Germany compared to The Netherlands, about being up to date

Germany’s struggles with digitization and infrastructure stem from a combination of historical, cultural, and policy-related factors. The slow expansion of fiber-optic networks and inadequate digital public services reflect a broader reluctance to embrace digital transformation, often attributed to cultural skepticism towards technology and data sharing. This issue has been exacerbated by fragmented governance, leading to inefficient digital policies and a lack of cohesive strategy

The situation has been deteriorating for years, with significant challenges surfacing during the COVID-19 pandemic, highlighting the urgent need for systemic change

Germany faces several significant challenges in digitizing public services:

  • Federalism: The division of responsibilities between federal and state governments leads to fragmented digital services and inefficiencies, as each state pursues its own digitization strategies.
  • Cultural Resistance: There is a cultural skepticism towards digital tools and data sharing, rooted in historical experiences with surveillance, which hinders public acceptance of digital services
  • Infrastructure Issues: Slow internet connectivity and inadequate digital infrastructure impede the effective delivery of online services, contributing to delays in implementing e-governance initiatives

These challenges have resulted in Germany lagging behind other countries in digital transformation.

How federalism impacts Germany’s digitalisation efforts

Federalism in Germany has a significant impact on the country’s digitalization efforts, presenting both challenges and opportunities:

Challenges:

  1. Fragmentation: Germany’s federal structure divides responsibilities between the federal government and 16 states, leading to fragmented digital services and administrative processes. This makes it difficult to implement uniform nationwide solutions.
  2. Coordination issues: The need to coordinate between federal and state levels often results in delays and inefficiencies in implementing digital projects.
  3. Varying priorities: Different states may have different digitalization priorities and approaches, making it challenging to create a cohesive national strategy.
  4. Legal complexities: The division of powers between federal and state levels can lead to complex legal and bureaucratic procedures when implementing digital solutions.
  5. Resource distribution: Uneven distribution of financial resources across states can result in varying levels of digital development.

Opportunities:

  1. Flexibility: Federalism allows states to adapt digital initiatives to their specific needs and circumstances.
  2. Innovation: The decentralized structure can foster innovation as different states experiment with various approaches.
  3. Cooperation potential: Initiatives like the IT Planning Council and the “Federal IT Cooperation” aim to improve coordination between federal and state levels.

Efforts to address challenges:

  1. Online Access Act: This law mandates the digitalization of 575 administrative services across all levels of government by 2022 (though this deadline was not met).
  2. Federal IT Cooperation (FITKO): A new institution created to support coordination of digitalization efforts across government levels.
  3. Constitutional amendments: Articles 91c and 91d of the Basic Law aim to simplify IT coordination and enable benchmarking between federal and state administrations.

In conclusion, while Germany’s federal structure presents challenges for nationwide digitalization, it also offers opportunities for tailored solutions and innovation. Overcoming these challenges requires increased cooperation, clear strategies, and potentially further legal and constitutional adjustments to streamline digital transformation efforts across all levels of government.

It would be useful if the German Government would adopt agility

Adopting agility could be highly beneficial for the German government in addressing its digital transformation challenges. Here are some key points:

Agile approaches can help Germany respond more effectively to complex challenges and rapidly changing circumstancesThe COVID-19 pandemic and other crises have highlighted the need for more flexible and adaptive governance models.

  1. Germany’s federal structure and consensus-based decision-making culture can sometimes slow down digital initiatives
  2. Agile methods could help overcome bureaucratic hurdles and accelerate the implementation of digital services. Studies have shown that agile practices in public administrations lead to positive outcomes at both individual and organizational levels, including improved employee well-being, cross-functional collaboration, and increased efficiency
  3. Agile could help address Germany’s lagging progress in digitalization compared to other EU countries
  4. It could enable faster development and iteration of digital services to meet citizen needs.
  5. The German government has already recognized the need for more agile approaches, as evidenced by initiatives like the “Federal IT Cooperation” and efforts to increase interoperability between federal and state levels
  6. Adopting agility could help Germany overcome challenges related to federalism, legal fragmentation, and register modernization in its digital transformation efforts

However, implementing agile practices in government would require careful consideration of Germany’s unique political and administrative structures. It would likely need to be adapted to fit within constitutional constraints and existing governance frameworks

What the main challenges Germany might face in implementing agile government strategies are

Germany faces several key challenges in implementing agile government strategies:

