As someone who lives and works in Germany I'm always surprised when I hear of the strength of the country. I've worked for several very large corporations here, financial and automotive, and how anything is achieved at all remains a complete mystery to me. It seems to me that all the success reported is directly in spite of their attitude towards technology and IT in general instead of because of it. The culture here…
i've also worked with Germans a lot, and what you said is one of the keys to their success. Everybody makes mistakes. Mistakes are given. Majority of IT everywhere is mistakes, failures and waste :) What Germans do, at least in my anecdotal experience, is that they [slowly, with time, yet unstoppable] do ultimately notice the mistakes/failures and really react to it with strong reaction like you described, like closing projects, replacing partners, etc. - basically cutting the bad pieces out, cutting losses without fear of sunken costs.