Authorize non-partisan Super leadership to assist social governance
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In writing...
New added section in Dec. 20, 2022
Liberal democratic legislature dehumanizes policymaking
Frank Li Dec. 20, 2022, in Waterloo, Ontario, Canada
Now the West is in proud of liberal democracy with proud of humane ideologies; but actually it is to stir people ganging up to fight in legislature and stir people freely united to fight against government in society; by such a childish way messing own society as bubbling boiler and exhaustedly promotes such childish play globally to trigger refugees' wave globally.
Jan 5, 2019, article EU ON THE BRINK: German eurosceptics threaten 'DEXIT' unless EU parliament is ABOLISHED indicates that EU Parliament has 751 MEPs, 44,000 officials and 11,000 employees that cost over €8billion a year; 4,000 of those officials earn more than €290,000 a year in more than the German Chancellor Angela Merkel’s salary. Other report said that the MEPs have been spending more than €5m a year on alleged “fact finding” trips to some of the most luxurious destinations on the world, with the team of servants in average cost at €13,379 per person.
The democratic political design hopes that multi-party supervision may ensure a quality government; but without quality control on players; the multiparty supervision is used as maliciously opposition for replacing ruling position to enjoy luxury salary; luxury benefit and luxury privilege. The fact shows that liberal democracy is the government of the individual, by the individual, for the individual by ruining social governance as exchanges.
Please look at democratic players with their super intelligence think of the wonderful names for easy their democratic play: the hawks, doves, donkeys, elephants, left wing, right wing, extreme right, extreme left, green party, tea party, liberal party, conservative party, democratic party, new democratic party;....; by such thoughtful animal stuffs fight of each other as dead enemy in legislature without care about dysfunction of social governance.
People never think of that why human society has to govern in such a stupid way; and never think of that why self has to pay tax to feed own elected lawmakers; why own elected lawmakers do not work as part time job in self-reliance as that of China in doing. The terrible is that the taxpayers fed lawmakers do not do good for own people; but act as supervisors to globally supervise affair of other countries and waste the money of taxpayers to wander around world at will.
All in all, China has been in high quality people controlling society in continuously making improvement in social governance for collective concern; but the West has been going on the opposite by low quality people controlling society for individualistic concern to make everything meet individualistic interest of individual by madly resisting changing the ‘status quo’.
The European looting and killing bloody soil breeds Western Individualistic Civilization with inborn evil magic to pave evil Magic Boulevard to facilitate it evil magicked people free exertion; so that a small group of low quality people easily hijacking big group of high quality people to ruin the life of all of people.
2019, the CEO of Business Council of Canada, Goldy Hyder who wrote article: Our politics is suffering from analysis paralysis and the illusion of action to disappointed signs “Canada wasn’t born, it was built.” “Canadian leaders don’t consider themselves to be nation-builders in a literal sense.” “The issue is that our desire to critique now exceeds our desire to create.” “The procedural obstacles we’ve put in place make it possible for a handful of individuals to hold up initiatives endorsed by most Canadians. Important projects, programs and policies can be delayed until supporters give up and move on.”
In 2019, article Chrystia Freeland: Liberal democracies are being "hijacked by angry populist politicians reports that the incumbent Canada’s Deputy Prime Minister and Minister of Finance, Chrystia Freeland said that Liberal democracies are being "hijacked by angry populist politicians “the doubts creeping in inside liberal democracy… liberal democracies that are becoming totally polarized societies, divided into these hostile – even warring – tribes who can’t talk to each other, and societies that have been hijacked by angry populist politicians.” Freeland said this theme exists in the “unhappy liberal democracies,” where “the details may be unique but the basic storyline is the same.”
As direct result of lawmakers taking legislature as forum for argument, there were reports that Canada manufacturing plants disappearing at twice pace of U.S. in Jan. 13, 2012; and Canada's productivity lags U.S. in 'virtually every instance' in Oct. 1, 2012. In the Era of market economy, living space has changed into market space from geographic space of agricultural economy; the useless argument of lawmakers caused decline of Canada’s manufacturing is in destructing the living space of Canadians.
Human world is in evil magicked low quality people hijacked self-destruction going towards the graveyard of self-destructed civilizations in Milky Way; the liberal democracy and it relied ideologies is the initiator of its orbit.
In order to end pandemic; we must cure social diseases; because of; it is social diseases in worsening pandemic Covid-19.
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Human society must be governed by high quality non-partisan social elites.
Gov-authorize non-partisan Super Leadership to assist social governance
--- A letter to Jean Chrétien the 20th Prime Minister of Canada
Frank Jan. 30 – Feb. 25, 2016, in Waterloo, Ontario, Canada
Updated in July 28, Aug. 9, 2016. Nov. 26, 2018. Jan. 18, 2019
http://www.kwcg.ca/bbs/home.php?mod=space&uid=61910&do=blog&id=4055
Contents
Introduction
The motivation of the topic
1. Human beings has been living in the civilization of lower animal
2. The quality of brain determines the quality of people
3. Low quality people are harmful than that of wild animal
4. The partisan politics helps low quality people to harm society
5. Human beings must turn to govern by non-partisan politics
6. The motivation for above ideas
7. The most threat for human survival is the decline of creation of life-necessities
8. Canada is a country of the most in manufacturing decline
9. Mistreating entrepreneurs caused decline of manufacturing
10. Entrepreneurs are the backbone in supporting manufacturing
11. Saves manufacturing is the most importance
12. Canada needs powerful execution
13. The success of China was not in dictatorship but in governing skills
14. Canada should authorize a non-partisan Super Leadership as assistant
1…The necessity of authorizing a non-partisan Super leadership
1.1…The difficulties of Canada is facing.
1.1.1…The agro-products and natural resources of Canada are losing the market world widely.
1.1.2…The manufacturing of Canada has been disappearing.
1.2…The experiences of the success of China’s economic reform
1.3…The way out for Canada
1.4…The Values and democracy in entwined to castrate its mother country France
1.5…Italy’s referendum and China’s 330 reform plans
1.6…Brain quality decides human quality and social governance
1.7…The knowlledgeable people are the best for social governance
1.8…What is the ultimate aim of the government or democracy?
1.9…Partisan politics should be replaced by non-partisan Politics
2...Introduction
3…How to make pipeline project by lowest cost in fund and time
3.1…The factors that may badly impact on the pipeline construction
3.1.1…Firstly is the poor social governance
3.1.2…Secondly is the poor corporate culture
3.1.3…Thirdly is the potential construction management
3.2…Federal government of Canada should authorize an Super leadership
3.2.1…Partisan politics will push world economy sustained in recession
3.2.2…Democracy and Values are entwined together in harming human survival
3.2.3…The democracy made British government into hemiplegic
3.2.4…Democracy made the United States no way out
3.2.5…The democracy leads low productivity in Canada
3.2.6…The advantage of Non-partisan Super Leadership
3.2.7…The potential Candidates for Super Leadership.
3.3…Optimizing construction team to minimize the cost in management
3.3.1…Pre-design regulations and operation technologies
3.3.2…Middle managers play a role as more in bad less in good
3.3.3…Accountability – tagging responsible on individual forehead permanently
3.4…Recruitmant of construction workers is selection of better brain
4… Dr. Pierre Trudeau has set a model for us
5…Some projects for Super Leadership
5.1…Tagging accountable mark on forehead of specific individual permanently
5.2…The health care refom and a money printer
5.3…CPP takes over farmland and develops as main body of state-owned economy
5.4…Downsizing governments in all level by e-Government
5.5…Set Economic Zone to avoid the harm of speculative real estate
5.6…Establish R&D Center as a pillar for Super Leadership
5.7…The enterprise internal patent management system
5.8…Promote Canada enjoying free trade quickly with self-protection
5.9...Invitation of global promising enterprises into Canada
5.10...The botanicals plant farming and natural OTC medicine processing
5.11…Establish Canadian culture center in China for retailing and wholesaling Canadian products
5.12…Development of television media industry
5.13…Rescue Bombardier from the road-dust of failed RIM
5.14…Save Canada’s manufacturing from disappear
5.15…Develop a business as R&D-oriented
Introduction
Since the lower animals evolved into higher animals, the so-called human beings have never stopped the exploration for own social ruling, but never got right way as that of higher animal should be, due to that the brain of some human members has not evolved synchronously as that of qualified higher animals, but still stayed in filling with the stuff as that of wild animals.
Now, human beings are facing many thorny problems in threatening survival. Such frustrating reality is mainly derived from improper social governance, due to that ignored the quality control for the people who take part in the policy making.
MRI brain scans revealed that it is the difference in the quality of human brain caused the difference in the quality of people, which enlightened us to select brain well developed high quality people as policy maker to perform proper social governance.
The success in economic reform of China was not derived from the governing power of one party dictatorship, but, from the quality leadership by a group of quality humanized and experienced people in Technocratic Democracy; which ensured the formation of humanized policies that are not only carry out social reforms, but also are able to avoid the psychological harm to the people who worry about the unknown prospects from the oncoming social changes; by thoughtful governing skills that were in avoiding (not overcoming) social resistances, such as, set special economic zone for test, and then promotes the successful experience; which will be also applicable in any country.
By thoughtful consideration, China adopted a gradually trial-and-error reform approach in step by step to avoid social unrest.
The implementation of various new policies that may comparatively impact on people’s lives, such as the transformation of public housing supply to private ownership, the marketization of the planned economy regulated prices of life necessaries, the marketization of the planing regulated state-owned economy, and the changes in rural farmland ownership and agricultural operation models, etc.. They are all through local pilot test, then summing up the feasible experience to disseminate widely. Shenzhen city was a good example.
By such a roundabout way, before large-scale implementation of the new policies, by pilot test, unsuitable practices were corrected. More siganificantly, reduced people's panic about unknown reforms; because of the most of people have already understood the details and knew the benefits of the reforms, and are psychologically prepared. Thus the implementation of the reforms have little resistance and will not lead to social disturbances without bloody conflict like other countries.
The ability of the politicians of China for making rational decisions is derived from the civilization of 5000 years of continuous written records, which provides experience and lessons for future generations in social governance, and the dialectical philosophy Daosim has cultivated the intelligence of China's people in careful thinking and avoiding omissions for various possible consequences.
However, in Western countries, because of, either without rational civilization available as reference, either the politicians have no ability for judging the bad consequence for what they are going to do, but have to blindly follow the idea of those so called thinkers from so called Think Tanks; actually, if we carefully review the lessons in the past, it is just those so called thinkers in misleading those low quality politicians to recklessly harm human world. As my view, the so called Think Tanks are exactly the jars in fermenting highly toxic csocial poisons. The so-called thinkers in the jars are all useless wastes who make a living by chewing historical rubbish.
It was just above reason, the politicians in the countries of former socialist camp headed by the former Soviet Union were mostly adopted shock therapy that intended to transition a planed economy or developmentalist economy to a free market economy through sudden and dramatic neolibaral reform; they used it in both of transform of their political and economic systems in a short period of time without preparation, and which radical reckless play caused great damage to the social foundation. The political and economic liberalization did not bring benefits, but its damage cannot be repaired.
Without background of rational civilization, people only can do bad for good, by good intention makes bad result.
Canada don't need the social reform as that of China had to do; then what measures can be helpful?
3M Canada saves Energy 30% by ISO50001 by the same group of people with the same equipments in the same place, showed the magic of ISO management standards, which is well designed for accountability – tagging responsibility on the forehead of each individual to award or punish accordingly.
By imitating ISO management, we can totally reverse low productivity systematically. We can largely reduce the waiting time for the service in government, we can largely reduce the waiting time for medical treatment, and we can largely reduce business closure or outsourcing by lower down the cost in goods production.
Accountability can help us easily to gain great output with lesser input and it is the optimal way that can dig out huge potential profit that has hidden in every corner of Canada, by which simple way, we can reap profit 30% without input and truly realize the determination of the Prime Minister Justin Trudeau – Canada is back.
However, under current populist kidnapping and partisan party deadly fighting, the government of Canada will never be able to reach it, no matter how strong the determination is.
For getting rid of the constraints of democracy, the government of Canada should authorize a non-partisan governing body – Super Leadership as assistant with independent policy making in limited area on limited issue to explore a way out, then with convincing fruits to update the policies federally as that of China did successfully.
This article will take oncoming Pipeline Project as example to discuss that how to help the non-partisan Super Leadership to play its unique role, with the natural retirement of the baby boomer generation and the availability of the manpower-saving E-governance to reach that populist kidnapped democratic government is difficult to reach:
Accountability can help us easily to gain great output with lesser input and it is the optimal way that can dig out huge potential profit that has hidden in every corner of Canada, by which simple way, we can reap profit 30% without input and truly realize the determination of the Prime Minister Justin Trudeau – Canada is back.
However, under current populist kidnapping and partisan party deadly fighting, the government of Canada will never be able to reach it, no matter how strong the determination is.
For getting rid of the constraints of democracy, the government of Canada should authorize a non-partisan governing body – Super Leadership as assistant with independent policy making in limited area on limited issue to explore a way out, then with convincing fruits to update the policies federally as that of China did successfully.
This article will take oncoming Pipeline Project as example to discuss that how to help the non-partisan Super Leadership to play its unique role, with the natural retirement of the baby boomer generation and the availability of the manpower-saving E-governance to reach that populist kidnapped democratic government is difficult to reach:
1…To comb financial instruments and restrict malicious speculation that is badly harming real economy, such as, that hedge funds speculate on currency, which once trigged 1997 Asian financial crisis. The fourth Prime Minister of Malaysia, Dr. Mahathir once said that “We have worked 30 to 40 years to develop our countries to this level, but along comes a man with a few billion dollars and who in a period of just two weeks, has undone most of the work we have done.”
July 23, 2016, at the G20 summit in Chengdu China, German Finance Minister Wolfgang Schaeuble said that he is pushing for a global financial transaction tax, though the proposals have been rejected in EU 28 member states, but he still promoting it in a small range. He believed that the effort will bear fruit world widely in a few years later.
The idea of global financial transaction tax may provide a feasible approach for Canada in curbing irrational financial activities.
German government is No.1 rational in social governance, in the process of reviving the economy of Canada, there a lot worth to learn from Germany, follow are some of my summarized articles regarding Germany.
Feb. 16, 2014, Why Can German Economy Fly Against Economic Recession.
July 29, 2015, Germany timely regulation of Real Estate Market sets a model for Canada.
Now, German politicians are also strongly opposed that monetary easing and negative interest rates.
Dec.13, 2015, in the article Partisan politics will push world economy sustained in recession, I indicate that, the main cause of global economic recession is that under the kidnap of interest group, the partisan democratic government allows overdeveloped Financial Economy to over-plunder Real Economy, to have made the profit margins of manufacturers too narrow to survival. The eased-monetary did not invest into real economy as expected, but into the financial economy to more powerfully harm real economy.
There was a best example in Japan, over the years, the Japanese government has frenzied monetary easing, even took negative interest rates, but, all did not work. Now, the free speculation on Yen is hurting the economy of Japan. There was a report that Japan's economic plan 'backfiring' as yen surges.
The Next Financial Crisis Will Be Worse Than 2008, Says Legendary Investor Jim Rogers.
A nation’s economy cannot be built on the speculation, but rather, it must be based on the material wealth creation. A country must build into a fairyland of material wealth creators, rather than a paradise of greedy unearned speculators.
Canada should act as a pioneer to reverse the course of world economy back on the right track.
2…Quit TPP and CETA grouping talks, to negotiate by country to country to reach free trade deal with more countries quickly based on the existing documents of free trade talks with ensured self-protection.
The nature of TPP is not mainly for free trade, but, the mischief led by U.S. multinationals, by setting rules that are in conducive to themselves with their own organized Arbitral Tribunal to handcuff the government of member countries, and then they easily wanton plunder.
Dec. 27, 2013, in article Free Trade is damaging Agriculture, I indicate that “the younger generation has been reluctant to engage in strenuous agricultural life,” “It is time that we should ask that, under the guise of impartial, for ensuring the fair, for maximizing the justice, to mindlessly cut agricultural subsidies, whether, that is creating greater unfair, greater injustice, whether we are destroying the agriculture that human survival is depending on.”
With Cheap Food Imports, Haiti Can’t Feed Itself showed that irrational free trade led by some low quality people is damaging the agriculture and to drive more people out of their motherland.
TPP will disable more rational governing measures that are in maintaining many countries’ stable, and would make more bad results as that of agriculture. Free trade should not be used to damage the economy world widely.
Terrorist attacks and refugee flows showed that stable development of any country will be a great contribution to whole world.
For Canada, the urgent priority is not in opening free trade market, but, in making competitive products by reversing low productivity and unreasonable high cost in manufacturing, which is not easy, due to that is under Unions’ culture and legal protection. Without competitive products, more open the market, more damage the economy, while has to donate own sovereignty to multinationals.
There are more feasible way for well develop economy, Canada should quit from TPP and stop to play as an evil helper to harm others while damaging own economy.
3…Brand new organizational structure and management style for the construction of the pipeline project with accountability and work-performance linked payment to avoid the project to be kidnapped by some companies and Unions, which is the global popular practice that government invested project will inevitably be taken as flesh on the cutting board to be free cutting in endlessly burning money under unforeseeable deadline.
We must avoid the absurd that meets irrational-claimed interest of the minority by harming the interest of all nationals.
4…To set economic zone in Southwestern Ontario and Vancouver under the Super Leadership with timely policy making to create a better business environment, by forbidding real estate speculation in the zone, with Gov-enforced corporate management, to help business in low-cost stable running, and thereby creates more employers to provide more job and revenue, while sponsoring defined benefit pension plan to forge a concrete foundation for Canadians’ retire life, and to avoid the tragedy that Greek Pensioner shoots himself to refuse to search for food in garbage.
We must reserve more land for the manufacturing of competitive products, and limit the area for speculative activity on real estate, so that they both can well exert the advantage in boosting economy.
For developing economy, it is best to create a favorable business environment to develop real economy, rather than that of blindly endless fiscal stimulus, and vigorously promote inflation level.
Any practice that can sure manufacturer stable operation is a only feasible way that Canada has to go.
5…To establish Gov-funded R&D Center to ensure long term oriented cutting-edge projects and to spin off the matured technology with researchers together as independent enterprises, which was the successful practice that once drove the economy of Taiwan as one of The Four Little Dragons, and it was what China and the U.S. has been eagerly promoting in a large number.
Thereby to avoid destroying the foundation for long term development under short-term-benefit-chasing in product development and the profits are taken away by shareholders.
Without long-term vision and planning, Canada will be destined to continue to decline.
6…Invite Jack Welch, the former CEO of GE, and Dr. Ram Charan, the No. 1 management consulting guru who works as a consultant that makes many world business giants success, by introduced powerful management to enforce execution to break the irrational corporate culture and stubborn management model of Canada, to save Bombardier Inc., that is in following the road-dust of failed Nortel Network and RIM, thereby to establish a management model to follow for poorly managed Canadian businesses.
The problems and the possible cope-strategies are clear, Canada is urgently need in powerful execution.
7…Establish Canadian Culture Center in targeted market countries by Gov-led private-investment in that who invests who benefits with strictly forbidden to be speculated as real estate, but, only for promoting Canadian culture with wholesale and retail those produced and made in Canada, thereby reduce the cost in intermediate sales channels.
The absurd that middlemen take away most of the profits must be avoided.
8…Largely downsize overstaffed government by manpower-saving E-governance as that of the successful practiced in Estonia, with the natural retirement of the baby boomer generation to largely reduce the cost in social governance and make more people work in the industries for revenue creating, rather than only consider how to tax more money on citizen to worsen their hard life.
9…To promote Canada Pension Plan develop as in kind base and as key body of state-owned economy by taking over all available farmland at the time of baby-boomer-generation-farmers retiring, thereby to stop farmland being used as gambling chip for wild speculation. The high price of farmland is in destroying the competitiveness of agro-products and thus in destroying agro-industries and real economy of Canada.
10…To introduce a patented cancer treatment from China, which is injecting drug into tumors in 10 minutes for each patient without influence of normal tissue and immune system to ensure patient a quality life when and after treatment without the need of cost in expensive postoperative medication, by which largely save medical manpower and spending to make a room for reforming low efficient heath care system.
11…By Comprehensive Hospitals in multi-divisions with operating rooms and labs to replace current system, to ensure that patients get right treatment at first time and avoid patients wandering between family doctors and specialists who were not the one that patients urgently needed, but, in the most of the time, they were only acted as that of nurse to send patients somewhere else, which was the big waste in medical resources and main cause of long waits for treatment.
The waits time for treatment will be reduced largely by only optimizing medical flow procedure with accountability and work performance linked payment.
12…Planting and manufacturing OTC natural botanical medicine based on the theory of Traditional Chinese Medicine under the philosophy of Doism that views human body as a organic whole with interdependence and mutual influence in psycho-therapy sensitive, which is the trend world widely. The most synthetic drugs are with dead side effect from Western Medicine under the philosophy of the Reductionism that views human body an assembly of the lifeless parts, which has faced with dilemma in no way out.
TCM has recognized 11,146 plants, 1581 animals and 80 minerals as medicinal use and developed nearly 100 thousands of experience-based formulas in covering almost all knew diseases. It is a valuable resource for medical treatment, and the money printer for economic development.
13…Build a money printer by television media by focusing on the Science and Technology Education as well as promoting social spiritual civilization with making and translating some good programs that can promote positive social spiritual atmosphere.
For a long time, in the West, film and television programs are lack of positive human civilization, but, full of inhuman violence and pornography, there are many reports that violence episodes in movies and television series have been playing the role in teaching children crime.
Such inhuman behavior must be totally reversed.
In China, there are a lot of good Movies and TV series that are showing positive life under well Gov-conducted.
In many countries, the China’s TV series that translated into local languages are very popular.
The Movies and TV series of China are inexhaustible resources.
While promoting social spiritual civilization, the television media also has huge profit margins.
……
Note:
1…Some projects are better practiced according to the suggestions from comprehensive investigated-studies of McCarthy Consultant Services Inc. (MCSI). The significance of McCarthy’s involvement is that issues can be studied more thoroughly for an optimal solution and also as politically neutral institutions, its voice would distract social objection.
Mar. 18, 2016, I wrote article The Political Significant of McCarthy Consulting Firm.
2…Some projects need to be practiced gradually along with natural retirement. The Retirement of Baby boomer generation in Canada will be until 2030 with a total number of about 5.16 million from 2015 to 2030. After baby boomer generation, there are still retirements about 0.28 million yearly. The natural retirement provides a good chance for social organizational restructure without the headaches of lay off.
3…The funds for the investment of Super Leadership will be mainly from self-financing with running some profitable projects. Such as, patented cancer-treatment that is to inject drugs exactly into tumors without the need of expensive post-operative maintaining medication. The patented treatment is full covered by medical insurances of the United States.
4…Norway's Government Pension Fund in Oil Makes Every Norwegian a Millionaireprovides a lesson, from the considerations in vital interests of Canadians, Canada must make most of available resources to be public-owned by the managing way of those long run world class companies. Some profitable projects should run in state owned under CPP.
The pension funds must invest into infrastructure construction and manufacturing development to make profit from create jobs and revenue.
--- Frank Aug. 9, 2016, in Waterloo, Ontario, Canada
1. Human beings has been living in the civilization of lower animal
Historically, human beings has been suffering endless wars, endless religious killing in the name of faith, now, series terror attacks in many countries, especially, the US police officers were even killed by their citizen, the killing innocent has developed as epidemic in spreading globally.
The world has been deemed as a casino for free play of killing games.
Besides those life threats, human beings have been suffering the infinite loop of the economic crisis, and now is facing dilemma in many aspect.
As higher animal, human beings have never been able to enjoy a civilization as that of higher animal should be, but, sustained in the civilization that belongs to lower animal under the Law of the jungle.
No matter willing or not for my comments, the fact was exactly as so.
It is time we have to dig the cause from root level.
As my view, the root cause was that human beings have ignored the quality control for the people who will seize the power in policy making, so that the low quality people have easily kidnapped government and thereby malfunctioned social governance.
2. The quality of brain determines the quality of people
MRI scans revealed that behaviors of people are controlled by corresponding population of brain cells, various mental disorders are connected with abnormality in brain. Such as that in the brain of the teenagers with antisocial behavior, the regions that contribute to emotion perception, empathy and recognizing were strikingly smaller, and the greater the severity of the behavior problems, the greater the reduction in the volume of the regions.
The findings show that it is the qualities of human brain in controlling the behaviors of people, or may say it is that the quality of human brain in determining the quality of people.
Because the number of neurons is very large and the structure of brain is complicated, it can be said that no one can be like others in the structure of the brain.
Due to that development of brain between people is different, so that the quality between people is in great different, too. Some people are sober and rational, some people are impulse and radical, and some people are reckless or even antisocial, which all are determined by more or less in population of the brain cells in corresponding functional areas.
Generally, the quality of people performed by dual natures: The culture nature of those acquired qualities, and the animal nature of those inborn instincts. Those brain well developed people would tend to gain more acquired qualities from study and to be more in culture nature with more ability to contribute to society; those brain poor developed people would be difficult in study and to be more in animal nature with more tendency to harm to society.
