Always difficult to figure out what is behind the rumors. But foreign companies often badly handle an internal crisis and the gossip quickly spreads around town. Seems to be the case with the law firm. If they ignore the need for damage control…. The rumor mill:
Their (former…) managing partner, Jingzhou Tao, was apparently fired by e-mail when on a business trip. Sorry, not fired but put into an obscure corner – a loss of face for a guy like Tao who is widely known around China and seems well respected – by the business community but apparently also by his staff. Seems maybe that was part of the problem: some others didn’t like his success and fame. Being too good is always bad for an employee. Some bosses hate that.
What is the real truth in this story, hard to tell. But as the saying goes, if there is smoke, there is fire. As for myself, I find the story all too familiar. Gone through that myself.
All the nice stuff you learn for your MBA is just a load of rubbish. In real life western companies just do anything they can against the basic “sound management rules”. Like firing people when away from the office. Like firing them by e-mail. Like punishing stars that shine to brightly – some people want to be the only star in the sky.
Western companies criticize Chinese companies for poor management style. To a large extent they are right. But the rot I have seen in western MNC is just unbelievable. You just wonder how they manage to survive. Well, actually some don’t. Or tumble down. Like Alcatel, like ALSTOM, like Enron, etc. Some recover, some never are seen again. Look into the real story and prepare yourself for the worst. Greed, internal politics, incompetence, corruption, anything goes. Exaggerated? Just look at their stock market performance. Or at my stock portfolio – I still have their worthless shares.
I call it the super-hypocrisy of the western companies. Many come out with their hyped internal rules, philosophies, slogans and make a lot of PR around it. Sounds much like Marx once said: religion is the opium of the people – a good tool to control the masses. In management religion is the MBA doctrines and the stuff you hear in “management training seminars”. Makes one feel good, all part of the big family.
The next day the bosses remove successful managers and sent them to Kazakhstan or something.
Happened to me. I sued, they lost and paid up. We Flemish are quite stubborn. Thanks to them today Alcatel is what it is in China. But that’s another story (and nothing to do with me).
I just hope the rumors around DLA Piper are unfounded.
Biz, Economy and More
More serious stuff on business in China
Tanaka Business School – Imperial College of London
On 26 March I gave a presentation to a delegation of about 60 EMBA students of Imperial College (London). It is the second time to make such a presentation. Always a challenge – facing dozens of mostly seasoned business people. The morning seminar was (again) in the Beijing Hotel. Other speakers included Kobus van der Wath (The Beijing Axis), Nick Whittingham (UK Embassy) and others. The presentation I had a premiere – looking at how Chinese are compared to us Europeans. And how that reflects in business.
prepairing for the seminar – Kobus and Nick talking
To be fair, it was also for me a learning event. Turns out that Imperial College is a very select and special university with a long list of Nobel Prize winners. And, 100 years old.
Barbara addressing the crowd in the ChangAn Club
The same evening I was invited to their anniversary celebration in the ChangAn Club (opposite Beijing Hotel). Former Chinese alumni also were invited. Barbara Woodward represented the UK Embassy.
The Prince of Wales International Business Leaders Forum
On 30 March Gilbert & Karolina of the EUCCC joined the 8th Executive Roundtable in Renmin University. Gilbert also joined last year’s session.
the audience (part)
Gilbert gave a presentation on the EUCCC, the importance of EU-China relations and the Public Procurement Working Group (Gilbert being the Chairperson).
A Beijing’s vice mayor’s disappearing act
On 28 March Gilbert attended the meeting in Swissotel as the EUCCC representative. Amcham and other chambers were also represented.
The meeting was organized by the Beijing Association of Enterprises with Foreign Investment (BAEFI). The current chairman is NOKIA’s President, David Ho. The chairman of NOVARTIS, Dai Hosen, also attended.
Zhang Jifu (director BIPB) and David Ho opening the meeting
Gilbert is member of BAEFI, set up through the Beijing Investment Promotion Bureau (BIPB – Gilbert being their senior advisor)
Gilbert is member of BAEFI, set up through the Beijing Investment Promotion Bureau (BIPB – Gilbert being their senior advisor)
Vice Mayor Zhao Fengtong was to deliver a speech on “The Development of Beijing’s High-tech Industry” but finally just appeared for a couple of minutes to say he had to run away for (another) “urgent” meeting.
Mr. Zhao’s portfolio: Education. Science & Technology, Intellectual Property, Sports, BDA (the economic zone in Daxing).
Zhou He (vice director Beijing Commerce Bureau answers a question with Zhao Fengtong and David Ho listening; then Zhao says hi and runs to his next meeting
BAEFI and BIPB instead organized an Q&A session and representatives from the relevant Beijing Commissions answered the questions. Under the circumstances they did their best really.
The overall quality of the answers was not great (what’s new?!). The issue of hukou and lack of suitable staff was raised by several companies (e.g. ORACLE), complaining it seriously affects their staffing requirements. The Beijing side could have explained the central government was exactly these days considering changes to the hukou system and the categories of “rural – urban” residents (it was the newspapers!). A bit difficult to attract High-tech Industry if one cannot find suitable staff: large part of the good candidates cannot get their hukou transferred and return to their original cities.
Vice-mayor Ji Lin on 4 Dec 06
BAEFI regularly organizes similar meetings. The previous one was with vice mayor Ji Lin.
Seminar on Sino-UK Engineering Cooperation
On 29 March Gilbert was invited to speak in the Seminar, opened by the British Ambassador, William Ehrman. The chairman of Britcham, Michael Fosh also took part. Several UK engineering companies presented their activities, one being ARUP, well known for its participation in the Olympic projects (Birds Nest and WaterCube). An agreement was signed by Ben Papé, chairman of the Institution of Engineering and Technology (UK).
group picture in the VIP room; opening of the seminar (left to right: Michael Fosh, Gilbert, Ben Papé, the British Ambassador, the vice minister of AQSIQ and others)
Gilbert gave a short presentation on the EUCCC, the importance of EU-China relations and the Public Procurement Working Group while Michael Fosh introduced the British Chamber.