  1. Federalism: Germany’s federal structure divides responsibilities between the national government and 16 states, leading to fragmentation of digital services and administrative processes. This makes it difficult to implement uniform nationwide solutions and requires high levels of coordination.
  2. Cultural resistance: There is skepticism towards digital tools and data sharing among Germans, rooted in historical experiences with surveillance. This cultural hesitation hinders public acceptance of digital services.
  3. Bureaucratic mindset: Germany has a strong bureaucratic culture that often contradicts the disruptive nature of agile and digital adaptation policies.
  4. Legal fragmentation: Multiple laws and regulations at federal and state levels create a complex legal landscape that slows down digitalization projects[8].
  5. Shortage of IT specialists: Germany struggles to compete with private sector salaries for IT professionals, leading to a lack of qualified staff for digital transformation projects.
  6. Departmental autonomy: The high degree of ministerial independence makes cross-sectoral and cross-ministerial cooperation challenging.
  7. Risk aversion: Administrative cultures and legal provisions tend to inhibit experimental approaches and policy learning.
  8. Lack of participatory mechanisms: There is a need for better structures to involve stakeholders beyond public administration in the transformation process.
  9. Infrastructure issues: Germany lags in areas like high-speed internet connectivity, which impedes the effective delivery of digital services.
  10. Data protection concerns: Strong privacy regulations and public concerns about data sharing make it difficult to implement some digital solutions.

To overcome these challenges, Germany may need to develop a tailored digital adaptation strategy that considers its unique cultural and institutional context, rather than simply adopting models from other countries. But this is, not discovered in Germany.

1. Installing Frameworks Without Cultural Understanding

  • Companies often hear buzzwords and see others promoting their “successful” implementations, creating a misleading impression. This is a kind of corporate “Instagram effect,” where only the wins are shared, while the real challenges remain hidden. The result is that organizations adopt frameworks without a genuine understanding of what’s required culturally for success.
  • I have frequently encountered this issue. Companies become frustrated and disappointed when problems arise, yet these issues stem from not aligning the framework with their actual cultural dynamics and values.

2. Lack of Awareness of Agility’s Importance

  • As an external Scrum Master, I joined a company where Scrum was poorly implemented, viewed as a checklist of events rather than opportunities for meaningful communication and transparency. The company’s culture wasn’t a fit for agility, and agile practices were treated as obligatory rather than valuable.
  • However, the Product Owner and I worked closely to foster autonomous work, better communication, and genuine listening within our teams. Our efforts were very successful, with improvements in both morale and productivity.
  • Then a new CTO arrived, dismissing agility as merely a “fashionable accessory” the company didn’t want to invest in. Soon after, we and all external agile colleagues were told to leave.

3. Methodology Mixing Without Strategy

  • Driven by buzzwords and the desire to appear cutting-edge, some companies implement every new methodology that comes along, hoping it will prove they’re up to date. However, without a clear strategy, this results in chaos.
  • In one company, I worked as both a Scrum Master (for four teams) and an Agile Coach (for six teams). The teams weren’t fully ready for Scrum, and one team had only read the Scrum Guide as their “training.” Despite this, the Program Manager decided to introduce SAFe as well. When I pointed out that this could create confusion, she insisted she knew best. The result? Unmotivated teams, a general dislike for Scrum, and organizational chaos.

4. Lack of Diversity in Age, Culture, and Experience

  • Recruitment departments, often led by younger professionals, lack close collaboration with other departments, leading to poorly tailored job requirements. To cover all bases, recruiters often list a broad range of skills, leading to odd combinations that show a lack of understanding about the role itself.
  • Additionally, many young recruiters are hesitant to consider older candidates for cutting-edge fields like digitalization and AI, assuming they may lack adaptability. This mindset overlooks the valuable experience, diverse perspectives, and problem-solving skills that seasoned professionals bring to these roles.

The Netherlands compared to Germany

The Netherlands appears to be ahead of Germany in terms of digitalization efforts and implementation. Here are some key points comparing the two countries:

