Since 2000, China is the buzzword for every multinational company’s CEO. Everyday you would read about major multinational senior executives making the trip to the Oriental. After all, how many 1.3 billion consumer markets exist in the world. China’s rapid economic expansion has been the epicenter of discussion among the leading economists across the world. Many considered this rise unattainable, however for the last decade; China has continuously maintained this growth rate. And the icing on the cake was the Beijing Olympics; all the critics and the skepticals were silenced by the robotic efficiency with which China organized the games. No doubt, the mammoth Beijing 2008 Olympics are considered the grandest Olympics ever.
Gradually, China has replaced Japan as the Asian economic superpower and many feel this ascent will only bring to a halt after China reaches the numero uno economy position in the world.
Like everyone else, I was baffled by this sudden political & economical rise of China. After all India & China were considered 3rd world countries quarter a century back. We Indians took comfort in the myth that China & India despite our growth potentials were not evolving not because of our internal policies but because of the flaws in the economic system of the world. However, the rapid development in China in last decade has left India way behind of China economically & politically.
I am fortunate enough to visit Beijing for a month in 2009 and am excited at the prospect of uncovering the dragon and its secrets behind the success. Unlike many Indians who visit China for business, I was there to learn Mandarin, and was given ample opportunities to learn the language and interact with the locals.
Interacting with them, I realized why China is doing so great and why are we so left behind. If you would want to describe the key differentiator between the 2 economies and people mindset in one word, it is DISCIPLINE. Yes, it sounds so simple and unambiguous but there is much more to it than just that. .
Lets not categorize discipline as something like “When a person is disciplined, he or she possesses the trait of being well-behaved. In this context, the word discipline is related to the words conduct, behaviour and deportment”.
I would rather place discipline as a way of being, a way of existence.
Regularity is their forte – I haven’t seen my teachers, bus drivers, guides, Chinese acquaintances- anybody being late even once. They consider being late an offence, a dishonor and I am astonished by the seriousness by which they follow this rule.
Another amazing quality among them is their simplicity. Regardless of their position in the society, I found all of them being very humble, graceful and courteous.
This reflects in their work culture. They consider their work sacred and are proud of it. This makes them more efficient and productive.
And the most important of all their qualities is their nationalism. Man, I am really impressed by their patriotism and pride for their country and the Government. They are very patriotic because this is what they learn to be. Lets not get into the aspect behind this nationalism (misinformation or rather lack of it), but nonetheless it’s a mind boggling attribute.
I compare Indian population’s perception and thought process with this kind of pride and I feel disheartened.
We have adopted the good as well as more of the bad from the western society. If the Indian companies are run the way American companies are managed, then why not the Indian Public Administration. I feel that Indian Civil Service is completely flawed. Not a single developed country has the civil administration system the way India has. Indian Bureaucracy is in shambles and their efficiency or lack of it is universally acclaimed.
If we could trust our Government and not question it for every action it performs, maybe the Government would have been more efficient.
There have been several learnings for me in this trip and am confident there will be more.
Keep checking out this space for more.
Since 2000, China is the buzzword for every multinational company’s CEO. Everyday you would read about major multinational senior executives making the trip to the Oriental. After all, how many 1.3 billion consumer markets exist in the world. China’s rapid economic expansion has been the epicenter of discussion among the leading economists across the world. Many considered this rise unattainable, however for the last decade; China has continuously maintained this growth rate. And the icing on the cake was the Beijing Olympics; all the critics and the skepticals were silenced by the robotic efficiency with which China organized the games. No doubt, the mammoth Beijing 2008 Olympics are considered the grandest Olympics ever.
Gradually, China has replaced Japan as the Asian economic superpower and many feel this ascent will only bring to a halt after China reaches the numero uno economy position in the world.
Like everyone else, I was baffled by this sudden political & economical rise of China. After all India & China were considered 3rd world countries quarter a century back. We Indians took comfort in the myth that China & India despite our growth potentials were not evolving not because of our internal policies but because of the flaws in the economic system of the world. However, the rapid development in China in last decade has left India way behind of China economically & politically.
I am fortunate enough to visit Beijing for a month in 2009 and am excited at the prospect of uncovering the dragon and its secrets behind the success. Unlike many Indians who visit China for business, I was there to learn Mandarin, and was given ample opportunities to learn the language and interact with the locals.
