Saturday, October 23, 2010

Even success can lapse into failure

When corporate America was in pilgrimage-mode to Japan, the conventional wisdom was that Japan would rule the world if American businesses did not fix their problems. Fast-forward to 2010, China overtakes Japan as the world’s 2nd largest economy.

TQM (Total Quality Management) became a must, priority initiative for major American businesses. Beyond creating the new function of TQM, TQM seminars were held in ballrooms to accommodate the hordes of wannabe-quality experts. New manufacturing facilities in North America were designed to satisfy the parameters of TQM. And on a visit to Tokyo the writer was awed by Japan’s electronic prowess years before iPods and iPhones entered our lexicon – he saw for the first time a waiter taking orders via a wireless gadget. But there were underlying realities that were visible – that perhaps the country was taking certain things for granted?

The writer and his wife with Japanese friends were on their way to a rooftop restaurant surrounded by overwhelming skyscrapers – he wondered how the commercial real estate bubble would play out and impact the economy; and as it turned out, they were moving to ‘the lost decade’. (And the US seems to be in the same trajectory.) And the writer’s wife told the Japanese friend that she would want to invite his wife to join next time – and in jest added: ‘otherwise we won’t go out with you’. It would not be surprising if an expatriate is told of one of the must-dos: the work place is characterized by harmony – i.e., if a serious conversation is to occur especially where loss of face is possible, it has to be done after hours. And the bars are where these conversations take place and why the Japanese salaryman is not expected to be home early – which is fully understood by the wife?

In another Asian city, the writer became acquainted with a Japanese corporate executive who spoke better English than him. A product of the Harvard Business School he was then recently seconded to the country as general manager. Probably talking out of school, he said it bothered him that relatively few of them could speak English – how could they be a true MNC or global company? He was like an exception and could explain why the writer had met him in a regional forum – he was their face to the English-speaking business community.

One’s greatest strength could be one’s greatest weakness – who would imagine that Japanese cars would endure quality problems, for example? Was it culture, history or tradition that made Japan take things for granted – when change is the only thing constant? For instance, because the work place is characterized by harmony, the US operations of a Japanese auto company have separate entities – the sales function the pioneer or the first to be established is separate and apart from manufacturing which came later. A classic case of the left hand not knowing what the right hand is doing?

They have other problems: an ageing (that is growing poorer) and declining population, the lack of diversity if not isolation from the rest of the world, the emergence of strong competitors like China, India, South Korea, Taiwan, for example. Of course they can be strong again – they have a very strong base to build on! But they need to regain their export muscle – and the recent currency intervention does not guarantee that over the long-term?

What’s the lesson for us Filipinos – even a first-world country (Japan or even the US) could fall flat on its face if it takes things for granted: like their culture, history and tradition? For example, our inward-looking economy has shut us out of the spoils of the global economy – from capital to technology to talent . . . to market? And we don’t have the strong base that the Japanese have?

And until we recognize the imperative of turning our mindset outward . . . our options and opportunities will continue to shrink? Before we can focus we must know where to turn – and Aquino turning to friends (supposedly our strength) signals the continuation of friends and/or relations first before country – i.e., the root of insidious corruption?

1 comment:

  1. "and Aquino turning to friends (supposedly our strength) signals the continuation of friends and/or relations first before country – i.e., the root of insidious corruption?"

    Very interesting... I never thought of it this way. I was too concentrated on the "high" that a new, transparent government will help my kababayans. I hope it's not the case for I feel that the Filipinos have been trampled on too much by our own and that this will bring the country down even more than it is now.

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