  1. Digital performance: The Netherlands consistently ranks higher than Germany in various digital indices. For example, in the Digital Economy and Society Index (DESI), the Netherlands is among the top performers, while Germany ranks 13th in the EU.
  2. Digital infrastructure: The Netherlands has a stronger focus on implementing and scaling digital health solutions compared to Germany. Dutch hospitals invest about 3.5% of their budget in IT annually, while German hospitals spend only about 1.7%.
  3. Cultural approach: The Netherlands has a more collaborative and compromise-oriented culture, which has facilitated digital transformation. In contrast, Germany often faces challenges due to individual stakeholder interests blocking innovation.
  4. Patient-centric approach: The Netherlands has a firm commitment to making all medical data accessible to patients in digital format, empowering them to take a more active role in their health. This patient-centric approach is less developed in Germany.
  5. Government role: The Dutch government has taken on a role as a moderator and facilitator in digital transformation, bringing together various stakeholders to agree on and implement digital initiatives. Germany’s approach has been more fragmented and less coordinated.
  6. Innovation climate: The Netherlands is described as a hub for digital health start-ups and international reference projects, indicating a more favorable environment for digital innovation compared to Germany.
  7. Digital services: The Netherlands has made more progress in implementing digital public services, while Germany lags behind in e-governance initiatives.

Overall, the Netherlands appears to have a more advanced and cohesive approach to digitalization compared to Germany, particularly in areas like healthcare, public services, and fostering digital innovation.

The difference between the netherlands and germany, due to being multilingual

There are several key differences between the Netherlands and Germany regarding multilingualism and language requirements for foreign experts:

  1. Multilingualism:
    • The Netherlands has traditionally been more multilingual, with Dutch people priding themselves on knowledge of multiple foreign languages.
    • Germany, while multilingual to some extent, has been less focused on widespread multilingualism among its population.
  1. English proficiency:
    • The Netherlands has a very high level of English proficiency among its population. Many Dutch people speak “near-perfect English.”
    • While many Germans also speak English, the overall proficiency level is generally lower than in the Netherlands.
  1. Language in education:
    • The Netherlands has a strong focus on foreign language education, particularly English, from an early age.
    • Germany has traditionally focused more on German language instruction, with foreign languages introduced later in the curriculum.
  1. Cultural attitudes:
    • The Dutch tend to be more open to using English and other foreign languages in daily life and business.
    • Germans generally have a stronger attachment to their own language and may be more hesitant to switch to English.
  1. Requirements for foreign experts:
    • In the Netherlands, it’s often possible for foreign experts to work using English, especially in international companies and academic settings.
    • In Germany, there’s a stronger expectation for foreign experts to learn and use German, even from the beginning of their stay.

The requirement for foreign experts to speak German immediately in Germany is likely due to several factors:

  1. Job market: About 95% of IT jobs in Germany are advertised in German, indicating a strong preference for German language skills in the workplace.
  2. Daily life: While many Germans speak English, German is still the primary language for everyday tasks and interactions.
  3. Cultural integration: Speaking German is seen as crucial for understanding and integrating into German culture and society.
  4. Legal and administrative processes: Many official procedures and communications are conducted in German.
  5. Career advancement: In many German companies, internal communication is often in German, making language skills important for career growth.
  6. Education system: The majority of university courses in Germany are taught in German.

In contrast, the Netherlands tends to be more accommodating to English speakers, reflecting its more multilingual culture and higher overall English proficiency. However, it’s worth noting that learning the local language is still beneficial for long-term integration and career prospects in both countries.

The lesser English skills of Germans compared to other countries can have several economic effects:

  1. Employment opportunities: Knowledge of English increases the probability of being employed for men in Germany by 3.4% and for women by 5.6%. This suggests that Germans with lower English skills may have slightly reduced employment prospects.
  2. Business losses: According to the 2006 ELAN study, 11% of companies in the European Union reported losing business due to a lack of German language skills. While this specifically mentions German, it implies that language barriers in general, including insufficient English skills, can lead to missed business opportunities.
  3. International competitiveness: Germany ranks 10th in the EF English Proficiency Index, which is good but behind some other European countries like the Netherlands, Austria, and Denmark. This may affect Germany’s competitiveness in international business and scientific collaboration.
  4. Education and research: The introduction of “international” degree courses with English as the language of instruction in German universities suggests an effort to attract more international students and researchers. Lower English skills among the general population could potentially limit the effectiveness of these programs.
  5. Economic power: Despite lower English proficiency compared to some neighbors, Germany still ranks third among all languages in terms of gross national product generated by native speakers. This suggests that while improved English skills could be beneficial, Germany’s economic strength is not severely hampered by current language proficiency levels.
  6. Multilingual advantage: The growing multilingualism in Germany, including improved English skills among younger generations, is seen as an economic advantage. Companies benefit from having multilingual staff in a globalized world.

While the economic effects of lower English skills are not explicitly quantified in the search results, the implications are that improving English proficiency could potentially enhance Germany’s economic performance and international competitiveness.