3. Low quality people are harmful than that of wild animal
The brain study and harsh reality both proved that, though all people were featured as higher animal, but, the nature of some people were in low quality as that of lower animal in reckless behaving or antisocial attacking, the cause is that they cannot make proper judgment due to their brain cannot make rational reasoning.
Besides the problem in the brain, that lacks knowledge as reference for reasoning is also the reason.
Apr. 6, 2016, in article Chrystia Freeland, a capable Minister of International Trade of Canada, I have discussed such issue.
“Modern studies show that Brain Cells can regenerate, it is the foundation that we can remember those what we have experienced in the past and can remember those what we will be experienced in the future.”
“The wide range of studies and social experiences will perfect brain in the structure with increasing new populations of brain cells, and the more brain cells in memorizing the experiences for the successes or failures will provide more references for perfect reasoning with more perfect decision making and less extreme and mistake.”
“It is that more in success, less in mistake and perfect predictability made a person as wise.”
“The wisdom of a wise depends on the memorized contents in the brain. A wise must be a socially responsible person at first.”
“If a person is lack of social experiences and extensive reading, the person will fall into as that of watching sky by sitting in the bottom of a deep well, which will largely narrow the field of the vision, and thereby limit the scope and the depth of the thinking. Thus, when faced with intractable social problems, the person cannot flexibility come up with feasible solutions. It will be more harmful for those who are on the key position of the government.”
“On other hand, that even with same innate quality of the brain, if the content of education applied repeatedly on something specifically, such as some doctrine, that person may become fanatics of the doctrine, because the content of doctrine is the only available reference in brain for reasoning and judgment.
“Due to unable rational judgment, those low quality people would easily accept extreme preaching, or to be lured as a member of some kind of people grouping, become an ignorant fanatics for some deceptive doctrine, even under some extreme appealing to perform terror attacks. They are even brutal than that of most ferocious beasts in harming others without slightest empathy.”
“The understanding for the structure and mechanism of human brain has provided useful evidence and reference to force human beings updating the way in social governance, which is to perform social ruling by distinguishing the brain quality of social member to proper control of those low quality people to reduce their harms.”
Talking from social governing, the most harmful is not those antisocial, but those low quality people whose brain quality is in between the normal and antisocial, especially those people are close to normal, they have a strong deceptive.
Since that they may make livings by grouping more people together with more power to perform their bad ideas. Some of such grouping is playing as a group beggar that plays as political artillery shells under the driving of charity giver. Some are dressed with beautiful outerwears of the kind benefactor, but, in helping those low quality people harm society.
The most terrible was that some of those low quality people have been in government in dominating policy making, which was the main cause that human beings was stay in the civilization as that of lower animal.
That human society could not properly prevent the terror attacks and could not avoid many disasters economically and politically were mainly derived from the misleading of those low quality people.
Human beings have to get rid of such ignorance urgently, the MRI scan is an easy way for distinguishing those low quality people, but, it is definitely impossible, even if asking some sensitive question is impossible in current social ideological and legal protection under the control of those low quality people.
The feasible approach, I can envision out right now, is through the process of social organizing to filter out those low quality people.
4. The partisan politics helps low quality people to harm society
The people free grouping provides a chance for those low quality people to get more powerful ability than that of as individual. In majority of people grouping, no matter how kindness of the initial purpose, but will be inevitably controlled by low-quality people, due to them are over reckless in bold action to be in leading role, and high-quality people are over cautious in hesitant action to be in passive position.
The free campaign of the partisan politics provides a chance for those low quality people to easily seize the power in policy making and gain more power in harming society by use of the instruments of State Apparatus, with malfunctioning government, they made that rational policy was difficult into practice, but, irrational one was easy popular.
Though the people in the circles of policy-making are not all in low quality, but, under the herd mentality, the reckless behavior of the low quality people would play in major role, and the harm would be more brutal.
Such as that The Chilcot Report revealed that it was the US decision on Iraqi army led to rise of Isis with childishly bypassing United Nations. The U.S. is an atypical country under control of partisan politics.
Historically, suppose that without the help of Nazi Party, as individual, that Adolf Hitler would never be able to seize the power in controlling Germany, and by the power of the State Machine to launch world war.
Harsh reality proves that human society must control the flocking activities of people.
For example, those organizations that advocate extremist ideas are playing the role as training school in training more and more people as extremists; this is the main cause of the terror attacks.
In this concern, that AlphaGo beats a 9-dan professional player Lee Sedol in the board game Go (the wéiqí of China) was a good example.
Google DeepMind developed a computer program - AlphaGo to play the board game Go (the wéiqí of China). In March 2016, it beat Lee Sedol in a five-game match, the first time a computer Go program has beaten a 9-dan professional without handicaps.
People have been cheering that artificial intelligence will exceed human beings; in fact, people have ignored the essence of the problem. For AlphaGo, if it was not that human have entered a large number of existing residual wéiqí game in success and failure as reference, AlphaGo would never beat people.
Similarly, if it was not that allows people in free grouping to indoctrinate extremist ideology, there would be no so many people to perform terror attacks.
It turns out that those who advocate freedom in people grouping are the low quality people who are in helping those low quality people harm society.
It is same that majority of those appealing for freedom are more in bad than good.
A livable society must be in order under strict control, there is nothing for freedom.
5. Human beings must turn to govern by non-partisan politics
In order to avoid the tragedy to be repeated again and again, we have to put an end to the partisan politics that is proud of anyone can free campaign without an essential quality control for political candidates, and thus has paved a fast lane for those low quality people accessing to policy-making.
Human beings have to turn to be governed by non-partisan politics with a group of noted high quality people in recommended based on recognized social contribution practically and theoretically, rather than free campaigned under the Law of the jungle, thus, by the governance of a group of knowledgeable high quality social elite to return world a peace.
All in all, as higher animal, we human beings should not continue acted as that of lower animal; we need a new enlightenment in self governance by distinguishing the quality of social members based on the quality of brain. It is high time that we have to get rid of the harm of the partisan politics.
We must get rid of such ignorance.
The best way is that creates a personal profile for each social member from the birth; to regularly record the results of brain MRI scan. Accordingly, to identify those people who are potentially harmful and those people who are qualified to be chosen to engage in social governance.
As rational people, we come to this world, are not for adapting to the reality, and are not for struggling to enjoy vanity, but rather, we come to make some livable changes.
6. The motivation for above ideas
I am neither a sociologist, nor a philanthropist in kind-hearted appealing, but, an ordinary man who has been making livings as a general labor in Canada.
In the past 16 years, as a general operator, from working in daily production of different manufacturers, I purposefully experienced the poor corporate culture of Canada, and observed the improper ideological and legal negatively hindering the management of enterprises, from root level to have observed social governance.
The death of my former boss in his prime age due to the pressure from business operation shocked me very much. His tough hardship and the scene of his busy working, like the plot of movie, emerged in my eyes from time to time, which forced me to think into the meaning of the enterprises and entrepreneurs and forced me to think that how to help those helpless entrepreneurs, how to improve Canada's economy, how to improve the lives of hard working Canadians, and how to change irrational reality?
The talkative above was the simple views about the increasingly deteriorating world and the wrongful social governance. Besides the harm of the partisan politics, the various organizations that have power to impact social governance seem also somewhat in ignorance dominated.
But except those academic societies where gathered politically marginalized high quality social elite to be in wasting.
7. The most threat for human survival is the decline of creation of life-necessities
The problems that threaten human survival are not only limited in the wars and terror attacks, but also, in great many aspect, especially, the low quality people kidnapped government allows everything to be taken as gambling chips for speculation – currencies, real estate……, with a variety of private funds, fictitious transactions……
For the manufacturers in life-necessities, the speculation made their profit margin too narrow to survival.
The more terrible is that there more and more people are flocking into unearned opportunistic speculation, while in contempt of life-necessities creation.
For years, the governments in developed countries are obsessed in paper economy and people were encouraged in addict in reaping without sowing, such a society is certainly in self-destructing.
We must get rid of such ignorance.
8. Canada is a country of the most in manufacturing decline
In Canada, under partisan politics, the wrongful social ideological and legal protection has been misleading the work ethic of people and encouraging them hostile attitude towards employers to strike for more by doing less, thus has led the productivity lags U.S. in virtually every instance, and the cost in making goods was higher than that of once costy countries Japan and Britain.
The closure of many businesses were not due to the problems in product and market, but simply due to the boldly troublemaking of reckless employees without proper law in regulating them.
May 18, 2016, in the article How to save Canada’s manufacturers from disappear, I have cited some true cases from my personal experiences.
Feb. 09, 2014, in article Management is the Art of Playing Human, I once took 3M Canada saves Energy 30% by ISO50001 as example to discuss the poor management of Canadian businesses.
There were reports taking the energy save 30% in 3M Canada as a proud achievement. However, I would like to question that, by the same group of people with the same equipments in the same place, why they could not effectively save the energy similarly before the implementation of ISO50001 standards? Why they could not treat the plant as that of in own homes to turn off the lights and shut down the equipment when it’s not being used before the implementation of ISO50001 standards?
The achievement of energy saving is also reflecting the CHAOS in the management of 3M Canada. It is common in many Canadian enterprises, which is one of the reasons of the mid-sized firms is declining. It is not my surmising boast at all. It is the terrible facts of my personal observation and experience in the enterprises of Canada.
I think that the corporate management may be the most intricate and most grueling tasks, since it has to deal with the labors – human beings who are with the brain that can act of their own accord.
If there was no mandatory of the ISO50001 standard to strictly enforce the staff as that of the law enforcing social members, only relying on their management team and their own developed management rules, 3M Canada would never get such an achievement.
9. Mistreating entrepreneurs caused decline of manufacturing
In such a social environment, entrepreneurs are most suffering group, they have to subject more difficulties; and they have to endure various pressures independently, the development and production of the product, financing, marketing, taxes, wages, and more unexpected difficulties, but the most terrible suffering may be the headache from helplessly seeing the bold troublemaking of the reckless employees.
In this regard, globally, social ideology has been going on a wrong way.
Historically, in worldwide, it has been lacking of concerning and supporting for Entrepreneurs. The law seems to have ignored this group also, but tended to protect employees without updating of the outdated traditional ideology from the times of Industrial Revolution with ignoring that modern society has provided thoughtful social welfare and comprehensive legal protection.
The outdated ideology and practice has badly affected the work ethic of employees and to have made Enterprises difficult for managing.
In past decade, in Canada, the low productivity and high cost has caused many manufacturers closed or outsourced and hundreded-thousands of jobs have been destroyed. The most shocking tragedy was that suicide rate in Alberta climbs 30% in wake oil patch layoff.
In this process, people only focus on the loss of the businesses, and on the loss of the jobs. I never heard and saw any report that shows sympathy and concern for the entrepreneurs; no one cares about those entrepreneurs and their families who suffered from mental and turn to physical hurt when seeing their beloved business helplessly failing.
Even more absurd is that people have been suspicion and hatred of them, and criticize them as the makers of social polarization.
10. Entrepreneurs are the backbone in supporting manufacturing
Rare people can realize that “enterprises are the important organization of social production to create material wealth for human survival, and the entrepreneurs invest their money to run the enterprises with a frugal living and risk taking, to provide employment for public living and revenue for social governing. Thus, their enterprises are to be shared publicly in playing the role as social wealth.”
Apr. 29, 2015, in article Canada’s economy is faced at vital crossroads, I indicate that Manufacturer is the basic cell and main driving force of the real economy by integrating the Intelligence, Capital, Knowledge, Technology, and Market together to play the role as protagonists in scientific and technological innovation.
The entrepreneurs are the organizers for social production, they organize and train social members to create material wealth, while creating job and revenue, thus to create a stable community, by which that people can work and live to enjoy a prosperous life.
The most of social elite are calling for economic development, calling for an increase of domestic demand to revive economy, and calling for the development of service sector to revive economy, however, they seem have neglected the important issue that without entrepreneur will be no manufacturer, without material wealth manufacturing to forge a ground foundation, without job position and wage income, how to increase the domestic demand, how to develop service sector?
We must get rid of such ignorance.
Entrepreneurs are the backbone and the most valuable asset of Canada; we have to help them by every possible.
11. Saves manufacturing is the most importance
Above, I have repeatedly talked about enterprises and entrepreneurs, to repeatedly emphasize the importance of the manufacturing sector; due to that manufacturing is the cornerstone of social stability and in sustained progress.
On other hand, with the development of the market economy, human’s living apace is largely transferred into the market place from geographical space, without ability for making competitive products; Canadians are losing living space in the Era of market economy.
Therefore, that saves manufacturing from declining is the importance in the importance, the urgent in the urgent.
A rational government should full heartedly support entrepreneurs by providing help in all possible, especially, strictly suppressing the mindless behaviors of some people that are badly impacting the development of businesses. In this concern, that former British Prime Minister Margaret Thatcher has set a good example.
However, that seems impossible in many countries, even in current Britain.
July 7, 2014, ibtimes.co.uk, No Margaret Thatcher, Unions made UK's Working Days Lost Rockets 78% in 2013.
Feb. 25 2010, dailymail, co.uk, Up to 1200 needless deaths patients abused staff bullied to meet targets… yet a secret inquiry into failing hospital says no one’s to blame.
12. Canada needs powerful execution
Faced with such reality, years ago, the Prime Minister Justin Trudeau and Vancouver Mayor Gregor Robertson were both expressed their deep disappointment for the incompetence of democratic government and showed strong appreciation for the economic achievement and the high efficiency of the government of China. Later, they both had to have surrendered to the fierce attacks of the public opinion.
Recently, federal government authorized Federal Advisory Council, Chaired by Mr. Dominic Barton who is the global managing director of consulting giant McKinsey & Co., with the members of recognized outstanding social elite in manufacturing, investment, university, innovation hub, economic forum and so on under a broader coverage socially.
The establishment of the Federal Advisory Council showed the strong determination of the government in boosting economy, and the Chairman Mr. Dominic Barton who has also called for an 'Aggressive' Change to lead Canada out of its cycle of feeble economic growth and to act soon.
I believe that above efforts has sounded the horn for opening a new era of Canada.
However, the strong determination and good wish is not equal to the reality, an 'Aggressive' Change would be not easy to carry out. Due to that, as usual globally, the effort for social advancement will inevitably encounter social resistance, which is mainly due to human nature in regardless the race and the nationality; it will be similar in one party dictatorship, or multiparty democracy besides the malicious obstruction of the opposition parties in democratic government.
As my view, the problem in Canada is not at the solution unclear, but at powerful execution. For great many years, the Gov-sponsored studies, sober social elite have proposed a lot solutions, but helpless.
Under the populist kidnapping, the values kidnapping and the irrational fight of the partisan parties, the government of Canada has been in hemiplegia that cannot properly play governing role.
The problems that cannot be solved by the government - the government that powered by the power of the State Apparatus with the legislation, the courts, the police, the army and other powerful mandatory administrative measures, the same problems will never be solved by the help of the new Federal Advisory Council under the same governing way.
Then, Canada will really be helpless in no way out?
In this concern, that China’s successful economic reform has created a model to follow.
13. The success of China was not in dictatorship but in governing skills
In fact, that China's economic achievement was not mainly from the governing power of one party dictatorship, as that of appreciated by Prime Minister Justin Trudeau and Vancouver Mayor Gregor Robertson, but from the governing skills that can also be easily practiced in Canada. Later, they both had to have surrendered to the fierce attacks of the public opinion.
Later, they both had to have surrendered to the fierce attacks of the public opinion. This fully demonstrates the horror of ideology. The social elites who occupy the dominant position of public opinion in Canada are mostly dogmatists or kidnapped by ideology. This is a resistance that Canada can never overcome.
China's economic reform was a process that tries to avoid social resistances (rather than simply overcome) by seeking a roundabout way that can avoid obstacles.
In June 1994, on 12th Annual Meeting of the Inter Action Council; Dr. Pierre Trudeau made a rational comment about the practice of China’s former president Deng Xiaoping: “Deng has principle, he knew where the objectives were; he was following and putting practice of those principles. He was pragmatic, as he said you can use different routes to come to same aim, the ends are always same: the strength of China, the unity of China, and the stability of China.”
“You can use different routes to come to same aim”, only the politician who had the similar experience can make such soul-touching comment.
At that time the busiest jobs for top leaders was to criticize and instruct the local leaders who hinder the spontaneous reforming initiatives of the grassroots people who desire to create a better life by own hands. For this purpose, Deng Xiaoping made a famous comment: whether the cat is black or white, the cat that can catch mouse is the good one.
Later, according to the request from locals, China authorized Shekou, a small village nearby Shenzhen city in Guangdong province, as test zone with independent policy making without financing support. The limited area under the name of test has an advantage in less social resistance and more importantly, the social rumors about the practices in the test zone have played a role as a vaccine as psychological immune for relieving people’s panic when facing uncertain social changes.
And then, by convincing successful experiences update the policies for national promotion, by which from point to line, and then from line to area, which last many years even if was in the ready psychological environment, otherwise, even if in the one party dictatorship also could do nothing. The Shenzhen city was born in this way from a Fishing Village; Now Shenzhen city is powerhouse in driving technical revolution of China.
Before economic reform, there were many people flea to Hongkong for a better life and to be captured and sent back, those people were held in the over crowned place. Most officials suggested punishing them as traitors, but when facing those detained people, Xi Zhongxun, the father of Xi Jinping said with tears, this is not your fault, but is ours; we did not make a good life for you. Deng Xiaoping said, we must develop economy to improve the life of people.
Now, there are millions people work in Shenzhen and other cites of China from HongKong.
In June 1994, Dr. Pierre Trudeau, the 15th Prime Minister of Canada, who once made a similar comment about China’s economic reform when he attending 12th Annual Conference of the Inter Action Council, which showed in the documentary The evaluation of Foreigners on Deng Xiaoping in following link between 2’13’’ to 2’48”.
https://www.youtube.com/watch?v=GWliBycLiX4&t=233s&ab_channel=HongdeLi
At the conference, among many interviewed former leaders of the states, Dr. Pierre Trudeau who was the only one that could point out the essence of the success of China’s economic reform – to accomplish determined principle by flexibly looking for feasible ways that could go through. The sober views showed the outstanding of Dr. Pierre Trudeau, it was why that under his tenure, in Canada, the social development index and quality of life has been among the highest in the world.
14. Canada should authorize a non-partisan Super Leadership as assistant
For getting rid of the constraints of democracy, to practice the successful experience of China, Canada should authorize a non-partisan governing body – Super Leadership as assistant in a limited area with independent policy making, and thus to gain powerful execution, to explore the way out, and then with convincing success to update the policies federally.
As an authorized assistant, with less affect from kidnapping, with powerful ability in execution, by cooperation with the Federal Advisory Council, in a limited area on limited issue with less resistance-causing, through timely policy making, non-partisan Super Leadership will be able to reach a desired result and thereby to explore a road for reviving the economy of Canada.
The most significant advantage of non-partisan Super Leadership is at that, in the condition that do not touch current social system, we will be able to deal with some urgent but thorny social issues, especially boldly provide support to entrepreneurs, with flexible policy making to create a preferable business environment to attract and develop more manufacturers with more job and revenue.
Thus, step by step, a little by a little, smoothly, but, to gradually promote Canada going forward.
Talking to here, I think of that, the social progress will inevitably accompanied with the updating of social ideology; we must care about psychological panic of people that will be naturally produced when facing uncertain social changes.
We must be clear that the ultimate purpose of social change is to improve the lives of people, in the process of changing, we must try to minimize the psychological hurts for the people, until the end result has showed good for them.
The bloody historical lessons proved that social progress must be relied on gradual improvement, rather than radical revolution, it must be gradually, step by step, as that of China’s economic reform. Therefore, the social progress is not a thing that can be done in one overnight; it may need 5 years, 10 years, 20 years, or even more.
The process of the social progress is the process of the updating of social ideology, it even needs new generation with new ideology naturally replacement of old generation with old ideology.
In this concern, that performs social progress to start by authorizing a non-political governing body with powerful execution of independent policy making in a limited area on certain issue under the name of test will be only feasible approach.
Above ideas are derived from my first-hand-observation and thought with the eyes cultured by Eastern civilization and has experienced planning economy and the hard process to transform into market economy in China.
If you also experienced those what I have experienced in the businesses of Canada, suffered that helplessly seeing the good businesses to be closed or relocated by simply because of no an effective deterrent to stop the reckless troublemaking of some employees, and the absurd was that social ideological and legal is in encouraging those reckless behaviors, you would also fall into deep anxiety – where is the hope for hard working Canadians and where is the way out for Canada?
A country cannot live in the state of ignorant self-appreciation forever; now, it is the time that we have to give our self a wake-shot for brain sobering.
Canada has no advantage in any aspect at all, with poor natural geographical conditions, in high latitudes of poor agro-climate, in low quality of natural resources that need high cost in exploration, especially lack of enterprising spirit as that of Germany and China.
Canada should act as the forerunner in promoting non-partisan politics, thereby to save Canadians and human beings. For this concern, that 20th Prime Minister of Canada Mr. Jean Chrétien may play a leading role. The age and the experience have made him nothing worries about besides the deep worry for the increasingly decline of Canada.
Canada is not only need of the consultation of Federal Advisory Council, but also, urgently need of the powerful execution by non-partisan Super Leadership.
Though, the Federal Advisory Council is an outstanding group with members of noted entrepreneurs, no doubt, they may provide ideal strategy with a strong appealing, however, they have to work under partisan politics, as usual, they also cannot solve some thorny issues that have been handcuffing government, such as, the dystocia in policy making, irrational labor striking, and long formed traditional practices.
Therefore, Canada is not only in need of feasible suggestion, but, more urgently, is in need of powerful execution by getting rid of the constraints of kidnapping of the populist electorate and partisan parties.
We need Gov-authorized non-partisan Super Leadership to play a role as pioneer to pave a viable path, and thereby to put the ideas of the Federal Advisory Council into practice.
The Federal Advisory Council and the Super Leadership will play the role as that of left hand and right hand. The two hands are both indispensable in complement each other and support each other.
The members of the Federal Advisory Council are all busy in own important management position, without time for personally in practice, and the Super Leadership will be able to act as their hand to realize their ideas.
Also, under the support of the Federal Advisory Council, the work of the non-partisan Super Leadership will be more righteous.
A good life is positive created, rather than negative waited.
Frank Jan. 30 – Feb. 25, 2016, in Waterloo, Ontario, Canada
Updated in Aug. 9, 2016
1…The necessity of authorizing a Non-partisan Super Leadership
1.1…The difficulties of Canada is facing.
1.1.1…The agro-products and natural resources of Canada are losing the market world widely
New Zealand and Australia is the strong competitors of Canada in agro-products.
In North America, the agro-products of the United States easily beats that of Canada.
In Asia and Europe, leading by China’s strategy of reopening old Silk Road - One Belt, One Road, the network of highways and high-speed railway is quickly in shaping, the economy in Land Power based on the Land Freight will quickly rise up, while the current economy of Sea Power based on the Ocean Shipping will inevitably decline.
February 24 2015, independent.co.uk: China to Spain cargo train: Successful first 16,156-mile round trip on world's longest railway brings promise of increased trade: The 16,156-mile round trip was through China, Kazakhstan, Belarus, Poland, Germany, France and Spain seven countries. The train arrived laden with cheap goods and returned to China with expensive olive oil and other Spanish-made goods that are becoming popular in an increasingly affluent China.
According to China's capacity in construction and the ability in communication with other countries, especially the attraction of economic benefits from trade, if, Iraq and Syria restores peace, railways directly reach to South Africa is also possible.
June 23, 2016, China, Russia, Mongolia Ink Agreement On Economic Corridor: The agreement is expected to boost the new Silk Road. Putin and Xi are expected to unveil practical ways of aligning the so-called Silk Road Economic Belt and 21st-Century Maritime Silk Road with the Russia-led Eurasian Economic Union.
Nov. 13, 2008, Kazakhstan's “New Silk Road”: Eyes on the road - The Economist.
July 06, 2015, Kazakhstan beckons with reopening of old Silk Road | TODAYonline.
The unfavorable side for Canada is that Russia and the member countries of former Soviet Union, there are more broad farming land with more suitable farming climate, rich in the resources of minerals, oil and gas, which is Canada far less.
According to the exchange rate of Canadian dollar in July 6, 2015, in current Kazakhstan, the price of beef is $ 2.32 per 0.5 Kilogram, eggs in 30 pieces are $1.45, and a long Loaf is $0.29, which is many times cheaper than that of in Canada.
The convenient land cargo freight will help the cheaper agro-produce of original landlocked countries to easily flood the marketplace of railways and highways reached countries.
The expensive agro-products of Canada will be no market available world widely soon.
The difficulties of Canada in agriculture are caused by irreversible objective factors.
1.1.2…The manufacturing of Canada has been disappearing
After the painful failure of the Nortel Networks and RIM, the manufacturing giant Bombardier Inc. has continued in negative news-ridden, layoffs, deferred delivery of TTC street cars, and to be downgraded due to the debt level was too high.
Feb. 13, 2013, the Business Development Bank of Canada (BDC) issued the survey report that Canada's Mid-Sized Firms have declined by 17% — from 9,370 to 7,814 — from 2006 to 2010, in which, the manufacturing sector reduced more than half, from 2,807 to 1,381 between 2001 and 2010.
