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Web-only Exclusives November 30, 2000 From Our Correspondent: Hirohito and the War A conversation with biographer Herbert Bix From Our Correspondent: A Rough Road Ahead Bad news for the Philippines - and some others From Our Correspondent: Making Enemies Indonesia needs friends. So why is it picking fights? |
TEN GOLDEN RULES
BUSINESS CONSULTANTS SAY THERE are few hard-and-fast rules when it comes to corporate structure and management in China. It may not be fair to label the “Ten Commandments” below as, well, commandments. Think of them as “Ten Suggestions” for managing a successful business in China.
Thou shalt not covet thy neighbor’s employees. Forget the notion that it is simpler to poach talent. You’ll end up in a bidding war. Focus on training -- and retaining -- your own people.
Thou shalt not kill the messenger. Past experience has taught Chinese that bringing the boss bad news can be hazardous. A corporate culture that encourages good communication without punishment is integral to success.
Thou shalt encourage employees to participate in running the company. Chinese workers don’t have a tradition of speaking up with their ideas. But their active involvement in company affairs strengthens loyalty.
Thou shalt not evaluate performance formally. Written evaluations make Chinese workers nervous -- and rarely motivate better performance. Keep your comments private.
Thou shalt love thy enemies -- unions and lawyers. Labor reform is essential in China, so unions should be encouraged to pursue it. And China needs legal minds to help develop its evolving justice system.
. Thou shalt honor the motherland -- by establishing a China headquarters. Running your China operation from a Western office or even an Asian capital puts unnecessary stress on China’s uncertain telecommunications system. Give your China people authority to make decisions without head-office approval.
Thou shalt not take the name of the head office in vain. Just the opposite: bring head-office managers to China as frequently as possible. Involve them in decision-making and help them understand the unique problems any company in China faces.
Thou shalt be patient -- but also keep an eye on the bottom line. China is an emerging market and, as such, quick profits are elusive. But don’t fool yourself into believing that you can put up with big losses now because there’s a pot of gold down the road. Keep the red ink contained.
Thou shalt remember that things always change. Successful managers are prepared to shift gears at a moment’s notice. Today’s import duty waiver may be next month’s new tax. Learn to think ahead.
Thou shalt not keep conventional wisdom sacred. Good executives have mastered the regulations and precedents -- but they also know when such knowledge has become useless. What worked yesterday may have little relevance today.