The German-born Krauss was tempted to become an Austrian citizen when playing at Rapid Wien and joined Austria's national team set-up.
Krauss started his coaching career at the German club SC Kapellen (1988–89), before he was called up to manage the amateur teams of Borussia Mönchengladbach (1989–90) and 1.
In the next few years Krauss became a globetrotter, managing teams in Greece (Aris Thessaloniki, 2002), Austria (VfB Admira Wacker Mödling, 2004), United Arab Emirates and Iran (Pegah Gilan, 2005).
In January 2012, Krauss was appointed general manager of Tunesian Étoile Sportive du Sahel then the head coach of the same team.
In March 2012, he reportedly returned to his initial position of youth technical director as Faouzi Benzarti took up the post of the head coach of Étoile.