Since 2006 to 2012, there were about “450,000 manufacturing jobs have been destroyed in Canada. In Southwestern Ontario, long the country’s industrial heartland, increasingly resembles the adjacent U.S. Rust Belt with its abandoned, hollowed-out factories.”
The most shocking was that suicide rate in Alberta climbs 30% in wake of mass oilpatch layoff.
For the sad reality, people would naturally blame the globally economic downturn, especially Financial Crisis 2008 with ignoring the true reason, in Canada, the productivity lags U.S. in ‘virtually every instance’, and the cost in making goods was higher than that of once costy countries - Japan or Britain.
May 18, 2016, according to my experience with true cases that businesses were closed or outsourced, I wrote article How to save Canada’s manufacturers from disappear, in which I discussed some facts that caused low productivity and high cost in manufacturing.
The closure of some businesses was not due to the problems in products and market, but duo to the poor management, even simply due to the trouble making of some reckless individual, but, there was no management staff dared manage strictly, due to that reckless behavior was rooted in the Unions Culture, which was under democratic law protected.
The difficulties in manufacturing are mainly caused by manmade factors.
Aug. 19, 2015, in the article The speculators are destroying the foundation of Canadians survival, I indicate that: “In the Era of agricultural economy, the geographic space is the living space. In the Era of market economy, the market space is the living space.”
The low productivity and high cost in goods manufacturing would certainly make Canadians lose living space due to that will be doomed fail in the market competing.
Canadians urgently need to explore a new way out from the way in self-destructing.
For this concern, the experiences of China’s economic reform have provided a model to follow.
1.2…The experiences of the success of China’s economic reform
The success of China’s economic reform was derived from the well understanding for human nature and the culture of Ancient civilization; by which properly deal with social resistances in social advancement.
Any social advancement will inevitably encounter four main social resistances.
First one is that has to deal with people who are with innate selfish nature and are capable in independent thinking and tend to act according to own preferred accord, which will negatively affect social advancement.
Second one is that due to the advancement in social governance may cause the panic of people for the potential risks from the uncertain social changes; the most of people would resist the advancement.
Third one is that the advancement in social governance would involve in some social reform with the redistribution of social interest, and which would certainly encounter the fierce resistance of interest group.
Fourth one is that the way of thinking and behaving of people is dominated by accustomed old tradition or outdated ideologies. In The end of laissez-faire 1926, the British economist Keynes indicates that: “The compelling force of many of the original reasons has disappeared but, as usual, the vitality of the conclusions outlasts them.
Above mentalities and behaviors are caused by the inborn nature of human beings, in regardless the race, regardless the nationality and regardless the political model - one party dictatorship or multiparty democracy.
The success of China’s economic reform was derived from making efforts to reduce or detour such social resistance by roundabout way; rather than bloody overcoming by the administrative power of State Apparatus.
The success of China’s economic reform was also benefited from the culture of long civilization.
Oct. 2, 2014, in article Why did China not produce harmful native religions, I indicate that: “People appreciate the 5,000 years continuous civilization of China, however, most of people have overlooked the nature of the civilization, the valuable point, is not in the length of time, but, in the continuously documented historical facts – the facts in success and failure, which made valuable references, so that the future generations can avoid to repeat mistakes with lesser Detour.”
“The accumulation of experiences is wisdom.”
“The wisdom from 2400 years ago China lessons us that, the ordinary people can happily share in enjoying fruit, but they never willingly share the effort in growing the fruit. A rational government has to enforce them to do something that will benefit to them, but, do not expect to convince them in advance.”
Here needs to specially point out that, in 2400 years ago China, the philosophical text Tao Te Ching said that “the governance of a big country is as that of cooking a piece of small sea food”, it meant that is a matter of easily broken, and must be very careful.
These ancient teachings were paid attention by the successive governments of China. It was the fundamental of social stability and economic prosperity in more than 2000 years. It was the main reason that China’s economy leading the world before British launching the Opium Wars to interrupt the normal development of China.
As my view, in modern society, the social governance is to pave track by policy making, and society runs accordingly. Therefore, the process of social governance is a process of policy making.
Maybe due to the different in civilization background, the process of policy making is totally different between China and the West:
In China, it was by trial to get experience and the proof that is feasible with less social unrest at first, then to be legislated accordingly.
In West, it was to design and legislate at first with less concern the social unrest-causing, and then to be executed accordingly.
The process of the reform in social governance is a process of governing innovation. Obviously, the way of China will be fewer mistakes and easily to be practiced.
The success of China’s economic reform relied on two key factors.
1…The former top leader Mr. Deng Xiaoping, as a general experienced in decades long wars, who played a role as a political bulldozer to push away social resistance: “Don’t argue; try it. If it works, let it spread.” He timely provided support for those pioneers in economic reform by his unique political prestige.
China's reform involved in many aspects, it was not mainly from the top-level design in advance, a lot of initiative ideas were envisaged from the grassroots, from the people who understood the situation in grassroots level, and recognized and supported by central government.
2…Government authorized limited area as test zone for economic reform with the right for independent policy making, which largely reduced social resistance, and the free practice of all available economic means promoted it quickly developed, and then with the achievement to convince public to have easily updated the policies nationally.
It was in Jan. 31, 1979, firstly set 2.14 square kilometers as test-zone in a part of Shekou district of Shenzhen city. After convincing achievements, July 15, 1979, the city of Shenzhen, Zhuhai, Shantou and Xiamen was set as pilot of special Economic Zone. In May 4, 1984 it was promoted to other 14 coastal port cities, and in following several years, it was promoted to many other areas.
Viewing back in today, China’s economic reform was from point to line, and then from the line to area, in step by step gradually with constantly updating policies.
China's economic reform was the process that carefully avoided social resistances; otherwise, even if in one party dictatorship also cannot do anything.
By such patiently cautious approach, China has avoided social unrest as those of many other former socialist countries have suffered, even blooding, due to they changed social system without proper preparation in advance under the way of design and legislates at first.
The main resistance for China's economic reform was more from ideological arguments that insisted on socialist road and any budding in private economy will be severely criticized or even jailed.
This absurd phenomenon was not limited in China.
In former Soviet Union, when Stalin's reigning, such ideological conflict also caused Political Repression against capitalism.
Such ideological conflict was not limited in socialist countries, too.
In the United States, a typical capitalist country, Mr. Joseph R. McCarthy who once launched McCarthyism to perform political persecution against communism.
In human world, in most of time, it was that irrational suppresses rational – the ignorance in playing leading role.
The facts showed that confused social ideology has strong power in impacting social advancement.
The ideological confusion was also playing its role in international trade with the argument in identifying whether a country is in market economy.
Because of some share of state-owned economy, over the years, the West questioned the status of China's market economy, however, they overlooked the fact that the big share of state-owned economy in France today, and Britain once experienced a process that was nationalized from private economy and then was privatized again. But, there was no one questioned their nature in market economy - capitalism.
Faced with such irrational arguments, Mr. Deng said that: no matter is black or white; the one that can catch mice is a good cat. No matter which roads, if it cannot develop economy and improve people life is all dead roads.
Mr. Deng Xiaoping has learnt the harm of useless ideological argument, by supporting all available preferable means in regardless which –ist or –ism, to push forward economic development and improve people’s live by flexible way in reducing social resistance.
At the beginning of China’s economic reform, there were a lot of voice in suspicion and opposition, and now is basically no more, most people have recognized that the economic reform was correct.
No people who are in rational mind would hate a prosperous life.
Now, many countries have relaxed visa policy for attracting wealthy guests from China. Among them, Canada was the earlier one.
We may imagine that, if 1.3 billion population’s China is misgoverned to fall into chaos as that of in Syria, what would be the result for this world?
The peaceful development of any country is the great contribution to the whole world.
Viewing back in today, China has been successfully going on the way that Deng Xiaoping envisaged in 3 decades ago.
Now, we have made clear that the success of China’s economic reform was mainly derived from flexible governing approaches, rather than fully from one party dictatorship.
In viewing above, Prime Minister Justin Trudeau should not be disappointed for the incompetence of democratic governance, under current democratic polity; Canada also can achieve similar economic achievement as that of China has done.
Now, I would like to discuss how to achieve it.
As democratic polity, Canada has been ridden in the obsession of confused ideology also; it was not that of socialism or capitalism, but the democracy and the Universal Values.
In foreign affair, some people take the Democracy and the Values as standards to criticize other countries with ignored own declined economy under the Democracy and the Values, which is just as that of crow condemning the black of others without look at own black. It badly affected normal economic exchanges and thus badly dragged economic development.
In domestic affair, the government cannot make policy in a timely manner due to political parties fighting and people are still in self-appreciation as enjoying democracy, while the Universal Values have been used by some people to strike for more with doing less in ignoring that are harming the interest of them-selves actually by destructing the economy of Canada.
The decline of overall wages in manufacturing, the rise of unemployment rate, the soar of the prices of daily necessities, and the increase of suicide from unemployment, an increasingly fading living environment is no good for any one.
The democracy and Universal Values have been entwined together to make simple social issue too complicated to deal with, and made Canada’s productivity lags U.S. in ‘virtually every instance’, with high cost in making goods than that of once costy countries - Japan or Britain, and mid-sized anufacturers have reduced more than half between 2001 and 2010.
Canada urgently needs to get rid of such ideological constraints.
The only feasible way is that government authorizes a independent non-partisan Super Leadership as assistant in social governance with the right of independent policy-making in a limited area as test zone on limited urgent social issue to explore effective governance way out, then, by the convincing achievements to update the policies federally.
Here, the non-partisan is in order to get rid of the dead harm of partisan politics.
In Canada, that improves social productivity is urgent but a difficult thorny issue, for this concern, the ISO management standards will play a decisive role.
As a senior engineer, I once worked on document drafting for ISO90001 application. The experience gave me a deep impression that the role of ISO is accurate accountability by tagging responsible on the forehead of individual. That 3M Canada saves Energy 30% by ISO50001 showed the magic power of the accountability in reversing low productivity and revealed the big potential of the profit that hided socially.
Only by accountability, we can largely increase efficiency in government services, health care services; corporate management and so on. We can largely reduce the waiting time for the service in government and health care, reduce business closure or outsourcing.
Accountability can help us to gain great output with lesser input and it is the optimal way that can dig out huge profit in potential, which way can truly realize the determination of the Prime Minister Justin Trudeau – Canada is back.
But without non-partisan Super Leadership with the successful practice in limited area to convince public at first, the populist kidnapped government will never be able to reach it, even if with the power of State Apparatus.
It is the sadness of the democracy.
In consideration that, as usual, the idea non-partisan governing assistant – Super Leadership will cause some people’s question and opposition, it is necessary to take some time to discuss a little clearer.
1.4…The Values and democracy in entwined to castrate its mother country France
Now, the Europe is in one word – chaos, the fatal part is at that only there is one people at working, but, there are more people at waiting for eat. The excessive social welfare is encouraging people lazy.
Mar. 26, 2016, I once wrote article The Values and Democracy is entwined to castrate its mother country France and disabled whole world, now excerpts some as follow.
In today's world, in most countries, especially in the Western democratic countries as similar as that of France, a law-abiding citizen will have less feeling of the freedom is restricted.
No one would doubt the positive significance of the freedom, democracy, fraternity of those Enlightenment thinkers who awaked from the long Dark Ages, which published in the Declaration of the Rights of Man and of the Citizen that passed by France's National Constituent Assembly in August 1789 as a fundamental document of the French Revolution.
However, over the years, those concepts have been wrongly used as shield and amulets for the feckless activities by those brain defectives.
Ms. Madame Roland might be a sober lady who was earliest to question its negative social effect in the time of the concept was conceived with the argument - O Liberty! What crimes are committed in thy name!
The freedom and fraternity has been misused to have messed France since it was born. Only after increased the power of the president by the Constitution of the Fifth Republic in 1958, France was established social order basically.
However, the trouble seed was not eradicated at all.
Feb. 21, 2013, the article French minister hits back at ‘three hour day’ attack reports that: “Arnaud Montebourg, minister for industrial renewal in France, was subject to a written barrage of abuse from Maurice Taylor, chief executive of US tyremaker Titan, after the French politician appealed for financial support for an ailing Goodyear factory.”
“Mr Taylor berated French workers for putting in just ‘three hours” a day, and said his company would be “stupid” to invest in the loss-making tyre plant in Amiens, northern France.”
“’The French workforce gets paid high wages but only work for three hours. They get one hour for breaks and lunch, talk for three and work for three. I told this to the French union workers to their faces. They told me that’s the French way!’ Mr. Taylor wrote.”
In view of this, France comprehensive daily newspaper “Le Figaro” made an online survey, there were 81 percent of French people support the view of American boss. It clearly showed that French people themselves also dissatisfied with their poor work ethic.
Jan. 28, 2013, France ‘totally bankrupt’, says labour minister: Michel Sapin made comments in a radio interview: “There is a state but it is a totally bankrupt state,” “That is why we had to put a deficit reduction plan in place, and nothing should make us turn away from that objective.
Jan. 31, 2013, Most French people agree their country is ‘totally bankrupt’: In all 63 per cent agree that ” in France, the state is bankrupt”, with 45 per cent saying the claim was “more or less justified” and 17 per cent feeling it was “totally justified”, according to a CSA poll for BFM TV.
Obviously, the majority of French people would support government taking measure to improve such dissatisfied reality.
However, May 11, 2016, there was a report that France labour reforms: Protests as government pushes through bill.
The labor law that every citizen must equally abide by is basically fair, not to mention that works 40 hours a week has been implemented a long time in other countries.
Any society inevitably has irrational people, as long as there is an excuse, they will be ganged to make mischievous.
In fact, in human society, it has been undergoing that irrational things are easily popular and rational ideas are difficult to practice.
This is not the problem that can be acclimated by moral and ethical simply; they must be conducted by the legal enforcement of the State Apparatus.
The one of the important roles of the government is to control these reckless people to ensure a peaceful society. However, the Universal Values entwined democracy has disabled government to play their governing role.
The greatest sadness of modern society is at that it cannot effectively control of the ridiculous behavior of those irrational people who are under the protection and encouragement of legal protected the Universal Values.
Talk to here I think of April 16, 2016, China’s Observer website published article France emerged a small savior in Mandarin to introduce France's economy minister Emmanuel Macron launches political movement that aimed at to come up with new ideas to solve the “blockages” holding France back.
The writer was Liu Xuewei who is guest researcher of Research Center of World Politics in Chinese Academy of Social Sciences and he lived in France for 30 years from China. In the article, he introduced the hardship of French business owners.
“In France, the work of the business owners is much harder than that of employees with less social protection. France boss does not pay the fees for unemployment insurance, and also with no unemployment insurance. The bosses and their close relatives, worked how many hours, take salary or not, without any legal protection.”
“Thus, in difficult operated businesses, especially in the small businesses, the owner and his wife worked 70 hours a week without salary were common. There are too many small business owners and their families, throughout their career life, never able to enjoy paid leave in five weeks annually that legally protected for every French citizen.”
Read above introduction, I felt somewhat sadness, a country that once gave the birth of modern democracy and the Universal Values, actually, it was so inequality.
If the French government has learnt from China, under the name of test, to practice in a limited area, such as in a small town, by breaking the limitation of 35 work hours, after convincing public that is nothing serious, then to promote it across France, it will reduce or even avoid the social unrest.
This was harmed by the West civilization that is to design and legislate at first with less concern of social unrest-causing.
From above information we can understand that, in France, the vast majority of people are rational, they will support the reform in social governance to change the disappointed status quo.
As a similar democratic welfare country, in Canada, the public opinion will be similar to that of France; this is the well foundation for improving social governance. Back to Top
1.5…Italy’s referendum and China’s 330 reform plans
Here is other case that happens in Italy, the neighbor country of France.
June 26, 2016, the report Italy may be the next domino to fall said that after that UK’s vote to leave the EU and David Cameron announced to resign, the next referendum will be held in Italy in October about Matteo Renzi’s constitutional reforms.
Mr. Renzi is asking the Italians to agree a number of reforms to streamline their political system, but Italians view the referendum as an opportunity for a midterm anti-government vote. And also Mr Renzi promised he would resign if he loses.
The report said that the Italian prime minister is taking a gamble, which is no less risky than David Cameron did.
The report shocked me very much; Mr. Matteo Renzi is one of my appreciated young politicians, other one is British Prime Minister Mr. David Cameron. They are both well clear that what are their country needs? What is their duty?
Feb. 6, 2016, in article Italian Prime Minister Matteo Renzi and China’s 330 reform plan, I indicate that the failed Soviet Union also had its merit, it was the economic development plan based on every five-year span. Since the establishment, the P. R. China has been also implementing similar economic plan in every 5 year based.
Besides 5 year based economic plan, in China, there is still another plan that people rare known.
Oct. 14, 2014, in article Italian President Napolitano and Premier Renzi creates new Era, I once mentioned that:
In recent years, Italy’s economy is badly weakened in serious hardships.
Feb. 22, 2014, 39 years old Matteo Renzi was appointed as Italian Prime Minister with a difficult mission to revive the economy. He said that “China and Italy are both with a glorious history, but also, are both to have a common future and the vision of development.” His first official visit was China.
June 11, 2014, when visiting in China, he said that: “Many people think efficiency (in Italy) is not so good and China has grown very fast, so we need to study from China.”
June 15, 2014, in the interview of China’s CCTV talk show in Mandarin, the Host asked that, you want to change many of the rules of the game in Italian government public administration, I worry that you cannot shake the traditional model that was inherent for 30 years?
Mr. Matteo Renzi answered with that, at the beginning, it really was difficult, and people also wondered that whether I dared put some changes into practice? When I met with Prime Minister Li Keqiang, he showed me a directory of China’s 330 reform plans, and he told me that China will implement 80 of them each year. Well, Italy also will be to do so. A country has a history, like a bicycle, it will be balanced only in running, if it stopped, it will fall.
In 50 minutes of talk show, his replies showed his quick thinking, witty and full of wisdom. I appreciated him very much.
However, now, he decides social reform by referendum was really unwise; the irrational voters may end his political career prematurely. He forgot the method of Mr. Li keqiang showed to him, step by step, gradually.
This was harmed by the West civilization that is to design and legislate at first with less concern the measure for reducing social unrest-causing.
China was also experienced personnel streamline and the adjustment in the government, but, it was trial in a local area at first, then extensively coverage of this experimental work in public media, and folk grapevines also were widely transmitted. Thus, the people across the country produced mental preparation or called as psychological Immune for the oncoming reform, and then with the feasible experience to promote nationally.
China’s Prime Minister Li Keqiang has planed 330 reform projects, but, only implements 80 each year. Society needs a process for digestion in the changes; as same as that of people, it cannot eat too much in one time.
This is the wisdom from 5000 years continuously documented civilization.
Here I would like to point out that, for streamlining political system of Italy, there is an easy way, which is that as same as Canada, Italy also faced with retire-wave of baby boomers generation until 2030, which will produce enough idle position with enough available time for restructuring political system.
The reform should be gradually in step by step with natural attrition, rather than layoffs immediately to make some people jobless.
1.6…Brain quality decides human quality and social governance
The political plight suffered in France and Italy showed dilemma in current social governance under partisan politics. For such helpless reality, that human quality is also playing decisive role.
In consideration of social governance, the quality of human beings is unavoidable.
Human quality covers a wide range of aspect; here only considers social governance related.
Such as, that people can comply with social ethics, to comply with social order and legal regulations, to make livings by industriously working, rather than by illegal way, and so on. All in all, the most preferred part of human quality is at that people can consciously safeguard in social order and engage in creation of social prosperity.
However, it was not all human members can act as well as expected, there always have some individuals are harming others, even killing others. It is not simply the problem of immoral, but, the physical problem in brain defectives.
Modern MRI scans on human brain revealed that, it is the quality of brain determines the quality of people.
July, 30, 2012, in the article Recover Mental Disorders by Chinese Medicine, I excerpt some as follow:
Recent years, scientists have learnt more clearly about human brain structure and the work mechanism. Our brain is an extraordinarily complex organ that is made up of many different structures. Any of human behaviors is dominated by the specific population of cells in the brain. Because that brain structure is varies greatly with big difference from person to person, so, people's quality is also a great difference.
More evidences have showed that various mental disorders are connected with abnormality or atrophy in the brain. The antisocial behaviors may be the most heavy mental disorders, which caused by brain defective, such as reported - Scans reveal differences in brain structure of antisocial teens, Criminal Minds Are Different from Yours.
The happiness linked to the size of precuneus in Brain.
We can speculate that, even if, people have no significant antisocial behavior, but, the character of each individual is also in big difference, some are impulse and radical in depressed mood and lack of compassion; some are sober and rational in happy mood with full of compassion. Those are also due to the differences in brain structure, it will certainly affect people's behaviors in daily life, especially work ethic, such as, in the workplace, in whatever they engaged, some people work mindlessly, and some people work full-heartedly.
The brain defective people are lack of function in proper thinking, so that they boldly do what they like recklessly without consideration for the bad consequence, they often play the leading role in the society, and those brain developing perfect people who are thoughtful with over cautious in action to be in passive state.
In viewing from this point, the process of social governance is the process of the battle between rational and irrational, a process of reducing the harm of those people who are with brain defectives.
If, we take the law-abiding and social-ethics-complying as the only measure standard to distinguish human beings, then those who are with defective-brain in always deliberately making trouble to others should not belong to the human race, not to mention those antisocial criminals.
The findings on human brain showed the complexity in social governance, and also, the quality of social member based on the quality of personal brain must be taken into the consideration in social governance.
Above I have indicated that the one of the important roles of the government is to control these reckless people to ensure a peaceful society. However, the democracy entwined the Universal Values have disabled government to play their governing role. The greatest sadness of modern society is at that government cannot effectively control of the ridiculous behavior of those irrational people who are under the protection and encouragement of the Universal Values.
It is the absurd of the partisan politics, especially, in democratic polity that is not the government in governing electorate, but, it is that some irrational electorate kidnapping government.
Populism based democracy has provided a good play yard for those mental defectives.
And the tragedy is at that, in modern society, some people are specially making livelihood through advocating treating those who are in brain non-normal as that of brain normal, and helping them easily to harm good people. Such as, the people who make livings by working in the organizations that are appealing protection of human right.
The majority people who are carefully law-abiding and social-ethics-complying will less against social order and law, they will less need to be protected in their rights, and those who are need of protection are mostly antisocial offender.
Such as, some terrorist attackers were even the refugees who were protected by the organizations of human right or the countries under the law of protecting human right, and were being feed by hard working local people and then they killed the people who were feeding them.
In most of case, human right acted as an evil tool that has been used by some metal defectives to make livings in helping minority brain defective to harm majority people who have been hard working for material wealth creation in feeding those brain defectives.
That protects human right is good in essence, but, it has been misinterpreted and misused to play bad role in the practice.
The current electorate democratic governance seems in encouraging and helping those mental defectives to exert their wrongful brain signals.
Of particular importance is that free campaign of the partisan politics provides a chance for some people in low quality to seize the power in policy making and thereby malfunctioned government for effective social governance.
Though the low quality people in the circles of government decision-making is less in the number, but, with the amplify-effect of the Herd mentality, their harm would be great in playing a leading role. The U.S. McCarthyism was the best example.
That people free grouping also made some low quality individual more powerful in harming society.
Above words are with somewhat off-topic, however, in view of this article is talking about the issue of social governing; the matter of the personal quality of social member should be taken as important factor into consideration.
All in all, human beings must get rid of the harm of the partisan politics towards non-partisan politics.
1.7…The Knowledgeable people are the best for social governance
Apr. 6, 2016, in article Chrystia Freeland, a capable Minister of International trade, I took Ms. Chrystia Freeland, the federal Minister of International Trade of Canada as example to have discussed the issue in assessing human quality, especially for government officials. I excerpt some as follow.
Ms. Chrystia Freeland has a background of Russian history and literature from Harvard University and Slavonic Studies from University of Oxford as a Rhodes Scholar. She once worked as a stringer for the Financial Times, The Washington Post, The Economist, and as an editor for Financial Times, while respectively worked in Ukraine, Russia and Britain.
As a winner of Rhodes Scholar that was difficult to win showed her quality in innate talent and acquired diligence, which are the essential base as capable person.
The studies on Russian history and Slavic will help her accumulation of historical experiences and lessons of social governance in-depth understanding. The journalism career certainly made her deeply watched and thought the complex social issues, especially, the financial and economic related in observation and analysis of the real-time financial and economic problems; such useful experiences provided her more practical knowledge and experiences, and thereby enabled her unique ability in rationally dealing with related social problems.
The accumulation of the knowledge and experiences is wisdom, since that knowledge and experiences provide references for a perfect reasoning; it is the prerequisites for making a rational judgment, and thereby to make correct practice.
My comment above is based on the human nature biologically and physiologically.
July 26, 2014, in the article Recruit employee by the quality of brain not the academic degree, I indicate that:
Modern studies show that Brain Cells can regenerate, it is the foundation that we can remember those what we have experienced in the past and can remember those what we will be experienced in the future.
The wide range of studies and social experiences will perfect brain in the structure with increasing new populations of brain cells, and the more brain cells in memorizing the experiences for the successes or failures will provide more references for perfect reasoning with more perfect decision making.
It is that more in success, less in mistake and perfect predictability made a person as wise.
The wisdom of a wise depends on the memorized contents in the brain.
