK everyone was part of a faction and it was about power and control.
Exactly. I worked for BMW when they had their new headquarters built in Bracknell. I was down there a lot and they had two dining rooms - one big, one small. You could eat in either. I asked why. They said the British architects had intended the smaller one as for directors only. The German directors thought this amusingly British and opened up both to everybody. I was only young at the time but if I'd had an idea for something that was thought worth pursuing I was invited along to explain it to the MD myself rather than going through some credit-claiming back-stabbing management hierarchy. And then I started working for British companies....
I've been employed by British companies and american companies and for the last 15 years or so have been employed by an american owned british company but have actually done all my work for a German/Austrian company. The way my client operates is similar to the BMW approach outlined above its totally different and so much better than the British/American approach. They have quite a low staff turnover, separate salary structures for managers and engineers - so you can continue as an engineer and with experience earn as much as or more than your boss in the management flow invest heavily in staff training and benefits.I used to know one of the directors well (hes retired now) as we worked together in the early 90's and he was just a normal guy happily eat with you in the canteen - go out for a beer after work with the team etc and would always talk to me if he saw me and I had no problem to talk directly to him if needed - the idea of seperate dining rooms would have filled him with horror. Pre Brexit they would have offered me a full time job there - but I would have had to move to Austria and for various personal reasons it wasn't practical - its a shame as I wish I had gone now. Though I still effectively work for them remote from England - I dont get the same benefits or training
It's so obviously better. Although not if you're intent on making sure only those at the very top benefit.