Interacting with them, I realized why China is doing so great and why are we so left behind. If you would want to describe the key differentiator between the 2 economies and people mindset in one word, it is DISCIPLINE. Yes, it sounds so simple and unambiguous but there is much more to it than just that. .
Lets not categorize discipline as something like “When a person is disciplined, he or she possesses the trait of being well-behaved. In this context, the word discipline is related to the words conduct, behaviour and deportment”.
I would rather place discipline as a way of being, a way of existence.
Regularity is their forte – I haven’t seen my teachers, bus drivers, guides, Chinese acquaintances- anybody being late even once. They consider being late an offence, a dishonor and I am astonished by the seriousness by which they follow this rule.
Another amazing quality among them is their simplicity. Regardless of their position in the society, I found all of them being very humble, graceful and courteous.
This reflects in their work culture. They consider their work sacred and are proud of it. This makes them more efficient and productive.
And the most important of all their qualities is their nationalism. Man, I am really impressed by their patriotism and pride for their country and the Government. They are very patriotic because this is what they learn to be. Lets not get into the aspect behind this nationalism (misinformation or rather lack of it), but nonetheless it’s a mind boggling attribute.
I compare Indian population’s perception and thought process with this kind of pride and I feel disheartened.
We have adopted the good as well as more of the bad from the western society. If the Indian companies are run the way American companies are managed, then why not the Indian Public Administration. I feel that Indian Civil Service is completely flawed. Not a single developed country has the civil administration system the way India has. Indian Bureaucracy is in shambles and their efficiency or lack of it is universally acclaimed.
If we could trust our Government and not question it for every action it performs, maybe the Government would have been more efficient.
There have been several learnings for me in this trip and am confident there will be more.
Keep checking out this space for more.
Friday, July 24, 2009
China IT company Visit
Today, as part of the cultural & economy visibility program, BLCU ( Beijing Language & Cultural University ) planned a visit to a leading IT company in Beijing, China.
Pretty much formally attired ( a refreshing change from the shorts and tee culture which is quite prevalent here) , I boarded the bus with much anticipation and curiosity about working of the Chinese IT machinery.
After a 15 minute drive, we reached the company. They had a fancy conference room and the company President was part of the welcoming committee.
We felt honored to see the President taking out time from his busy schedule to greet us. We were quite impressed by their professionalism and were eagerly waiting to hear the President’s insights on IT and China. However, this is where the good part ended. After formal speeches from the company & our representative, we were driven through a mediocre PPT giving the overview of the company.
The PPT described the company locations, its core functions, technology partners, certifications and clients. The terms were so ambiguous and superficial that there was no lucidity in company operations and business model. At junctions, we felt the PPT was a forceful formality where they were trying to hide their core competencies and detailed business operation model. Nonetheless, once the presentation was over there was a Q&A session which the President himself addressed.
This seemed like a perfect opportunity for me unravel the mysteries behind the famed China IT business and I was all geared with my relevant questions.
This is where all our expectations crashed. The President apparently didn’t understand English and the translator seemed to be in a hallucination mode.
She translated our questions wrong and then later worse translated her President’s answers. One staunch example was when the President mentioned that management education in bachelors level is not very helpful and should be scrapped. What the translator end up saying is that MBA education is worthless and should be scrapped.
Imagine saying something like this is front on 30 wannabe MBAs.
Nonetheless, I am not sure who was at error. Was it the President or his translator? Ultimately, there was not much learning for us in the complete process. The president answered questions with the famed Chinese nationalism & pride, failing to address the key points while the translator failing to do her job miserably.
I understood that the company clocked revenues of RMB 220 M in 2008 and was suitably unimpressed. That’s like USD 30M.
The revenue of IT companies in every nook and corner of Bangalore. Particularly unimpressive because it employed over 1000 people and was one of the biggest IT companies in China. If you do the math, the company was billing (30M/1000) approx USD 30000 per employee per year. That’s peanuts compared to global IT standards.
After the Q&A session, we went for a floor walk across their office. The office was typical Chinese architecture- No frills, only functionality. One thing which was visibly impressive was the employee dedication. We must have crossed over 30-40 cubicles and not even once, an employee deviated from their work to look at us or at least beam us a smile.