If a person is lack of social experiences and extensive reading, the person will fall into as that of watching sky by sitting in the bottom of a deep well, which will largely narrow the field of the vision, and thereby limit the scope and the depth of the thinking. Thus, when faced with intractable social problems, the person cannot flexibility come up with feasible solutions. It will be more harmful for those who are on the key position of the government.
If a person is indoctrinated extremist ideas, he or she would also easily do some extreme things. The exclusive religious teachings are doing such kind of thing.
Modern education seems entered the wrong circles, it was over emphasis on the education of practical knowledge and skills, but, in neglect of the culture of humanity, in lack of humanistic education, which is training intelligence-incomplete social members.
The rich knowledge and broad social experiences of Ms. Chrystia Freeland will help her to be able to make rational judgments with more feasible new ideas for social governance, especially in today’s extremely difficult international and domestic economic environment, which need more groundbreaking innovative ideas in the approaches for social governance.
In particular, the knowledge and experiences in cross-countries will make her less ethnic and political prejudices. Without such interference, she was able to seize the key of the issues and be able to effectively solving thorny social problems.
Oct. 16, 2013, in article it is high time to end the partisan politics, I have indicated the relation of the partisan politics and those low quality people.
“Great many facts have proved that, the parties or people grouping, no matter political or nonpolitical, mostly are the hazards for human society, because that they easily controlled by the people who have no normal brain with limited harming ability originally to get more power by the support of group people.”
“The partisan parties are more harmful for human society, due to it has been playing the role of the dirty ladder for those mental defectives climbing up the throne of controlling the state apparatus, then use of the power of the state to do whatever they want in harming the world.”
“We must end the partisan politics and choose those non-partisan people who are knowledgeable with healthy brain to make decisions for the future of mankind.”
“The decision-making bodies should be formed by those people who have obtained high rank academic qualifications with recognized social achievements, such as, the professional experts, professors, and the Nobel Prize winners, and so on.”
“All in all, the world should be gradually developed into the ruling in non-partisan politics - by a group of non-partisan outstanding social elite in recommended rather than in elected or self-grouped.”
1.8…What is the ultimate aim of the government or democracy?
Dec. 15, 2014, I once wrote article Justin Trudeau appreciates executive power of the China’s government, I excerpt some as follow.
First of all, I must state that I do not support any party. I have firmly convinced that partisan politics has evolved into the fatal harm for human survival. In Oct. 16, 2013, I have written the article that It is high time to end the partisan politics.
I write this topic today without any political purpose, instead, I eagerly hope that people can rationally give up no sense and ignorant ideological bickering on the political forms – multi-party democracy or one-party in power, but, to look at the actual effect in social governance. To put valuable energy on true worthwhile matter, to consider that how to develop economy of Canada, and how to strive for avoiding to be starved to die, while the depreciation of the Canadian dollar with the oil wealth lost value.
Irrational people are mostly ignoring the nature of the problem, they never ask that: why do we want a government, why do we want the democracy? What is the ultimate aim of the government or democracy?
The only ultimate aim of the government or democracy is to proper govern society, is to proper develop economy, and is to improve people’s lives.
However, looking around the world, there fewer democratic governments are playing right function. Holy dignified parliament became the place of those irrational politicians bickering.
A government designed as election of several gang to fight as that of street punks in the holy hall for the nation’s destiny decisions making, mutually constraints to make a government cannot make major decisions in a timely manner. This is absurd, abnormal, and it is a typical retrogression of human civilization.
From the Crusades – in the name of faith, let us killing each other, which started in 1095 to the Era of Great Voyages – in the name of free trade, let us killing, even in the design of political politics – in the name of democratic to have continued conducting fighting by the establishment of multi-parties.
The history of Western civilization is a barbaric civilization with killing and looting. It has never stepped into the civilization as civilized human beings should be.
Nov. 16, 2014, I wrote article Vancouver Mayor Gregor Robertson appreciates executive power of the China’s government, now I excerpt some as follow.
Nov. 16, 2014, I read the article Gregor Robertson: “you can question how worthwhile democracy is…”, and was shocked by the rational response of Vancouver’s Mayor Gregor Robertson to the CBC reporter’s question about working with an authoritarian regime:
“…you can be critical of a lot of regimes around the world, and you can question how worthwhile democracy is in a lot of countries right now which are, frankly, ignoring the biggest crisis in the history of our species which is climate change. That’s where you see the Chinese government taking radical dramatic action in investing in turning the ship around. And you do not see that in Western governments right now, democratically elected, and that’s because they’re afraid. And that’s not serving the greater interests of society.”
I appreciate the pragmatic spirit of Mayor Gregor Robertson. He can see the problem from the nature without the shackles of dogma.
Many people blindly advocate democracy, because they are not willingly to in-depth study, with a empty mind that only can remember some absurd dogma to trumpet the tone of others without normal brain to make clear that why blow such tune. They never can see the nature of the problem: why do we want a government, why do we want the democracy? What is the ultimate aim of the government or democracy?
The nature of the government is to effectively govern the society with the enforcement of determined policies, which is nothing to do with the political model.
A society takes absurd as of course, takes the abnormal as normal, cheers non-civilization as civilization, it is ignorance, and it is the sadness of partisan Politics.
1.9…Partisan politics should be replaced by non-partisan Politics
Historically view, human beings was never able to enjoy a civilization as that of a higher animal should be, with endless wars, occupying, plundering, religious killing, and terrorist attacking. The root cause was the wrongful social governance in ignorance dominated.
Democracy is a game of partisan politics - a civilization of lower animal under the Law of the jungle.
The big sadness of the democracy is in the self-appreciation of every one can take part in campaigning with no basic precondition as a political candidate, so that the people who seize the position as policy maker without essential knowledge in policy making, besides the opportunistic trick-skills for pleasing voters.
In order to enjoy political privileges, the political candidates dared do everything possible for winning campaign, dared please voters with the interests of country as exchanges, the political parties are vicious fighting for their own selfish interests by destructing government timely policy-making.
The partisan politics has been developed as fatal harm for human survival by destructing rational social governance.
In the democratic partisan politics, the rational business was disabled, but, irrational business was activated.
Feb. 20, 2015, WashingtonsBlog posts an article says that US Has Been At War 93% of the Time – 222 Out of 239 Years, only been at peace for 21 years total since its birth.
Under the name of the Holy Democracy, and the Divine Human Rights, some democratic countries ganged together, were and are overthrowing the governments that have been effectively governing the area that was difficult to govern, and to have triggered the global proliferation of terrorism, the massive killing and the refugee waves.
Some politicians in some countries have publicly admitted that it was their wrongful decision in military intervention to have triggered the global proliferation of the terrorism. In nowadays society, even the families of those politicians have lost the sense of safety.
July 6, 2016, telegraph.co.uk reported that Chilcot report: Tony Blair takes 'full responsibility' for Iraq war.
July 7, 2016, theguardian.com reported that UK foreign secretary: US decision on Iraqi army led to rise of Isis.
Faced with such sad reality, there are rational people have realized the limitation of democratic governance.
In 1992, in view of the fall of the Berlin Wall, the noted sociologist in political economics Mr. Francis Fukuyama who cheered that was global triumph of political and economic liberalism and believed that Western liberal democracy was the final form of human government.
However, in 2014, it was in 22 years later, after experienced that Elephant and Donkey malfunctioned the government of the United States, he despaired with other article America in Decay was “NO WAY OUT”.
In Canada, the Prime Minister Justin Trudeau has showed his disappointment for the incompetence of democratic governance, and Vancouver Mayor Gregor Robertson has also showed similar view.
Canada should play the role as forerunner to open a new Era for human civilization by promoting non-partisan politics replacing partisan politics gradually through the practice of non-partisan Super Leadership with a group of social elites.
The advantage of Super Leadership is at that outstanding professional elite have well Knowledge and experience in economy and management for the practice of rational social governance, and there are no constraints of political bias for rational thinking and practice.
For this purpose, we need an outstanding person to play as a leading role. In current Canada, the 20th Prime Minister, Mr. Jean Chrétien who possesses the great quality for playing such a role. The ages and experiences have made him nothing to worry about, besides, the deep concern of increasingly decline of Canada.
The new majority government of Canada under the leadership of Prime Minister Justin Trudeau will certainly be able to pave Boulevard for any efforts to develop economy.
Follow the successful experience of China, Canada’s non-partisan Super Leadership will be certainly success, then other populist ridden democratic countries would follow up. Thus, gradually, non-partisan leadership will be practiced in more countries.
Though, that entirely replacement of the partisan politics may need a long way to go, but, non-partisan leadership will play a major role in the social governance world widely.
Then, let those partisan political players play in the parliament hall, and the industrious people are able to do their right business under the right leading of the non-partisan Super Leadership, in this alternative way, to return a peace for the world and a normal life for all people.
Let us join hands to create a better Canada, a better world.
--- Frank Mar. 6, 2016, in Waterloo, Ontario, Canada
Updated in July 12, 2016
Following is original article.
2…Introduction
Jan. 30, 2016, the article In Canada, Justin Trudeau takes pipelines in a new direction reports that: in 2017, Canada will start building the 2,827-mile pipeline that TransCanada. It would deliver 1.1 million barrels of oil a day from Alberta and Saskatchewan, through Quebec and onto a deep-water marine terminal in New Brunswick. The construction alone would create 14,000 full-time jobs and generate billions of dollars in tax revenue, with creating advantage of energy independence for Canada.
The blueprint of the pipeline project is certainly great in making a great hope for Canadians.
However, the great hope is not equally as great reality.
According to my understanding for the low productivity in Canada, I cannot help but doubt that, for such a grand blueprint, when it can be constructed as reality to create benefits? How much supplementary budget would continue to be added to the budgeted? How many supplementary years would continue to be added to the scheduled? And how long time would be cost on labor’s striking that is under the legal protected.
The hopeful pipeline project may be most possibly developed as a headache in endlessly burning money under unforeseeable deadline, due to that once the project construction started, as investor, the government will become a flesh on the cutting board to be free cutting by construction companies and trade unions.
My doubt is not groundless speculation, but the facts that occurred in many developed countries. Canada is even worse.
With Eastern culture background, 15 years work in different type of businesses in Canada, the chaotic in the business management and low productivity simply made me choke.
Here are some shocking reports by some reporters on public media.
Oct. 1, 2012, Canada’s productivity lags U.S. in ‘virtually every instance’: “The study shows Canada’s productivity lags behind that of the United States in “virtually every instance,” including those industries that have been the cornerstone of Canada’s economy for decades — mining, oil and gas, financial services and manufacturing. The manufacturing sector was called out as a particularly poor performer, noting that U.S. productivity in the manufacturing has grown at a rate six times faster than that of Canada since 2000.”
Aug. 20, 2014, Canada losing steam in its push for an export boom: “It is now cheaper to make goods in once-high-cost countries such as Japan or Britain than in Canada, according to a new map of global manufacturing competitiveness.”
People might suspect above those are overstated, follow are the convincing facts in proving above those are true.
Feb. 13, 2013, the Business Development Bank of Canada issued the survey report to have given a proof with exact data – Canada's mid-sized firms have declined by 17% — from 9,370 to 7,814 — from 2006 to 2010, in which, the manufacturing sector reduced more than half, from 2,807 to 1,381 between 2001 and 2010.
Jan. 27, 2016, CBC News - Canadian automotive sector hollowing out, despite record sales, due to Canadian auto sector as investment capital flows to the U.S. and Mexico.
On other hand, in Canada, the labor strike is a common practice.
Jan. 29, 2016, Strike or lockout possible for 26,000 municipal employees in Toronto.
Jan. 05, 2016, Jail guards' union boss not optimistic strike can be avoided.
Mar. 03, 2015, York University teaching assistants strike after rejecting school offer.…
A big manufacturer of Canada is brewing its crisis. It is that Bombardier Inc. of Canada is following the dust of failed RIM and Nortel Networks.
Jan. 27, 2016, Bombardier Inc shares fall below $1 — its lowest leve in almost 25 years.
Feb. 17, 2016, Bombardier Layoffs To Hit 7,000 In Canada, Europe.
Oct. 28, 2015, TTC will sue Bombardier over late streetcars.
Jan. 21, 2016, 55 new TTC streetcars expected by end of year
Dec. 14, 2015, Bombardier’s biggest gamble: How everything went so wrong with the CSeries dream.
The incredible is that Bombardier Inc. even cannot timely finish the order of Toronto’s TTC streetcars, even as old matured products.
Rational people would believe that extreme low productivity in Canada will not only kill pipeline project, but also will kill any hopeful projects.
The policies are the track for social running, any problem happened in the society is the problem in the policy making.
In electorate dominated democracy, it is not government governing electorate, but rather, it is the electorate kidnapping government. The main cause of extreme low productivity is that government dared not practice strictly governance.
With the oil wealth lost value, that foundation for manufacturing is also in losing, where is the way out for Canada?
Faced with such sad reality, there are rational politicians have realized the limitation of democratic governance. Such as, the Prime Minister Justin Trudeau has showed his disappointment for the incompetence of democratic governance, and Vancouver Mayor Gregor Robertson has also showed similar view.
As that of Prime Minister Justin Trudeau and Vancouver Mayor Gregor Robertson disappointed, in current democratic polity of Canada; any ambitious politicians cannot develop economy as that of successful in Singapore, in Germany, and in the UK – a kinship country of Canada, even if under current Majority Government.
I am not distrust of Trudeau government at all, please envisage that, in current Canada, is it possible to practice Singapore's strict legal system and Germany’s harsh Agenda 2010, even if that fiscal austerity measures of UK David Cameron has been hard struggling for?
February 22, 2016, article the federal deficit will reach at least 18.4 billion in 2016-17 reported that Canada “planned budget deficit will increase by 14.5 billion and 13.1 billion over the next two years mainly due to the state of the Canadian economy, reaching deficits of 18.4 billion in 2016-17 and 15.5 billion in 2017-18.” “The Trudeau government intends to move ahead with its economic strategy announced during the election campaign: tax measures to help the middle class and massive investment in infrastructure (the Liberals promised to double the investment campaign) to grow the long-term economy.”
I appreciate the ambitions of Trudeau government on intended to boost economy, but I suspect the positive result in the practice.
Suppose without a strong measure to entirely reverse extreme low productivity and high-cost in manufacturing, any plans will be meaningless, even if put them into practice, will be waste investment without an expected output, besides to make new economic burden for Canadians.
The extreme low productivity is destroying the future of Canadians.
It is time that we have to explore a radical measure with lesser constraints from populist democracy; to prepare for a situation that Overplunder of financial economy on real economy will push world economy towards recession, to create a favorable environment for innovation and manufacturing, thereby to explore a life road for Canadians.
In viewing that democratic polity under partisan politics is unchangeable, as a way out in no way, that federal government should authorize a non-partisan Super Leadership as a alternative to play a role as assistant to perform social governance.
This article will take the oncoming pipeline project of Canada as example to demonstrate the significance of non-partisan politics.
3…How to construct pipeline project by lowest cost in fund and time
The main hinder for pipeline construction is the low productivity.
There are great many articles talking about the low productivity in Canada with some solutions, but, most of them are not touch the basic problems or too academic to be practically used.
As my view, the main cause for low productivity in Canada is the poor social governance.
Following are some of my observations and considerations according to my 15 years work in Canada.
3.1…The factors that may badly impact on the pipeline construction
3.1.1…Firstly is the poor social governance.
In Canada, the main cause of poor social governance is that populist government is badly affected by some people full-heartedly pursuit of something vast nothingness ideologically. Follow is my review article regarding this concern.
Nov. 16, 2014, Vancouver Mayor Gregor Robertson appreciates executive power of the China’s Government.
As my personal experience, our Canadians have been tamed to be lined up in all of government agencies, especially, the fatal lined up in medical treatment.
Is it really shortage in social resources? A German told us that are not true, but, simply due to the poor social governance.
Follow is the comment followed Oct. 1, 2012 article Canada’s productivity lags U.S. in ‘virtually every instance: Deloitte.
Bernard comment in 2 years ago: “being an immigrant from Germany I can tell you my perspective of lacking productivity in Canada: looking around in the office I see people dropping in sometimes between 9 and 10 am. Not much later they are off for a coffee break. Then there is lunch break and another coffee break. Leaving around 4pm, because there is some important fishing or hunting or other outdoor stuff on the agenda.”
“Any more questions about productivity?”
“I mean, I really appreciate work-life balance. But what I experience is overdone.”
After read above comment, I think of a few years ago in Toronto, in a government agency; there a lot of people were waiting in line. From the perspective of the number of idle office chairs, there should be a lot of people who were work here, but only there two staff were servicing for the customers. Finally, there are other two staff came in, the people who were waiting in line were pleased for that was able to speed up. However, the two came-in staff has not sat down yet; the original two in working immediately got up and left away.
Long time waiting in the government agencies seems a common matter in Canada, which is not due to short in manpower, but only due to the poor work ethic.
The fact is simply incredible; the Canada simply is a country without rational governance.
3.1.2…Secondly is the poor corporate culture
The poor corporate culture is the direct result of the poor social governance, which is mainly in three aspects:
1…Those successful world class companies are all driving by incenting employees’ intellectual contribution, but, Canadian businesses has been going on opposite way, even stifle innovation activities of employees. I said that is The Fatal DNA of RIM & Canadian Enterprises.
2…Management staff has no sense for proper performing own duty, but taking management right to exert personal instinct, such as, the director of the legal and business affairs department in former RIM, which introduced in The Fatal DNA of RIM & Canadian Enterprises and supervisor John in my article The death of a Canadian business owner.
3…Some employee boldly make trouble to slow down the production and supervisor dared not to stop them, even workers joint riot to smash production equipments. Such as, NCR Company in my article Canada’s Corporate Management & Reducing Psychological Pressure in Workplace.
3.1.3…Thirdly is the potential construction management.
Based on the experience and international practice, the project bidding in pipeline construction will be preferred.
Now, in domestic Canada and abroad, there will be many pipeline construction companies are gearing up in preparation to try to grab the pipeline project.
Though, those companies are well experienced and well equipped. However, they will make large amount of pipeline investment as own profit and to be flowed into the pocket of shareholders. More terrible is that they will trigger Unions to call for striking, thereby to make pipeline construction become protracted farce.
Moreover, based on the experience worldwide, project bidding cannot lock afterwards construction expenses, especially for the project that requires a longer construction period. Once the project construction started, the government will become a flesh on the cutting board to be free cutting by construction companies and trade unions.
Above factors will badly affect pipeline construction and they are difficult to be overcome in current social governing system and social ideology.
Is it simply with no way out?
As mentioned above, as rational people, we come to this world, are not for adapting to the reality, and are not for struggling to enjoy vanity, but rather, we come to make some livable changes.
We have to develop a brand new management way to conduct pipeline construction with a record low cost in fund and time world widely.
At first is to establish a powerful leadership.
3.2…Federal government of Canada should authorize an Super Leadership
Historically, social governance is intractable problem. For this concern, there have been a lot of studies and practices, but, there were no one satisfied yet until to today.
British political theorist and democratic socialist Bernard Crick who views that "Politics is a way of ruling in divided societies without undue violence.
American conservative political and cultural commentator David Brooks, in his recent article The Governing Cancer of Our Time said that: “We live in a big, diverse society. There are essentially two ways to maintain order and get things done in such a society — politics or some form of dictatorship. Either through compromise or brute force. Our founding fathers chose politics.”
“The downside of politics is that people never really get everything they want. It’s messy, limited and no issue is ever really settled. Politics is a muddled activity in which people have to recognize restraints and settle for less than they want. Disappointment is normal.”
In the more and more chaotic world, human faced with difficulties, whether it is economic recession, terrorist attacks, or refugee waves, in the final analysis, is the problem of social governance, is the results of absurd partisan politics - muddled in causing restraints in social governance.
In view of that democracy under partisan politics cannot properly perform social governance, but also, has developed as a kind of harm for human survival, human society must develop toward non-partisan governance.
Any society progress will encounter resistance. In order to dispel inevitable question on this idea, it is necessary to take some length to discuss its necessity.
Dec. 15, 2014, in the article Justin Trudeau appreciates executive power of the China's Government, I once indicate that:
“First of all, I must state that I do not support any party. I have firmly convinced that partisan politics has evolved into the fatal harm for human survival. In Oct. 16, 2013, I have written the article that It is high time to end the partisan politics.”
“I write this topic today without any political purpose, instead, I eagerly hope that people can rationally give up no sense and ignorant ideological bickering on the political forms - multi-party democracy or one-party in power, but, to look at the actual social governance. To put valuable energy on true worthwhile matter, to consider that how to develop economy of Canada, and how to strive for avoiding to be starved to die, in facing the depreciation of the Canadian dollar with the oil wealth lost value.”
“Irrational people are mostly ignoring the nature of the problem, they never ask that: why we want a government, why we want the democracy? What is the ultimate aim of the government or democracy?”
“The only ultimate aim of the government or democracy is to proper govern society, is to proper develop economy, and is to improve people's lives.”
“However, looking around the world, there fewer democratic governments are playing right function. Holy dignified Congress became the place for those irrational politicians bickering.”
“A government designed as election of several gang, in the holy hall where is for the nation's destiny decisions making, to fight as that of street punks in mutually constraining to make a government cannot make major decisions in a timely manner. This is absurd, abnormal, and it is a typical retrogression of human civilization.”
Oct. 2, 2014, in the article Why China did not produce native religions, I indicate that, “a wisdom from 2400 years ago China lessons us that, the ordinary people can happily share in enjoying fruit, but they never willingly share the effort in making the fruit. A rational government has to enforce people to do something that will benefit to them, but, do not expect to convince them in advance.”
Such rational practice in social governance is just the dead knot for democratic polity.
As senior animal, any problem should be able to make a proper solution. The plight of muddled politics and its restraints will certainly have a copping way out.
The idea that Federal government of Canada authorizes an independent non-partisan Super Leadership is to make an alternative assistant for social governance, by which, we will be able to take both advantage of democracy and dictatorship to enforce people to do something that will benefit to them without the time-waste for convincing them in advance or to be trapped in endless political arguments.
The Super Leadership should be authorized with the right of independent policy making and the policy implementing in a limited test zone, on a limited social issue, under the name of testing, to perform a demonstration in successfully solving some social issue, thereby to convince public and reduce social resistance, and then update the policies to Federal level in step by step as that of successfully practiced in China.
That in a limited area, on a limited social issue, under the name of testing, with a non-partisan leadership, will be able to reduce social resistance at large.
In this simple alternative way, most of issue that human society encountered may easily be settled.
By such a easily to be widely accepted way, to gradually transit partisan politics to non-partisan politics - by a group of non-partisan outstanding social elite in recommended rather than in elected or self-grouped.
This will be a historical trial in social governance.
People must have a sober mind that improvement in social governance is the only way out for human survival, everyone should support such practice, due to that in current chaotic world, there no one would have a peaceful life, no matter the politicians who are priding for being elected or the wealthiest hedge funds players who are excited for looting money easily.
In consideration of increasingly complex in social governance, it requires the people who will take governing position, have to with profound professional knowledge and deep insight into social problems based on the outstanding research works. So, the candidate for future non-partisan politics may be confined in the field of academia and outstanding entrepreneurs in the industry.
The inference of above is in view of that human society has been far from civilized due to wrongful governance under the partisan politics, the problem is not mainly in the partisan politics itself, but, at that any people in any quality can freely run political campaign and to take the power for policy making without precondition. The facts lessons us that there are only a few people who are with knowledgeable brain that can rationally leading human being towards a hopeful future.
Under the control of group of sober rational people, the politics will be corrected to a rational way of making effective social governance, rather than as that of simply being taken as the means of making a living and enjoying political privilege.
Maybe, we cannot politically change anything for the world at whole, but, at least, within Canada, with a new Majority Government under a new Prime Minister who is eagerly trying to boost economy, we have potential to create a better life for Canadians.
3.2.1…Partisan politics will push world economy sustained in recession
Dec.13, 2015, I once wrote article Partisan politics will push world economy sustained in recession, I excerpt some as follow.
The main cause of global economic recession is that under the kidnap of interest group, the partisan politics allows overdeveloped Financial Economy to over-plunder Real Economy. Few people realise that the most terrible warfare is in financial field.
Since 2008 financial crisis, people have been looking forward to economic recovery; however it seems to have no signs to comfort the eager hope.
For a while, the issue of US Federal Reserve hiking interest rates has become a hot spot. Various projections are one after another; especially the improvement of the US employment gave people an illusion of economic recovery.
As my view, the world economy will continue towards recession, due to that condition in harming real economy has not been improved yet, especially, the greedy activity of wild developed financial economy plundering on real economy has not been governed effectively, it will make profit margin of manufacturers too narrow to survive, and the manufacturers are the essential base of real economy.
Follow is some excerpt from The Strategic Vision for Trudeau Government of Canada that I am in writing.
1…Overdeveloped Financial Economy will plunder world economy recession further
As economic strategy, there are many aspects that need to be considered carefully, among them that well understanding financial economy and smartly dealing with its side effect should be first concern, since that historically the financial economy has been playing a key role (nearly decisive) in economic development, whether the boom or the recession.
In 2007, after working in U.S. financial system 23 years, Mr. Richard Bookstaber who published A Demon of Our Own Design, markets, hedge funds, and the perils of Financial innovation, in just before several months of the financial crisis outbreak. The book is noted for its foreshadowing of the financial crisis of 2007–08.
Here, I would like to cite the term of Demon.
The Demon of financial crisis is still in active
In the wake of the 2008 financial crisis and the rise of the Occupy movement, the issue of income inequality has gained public awareness.
2013, American economist, Professor Robert Reich distills the story through the lens of widening income inequality to have presented documentary film Inequality for All. It indicates that income inequality currently at historic highs.
Over the last thirty years, before the latest recession, the U.S. economy doubled. But, these gains went to a very few: the top 1% of earners now take in more than 20% of all income—three times what they did in 1970. Inequality is even more extreme at the very top. The 400 richest Americans now own more wealth than the bottom 150 million combined. While this level of inequality poses a serious risk to all Americans.
In 1997 – 2007, in the United States, the finance was fastest development part of the American economy.
Following is the video screenshots from Inequality for All.
The two times economic crashes well match the peak point of income inequality at in 1928 and 2007. However, this trend cannot used to predict future trends due to in that period, world suffered World War II that interrupted normal development of economy.
From the peaks of relative financial wages, we can easily speculate the huge volume of financial economy or paper economy that is buying and selling on the financial markets to make money by money, in nature, the activities of financial economy are plundering real economy – that is actually producing goods and services, which is really relating the needs for human survival.
Due to that the activities of financial economy are speculating with currencies, stocks, and the materials for manufacturing, which will play a role of plundering real economy and also the money that gained in such activities has to be exchanged as material wealth for life survival finally, so that, in essence, those activities in financial markets is grabbing material wealth and is plundering the industrious people who are hard-working on creation of material wealth.
From above three photos, we can also easily speculate that, the two times economic crashes are caused by that wild developed financial economy.
Follow is the video screenshot from documentary Inequality for All.
In 2009, in the time of absolutely recession, the 7 highest paid Hedge funds managers were still taking more than Billions Dollar each.
2…The government of the United States did not play its role rationally
Follow is the video screenshot from documentary Inequality for All.
In the documentary, the Professor Robert Reich appealed that: “Remember the government sets the rules at which the market functions.”
Anxious Professor’s cry is difficult to impress absurd politicians and greedy financial predators.
Until to today, the over-developed financial economy is still not under proper control. It is still in harming economy.
On other hand, the over issued currencies under monetary easing policy were not as expected used in the real economy, but, to be used in the financial economy, and made it more powerful in destroy real economy.
So, I said that partisan politics will push world economy sustained in recession.
3.2.2…Democracy and Values are entwined together in harming human survival
Democracy is a practical form of partisan politics.
The primary task for human survival is the production of material wealth, the low productivity is the big hinder.
Talking about low productivity, a vital issue must be mention. Though, I am aware that is a topic of sensitive with prone to offend public wrath, but, it is too vital in relating the survival of all Canadians to allow me for any personal concern.
It is the Universal Values - the universal faith in modern civil society: Human Rights, Equality, Freedom, Fraternity and so on. The problem is not in the Values itself, but, in it has been misinterpreted and misused.
The Universal Values have been used as the cloaking by some people to disturb social governance for exertion of their greedy instinct.
Such wrongful practice encouraging people to over emphasize on the right and interest of fewer private with the expense of the right and interest of massive public, encouraging people striking for more by doing less, and encouraging people boldly making trouble in workplace, such behaviors is in badly damaging normal production and badly impacting people’s normal life.
Why the effect of Universal Values is so strong, because it is protected by the power of democratic players controlled State Apparatus.
Democracy and Universal Values have been used to fit into the needs for various purposes by individuals, interest groups, government officials, with more in ignorance less in rational.
The democracy and the Values have been entwined together to complicate social governance, thereby playing a negative role.
Mar. 6, 2016, in the article How human rights protect criminals while ignoring the victims in Great Britain, I introduced that dailymail.ca.uk published article Caught trying to rape eight-year-old girl to report that in Argentina, a man who was allegedly caught in the act of trying to rape an eight-year-old girl was stripped naked and then being pulled by a rope to walk around the community for eight blocks to publicly shame him before his captors hand him over to the police.
Followed the report, there are many comments, some of them tell us that how human rights would protect criminals while ignoring the victims in Great Britain.
ZMetha, London, United Kingdom, 1 day ago: “Imagine if anyone did that to a paedophile in the UK ! His Human Rights would be invoked and the ’do gooders’ would rally around and made sure everyone had sympathy and empathy for the paedophile. And the members of the public who paraded the paedophile around the street would end up in prison. And the 8 year old victim? She’d be forgotten about, of course! ”
Exbritinnz, wellington, New Zealand, 1 day ago: “What a muppet, he should have done it in the UK.. that way he could have said you violated my human rights, he could then claim a free house and benefits.. pretty sure that’s how it works..”
3.2.3…The democracy made British government into hemiplegic
In Great Britain, the kinship country of Canada - No Margaret Thatcher, Unions made UK's Working Days Lost Rockets 78% in 2013.
July 9, 2014, the article UK Public Sector Strike: Institute of Directors Urges David Cameron to Investigate Industrial Action Laws appealed that:
It was a matter of "profound concern" that "such a small number" of trade unionists can bring about "such a disruptive strike".
As my view, UK Public Sector Strike was a typical example that Universal Values have been used as the cloaking by some people to disturb social governance for exertion of their greedy instinct.
In Canada, I once heard that Unions have legal right to directly take away 4% of wages from payroll of the Union members. Of course, as exchange, the Unions have to push Unions’ members to strike for more payback by every possible.
Besides openly striking, in Britain, the potential harm of Union culture in non-openly is even greater.
Nov. 30, 2013, I once wrote article The feasible steps for improving Canada’s health care system, I excerpt some as follow.
The universal health care should be a part of communist society – a society that “all the springs of social wealth will flow abundantly“. So, such a health care system is a sign of the strength of the nations and the quality of their nationals. It has been the pride of oneself and the envy of the others. Unfortunately, now in some countries it has become the cause of headache.
In Britain and Canada, the universal health care falls into plight for a long time. In both countries, the long waiting time for treatment has become thorny issue, even both has reports that there patients died since was unable to get treatment timely.
Facing such a situation, what we should blame for? Is it the insufficient of the fiscal investment? Is it the lack of medical manpower? Or is others else?
The reports of years ago from Britain may give us answer, which was that poor work ethic of some medical staff was in playing negative role.
Dec. 14, 2009, the dailymail published Britain, the sick man of Europe: Heart and cancer survival rates among worst in developed world, the writer Daniel Martin introduced a survey about the British universal health care service:
“A survey published yesterday by the Organization for Economic Cooperation and Development sees Britain languishing with the Czech Republic and Poland in international league tables on health.”
“The OECD – which represents developed Western countries, some former Soviet nations, Mexico, Japan and South Korea – compared healthcare standards among its 30 members and found that we lag even further behind the wealthiest nations, such as France, Sweden and Germany.”
“British cancer and heart attack victims are more likely to die than almost anywhere in the developed world;”
“Asthma and diabetes patients are more than three times as likely to end up in hospital as their neighbours in Germany;”
“Life expectancy in Britain – 79 years and six months for a man – is far worse than in France, where men expect to live until 81. The deficit is similar for women.”
“Britain performed only marginally better than former Communist states whose governments spend only half as much on healthcare.”
“The survey also found that British heart attack patients were more likely to die in hospital than others in the Western world.”
“In 2007, 6.3 per cent had died within 30 days of admission – compared to 4.9 per cent across the OECD, and 2.9 per cent in Denmark. Britain also performed poorly on keeping asthma and diabetes sufferers out of hospital – reflecting badly on the quality of GPs.”
“In Britain, 75 out of 100,000 people ended up in hospital with asthma in 2007. In France the figure was 43 and in Germany, just 21.”
“The report found that Britain spends more than the average OECD nation on healthcare: just short of $3,000 per head of population.”
“This compares to $1,626 in the Czech Republic, where cancer survival rates are almost as good.”
“Last night Health Secretary Andy Burnham said the data showed ‘the enormous progress’ that had been made.”
Above information shocked me very much. I wonder that how worse would be before the enormous progress.
There was more shocking report to have revealed that how British medical staff torture patients to die.
Feb 25 2010, the dailymail reported that Up to 1200 needless deaths patients abused staff bullied to meet targets… yet a secret inquiry into failing hospital says no one’s to blame, it said that:
“1. Patients were left unwashed in their own filth for up to a month as nurses ignored their requests to use the toilet or change their sheets;”
“2. Four members of one family, including a new-born baby girl died within 18 months after of blunders at the hospital;”
“3. Medics discharged patients hastily out of fear they risked being sacked for delaying;”
“4. Wards were left filthy with blood, discarded needles and used dressings while bullying managers made whistleblowers too frightened to come forward.”
From the reports we may clear that, in Britain, the poor situation in health care system is not entirely due to the insufficiency in investment and manpower by comparison with other countries, but, there is simple reason that is the poor work ethic of some medical staff – irrational, even inhume, under poor management that government did not properly function its governing role.
The incredible facts shocked me very much.
I could not imagine that, are those really happened in Great Britain?
I could not imagine that, as once the Sun Never Sets Empire, as the veteran capitalist country, with a respected democratic polity, with proud of sound legal system, with long revered social governance, with proud of advocating universal love – the Great Britain, in the hospitals, a holy place that saves human life with practicing the universal love, actually steps into such a ridiculous plight.
Is it the inevitable result of the progress of human civilization? Of course, the answer certainly is no. Then, no doubt, it is that British government has been not playing its governing role properly?
Government has a sound legal system under the enforcement of police and military, it can beat any irrational activities of individual and organizations, however, above incredible facts show that the British government did not properly play its governing role.
Ultimately, the root cause for the sadness happened in Britain is the electorate dominated democracy, which is not government governing electorate, but rather, it is that some electorate kidnapping government to boldly exert their abnormal instincts.
The populist driven democracy has trapped the governing function of government coupled with confused ideological that misinterpreted and misused freedom and human right, which has become umbrella for those mindless people who are in inhuman nature.
It is not limited in Britain, but, it is the common diseases in most democratic country.
3.2.4…Democracy made the United States no way out
The human-mindless Elephant and Donkey disabled American government in rational social governance, besides that triggered financial crisis, the endless domestic shootings, overthrew the governments that were effective governing the areas that are most difficult for governing, to lead in social unrest and the global spread of terrorism……
U.S. Nobel Prize winner said that U.S. Politics is Spite.
Oct 16, 2013, I once write an article It is high time to end the partisan politics to try exploring the reason that world is increasingly chaotic. In which I cited an article to show the absurd of American democracy.
In Oct. 4, 2009, the Winner of 2008 Nobel Prize in Economics, and the professor of Economics and International Affairs at Princeton University, Paul Krugman who published The Politics of Spite on New York Times to have pointed out the ugly picture of American politics:
“An essential truth about the state of American politics: at this point, the guiding principle of one of our nation’s two great political parties is spite pure and simple. If Republicans think something might be good for the president, they’re against it — whether or not it’s good for America.”
“The result has been a cynical, ends-justify-the-means approach. Hastening the day when the rightful governing party returns to power is all that matters, so the G.O.P. will seize any club at hand with which to beat the current administration.”
Noted sociologist said that U.S. democracy is in Decay with NO WAY OUT
Francis Fukuyama who is an Ph.D.in sociology, a scholar in political economics and Senior Fellow at the Center on Democracy, Development, and the Rule of Law at Stanford University.
In 1992, in view of the fall of the Berlin Wall and the end of the Cold War, he published the book The End of History and the Last Man, in which he excitedly argued that the progression of human history as a struggle between ideologies is largely at an end, with the world settling on liberal democracy, he predicted the eventual global triumph of political and economic liberalism:”
“What we may be witnessing is not just the end of the Cold War, or the passing of a particular period of postwar history, but the end of history as such.... That is, the end point of mankind's ideological evolution and the universalization of Western liberal democracy as the final form of human government.”
However, in 22 years later, after experienced the absurd American democracy, on the Foreignaffairs, he published other article that America in Decay - the Sources of Political Dysfunction to indicate that American democracy is “NO WAY OUT” and completely denied his faith in democracy and showed his sad despair for the democracy:
"NO WAY OUT"
"The U.S. political system has decayed over time because its traditional system of checks and balances has deepened and become increasingly rigid. In an environment of sharp political polarization, this decentralized system is less and less able to represent majority interests and gives excessive representation to the views of interest groups and activist organizations that collectively do not add up to a sovereign American people."
In comparison with above two noted academics that are with authoritative reputation in specially researching in the economics and politics, we have enough reason to question the rational of those people who are still advocating democracy.
People will remember in 8 years ago, in 2008, Barack Obama with presidential campaign speech: Yes We Can to have successfully boarded the presidential throne. Now, his two presidential terms are coming to an end, what changes he has done, is it the piled up debt? Or is it more and more shootings deaths?
February 10, 2016, in Address to the Illinois General Assembly, he showed his helplessness for American democracy, whereby the curtain call for his life game in White House.
February 12, 2016, the guardian published 10 reasons why voters are turning to Bernie Sanders, with an introduction, when we asked our readers who they wanted to see as Democratic candidate, we were deluged with responses – most of them in favor of Bernie Sanders.
1) He’s seen as a challenge to the status quo...
Sanders appeals to those who feel the entire democratic system has broken down. Sanders is representing my interests. For decades American politics have been a sham, elections bought and paid for by special interests and corporations. They have wrecked the environment, caused the biggest financial crisis in history and are using their deep pockets and for profit agendas to marginalize people’s needs even further.
2) ... and they think it’s too late for baby steps
Sanders voters view as the last chance for America.
Money in politics, income inequality, $15 minimum wage, free college, breaking up the banks, holding Wall Street accountable, reforming the criminal justice system: Bernie has vision and is engaging us in the hard work that needs to be done to achieve this progressive agenda, which the Clinton Democrats have tried to convince us is impossible. Nothing is impossible if we come together and demand change. Bernie knows that and the time has come for democratic socialists to share our vision for our future that will benefit all Americans.
As my view, in all of the presidential candidates, Sanders is the most rational. The voters appreciate his view: that nothing is impossible if we come together and demand change. But, it seems that either Sanders or the voters have not realized that even if that Sanders wins, he will cannot escape the fate of President Obama besides sighing, still is sighing.
Maybe, they never think of that, without a power for policy making, what they can do when they come together and demand change under the kidnapping of human-mindless Elephant and Donkey.
The only way out is in non-partisan politics.
3.2.5…The democracy of Canada is even worse than the Britain and the US
Though the social governance in the Britain and the US is incredible poor, but, Canada is even worse, such as, above I have mentioned that Canada’s productivity lags U.S. in ‘virtually every instance’ and it is cheaper to make goods in Britain or Japan than in Canada.
To have badly damaged economy, destroyed the basis for survival, the democracy in Canada is more fatal.
According to my personal experiences of working in different Canadian businesses in past 15 years, the corporate management in Canada is incredible chaotic, the closure of great many businesses was just simply due to the trouble making of some mindless individual.
Such as, the NCR Company in my Dec. 21, 2010 article Canada’s Corporate Management & Reducing Psychological Pressure in Workplace, and the Auto Parts Company in my Sep. 11, 2014 article The death of a Canadian business owner.
The reason of those mindless individual dared boldly make trouble in the workplace without worry about to be punished, I think, that is mainly due to the misuse of the Universal Values under the legal protection.
Due to the fear of to be litigated, the management staff dared not manage strictly.
The free play of such ignorant behaviors is leading Canada into despaired future. Such as that the significant pillar of the economy Canadian automotive sector is hollowing out, due to that low productivity has been pushing investment capital flowing into the U.S. and Mexico.
Looking at the economy of nature resources extreme scarce Singapore and Germany, the economy of nature resources rich Canada is nothing worth for proud of.
The government of Canada at all levels have been hard struggling for developing economy; however, the results are not satisfied. The main reason, as my view, is that there too much constraints are trapping the exertion of the governing functions under the electorate dominated democracy.
The main problems in developing economy of Canada is extreme low productivity, but it is not easy to make any improvement, since that any rational idea good for improving the economy would inevitably hurt the interests of some individual, and they would make fierce objection, and any objection would be able to play its role due to that the opponents, as voters, they can decide that who will be able to enjoy political privileges in Canada.
In Europe, the over self-appreciated populist democracy has led the rich Greece into a beggar country; in North America, the similar democracy is pushing Canada in following the dust of the failed road of Grace.
In Grace, there pensioners were shot himself to refuse to search for food in garbage.
In Canada, there people are better prepared for death than for life in the years following the end of work.
The only way out for Canadians is to try to get rid of dead harm of populist democracy.
Canadians need innovation in social governance.
For this end, as a way out in no way, Canada must authorize an independent non-partisan Super Leadership as supplement for the inadequate of democratic government.
The democracy and the Universal Values are both very good, but, they have been misinterpreted and misused in harming Canadian economy.
If we are reluctant to find an effective way out for eliminating such negative effects, it is taking ignorance as of course.
Of course, it is that we are in ignorance.
3.2.6…The advantage of Non-partisan Super Leadership
The policies made by government are the track for social running, any problem happened in the society is the problem in the policies. By a team of non-partisan social elite conducting policy advancement timely is the only hope for Canadians.
Due to it is government authorized rather than elected, the Super Leadership does not have to worry about the preferences of the electorate. So that, it can deal with the issues that democratic politicians dare not touch, and can boldly strengthen management, especially, the necessary enforcement to those who are dared prank to harm social governance, thereby, to inhibit the sadness in Britain and Grace to happen in Canada.
Such special advantage will help Super Leadership able to overcome most of social resistances.
As crowd psychology, no matter which race or which country, people are fear of uncertain risks, so that they would resist any social changes that are under an unclear future.
Besides the influence of crowd psychology, the dogmatists in politics are more dangerous.
The prosperity of material wealth in capitalist countries shows that free play of human greed in market economy is the best way for developing economy. However, those successful practices were restricted in socialist camp and caused many political persecutions under the control of those socialism dogmatists. In this process, those socialism dogmatists intertwined the public interest and private interest together.
Due to so, even in one party controlled China also had to set a limited area as test zone for economic reform by carrying out the practices as that of in capitalist market economy, then by the successful achievements to relieve social resistance, especially the objection of those socialism dogmatists, and then, to promote the reform from point to line, from the line to area, gradually in step by step without heavy social unrest.
Feb. 27, 2015, in the article Deng Xiaoping and Economic reform of China, I once discussed such experiences.
In Canada, the project of pipeline construction is a best project for Super Leadership to set as test zone in Canada.
With successful practice to relieve the worries of public, then, to update the policies made by Super Leadership to the Federal level, thereby, to push Canada going on forward.
The success in Canada will establish a model for other partisan ridden countries, thereby to correct the course in social governance world widely.
Above, I have mentioned that the ordinary people can happily share in enjoying fruit, but they never willingly share the effort in making the fruit. A rational government has to enforce people to do something that will benefit to them, but, do not expect to convince them in advance. Such rational social governance is just the dead knots for democratic Canada.
The Super Leadership may easily play a role in broken the dead knots.
For this concern, in Canada, the hope is at that, new Prime Minister Justin Trudeau has showed his strong disappointment for current populist democratic governance. Current Majority Government will help him able to support the practice of any feasible ideas under the pressure of downturned economy.
Here is the link of my Dec. 15, 2014 article Justin Trudeau appreciates executive power of the China’s Government.
There is a unique role of the Super Leadership, it is that it can play as a target to distract public attention, thereby, to reduce the pressure on government.
3.2.7…The potential Candidates for Super Leadership
In order to increase the authority and influence of Super Leadership, we should invite some people who have outstanding social influence with political prestige that can help them to play a role as that of Eagle flying near the forest; all birds in the forest are scared to stop chirping. The fate of all Canadians should not be controlled by useless arguments.
Also we need an large advisory board composed of the experts who are with sufficient academic authority in different professions, and industries even from other countries.
Those social elites united together to form a unique power as that of bulldozer, by collectively appeal and practice, to push away resistance on the way of forward. Thereby to solve some important issues that democratic government dared not touch.
Some candidates:
1…Jean Chrétien, who served as the 20th Prime Minister of Canada from November 4, 1993 to December 12, 2003. Now is Counsel of Dentons Canada.
2…Peter Harder, who served as Deputy Minister (including Treasury Board, Industry and International Trade), Government of Canada; a public policy expert with three decades of government involvement. Now is Senior Policy Advisor to Dentons Canada.
3…Kevin Rudd, who was a former Prime Minister of Australia, and he was major in Chinese history and Chinese Literature with good understanding and friendship with China. For well developing economy of Canada, his experience about China is valuable.
4…John Walter, who is serving his second term as ISO Vice-President (policy) for the period 2016-2017. He is Chief Executive Officer of the Standards Council of Canada (SCC), Canada’s member body to ISO. Mr. Walter has wide associates with Canadian senior decision-makers from industry and government.
Mr. John Walter is good at the practices in ISO Management System Standards – a management magic with perfect accountability, by which 3M Canada saves Energy 30%. He has potential for reversing low productivity of Canada as a perfect consultant.
5…A senior executive who once worked in failed RIM and wrote Open letter to BlackBerry bosses: Senior RIM exec tells all as company crumbles around him in Jun 30, 2011. It is not only his open letter hit the crucial points in business operation, but, more importantly is his courage for boldly action, while others are only in fantasy, do not say, and do not do.
Above is only my primary thoughts, we still need more.
3.3…Optimizing construction team to minimize the cost in management
I am sure that, in Canada, there is no politician can act as that of Margaret Thatcher and Ronald Reagan dared cut the Gordian knot by one knife to solve thorny problem of irrational labor striking, even if for incoming Super Leadership.
The economy of Canada has reached a critical juncture, we have no time to continue waste.
For the pipeline project, we should avoid any potential trouble from root level, especially in the management. At the beginning; we should design a brand new management structure.
For reducing the trouble of construction companies and Unions, we may divide the construction of the pipeline in two parts: one part is for existing Canadian companies in avoiding potential arguments, and other part is to organize construction teams under the Super Leadership, by directly recruit construction workers who have well experience in pipeline construction, even including foreigners, to guarantee the construction team to be the best. The structure of the construction team should be in many independent one with independent cost accounting.
Under the leadership of the Super Leadership, the construction team with independent cost accounting, without profit concern, in maximum extent to reduce the management people, thereby to ensure construction funds to be maximized into the hands of construction labors, who contributed more, who gains more, thus by highest payment world widely to incent their work in highest quality.
Purchasing team, quality control team, and all services are also independent cost accounting.
Ultimately, to avoid construction investment is grabbed by the people who reaping without sowing.
The payment for construction workers should be based on the qualified work load rather than paid by hourly, monthly or annually without link to the work performance – in strict accountability.
The multi-independent-construction-team can reach in multi-section-construction in the same time with some kind of competing that who contributes more who gains more. Thereby speed up the construction, and also can avoid someone to organize strikes.
3.3.1…Pre-design regulations and operation technologies
To pre-design regulations, operation technologies and quality standards, the workers operate in self quality control accordingly with records for permanent accountability without or lesser supervisor.
3.3.2…Middle managers play a role as more in bad less in good
The radical comment on middle managers is from the experience of China.
For reengineering business process in Internet Era, China’s Haier Group lay off 26000 middle managers accounting for 30.2% of total staff in a two year period.
Sept. 15, 2016, a Mandarin article Viewing change from Haier layoffs, what did change mean for business reported that.
The CEO of China’s Haier Group Zhang Ruimin who said that：Haier removed middlemen in outside and removed wall insulation in inside. The wall insulation is those middle managers. As intermediate layer, those middle managers are a group of roasted goose, they can not reflect market situation due to they have no nerves.
Besides, the reason that roasted goose, the intellectualization in management has replaced the jobs of those middle managers.
As a result, Haier set up more than 2,000 self financing and self management bodies - small and micro companies. Zhang made clear that "the company now is not to provide a job for every employee, but to provide a business opportunity." “Haier now is to provide staff with a platform, a parallel ecosystem.”
Haier is one of the first companies to implement Business process reengineering - BPR in last century China. In 2008, Haier promotes optimization in business process reengineering again.
After several management innovation and process optimization, Haier is able to withstand the challenges of the changes. If the change fails, it is necessary to review the thoroughness of its business process reengineering.
After a thorough business process reengineering, employees developed a conscious production habits in "thinking according to the production process, speaking according to the production process, and acting according to the production process", thus, the work load in business management is greatly reduced. The employees are working according to systematic regulations, standards and processes, rather than that of taking orders from superiors. Only when encountering a new situations and new problems that have no standard to follow, there is need of the help of manager. Of course, they can rely on exploring solutions by team work collectively without need of manager. In this situation, that cut down management staff is granted.
The responsibility of the management staff is to establish regulations, standards, and processes, to nurture employees, and to handle some exceptions.
Thus, the old mechanisms that report work and ask for instructions from lower management to higher management in step by step, and then transfer the feedback or instructions from higher management to lower management in step by step, is no longer necessary.
Canadian businesses urgently need to carry out such management process reengineering, especially, in incoming pipeline construction, we should copy the management model from initial management design.
Based on my experience from working in Canada, the quality of many management staff is poor; they are boldly recklessly in misusing the rights to play according to their own instinct without the fear of being punished. There many of them play a role as more in bad less in good.