The world talks about German straight faces. Guys – check out the Oriental. I was astonished & equally impressed by this dedication. Productivity levels in China are leagues ahead of India or Europe and this speaks volumes about China’s rapid economic rise in last few decades.
There was one important take away for me from this whole fiasco. China IT is way behind Indian IT and it will easily take another 15-20 years before they reach our levels.
Think of it, with 1000 able people the company couldn’t manage a decent English speaking translator.
But there seems to be an urgency among Chinese to learn English and with their perseverance & commitment, day is not far behind (15 -20 years) when they will be knocking Bangalore doors stealing clients and businesses.
IMHO, Lesson for Indian IT companies– Create Intellectual Property in the next 15 years. Look at the long term picture and try moving up the value chain. Make yourself indispensable for your clients. Indian IT companies should become the process instead being part of the process. This is the only way Indian IT can differentiate itself from the rest and withstand the inevitable Chinese onslaught.
Pretty much formally attired ( a refreshing change from the shorts and tee culture which is quite prevalent here) , I boarded the bus with much anticipation and curiosity about working of the Chinese IT machinery.
After a 15 minute drive, we reached the company. They had a fancy conference room and the company President was part of the welcoming committee.
We felt honored to see the President taking out time from his busy schedule to greet us. We were quite impressed by their professionalism and were eagerly waiting to hear the President’s insights on IT and China. However, this is where the good part ended. After formal speeches from the company & our representative, we were driven through a mediocre PPT giving the overview of the company.
The PPT described the company locations, its core functions, technology partners, certifications and clients. The terms were so ambiguous and superficial that there was no lucidity in company operations and business model. At junctions, we felt the PPT was a forceful formality where they were trying to hide their core competencies and detailed business operation model. Nonetheless, once the presentation was over there was a Q&A session which the President himself addressed.
This seemed like a perfect opportunity for me unravel the mysteries behind the famed China IT business and I was all geared with my relevant questions.
This is where all our expectations crashed. The President apparently didn’t understand English and the translator seemed to be in a hallucination mode.
She translated our questions wrong and then later worse translated her President’s answers. One staunch example was when the President mentioned that management education in bachelors level is not very helpful and should be scrapped. What the translator end up saying is that MBA education is worthless and should be scrapped.
Imagine saying something like this is front on 30 wannabe MBAs.
Nonetheless, I am not sure who was at error. Was it the President or his translator? Ultimately, there was not much learning for us in the complete process. The president answered questions with the famed Chinese nationalism & pride, failing to address the key points while the translator failing to do her job miserably.
I understood that the company clocked revenues of RMB 220 M in 2008 and was suitably unimpressed. That’s like USD 30M.
The revenue of IT companies in every nook and corner of Bangalore. Particularly unimpressive because it employed over 1000 people and was one of the biggest IT companies in China. If you do the math, the company was billing (30M/1000) approx USD 30000 per employee per year. That’s peanuts compared to global IT standards.
After the Q&A session, we went for a floor walk across their office. The office was typical Chinese architecture- No frills, only functionality. One thing which was visibly impressive was the employee dedication. We must have crossed over 30-40 cubicles and not even once, an employee deviated from their work to look at us or at least beam us a smile.
The world talks about German straight faces. Guys – check out the Oriental. I was astonished & equally impressed by this dedication. Productivity levels in China are leagues ahead of India or Europe and this speaks volumes about China’s rapid economic rise in last few decades.
There was one important take away for me from this whole fiasco. China IT is way behind Indian IT and it will easily take another 15-20 years before they reach our levels.
Think of it, with 1000 able people the company couldn’t manage a decent English speaking translator.
But there seems to be an urgency among Chinese to learn English and with their perseverance & commitment, day is not far behind (15 -20 years) when they will be knocking Bangalore doors stealing clients and businesses.
IMHO, Lesson for Indian IT companies– Create Intellectual Property in the next 15 years. Look at the long term picture and try moving up the value chain. Make yourself indispensable for your clients. Indian IT companies should become the process instead being part of the process. This is the only way Indian IT can differentiate itself from the rest and withstand the inevitable Chinese onslaught.
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