If they get a right, they would gang mindless individual up to badly play in workplace.
Such as, the director of the Legal and Business Affairs Department in former RIM, which introduced in my article The Fatal DNA of RIM & Canadian Enterprises.
In addition, within the jurisdiction of each of the middle management staff will form a separate kingdom with the formation of the unspoken rules, which will result in obstacles to cooperation between the departments.
3.3.3…Accountability – tagging responsible on individual forehead permanently
The construction quality should be controlled by all people who work on the construction by tagging on the forehead with accurate records for historical accountability.
For this concern, the construction of high-speed train of China may provide a reference.
In the process of building high-speed train, in entire system, in every step of the operation, there are detailed records for every operator with accurate traceability, even the name of the operators directly set on the work-piece.
One operator said that my life is associated with the life of high speed train. Obviously, in this way, any of personal mistakes may cause punishment.
In the pipeline construction of Canada, if we make the life of construction workers associated with the life of the pipeline, it is certainly that the quality of the pipeline will be 100% guaranteed.
3.4…Recruitment of construction workers is selection of better brain
July 26, 2014, I once wrote an article Recruit employees by the quality of brain, not the academic degree, I excerpt some as follow.
Businesses are the important cells of the national economy in providing jobs and revenue to create a stable living environment for citizen; we must ensure their healthy development. For this end, we must avoid to make a business as charity for the care of some mindless people, which may easily cause business failure, resulting in more people unemployed without a livelihood, to cause greater uncharitable.
It is better in beforehand prevention, rather than remedial after unexpected problem happened. That layoff people is a headache issue world widely. For this concern, the selection of high quality people is the key.
So there is necessary to particularly discuss how to recruit high quality employee.
July 26, 2014, I happily read the article Don’t Send Your Kid to the Ivy League with a subtitle – The nation’s top colleges are turning our kids into zombies.
The writer William Deresiewicz said with that: “Our system of elite education manufactures young people who are smart and talented and driven, yes, but also anxious, timid, and lost, with little intellectual curiosity and a stunted sense of purpose: trapped in a bubble of privilege, heading meekly in the same direction, great at what they’re doing but with no idea why they’re doing it.”
The comments inspired me to think of a long consideration that how to verify perfect people, due to that diploma is not the mark of Intelligence level, the grads of Prestigious Universities may be not the best.
Though some people worked a long years in a same job position, but they are never necessarily up to the task, so that the work experience is not reliable also.
According to my own experience and the comments of others when working in a research institute, among the people who achieve higher academic degree, especially those graduates of prestigious universities, only few are with better research ability, mostly are mediocrity that cannot independently complete simple research tasks with no ability for innovation.
Modern studies prove that human brain structure determines personal intelligence; it has provided availability for recruiting satisfied employee from the level of brain structure.
The recruitment of the employee, besides the qualification of the academic degrees and work experience, we should also examine the real quality degree of the brain of the candidates by ability testing intellectually and physically, for example:
1…By abbreviating a certain length English article to a certain shorter length with keeping the original meaning as much as possible to test the abilities in writing and wording.
Neat and beautiful handwriting shows that writer’s brain and nerve system is well functioning so that hand can well follow brain’s command signal without tremble. The good rhetoric indicates that the brain is efficient enough in logically think.
2…By glancing or listening to a group of over ten random numbers then writing down from memory to test the capacity in concentration and short-term memory.
Good results suggest that attention can be well focused with a good short-term memory; it shows that brain well developed.
3…By threading the buttons together in certain time, to test the ability of hand-brain coordinating.
Threading buttons faster is a sign of good hand-brain coordinating.
4…By watching videos in violent or sorrow to test the reaction in compassion of the candidate.
No feeling of compassion is a sign of defective brain. A person less in compassion cannot make a perfect job, but with a potential stirring up trouble in workplace.
5...The harmful hobbies, such as, the smokers, alcoholics are also the sign of the brain defective.
Such people are unable to properly self behavior control.
6…The sense of humor
Easy in laugh, witty humor language and response, is also the symbol of well developed brain in high intellectual level.
A depressed people will be no sense of humor, but will be endlessly complaining. They are not only in low efficiency of their own work, but also will badly influence others, to make others in depressed state.
7…Chatting
An intelligent person can well follow the topic and exactly answer what is asked with simplest words. Otherwise is a mental defective.
And so on…….
Such skills are very simple and being often used in doing daily tasks, but less people can do perfectly, especially those people of brain development is not matured, or with a bad living habits, such as, smokers, alcoholics. Those harmful hobbies are also the sign of brain not well developed, so that they are unable to proper behavior control.
Those brain development normal people, in general, will be able to do their best in whatever they engaged in and continuously concentrating on their professional studies, rarely complaining and more importantly, they will be very good in cooperation with others.
On the contrary, those brain non-normals will be the players of the troublemakers with endless complaining due to their sustained in depressed mood under defective brain. The worse is that they would badly influence others by causing bad mood and their bad work ethic will lower down systematic efficiency due to the magnifying effect of herd mentality in grouping work environment.
Only high-quality people can ensure the high quality work. This point is extremely important for those who work as management.
For the candidates who are with outstanding ability, we should hire directly without the restriction of the condition of academic degree and work experience. Since that in the Era of the knowledge explosion today, there are many channels for learning, which are not limited to the schools. On other hand, as mentioned above, in some extent, the rigid mechanized teaching model of the schools may stifle the creative ability of the students.
Any society or organization cannot be absolutely fair and reasonable, if there someone is always upset bickering to make ungovernable, that will cause to lower down the efficiency with achieves nothing.
The behavioral defectives are all caused by immature brain or brain defective, we must identify them out. We do not need to tolerate them mess up our living environment and wasting our time and energy.
As the staff who will work on different position in pipeline construction, the test on professional knowledge and work experience is also inevitable, especially, for some position that hands-on testing is essential.
4… Dr. Pierre Trudeau has set a model for us
In consideration of this topic is in envisaging for the long-term development of Canada, and the essential bases for rational governance, there is an important historical fact worth to be made a recall.
The 15th Prime Minister of Canada, current Prime Minister Justin Trudeau's father Pierre Trudeau who was with wide range of studies - economics, law, philosophy and theology and also before entering politics, he has traveled many countries to learn the world personally, once three times traveled in China. There two times were in just before and after the establishment of P.R. China, and found that what he saw was completely different with those the West reported.
Later, many of his political views came from his personal studies on the reality. As the results, under his tenure, in Canada, the social development index and quality of life has been among the highest in the world.
Politicians take mutual compromise as usual practice and to be venerated as political skills, but, Pierre Trudeau did not make compromise on the principles, due to that any political compromises are exchanged by national interest.
Isolation and sanctions against other countries was the established practice of the United States, but Pierre Trudeau was not as other prime minister to follow such baton, instead, he insisted independent international policies to safeguard the interests of Canada.
He often said that the people in the Pentagon are a group of "boring villain." He made Canada maintained a certain distance with the United States. He asked the foreign investment review agency to block out some of foreign investment, and to promote trade relations with Europe. Under his efforts, in the Western countries, Canada was the first to establish diplomatic relations with China – one of biggest market as single country.
Because he refused to take Canada as a cat's-paw of the US, the relationship with President Richard Nixon's was not good. However, in Nixon’s memoirs – Leaders, gave him a high respect in equally as that of Zhou Enlai of China, and Charles de Gaulle of France.
The deeds of Pierre Trudeau lesson us that the priority of the government is to safeguard the interests of own country, to develop national economy and improve the lives of the nationals. As a politician who occupies an important position that determines nationals' livelihood should be more on the economic development in less on the ideological argument.
Follow is two of my articles.
Pierre Trudeau and the establishment of Canada’s diplomatic relation with China.
The difficult decision-making process of Canada in wheat trade with China.
5…Some projects for Super Leadership
5.1…Tagging accountable mark on forehead of specific individual permanently
This section is vital important, it provides the first task for Super Leadership. Without establishment of related regulations, everything is meaningless, especially for Canada – a country in multi-culture with the citizen from every corner of the world.
The idea is from my Feb. 09, 2014 article Management is the Art of Playing Human Nature:
“Human behaviors are determined by dual natures: The culture nature of those acquired qualities, and the animal nature of those inborn instincts.”
“The best example for understanding human natures is the process of taming animal actors, in which, the beast-master tempts animals to learn cultural nature for serving human by meeting their greedy of animal nature with foods under the enforcement of whipping.”
“In consideration of human natures, we may say that, the Management is the Art of playing human natures, which is to finish purposeful tasks with human culture nature by meeting human greedy of animal nature with payment under the enforcement of regulations.”
“For the success of taming animal actors, the foods and the whips are equally important, both are indispensable. In the same way, for well playing the Art of the human natures, the payment and regulations are both indispensable.”
“Whether the Corporate Culture or the Organizational Culture, they all should be composed of the measures that can motivate the maximum exertion of employee’s cultural nature with minimum play of employee’s animal nature to maximize the production efficiency.”
“Do not simply use morality to cover up human animal nature.”
“The success of any enterprise is the result of very good played human nature.”
“The driven force for German outstanding manufacturing mainly comes from their legislated management for rationalization proposals, which is to extract bonus from the profit gained in the application of the proposals to motivate all staff to pay their full talent into the business running since Mr. Krupp initiated it in 1872. That is 142 years ago.”
I also argued that reverse-thinking for 3M Canada saves Energy 30% by ISO50001.
There were reports taking saves Energy 30% by ISO50001 in 3M Canada as a proud achievement. However, I would like to question that, by the same group of people with the same equipments in the same place, why they could not effectively save the energy similarly before the implementation of ISO50001 standards?
The achievement in energy saving is also reflecting the CHAOS in the management of 3M Canada. It is common in many Canadian enterprises, which is one of the reasons of the Canada's Mid-Sized Firms in Decline.
If there was no mandatory of the ISO50001 standard to strictly enforce the staff as that of the law enforcing social members, only relying on their management team and their own developed management rules, 3M Canada would never get such an achievement.
In China, as a senior engineer in metal material, I once participated in the drafting of the application documents of the ISO90001 for Oil wells drilling pipe. The deep impression on the ISO documents is that every aspect of the production to have provided concrete steps with formulates specific instructions and regulations. More importantly, each specific operation puts specific person in charge - the responsibilities are clearly assigned to the specific individuals.
There have been great many discussions for the corporate management, but most of them from macro strategically in lesser touching the micro practically, so there few people can learn that ISO standards are acting as the powerful business-law to regulate the behaviors of the business’ members by exactly identifying that who are responsible to be punished or to be awarded.
In fact, the role of ISO is to prevent mistake in the production by tracing responsibility with tagging responsible mark on the forehead of individual who is on responsible - accurate accountability. At this process, ISO plays a role as enforcing people work carefully.
The experience of 3M Canada in energy saving has provided us a direction for reversing the state of CHAOS in business management, which is to copy the model of ISO standard to develop regulations, with the regulations to optimize the management in our firms, thereby, to dig out potential for gaining profit with easy way.
We are clear that, in the business running, besides energy saving, there are many management aspects with the plenty of room for improvement in cost-saving. We can imagine that, if 3M Canada improves efficiency by 30% in all of their management aspects, then, see, what will happen? If we all firms in Canada are able to improve the efficiency by 30%, and then, see, what it will happen?
Accurate accountability will dramatically motivate employee’s self-esteem, and the self-esteem driven them consciously full-hearted work in higher speed with avoiding mistake.
In the practice of ISO, the management is being conducted by the written instructions and to be enforced by written regulations, rather than by the management staff orally according to personal preferred accord.
Indeed, in this process, the practice of ISO is similar to the practice of Business Process Reengineering - BPR that is focusing on the analysis and design of workflows and business processes within an organization to dramatically improve customer service, cut operational costs. In this process, the significant one, maybe that the operators are working according to processes, standards and regulations of the system in detailed instructions, to replace that of taking orders from management staffs.
After a thorough business process reengineering, employees developed a conscious production habits in "thinking according to the production process, speaking according to the production process, and acting according to the production process", thus, the work load for business management is greatly reduced.
In such practice, the achievement of China’s Haier Group in admirable, after business process reengineering, it cut off 26000 middle managers accounting for 30.2% of total staff in a two year period. It achieved great increase in the management efficiency and largely improved productivity with huge profit gains.
In view of above achievements, ISO management system may make some improvement to be associated with the popular practice in business management - Business Process Reengineering, thereby, to make the development of ISO more applicable and suitable with easily riding on the development trend.
According to Business process reengineering - Wikipedia that is updated in 5 February 2016, in the mid-1990s, as many as 60% of the Fortune 500 companies claimed to either have initiated reengineering efforts, or to have plans to do so. Now, in 20 years later, that number will be much more.
If associated with Business Process Reengineering, the practice of ISO will be able to dramatically improve productivity in manufacturing, and will be able to play more significant role in the process of promoting the progress of human civilization.
Now, we can see the magic of the ISO in improving efficiency. In turn, the efficiency will produce profit that companies have been hard pursuing.
Even so, the ISO has its shortcomings; it is that it does not touch the management in business expense. For this concern, we need Amoeba Management that takes into account of cost and profit.
Amoeba is a Management System designed by the creator and the current Kyocera honorary chairman, Kazuo Inamori, Japan.
“Amoebas are in general groups of 5 to 50 people, composed of personnel in a company, with a clearly defined purpose of making profit for itself. Profit is measured using this simple formula: ("Profit per hour = (sales - cost) ÷ working hours"). It is calculated in each Amoeba with the goal being to identify and maximize profitability per hour.”
“Amoeba profit is usually calculated on a monthly or annual basis. The aim is to target plans into action, and create a system of metrics which can lead to increased efficiency working hours.” “Amoebas keep changing from time to time, and the roles inside an amoeba are changed as well.”
The advantage of Amoebas is exactly distinguishing responsibility on cost and profit, but, it seems not directly touch the responsibility on individual.
If we combine use of advantages of ISO and Amoebas to make up the shortages of each other, the result will be perfect.
The combined use of ISO and Amoebas still has some shortage, which is not linked with incentives to encourage employee free exertion their creative talent. Therefore, we still need more measures in incentive and enforcement.
For this regard, my writings may provide reference:
The DNA of the success of Germen manufacturing was legislated profit-bonus-incented rationalization proposal.
The Fatal DNA of RIM & Canadian Enterprises was to suppress employee’s effort in rationalization proposal.
Profit-sharing incents employee work more efficiently.
To evaluate employees' work performance accurately by Computer.
The profit linked bonus to promotes employee innovation in production.
The patent linked bonus to promote invention activities.
Industrial Engineering, the magic for improving production efficiency.
In Canada, we can improve efficiency 30 to 50 percent without extra spending only by organizational re-structure with defined accountability and the payment links to the work performance.
5.2…Health Care Reform and money printers for Super Leadership
When I am more observed and searched into the reality of universal health care in Canada, especially after personally experienced the medical services, I am more depressed by the low efficiency.
Long waits in medical treatment in Canada is a common practice for a long time.
One time, I went to a walk in clinic before 8:00am in order to as quick as possible to see a doctor that scheduled to start work at 8:00am, but, until 10:20, a doctor came to see me. When I waiting for doctor. From the open door of waiting room, I saw the doctors came in at about 9:45am at the back door of the clinic.
I have a friend, who was fallen down from a ladder, made him left chest rib broken in massive bruises with the sound of rib dislocation. He went to a hospital, a nurse let him sit on a chair, and told him do not walk any more, later some people will come to help him. After about two hours, the nurse saw him still in the waiting room; she sighed and pushed my friend into the medical room.
After x-rays check done, a nurse pushed him into a ward and on a bed, and told him that doctor will come to give him further examination. My friend asked that how long time will be waited, the nurse looked at a record, said that there a total of five patients were staying in the hospital, he was in second, estimates after 20 minutes the doctor will come. As a result, my friend dared not sleep with eyes open until 5:00am from 10:00pm yesterday; the doctor still did not come. My friend went to the service desk to enquiry the reason. The nurse made a phone call, soon, a lady doctor came, and said to my friend: “you are all right; you may go home now”, without any check.
In a super market, I once heard a gentleman complains about the irresponsible working behavior of some medical staff in above hospital, from the talks, I guessed that he was working in the hospital. When I tried to ask something, he quickly went away while looked at the surroundings carefully.
From the talks of the gentleman, I think that, in Canadian health care sector, most medical staff is rational with full heart to make a good job, but, under the negative effect or even negative supervising by some mindless medical staff, no one dared work hard.
It is that a few rotten fish made the whole fish pond stinking.
The facts are clear, that long waits in medical treatment is not mainly due to the shortage in manpower or funds, but, it is simply due to the poor work ethic, which is simply due to the poor governance without accountability.
The facts that happened in Britain Health Care System were more outrageous.
In British hospital, up to 1,200 needless deaths, patients abused, but hospital says no one’s to blame. The wards were left filthy with blood, discarded needles and used dressings while bullying managers made whistleblowers too frightened to come forward.
Nov. 30, 2013, in the article The feasible steps for improving Canada’s health care system radically, I indicate that:
In Canada, long wait for treatment has developed as life threat. The wait for emergency treatment is more than 30 hours, not mentioned that long waits for the treatment of some chronic diseases.
For disappointing medical care situation, more people blame the lack of government investment leading to a shortage of medical resources; few people consider the problem of health care system itself, the organizational flaws caused the wastes in medical resources.
The one of organizational flaws is that medical resources are being wasted in the patients seeking treatment procedure; firstly, have to see family doctor, and the doctor recommends to see specialist, and the specialist recommends to hospital. In such process, in the most of time, the doctors are not the right one that patients urgently needed.
In current Canada, the family doctors are never go to any family, but, waiting in own clinic, patients need to line up in the clinic as that of in the hospital. The problem is at that family doctor cannot treat all of diseases; in most of time they work as a nurse to send patients to see a specialist or medical labs.
I tried to search the origin of such a health care system, the article that published by the University of California San Diego Department of Family and Preventive Medicine - The History of Family Medicine and Its Impact in US health care dilevery introduced that: in the 1800s, “the US, the population was still settled in small towns, and farming and production of goods were the major foundation of the economy. Health care was unstructured; the doctor often visited his patients in a horse and buggy. Most doctors did not have formal training; some learned the job as apprentices working with older physicians, or attending small courses and workshops. There were no medical schools, no organized training nor organized medicine and no system to ensure quality of care.”
I did not get such information about Canada, but, the origin of the family doctor system may most possibly as same as that of in the US.
In today, the branch of the medicine is more refined, the treatment is more specialized, the traffic is highly developed, and people have been large-scale urbanized, the family doctor system is too old to meet the needs of people's demand for treatment.
We must establish Comprehensive Hospitals with labs, operating rooms and multi-divisions with each division treats each specific sort of disease, such as, eyes division, nose division, etc.. To gradually replace current system with medical staff natural retirement, so that patients can see a right doctor with a right treatment at first time.
According to Canadian Cancer Statistics 2014 that released by the Canadian Cancer Society:
An estimated 191,300 new cases of cancer and 76,600 deaths from cancer will occur in Canada. 97,700 Canadian men will be diagnosed with cancer and 40,000 men will die from cancer. 93,600 Canadian women will be diagnosed with cancer and 36,600 women will die from cancer.
On average, 524 Canadians will be diagnosed with cancer every day and 210 Canadians will die from cancer every day. Lung, breast, colorectal and prostate cancer are the most common types of cancer in Canada.
Oct. 7, 2014, on National post, the President and CEO at Canadian Cancer Survivor Network, Jackie manthorne who published article said that surgery, radiotherapy and chemotherapy are the main approaches for Cancer treatment in Canada currently.
But all of the cancer treatments have strong side effects, even to stimulate the repopulation of tumors.
As a way in no way, in Sep. 13, 2007, Canadian Cancer Society and the National Cancer Institute of Canada has launched a large, multi-year international study to try to find a way to help the hundreds of thousands of men diagnosed with prostate cancer every year, decide whether to opt for potentially life-altering treatments or choose awatch-and-wait approach.They hoped that Surveillance Therapy against radical treatment would resolve one of the thorniest dilemmas in prostate cancer care. Because of current therapy of chemo and radiation will cause the cancer degenerated faster.
It is very disappointed but is a corollary under the misleading of the philosophy - Reductionism.
For Cancer treatment, we need a new way out.
We should introduce a patented cancer treatment from China, which is to inject drugs into tumors within 10 minutes per patient.
April 18, 2011, I once wrote article Kill Cancer with Lesser Impact on Normal Tissue to have introduced the method.
The inventor Dr. Yu who is from China to have doctoral studied on the gene & the drug-delivery of cancer in the United States. In 1990 he proposed that take the tumor itself as storage for anti-cancer drugs through injecting into it directly and then make the drugs release a little by a little within the tumor continuously to kill the cancer cells. It was called as slow-release storage therapy (SRST). Dr. Yu has spent more than 5 years to engage in the basic studies to make the idea applicable clinically.
The cancer treatment produces lesser physical impairing while taking the powerful therapeutic effect; thereby it will reduce the inducement of negative psychology from causing lesser physical uncomfortable, so that patients have a high quality life when and after treatment.
The significant advantage of the treatment is that it does not need any postoperative medication. As usual, the Surgery, Radiotherapy and Chemotherapy are all need postoperative medication for a long time, such cost is a big burden for patients’ families.
Thus, the patented cancer treatment can greatly reduce the cost of patients’ family and government. Especially greatly reduce the cost in both investment and manpower in health care and therefore to gain a relax breath for further improvement of whole health care system.
The patients who were treated in China have covered by the medical insurance of the United States. The treatment charges US $20 thousands of each in a four weeks treatment with free accommodation. It is certainly that US insurance will cover the treatment in Canada.
The cancer treatment hospital by patented method will be a money printer for the Super Leadership.
Now, the inventor Dr. Yu has been running several Cancer treatment hospitals in China.
I have convinced the inventor Dr. Yu to stop to sign a contract with an American who was planned to establish a hospital in the United States, so that we can control whole market of North America.
We need to pay close attention to sign a cooperation agreement with the inventors as soon as possible, so as not to lose the opportunity.
Here, I must point out that we should not be tempted by those new findings on cancer treatment, those reports are more in over vaunted to attract funds, less in practical value.
Nine years ago, we once cheered for the completion of Human Genome Project with the happy of getting a new powerful therapeutic approach. Many of us thought that we could uproot all human diseases since then.
However, until now, it seems to have no genetic therapies been applied in clinic safely and stably, because there may be dozens even hundreds different gene-fragments in affecting the development of one diseases. Therefore, those believed as most advanced, most scientific, most reliable genetic therapies are only hopeful flowers that may need long time, and more study to bear enjoyable fruits. I believed that, this fruit cannot mature forever, because it cannot uproot the stress or psychological pressure – the main inducement of the diseases.
Besides that, the Super Leadership should establish special hospitals for making funds from the market of Medical Tourism, also should introduce Traditional Chinese Medicine – TCM for funds making purpose.
With the support of plenty funds, the Super Leadership will be able to launch many projects to boost economy and thereby to greatly improve the life of Canadians.
5.3…CPP takes over farmland and develops as main body of state-owned economy
With the baby boomer farmers retiring, there will more than 50% farmland transfer ownership in coming years. Canada Pension Plan must take over all available farmland to develop as in kind base and as key body of state-owned economy to produce high quality foods and natural health products to make profit for all Canadians.
Thereby to stop the speculation that is taking farmland as gambling chips by the greedy speculators. Such speculation has been pushing farmland prices up unreasonable high; it will ruin the agro-industry by destroying competitiveness of agro-products and the future of Canadians.
In this regard, there is more detailed discussion in my June 3, 2015 article Canada Pension Plan must develop in kind base and as key body of state-owned economy.
5.4…Downsizing governments in all level by e-Government
Faced with economic recession, all level governments in Canada are not thinking about how to save money, but instead that try to tax money from the pockets of the citizens.
If searching on Internet, we will find that, in current Canada, the government in all level seems to have engaged in an unprecedented race to see that who can manage out more wonderful ideas to steal money from the wallet of citizens.
The steal here means the practices that can get more tax income but in lesser anger to voters.
The behavior of government is simply no compassion for the hard working Canadians who are facing the jobs in losing and the prices of daily necessity in soaring.
Then, where is the hard stolen-money spent for?
Here, there is necessary to recall above has mentioned facts.
“Our Canadians have been tamed to be lined up in all of government agencies, especially, the fatal lined up in medical treatment.”
“Is it really shortage in social service resources? A German told us that are not true, but, simply due to the poor social governance.”
“‘being an immigrant from Germany I can tell you my perspective of lacking productivity in Canada: looking around in the office I see people dropping in sometimes between 9 and 10 am. Not much later they are off for a coffee break. Then there is lunch break and another coffee break. Leaving around 4pm, because there is some important fishing or hunting or other outdoor stuff on the agenda.’”
“’Any more questions about productivity?’”
“’I mean, I really appreciate work-life balance. But what I experience is overdone.’”
“After read above comment, I think of a few years ago in Toronto, a government agency; there a lot of people were waiting in line. From the perspective of the number of idle office chairs, there should be a lot of people who were work here, but only there two staff were servicing for the customers. There are other two staff finally came in, the people who were waiting in line were pleased for that was able to speed up. However, the two came-in staff has not sat down yet; the original two staff in working immediately got up and left away.”
“Long time waiting in the government agencies seems a common matter in Canada, which is not due to short in manpower, but only due to the poor work ethic.”
The fact is simply incredible; the Canada simply is a country without rational governance.
Of course, for such phenomenon, that poor work ethic of some people is the main cause, but, there is other reason in organizational flaws that leads some people no enough works to do.
The workers of government are with unreasonable high payment in comparison with those who are working in the field of manufacturing and farming. Even so, they are still striking for more under the encouragement by the Law and the Values.
We must be clear that, from a geopolitical point of view, in the economy of Canada, the main pillar is manufacturing. If without manufacturing, the service sectors will be no ground for existence, and, thus, the economy of Canada will be lost ground for existence.
However, those people who are in hard working to support manufacturing, as general labor, their payment is just above minimum wages. In Ontario, it is $11.
For years, some social elite and Unions are struggling for $15 minimum wages. The idea is really kind-hearted, but, it seems there is no one to ask that whether the weak manufacturing industry is able to afford for.
Even in current low payment, there still a lot business were closed or outsourced.
The over bloated government is a heavy burden on taxpayers, and the fatal harm for economy - overstaffed inefficiency in jeopardizing the efficiency of the entire community. Such a government must be drastically streamlined.
The Retirement of Baby Boomer generation provides a good opportunity for social organizational restructuring, especially for government downsizing without the trouble of layoffs.
I have searched and gotten satisfied result that the Retirement of Baby boomer in Canada will be until 2030, in this period, there will be 0.344 million retirements yearly with a total number of 5.16 million, which is nearly one-sixth of current population. After the retirement of the Baby Boomer generation, every year, there are still retirements about 0.28 million normally.
The streamline of the government base on the current structure and running process is not enough. We need to reorganize government structure to merge departments and jobs, so that people can work as full load as possible.
The advancement of intellectualization and Informatization creates new possibilities in social governance; it is electronic social governance – eSociety by an eGovernment, which is paperless administration, by which, all services of government is going to be self-handling online.
The eGovernment with self-handling online will drastically reduce the need on manpower. It can stop government to increase manpower and spending.
Estonia is a small country that located in the Baltic region of Northern Europe with only about population in 1.29 million, but its electronic social governance level is No.1 world widely, which may provide us a good example for forming an e-government in Canada and largely reducing the cost in social administration. The more significant is that will largely increase the efficiency in social governance.
For example, in Estonia, only by a cell phone, people can online self-register a business.
Follow are some videos that introduce about e-Society in Estonia.
eGovernment and Reduction of Administrative Burden
The e-Government-Services of Estonia
System Architecture and the Evolution of E-Governance in Estonia
The founder of X-road Estonian e-goverment integration platform
E-Estonia: Unlocking The Power Of Electronic And Mobile Government
Estonian CIO Taavi Kotka - ‘A Vision for Government in the Digital Era’
The Estonian experience in eGovernment, eTax and Tax Compliance
e-Estonia: Life in a networked Society
E-stonia - A startup country - vpro
Google, there are a lot such information; the Estonians are proudly advocating their revolutionary achievement in social governance.
Besides downsize administrative agencies of the government, the legislature also needs to be streamlined.
As mentioned above, the birth of family doctor system was started since 1800, because in that time, people live scattered and inaccessible. Today, the legislative system by regional elected representatives, I think, also was from the grounds of the birth of the family doctor system.
In highly developed information technology and convenient transportation today, with the support of civil professionals, the legislative body with less than 10 people has enough, since that decision-making of the Government must be more relying on the professional studies of experts and scholars in the universities and academic institutions.
On other hand, whether in solving economic problem or social problem today, they all require in-depth studies and solid academic researches. It is not the ordinary person can do.
5.5…Set Economic Zone to avoid the harm of speculative real estate
In Feb. 28, 2016 article Partisan politics is the main cause of economy downturn, I indicate that:
Many countries regard real estate market as a means for develop economy. Though, the real estate market is a part of the real economy, however, it is a wand with opposite magic that either can benefit or harm to the economy. Since that real estate has effect as a hedge against inflation, it has been taking a kind of tool for speculation to loot real economy.
In Dec. 2010 article Set economic zones to avoid the harm of speculative real estate, I indicate that:
Though, that overheated real estate has made big trouble in Japan as a speculation means to have heavily damaged the development of the real economy, but we should also look at the positive side of it may play a positive role to attract investment for stimulating economic growth. For this end, we may set special zones separately for the development of speculative real estate and real economy.
We must strictly limit the Area for the Speculative Real Estate (ASRE), such as, for the house prices soaring area in Vancouver may allow it as is in free indulging continuously, while, to reserve enough space as Technology Parks (TP) for the development of other industries and residential for low income working class.
Within the ASRE, we must properly legislate to control its healthy development, such as, we may consider that, in Canada, strictly prohibits the loans for speculation of real estate in the ASRE to avoid financial crisis. It reported that in the some area of the United States have similar policy and the deal on the real estate by cash mostly.
Within the TP, we must also properly control the healthy development with legislation of admission requirements for residing into as a measure for preventing the housing speculation. By strictly forbidding the intrusion of the Capital Predators, to create a fairyland for those who are willing to run a business to provide employment and tax revenue and those who are willing to make livings with hard working, thereby, to ensure business owners and their employees can both be affordable for their survival.
Thus, by setting ASRE and TP to ensure the speculative real estate and real economy can health develop side by side, and moreover, by the tax income from the free play of real estate to subsidize other industries to create more job position and more tax revenue.
As return, the working class, with the proceeds from their hard working, able to enjoy the prosperity created by the speculative real estate – the bustling shopping and the entertainments. Also, such consumer spending is the essential support for the sustainable development of speculative real estate.
In the TP, we should consider that Government-led housing construction at cost price renting, thereby lower the cost of businesses operating.
In Japan and Germany, there more people are renters. In Japan, it is personal pay plus subsidies of worked company. In Germany, the rental is comparatively low than other countries.
In my Aug. 24, 2014 article Overheated real estate market is ruining Canadian economy from Japan mirroring Canada, I have discussed those Japanese people who had speculated on real estates, owed a huge debt unable to stand.
A Taiwan TV video - 8 million empty ghost houses and decreased by 1 million population in five years, Japan toward extinction prophecy introduced that, in current Japan, due to the fear of the housing prices going down, people stopped to buy house.
July 29, 2015, I once wrote article Germany timely regulation of Real Estate Market sets a model for Canada, in which, we can learn that the reason of the rental is comparatively low in Germany.
Only in this way, we can avoid the greatest tragedy of human society that decent people who are hard working for creating material wealth, but cannot live decently.
Technology Park needs the design of the overall plan, such as that sets related regulations, even to be legislated. In this concern, the Super Leadership may play a unique role in regulation making and daily management.
1. To establish the basic development plan.
2. To provide proposals of development policies for legislation.
3. To provide a full range of services for the businesses in TP.
4. To invite companies with promising development potential world widely.
The Technology Parks can be used as a hotbed for attracting foreign enterprises.
Also, there is necessary to make some further explanation.
1.… Speculators will chase strangling the real economy
The thorniest problem is that, in financial economy overheated today, as usual, when the information of some areas will be developed as industry, the speculators will deluge in as that of the Vultures in the wild African grasslands towards animal carcasses. The construction does not begin yet, the land prices have been pushed in soaring, which is easily to strangle the industry in the invisible entity.
Such as, in 2001, after China agreed to participate in the development of the Gwadar Port in Pakistan, the project did not start yet, the price of the land there has soared up. My son’s university classmate who was from Pakistan said about that.
2… Vancouver lost foundation for the development of real economy
Since livable climate, Vancouver has become a paradise for real estate speculators; soaring housing prices have pushed up the cost of businesses’ operation and driven the labors out. Vancouver has lost foundation for the development of real economy.
3… The methods of Japan-Gov killed bubble economy 1980
Follow is excerpt of my article Overheated real estate market is ruining Canadian economy from Japan mirroring Canada.
In viewed that real economy was in decline under overheated real estate market, the foundation for survival was in damaging, in March 27, 1990, the Bank of Japan issued Notice of Controlling the Total Financing Amount of Real Estate. The Notice was known as the ignition point of the collapse of Japan’s bubble economy. Then, the house prices and stock prices were both fell down.
Furthermore, in the August 1990; the Bank of Japan increased short-term lending rate to 6%. But, those were not enough; in 1992, Japan has introduced a land value tax to further push down the overheated real estate market.
For the High-end retailing businesses, because, the shop was located in the city’s most prosperous area, every year, the 0.3% land tax even valued 20% of sale-profits. The land tax resulted in a strong inhibition on the prices of the real estate.
The restraining force of the land value tax on the real estate market was significant. Thus, the bubble of Real Estate was quickly deflating down in Japan. The golden age of Japanese was disappearing.
Many studies and reports deemed, it was that, after 1990, a series of improper restricting policies on the real estate market have pushed the Japanese economy into the quagmire. Indeed, that was not true, the true reason was that unearned easy money-making in speculative real estate market undermined the quality of the Japanese, from industrious become lazy.
It has been reported that, in current Japan, the most crowded commuter traffic time is not in the evening of the time of end of work, but at midnight. It was not work needed, but simply for overtime pay, Japanese people works overtime until midnight has become a culture socially.
For this regard, I have also discussed in my Aug. 24, 2014 article, Overheated real estate market is ruining Canadian economy from Japan mirroring Canada.
From such ridiculous new born culture, we can learn the true reason of Japanese economy sustained in decline.
Follow is the translation of the writings of Japan scholar Mr. Kondo Daisuke about the decline of Sony and Sharp Corporation, which was cited in my Aug. 24, 2014 article Overheated real estate market is ruining Canadian economy from Japan mirroring Canada. In which we can see that how low quality of Japanese people to have damaged good businesses.
Feb. 22, 2016, The ridiculous management ruins Sony Corporation.
Feb. 22, 2016, Japanese Disease – Evading Responsibility ruins Sharp Corporation.
A nation with lazy nationals will be doomed to decline.
This is why that series frenzied financial economic-stimulate policies; even negative interest rates cannot save Japanese economy.
The failure of Japan lessons us that the important task for government is that how to ensure national’s quality, especially in immigrant-oriented Canada.
Talking about housing issue, I once seen a report that, now in Japan, it seems to have been developed back to the housing model in previous bubble economy, it is that government-led housing construction and people rent live.
I think that the real estate business running model in Japan and Germany is the best, especially in the Economic Zone. In Vancouver, high housing prices and high rents have become the biggest obstacle for business recruitment.
By set Economic Zone or Technology Park and timely policy adjustment to create a favorable environment for business’ operation, thereby, make Canada as the best investment destination world widely.
Vancouver should be created as global development center in R&D, software and related high tech businesses.
And Ontario should be created as global manufacturing center for the manufacturers in Autos and machineries based on current favorite condition.
I would like to once again emphasize that:
Under our generation, Canada must build into a fairyland of material wealth creators, rather than a paradise of greedy unearned speculators. So that the Canadians who are willingly to make a living by hard working to be able to live a decent life.
A loveable society is from material wealth creation rather than from unearned speculation.
On this aspect, for years, the government of Canada has not played a rational role.
Maybe, only the oncoming Super Leadership can be able to stop those speculators to destroy the life of Canadians.
5.6…Establish R&D Center as a pillar for Super Leadership
Jan. 23, 2013, in article Gov-funded R&D Center Boosts Taiwan as One of Four Little Dragons, I indicate that:
Taiwan’s Industrial Technology Research Institute (ITRI) is a non-profit R&D institution that Gov-found in 1973 and later self sustained with the branches in Tokyo, Berlin, Moscow, Eindhoven and California Silicon Valley. Currently there are 5,777 members with background of 1,392 PhDs and 3,126 Masters. Now, it holds more than 19,890 patents.
Its practice is new tech R & D and business incubator by spinning off the matured research achievements with related researchers together as independent enterprises, and to have created more than 228 start-ups and spin-offs with over 140 CEOs in the local high-tech industry, among them many are world-renowned high-tech companies, such as TSMC and UMC.
The Gov-found non-profit model can ensure the R&Ds future oriented by avoiding the pursuit of short-term profits as that of listed companies, and the earnings can be used for new R & D investments rather than to be distributed to the shareholder hands.
The ITRI has been the essential innovative force and think-tank with open Laboratories to provide full serve for small and medium sized enterprises to form industry clusters and drive Taiwan developing as one of The Four Little Dragons.
Now, China and the United States have been both eagerly replicating the model in a large number of.
Super Leadership should also establish similar R & D institutes to provide full service in management and technology with full cover of all businesses and to conduct R & D on cutting-edge projects to continuously spin off more and more competitive enterprises.
Especially, in Vancouver and Ontario.
5.7…The enterprise internal patent management system
This is method should be practiced in the economic zone, due to it is important, so that I discuss it with a special section.
Nowadays, that registers new technology as patent to be protected as quickly as possible is an important means of market competition.
So called Enterprise internal patent management system is to copy the model of the national patent system to protect the intellectual creation of the employees, with setting a management system for those initiative ideas that do not reach the qualification for normal patent application yet, to be registered in archive as a record to show that who is the original contributor for the new innovative ideas in the enterprises.
The enterprise internal patent management should include the detailed provisions of the benefit sharing for the possible profit that may gain from the commercialization of the ideas to ensure those inventors can get their share from extracted bonus after the application of their ideas. The related management staff has to get their award from management spending of Company rather than sharing the bonus form the innovation.
That allows management sharing the bonus form the innovation will totally destroy the enthusiasm of the staff for invention and innovation, which is certainly a way that will fail company.
This idea is inspired from the chatting with a former RIM engineer in Art profession.
After I introduced that Germany extracts bonus from the profit gained from the application of the rationalization proposals to the contributor, and patent-related bonus incentive has been promoting IBM counting on the top of those world-class corporate giants in the United States for 20 consecutive years.
The engineer said that, in former RIM, has also similar incentive policies, but, the large share of such bonus was taken away by the management staff, thus, the ordinary technical staff, the main body for innovation, has lost the basic momentum to provide new ideas.
The engineer said that, in former RIM, has also comprehensive regulations as that of in any company world widely, but, in practical operation, they were taken as flexible game chips to play in according to the management staff personal accords.
I think that it was one of main reasons that RIM declined.
Such behavior as that of RIM is common in vast majority of the enterprises world widely.
The enterprise internal patent management system can effectively avoid the harm of such behavior.
May 28, 2012, I once wrote article The DNA of the Success of German Manufacturing to have discussed such issue.
5.8…Promote Canada enjoying free trade quickly with self-protection
July 16, 2014, in article The solution for Canada enjoying global free trade quickly with self-protection, I discussed that:
The failed TPP Talks Ottawa Jul. 2014 and the effect delay of the Canada-EU free trade deal Oct. 2013 has strongly proven that the free trade talks by big grouping is impossible, due to that more country involved will be more difficult to reach a deal. Because of the level of the economic development are different between the countries, so that the concerns in free trade talks are different.
And for agricultural issues, even if in developed countries, such as, Japan, due to the large population with less land, per farmer-run land area is small, high production costs make its agro-products difficult to compete with that of the United States, Australia, etc. Moreover, there are around 2.5 Million employments in Japan's agricultural industry, once lost tariff protection, it will cause massive unemployment.
Dec. 26, 2013, I once wrote article Free Trade is damaging Agriculture.
Whether it is from the consideration of the government stability or from the people livelihood, all the countries are bound to do all they could to protect their related industries, thus, it is bound to put free trade negotiations into endless loop.
However, the failed TPP Talks provides Canada an excellent strategic opportunity, which is that the experiences of the negotiations are valuable for how to reach a deal, and the records of the negotiations provide a favorable foundation. Canada should trigger the free trade effect by country to country, especially, with more conducive to own national interests.
Canada-EU free-trade
For EU, it is easy to reach a deal with Britain - the ambitious Prime Minister David Cameron who has been strongly insisting on Britain out of EU and its Pound did not join the euro system yet, especially, recently David Cameron angry over €2.1bn EU surcharge may act as a fuel to promote our efforts.
Then with the successful example drives France, and then the Germany. The process must be under the clear promise of that the current free trade deal of individual country will be strictly revised according to the request of future final deal of Canada-EU. I guess that the final deal of Ca-Eu may never be realized, any way, Canada has gained the initiative to deal with the rest of EU members in free trade talks.
And also, I think, that there only several countries are worth to sign the free trade agreement in EU, and those countries that are difficult to reach a deal may be not worth to waste time with at all. Thus, Canada may get an extra benefit of avoiding low-quality immigrants by giving up some poor-market. Because of that the free movement of the labors, is also the important provisions of the free trade deal.
No one would doubt that the low quality of the national is the important cause of the poverty of a nation. A prosperous Canada needs the nationals of industrious and enterprising, rather than the lazy quitters that nourished by long time enjoyment of excessive social welfare.
Feb. 15, 2016, in a phone chat with my friend who works in a Power Transformer Manufacturer in Mississauga. He said that in his company, some refugees do not like to work, with a complaint that it was that Canadian government invited them to here, so government must raise them at free.
Because the EU's ignorance and indecisive in dealing with the refugee crisis, in June, the referendum of British off the European, the side that advocate leaving the EU will most likely come true.
Then, the free trade talks with Britain will be much easier.
June. 6, 2014, I once wrote an article Why David Cameron insists that Britain exits from the European Union.
Trans-Pacific Partnership
For TPP, Canada may take the same strategy as that of with EU, but with a new strategy that avoids touching the countries that have been insisting Canada to give up the Supply Management, obviously, those countries are the threats for Canada with much stronger competitiveness that may defeat Canada, especially in agriculture.
The agro-products of Canada are less competitiveness due to the high production cost in the unfavorable natural condition that frost-free period is short, insufficient sunshine-energy and bad cold in winter under the High-latitude geographic.
Although, TPP agreement has been signed, but, it said that still there are two years to allow member countries to discuss before making a final decision.
In the two years period, Canada has enough time to create free trade agreements with all possible countries in favor self.
There one point needs to be once again emphasized.
Canada is a nation of immigrants, for our own survival, must control on the quality of immigrants. A country is in poverty and war, the low quality of the nationals is also one of the reasons.
Government officials must be sober, a country should not be turned into a national charity with a good heart to adopt lazy people in low quality, or just for electoral considerations to please voters in thoroughly destruct own country.
5.9...Invitation of promising global enterprises into Canada
Many countries take attraction of the foreign funds and the Riches as approach to boost economy, but without a proper investment project in real economy to have caused over-speculation on real estate. Though, such foreign investment can boost economy, but, it act as economic heroin, finally it will kill national economy, as that of happened in Japan's bubble economy 1980.
April 29, 2015, in the article Canada's economy is faced at vital crossroads, I indicate that:
Manufacturer is the basic cell and main driving force of the real economy by integrating intelligence, Capital, Knowledge, Technology, and Market together to play the role as protagonists of scientific and technological innovation.
Manufacturer is the organizer of large-scale socialized production, it organizing and training social members to create material wealth with providing jobs for living making and tax revenue for social governing, thus to create a stable community, at which that people can work and live to enjoy a prosperous life.
Manufacturer is the cornerstone of social stability and sustained progress.
However, with rapid development of low-cost manufacturing in underdeveloped countries, Canada's traditional manufacturing has been permanently losing.
A prosperous Canada depends on the creation of the material wealth by industrious people and good organizer for it. The long-term research projects or the start up is important, but those are distant water too far away to quench present thirst in economy of Canada.
The most efficient one is to invite and help existing outstanding enterprises globally with their popular products, technologies, equipments, funds, markets and key technical staff together to establish production bases in Canada, thereby, to create employment and revenue quickly.
Canada has advantages for attracting investment
The existing free trade market of North American, plus existing 9 countries in free trade, and nearly completed Trans-Pacific Partnership, Canada-EU free trade agreement, Canada will establish a free trade market that reaches about 75% global GDP. Canada has occupied the high ground in the Oncoming Era of Globalized Free Trade.
Such a favorable objective condition is great attraction and irresistible for any entrepreneur. This is the best bait for attracting investment.
In addition, for any investors, the life safety is the first concern and thus the security environment of Canada is great preferable with respect to that of the life threat of firearms shootings in some countries.
However, there are still some barriers that may make foreign investors dared not step into Canada.
For the transnational investment, the biggest barrier is the cultural conflict; the investors do not familiar with the situation of investment target place, so dare not adventure.
For doing business in North America, the most worried about is that legal loophole is being misused indiscriminately:
The endless nonsense of legal supported Labor Unions and its cultured labors to have formed Union’s Culture in the enterprises of Canada, endless nonsense of legal spoiled labors with no proper work ethic.
The endless nonsensical litigation of some greedy lawyers takes legitimate enterprises as preys, and more, such as, the Patent Troll.
Although, the most of Labor Unions, workers and lawyers are good with rational ethic, but, it is inevitable there some unexpected individual and nonsensical litigation, and that may easily destroy a good business, especially in the start stage.
A few years ago, there was the report that obesity U.S. young man did not consider to limit own foods’ intake, but instead, to have sued food provider.
The report that Patent Troll related litigations between the enterprises are one after another with Astronomical number funds claims.
These have greatly deteriorated market environment to offset our market advantage.
And there are many other unforeseen problems.
May 16, 2014, in the 17th China Chongqing International Investment and Global Sourcing Fair (CCISF), Canadian business officials, Consulate General in Chongqing, the gov-representative of Quebec, Alberta, British Columbia, Waterloo regional have introduced their advantages. They all emphasize the good quality of life, and livable natural environment for attracting investment to promote their projects.
However, all those they focused seem as that scratch itch from the outside of the boot with not touch the true nerve of the investors. An executive of an agricultural company of China interested in the investment on a fish farm of Canada, but he did not know how to make business in Canada.
His hesitating mind is not from individual, but universally among those who have the willingness to invest in Canada.
It provides us an inspiration about how to convince investors to make investment in Canada, which is government to provide full service with designated specific people to assist them from every possibility that they requested, to remove their worries, and to support them successful running business in Canada.
In this field, the Super Leadership may play a unique role by setting special Preferential Policies and providing full services for those incoming Companies, especially, to set economic zone as a hotbed for incoming foreign enterprises.
The quick independent policy making power will be acted as strong sucker to attract foreign investment.
The higher cost in labor of Canada may be subsidized by lower tax-pay.
Any policies and practices that will be able to successfully attract manufacturers are right, and vice versa are wrong.
A case in successfully attracted manufacturer will play a demonstration effect, other companies in their mother country will go to consult the success one, and the successful experience will build confidence for others. They will help us to get achievements with a multiplier effect.
Above is some of my consideration, it will still have lot available projects, as long as we open our mind.
5.10...The botanicals plant farming and natural OTC medicine processing
The botanicals farming and natural OTC medicine processing will be a promising project.
Aug 16, 2015, in article Canada Pension Plan must develop in kind base and as key body of state-owned economy, I proposed a project of botanicals plant and deep process, I excerpt some as follow.
February 2011, the artcle Global Prices of Traditional Chinese Herbs Rising reports that: in 2010, herbs used widely in TCM experienced much higher price increases than usual. TCM products sold in 2010 in China—especially in Northern and Eastern Chinese cities, such as Anguo and Shanghai—most of which were medicinal herbs, doubled in price (on average). The prices of certain ingredients and particularly popular herbs have risen considerably higher, some raw herbal materials and finished herbal medicine products have supposedly seen price spikes as steep as 700% over the past year.
The governments and drug makers are turning eyes on Chinese herbal medicine.
David Picard, CEO and the co-founder of Moleac, a biopharmaceutical company based in Singapore, in his article THE RISE of Traditional Chinese Medicine, said that “Western pharmaceutical companies now spend over US$800 million on average to get a new drug approved.” “This cost includes the lengthy and complex clinical development process which sees many potential drugs fall by the wayside, either because they do not work or because they cause unacceptable side effects.”
“Only around one in 17 candidate drugs identified make it to market.” “If the drug being researched fails in the development process the losses can be considerable.” “Pfizer, for example, recently wrote off around US$1 billion and 15 years of research and development after its experimental cholesterol drug failed to make the cut.”
“The industry is under increased pressure to develop new blockbuster drugs as patents expire, and to cut innovation costs.”
David Picard also said that, “Increasingly, companies are looking to TCM as a source of innovation. The economic incentives are clear.”
November 06, 2006, reported that Swiss Novartis AG announced plans for a US$100 million integrated research and development center in Shanghai. “The company already has a partnership with a local research institute, the Shanghai Institute of Materia Medica, and collaborates with a local drug manufacturer,Wuxi PharmaTech Co.”
In the western countries, governments took strict regulations to control the medicine market. One of them dictates that every constituent and its therapeutic effect must be clear for the compound medicine. This is a big barrier for the Chinese drug since that of even a single herb is a compound too, and the constituents were varied from different producing area and even reaping season. So it is not easy to make clear every constituent and their therapeutic effect exactly.
Due to the above problems, World Health Organization (WHO), European Community (UC), United States (US), Canada and many other countries have issued some Guidance or policies for promoting the use of traditional medicine. They suggested that although the constituents and therapeutic mechanism are not very clear in some traditional medicine, since it has exact therapeutic effect and safe, which has been proven by long time use clinically. These policies allow it to enter medicine market.
FDA accepted the idea of traditional Chinese medicine idea.
It is that Philosophy caused Western medicine into dead end
In current Canada, Western medicine - WM is the mainstream medicine.
WM has been taking Reductionism as philosophical guidance, it looks human body as an assembly of parts, and tries to study, diagnose and treatment of the diseases through the isolated part by reducing human body as micro as protein, gene and even peptides. Today we even can make life by genetic technology in a tube. So public have been convinced that modern WM is most advanced, most scientific and most reliable.
However, because human body is a complex system that various organs are closely interconnected with interdependent and interacting, there may be many unpredictable factors in affecting the development of diseases, especially the psychological factors. Many objective facts have proven that the medical route under the guidance of Reductionism is not sustainable feasibly.
On the other hand, there are no suitable synthetic drugs for some diseases, such as, super bugs. Even those existing drugs are not all safe; the side effects of some of them are becoming new life-threats. More terrible is that the cost of medications is soaring up; even some people take the medical activities as the tools to loot money in contempt of life. It is just like the earthquake in Japan, coupled with the Tsunami, which was not enough, followed by nuclear radiation.
Non-communicable diseases: Also became increasingly severe due to have no ideal drugs. Such as mental disorder, cancer, hypertension, obesity, diabetes, cardiovascular disease, chronic fatigue syndrome, and so on.
The philosophy of WM is developing toward that of TCM
June 16 2013, in article Daoism – The Philosophy of Traditional Chinese Medicine, I indicate that TCM has been developing under the guidance of Daoism - an ancient philosophy of China.
Daoism is contrary with Reductionism. It is similar with Holism and consistent with systems biology. Suppose that Reductionism focuses on a specific grass on the Himalayas, and then the Daoism is not only focusing on the entire grass, but also concerning those would affect the growth of grass, such as, destructive pests, the greenhouse effect and the reduction of glacier cover, etc.
Under the guidance of Daoism, human life is being taken as one of such a component of unity of opposites. It believes that human body is an organic whole that all components are closely interacted. A well-balanced human bodies will form an effective self-defence system that can handle the most of pathogenic agents. The diseases could happen only if there are some unbalanced parts in a human body. The treatments do not directly target to kill pathogenic but to bring back the natural balance. It achieves the purpose by natural therapeutic approaches, such as, natural drugs, acupuncture and physical exercises, etc.
The emergence of system biology is showing that Western medicine is starting to step toward the Holistic way with enlarging the scope of medical analysis. Essentially says, it was that Western medicine is from philosophical root turning its heads toward the ancient holistic medical approach of TCM after its hitting on the wall.
Traditional Chinese medicine is a promising therapeutic approach
Dec. 21 2011, in the article Chinese Medicine on Wound Healing, I discussed Traditional Chinese Medicine, now excerpt some as follow:
Traditional Chinese Medicine (TCM) is an accumulation of the experiences of medical practices in Far East China. Modern researches have unknowingly and indirectly proven that TCM is the best medical system worldwide so far compared with that of existences, especially Western Medicine (WM).
In the thousands of years practice, TCM has developed many natural therapeutic methods in diseases diagnosis and treatment by natural ways, especially a large number choice of natural drugs.
According to the statistic of national investigation of mainland China in the 80's of 20th century, there are 11,146 plants, 1581 animals and 80 minerals as medicinal using. The Dictionary of Traditional Chinese Medicine Prescription selected nearly 100 thousands of experience-based formulas from prescriptions of TCM since there are written records in the history of China, which covering almost all known diseases. Thanks the scientists of China, they have made many useful modern researches on Chinese drugs by emulating the methods of western medicine, and to have had those experience-based formulas updated and produced great many OCT drugs in the forms of convenient for using. Such as, injections and sugar covered tablets with the labels of providing treated-ranges, precautions and dosages.
The medicinal materials (natural drugs) used in TCM are all from nature. Modern studies from the level of molecular, protein and gene found those natural drugs containing a wide range of bioactive constituents. Some of them have therapeutic effect that is similar to that of synthetic ones in killing the pathogenic agents directly, and some of them have nutritional effect that is similar to that of orthomolecular medicine. For ill-debilitated patients, nutrition is even more important than that of drugs. I think that this is the unique advantages of natural drugs, and also it is the unique advantages of TCM.
Modern researches revealed that some of Chinese drugs can improve human immunity, such as, boosting the weight gains of immune organs, increasing the number and activity of the phagocytes, NK cells and so on. Therefore, in subjective viewing, TCM is to regulate the physical balance, but in objective practicing, the process of the regulations plays a role of improving the immune function, then the pathogenic agents to be killed by enhanced immune system. Although, in TCM there are no concepts of modern immunology, such as, immune organs or immune cells, the experience-based formulas were never to have considered on immunity, however, some of preparations by those formulas are playing the therapeutic role through enhancing human immunity. More significant is that when the physical balance of patient is restored, the most of uncomfortable symptoms of patient would be largely improved, such as, poor appetite, angst and insomnia, patient would feel much better not only in physical but also in psychological. Indeed, the physical improvement also plays the role of psychotherapy. The recovery of the diseases can certainly be accelerated.
The compound prescription is unique therapeutic method of TCM, which is to put many different natural drugs together as one dose. Studies have proved that drugs in compound using are able to generate synergy effect of multiplying the positive effect of each other. The findings revealed the mystery that preparations by experience-based formulas of TCM are more effective on some specific diseases and provided clear guidance for selecting effective natural drugs aiming on specific pathogenic. This is the reason that, in my hand, Chinese natural drugs seem to have gained magic in treating some thorny diseases, such as, Schizophrenia, fat liquefaction of incision and so on. Chinese drugs will be a powerful therapeutic approach on the diseases both communicable and non-communicable, which not satisfied by the treatment of synthetic drugs. Clearly, Chinese medicine is promising resource in developing new therapeutic approaches both drugs and therapies. Also it has huge market potential.
More pleasing is that in China, those experience-based formulas have updated and used to produce great many OCT drugs with modern technologies in the form of easy to use, such as, injections and sugar-covered tablets, and labeled with the instructions of the sort of treated-diseases, precautions and dosage. They are available in Chinese pharmacies worldwide.
There are researches indirectly proven TCM safe and easier market accesses
I found two research reports that nutrients in our daily foods showed anti-cancer effect: Plant Nutrient 'Cocktail' Kills Breast Cancer Cells and Vc 100 mg/kg & Ve 400 mg/kg shows inhibiting on tumors, which provided strong support for Chinese Medicine, since that Chinese Medicine is in rich such ingredients and is the base for taking therapeutic effect.
The report indicated that Researchers tested six known protective chemical nutrients from turmeric, soybeans, broccoli, grapes and tea. Individually, they were ineffective against cancer. But combined, they suppressed breast cancer cell growth in the lab by more than 80 percent, and eventually triggered the process leading to cell death.
The researcher Dr. Madhwa Raj points out that all the ingredients in the cocktail come from foods people eat every day, but at much higher levels than they could possibly get from their diet. He has established a bio-tech start-up company to bring the super-cocktail to market as a nutritional supplement for breast health, which does not require approval from the Food and Drug Administration - FDA.
The report provides us two facts:
1. A Modern scientific proof for the correctness of Ancient unscientific compound formula of TCM. We may say that Modern Western civilization proved the wisdom of Ancient Eastern civilization.
2. The nutritional supplement does not require approval from the FDA - the world's No.1 authority in medical regulation. It means that for the natural medicinal beverages that we are going to be developed will be no market barrier legally.
Also, in my Blog folder Frank's Writings, there are many articles that introduce modern biochemical, pharmaceutical and clinical research results about Chinese Medicine.
Natural OTC drugs and Medic-Functional Beverage are all in line with the global trend that is of the new health conscious of the people with new understanding for health and paying more attention on the health-keeping with diseases-preventing in advance.
The inadequate healthcare resources and deadly side effect of Western Medicine are pushing people to seek medical alternatives with producing new demands with shaping new market.
From above, we may clearly understand that health functional products based on the materials of natural botanicals under the guidance of the theory of TCM will be welcomed and profitable in broader market.
With launching profitable projects, Super Leadership will get steady strong fund support. Then, we may attract more world elites to join our team and also by such way to stretch our tentacles world widely to make great contribution in broader scope with well exerting our talent.
I hope that, in a not too long future, Super Leadership will develop into a high talent organization with integrating the characters of more diversified researches under the support of enterprise style running based on the original mission.
5.11…Establish Canadian culture center in China for retailing and wholesaling
US and China teaches Canada How to help enterprises grow up
---Canada should establish Gov-funded Canadian Culture Center in targeted market countries for promoting Canadian culture in every possible aspect with wholesale and retail those Made in Canada.
--- Frank Li Dec. 6, 2015, in Waterloo, Ontario, Canada
Contents
1…Businesses - the basic cells of economy
1.1…Startups and small businesses plays leading role in invention and innovation
1.2…Small businesses are difficult in survival
1.3…Large business made greater contribution in Canadian economy
2…United States and China has set a model for Canada
2.1…About the civil institution of the US that cooperation with Heilongjiang province
2.2…There 9 small enterprises listed in US stock market and 30 set branches in the US
2.3…US has well organized system in full service small businesses
2.4…US OCT market plays a key role in supporting small business financing
2.5…Why that US government attaches importance in supporting SMEs?
2.6…A bio-organic fertilizer manufacturer listed in US stock market
2.7…Governments fund and organize small enterprises enter market of Hong Kong
2.7.1…The official of Heilongjiang Province explains why funds small businesses
2.7.2…A mayor explains that why have to subsidize small businesses
2.7.3…The professional researcher views on development of small businesses
2.7.4…The view of president of China Enterprise Confederation
2.7.5…The practice of Heilongjiang foods into Hong Kong market
2.7.6…The practice of a small heilongjiang vinegar manufacturer
2.7.7…The practice of a small Heilongjian beverage manufacturer
2.8…The establishment of tourism route between China and American Alaska
3…The significance of promoting small businesses development
4…Canada also Provides Small Business Financing
5…Gov-funded Canadian Culture Center in targeted market countries
1…businesses - the basic cells of the economy
There are many studies about how to boost economy of Canada, but most of them are too academic to have feasible practical value.
Now, let us start at boosting the basic cells of Canadian economy – businesses by a feasible way.
1.1…Startups and small businesses plays leading role in invention and innovation
The United States government once collected 65 inventions and innovations that made big impact on the United States and the world in 20th century, it found that those inventions and innovations basically were completed and patented by individual, and then to be developed as marketable products through running small businesses. In term of developing new products and new technologies, the efficiency of small businesses is higher than that of large enterprises.
A Mandarin article The survival and development path of China’s small and medium enterprises says that, in China, in the economic mainstay, small and medium enterprises - SMEs are most dynamic, they created 65% of the patented technologies; more than 75% of the technical innovations and 80% of new products.
Those renowned world class large enterprises are developed from small businesses.
However, the survival of small business is difficult; their life span is very short.
1.2…Small businesses are difficult in survival
Mar. 2009, in the article Enterprise Social Responsibility and Enterprise Sustainable Development, the writer Huiyuan Mao from China’s Shenyang University introduced that:
“According to American Fortune Magazine, about 62% of American enterprise’s life is less than 5 years; the average life of the middle and little enterprises is less than 7 years, commonly multinational companies have the average life of 10 to 12 years; only 2% of enterprises survives to 50 years, the top 500 companies of the world have the average life of 40 to 42 years.”
In China, “the average life span of the middle and little enterprises is only 3 to 4 years.”
According to Key Small Business Statistics - July 2012, in Canada, there about 85% of businesses that entered the marketplace in 2005 survived for one full year. The survival rates declined over time. About 70% of firms survived for two years, 62% survived for three years and 51% survived for five years.
1.3…Large business made greater contribution in Canadian economy
According to Key Small Business Statistics - July 2012:
In 2012, there were 1,107,540 employer businesses in Canada, there 98.2 % are small businesses, 1.6% are medium-sized and 0.1% is large one.
The large businesses are small in number, but, they made greater contribution in the economy.
GDP: In 2005, small businesses (1 to 99 employees) accounted for about 42% of private sector GDP and medium businesses (100 to 499 employees) accounted for about 12%, and large businesses accounted for 46%. Please see follow figure.
Exports: In 2010, the contribution of business exports, small businesses were 24.5%, medium one was 16.5%, and large one was 59.0%.
Therefore, for developing economy, the most rational way is to lend those small businesses a helping hand to promote them develops as large enterprise.
Now, I would like to try to discuss that how to save small businesses and promote them developing as large ones with the experiences of successful practice in the United States and China – help businesses in Financing and Marketing.
2…United States and China has set a model for Canada
Dec. 30, 2015, I found a documentary in Mandarin - the multinational trial of small and micro enterprises that produced by China Central Television – CCTV in April 5, 2014.
The documentary introduced that started in 2011, China’s Heilongjiang Provincial Department of Commerce and local municipal governments cooperate with civil institutions in the United States and Hong Kong, to push small and micro enterprises (less than 100 employees) successfully opened market in the United States, and Hong Kong China.
Of course, with the demands of the market, the production of those small businesses will be enlarged; thereby, they will grow up and the employment and tax revenue will be increased naturally.
The documentary made me immediately think of in Canada, the government officials in all level have been hardly struggling to boost economy; but, the practical effect seems not satisfactory. The successful practices of China’s officials provide a feasible approach in step by step. By just simply toddle, we can also promote Canadian enterprises grow up – increasing employment and tax revenue.
By this smart way from China to replace other smart way in Canada – taking money from the pocket of citizen - Increasing in property taxes - Increasing in consumption tax – especially Toronto is considering tolling on Highway and commercial parking lot……
Even for news media, China’s practice is also admirable – focusing on how to develop economy – how to improve productivity - how to develop competitive products – how to open new market, and so on, so on.
The key is not just introduction of know-how, but how-to, how to practice in step by step. The steps are detailed as easy as that can be followed by pupils, of course, if they get the power of State Apparatus.
The documentary excited me to have to cost whole Christmas holiday 2015 to translate and reedited as this topic, added with some Googled information and my excited comments.
China has more than 40 million SMEs accounted for more than 99% in total number of enterprises; the contribution to GDP exceeds by more than 50%, and provides 80 percent of employment. The officials in all level governments are struggling to establish a long-term sound operational mechanism to support SMEs by providing manpower, technology, information, and funds to enable them playing a greater role.
In this process, they found those abroad institutions are the good helper. They understood local laws and regulations, and good at use of local available resources.
Under win-win understanding, to cooperate with those institutions from governments’ level will produce a unique role that enhance the confidence of those abroad institutions and domestic businesses.
Under this way, only in one year time, there 9 Heilongjiang enterprises were approved in the US stock market listing, and there more than 30 companies were established branches in the United States. In May 2013, there were a group of small and medium enterprises to accept international financing training for developing as listed companies in the United States, so as helped them gradually adapt to the international market.
The most meaningful role for such activities is to actuate those small and micro businesses to be active players in international market from lack of enterprising consciousness.
As their names are dubbed with small and micro, in fact, they fundamentally there are no ability, and thereby fundamentally there are no motivation to explore international market, even if there is no sense for enlarging domestic market. Historically, world widely, such small businesses cannot easily grow up besides easily failure if without a powerful help.
For promoting businesses going to international market, suppose that there is no cooperation with institutions in the targeted countries, the governments possibly cannot play their role, no matter how ambitious of the government officials are, no matter how inspiration of their campaign slogans are.
With the rapid development of China's economy, world widely, there many governments organized large business delegation to visit China with the desire of attracting investment and marketing product, however, great many of such activities are strong in thunder, weak in rain. The cause is in the approaches – less feasible practical steps, especially the improvement of domestic business environment.
If the businesses in own country cannot survival, how can attract foreign businesses. There no business owner would be as stupid as to send own businesses to court ruin.
Now let look at that how the China’s officials view their role in promote small enterprises.
For small businesses, especially food processers, are known as the enterprises without worries, they feel very satisfied for their existing market with less ambitious for taking the risks and difficulties to explore new market. Because they only consider the issue from the perspective of their own business, but, as government officials, we should consider the issue from the perspective of developing economy locally or nationally, we have to promote these small businesses grow up and to play a greater role.
For the development of small businesses, a potent government support is essential. Since those small enterprises are small in volume, weak in market competition, so, government must give them special support. On other hand, Government holds a lot of available resources that are conducive for the development of small enterprises.
As my view, the government with unique advantage for boosting economy, such as, favorable policy making, enforcement power, strong credit, dialogue in country to country, and so on.
For example, in developing the market of Hong Kong, the governments of Heilongjiang province have rationally played their role.
Since Hong Kong using the most stringent EU standards on food testing and quarantine, the inspection of each entry for each product will cost 8000 Yuan. This is big barrier for small food business stepping into Hong Kong market.
In order to encourage small food businesses to participate the exhibition in Hang Kong, Heilongjiang Provincial Government gives 50% subsidy, and Municipal Governments gives the other 50% subsidy, and also, the costs in design, packaging, testing, etc., are all paid by the governments.
Suppose the costs borne by enterprises, it would not only increase their burden, more importantly, the small businesses may most possibly give up the efforts, since they are too small and too weak to have confidence and courage to explore international market.
In Feb. 25, 2014, Hong Kong Heilongjiang foods flagship store opened, the first batch of 206 kinds of products from 64 small companies has been put on the sale shelves.
Now let us start in step by step.
2.1…About the civil institution of the US that cooperation with Heilongjiang province
I specially googled some information about the civil institution in the United States - International Alliances of the US Supporting SMEs – IAUSS.
As the Chairlady of the IAUSS, Ms. Liu is a native of Heilongjiang province, after graduating from college; she has been working in the United States. With the personal experience of operating business in the United States, she well understood with US small business supporting system, Ms. Liu has committed to support small and micro enterprises of Heilongjiang Province into international market.
It was under her suggestion that Hong Kong SME trade union established and has played a key role for Heilongjiang foods entering Hong Kong market. Later I will introduce the story.
2.2…There 9 small enterprises listed in US stock market and 30 set branches in the US
Under the efforts of Ms. Liu, in just one year time, there 9 small enterprises were approved in the US stock market listing, which involved the production of energy, bio-organic fertilizer, lightweight fireproof material, dairy farming, dairy products manufacturing, and software development in a variety of fields. Up to now, in Heilongjiang province has more than 30 companies have established branches in the United States. In May, 2013, there were a group of small and medium enterprises to accept international financing training for developing as listed companies in the United States, so as to help them gradually adapt to the international market.
Ms. Liu said that: "The companies listed, which means to assume more social responsibility, not just get the money. In the selection of targets for assistance, we firstly assess the ideological and moral quality of the business owner, in terms of whether they have enough sense of social responsibility. We want to support those entrepreneurs who really want to contribute to society.”
Obviously, in term of attracting foreign direct investment, the efforts of Ms. Liu is much effective than that of officials of American governments.
2.3…US has well organized networks in full supporting small businesses
Ms. Liu introduced that, in the startup period, those businesses in the United States are also encountered thorny problems, such as, difficult in financing, lack of information. Especially，those Hand Workshops, in terms of effectively allocation of resources and reduction of cost often encounter bottlenecks. In China, there are also similar problems.
Maybe it was for such a conceration, after a long period of development, the US government with civil institutions together builds a comprehensive supporting system for SMEs. Under this system, the SMEs are easily access their needed funds and information.
The organizational structure and work approach of the supporting system is as that, around Federal Small Business Administration (SBA), there are many non-profit civil institutions as assistants. Those institutions maintain direct contacts with small businesses national widely. They appeal the difficulties and needs for small businesses in Congress and Federal Agencies to maintain the interests of small businesses.
The IAUSS is one of such assistant.
Ms. Liu said that the relationship of the civil institutions with the SBA is the transmission of federal policies. They are not just to pass information to SMEs only, but also, help them well understand and practice the policies.
Ms. Liu herself once benefited from the SBA system.
In 1996, in the United States, she opened medical institution in Traditional Chinese Medicine integrating with Western Medicine, and then she opened 8 branches one after another. At that point, she encountered unprecedented difficulties.
Ms. Liu introduced that, for starting a business, you may need a lot of equipments and money, at this point, you may write a program to the branches of SBA in local. They will give you a direction for referring - in the industry that you will be engaged, how much launching funds may be needed, and tell you where and how to pick them up? Since that SBA has own prescribed banks.
Since then, Ms. Liu learnt that SBA can provide a variety of financial support to SMEs, besides its hosting a number of small loans, also it can provide guarantee of security for attracting commercial banks to provide loans to SMEs. Liu was deep moved by that her 8 branches were all gotten funds from SBA.
Ms. Liu said, the support approach of SBA is as that, you want machines, they will give you the machines, you need other devices, and they will give you the devices. You need cash flow; they will provide you the cash flow in planned. More importantly, they can help you find the market direction. Because my business is medical related, it can be combined with insurance companies, and a number of health plans from government.
Following are some screenshots of SBA website.
In the United States, the website of federal Small Business Administration is the nation's highest utilization with an average of more than 10 million visitors a week.
The information of the website is very rich. Many small businesses owner who visit it, are not only to learn the market trends, but also, to learn entrepreneurship, development, and government procurement information.
In the United States, there are a number of government agencies, often hold training counseling for business management and provide market information.
For the business newly into the United States, a number of professional management consulting firms will also provide related services. Management consultants help businesses understand US laws, standards, especially teaching them how to contact with customers, how to get bigger orders.
Ms. Liu said that in China, the small business to make a living by itself firstly, after a success, causing concern in society, to get a wide range of elements joined to help it. As a proverb said: icing on the cake. But, in the United States there is a different, the business is seen as a life, from the outset; treat it with eugenics, gifted education, and gifted growth.
Although the US SBA system is designated for supporting small enterprises in the United States, however, if foreigners follow US policy to register business in the United States, the business will also can be supported by SBA system, and thereby get similar opportunity as that of native Americans.
Of course, that foreigner’s running business in US is eagerly hoped and welcomed by the US governments. Due to that foreigners’ businesses in the US must also pay the same responsibility as that of native ones, with creating employment and tax revenue.
In two years time, Heilongjiang Provincial Department of Commerce and IAUSS cooperate to select and promote potential small businesses in the province. They hope those small businesses with some innovations, patented technologies, and competitive products, can be developed in this experiment platform. While learning and utilizing foreign policies and advantages, but also can help to improve domestic enterprises.
2.4…US OCT market plays a key role in supporting small business financing
The difficulty of small business financing is a thorny problem world widely; it greatly restricted the development and growth of small businesses and thus fundamentally restricts long term economic development nationally.
Maybe for this concern, the United States develops the Over-the-counter Market – OCT market for stock trading.
Ms. Liu said that, the idea of OCT market is to help create a large amount of capital from the beginning of a quarter (that is only small as $25 cents). OTC Market has advantages of scattered, small scale, the process of listing is simple and the cost is very low, and so on.
Such advantages are essential for the vulnerable small businesses that without asset for acquisition of mortgage loans.
In today world, many renowned world class corporate giants were the great contribution of the OTC market. Since that in the earlier stage, those companies were started financing from OTC market.
There many American SMEs hope financing through this platform.
2.5…Why that US government attaches importance in supporting SMEs?
In the US, there are 29.6 million SMEs, accounting for socio-economic growth in more than 90%, creating a net increase of employment in 60-80%, sales in 47%, the output value is 50% of total social output value.
The United States government once collected 65 inventions and innovations that made big impact on the United States and the world in 20th century, it found that those inventions and innovations basically were completed and patented by individual firstly, and then to run their own small businesses to production and marketing their new products, finally, to be developed as large companies.
The United States also found that, in term of developing new products and new technology, the efficiency of small businesses is higher than that of large enterprises.
The government of the United States specially set up SBA to support SMEs.
In the United States, there two federal agencies are directly responsible by President, without the need of going through the House and Senate filing. One is the FBI, and the other is the SBA. The biggest advantage of such governance measure is that a good project can be approved by the Office of the President directly, fast and efficient.
For the small businesses that develop in the United States, such a fast track of approval process is a unique advantage.
In addition, the US government allocates 30% of government procurement to SMEs each year.
2.6…A bio-organic fertilizer manufacturer listed in stock market of the United States
Mr. Liu Haitao and his father Mr. Liu Shaorong opened a retail outlet of fertilizer and pesticides in Tonghe Heilongjiang province china.
Because the father was once engaged in agriculture with related technology, he hopes that farmers are able to use bio-organic fertilizer in farming, thereby avoid the damage of inorganic fertilizers to farmland – the compaction of soil, the adverse changes in microbial populations, which is not conducive to sustainable development of the agricultural industry.
In 2009, Mr. Liu Shaorong developed bio-organic fertilizer based on the traditional cattle straw manure added natural materials, and opened an organic fertilizer plant by cooperation with Shenyang Institute of Ecology, a branch of Chinese Academy of Sciences.
Mr. Liu Shaorong said that, in Heilongjiang Province, the quality of agricultural products is very good, in relatively speaking; the quality of feed is also relatively pure, so that livestock manure is also in good quality.
However, since that price of bio-organic fertilizers is high, farmers are reluctant to use. The production and sales of bio-organic fertilizer is limited. The market is only confined to several counties in periphery. They want to expand production and open up market, but lack of funds due to not reach the conditions for loans.
Mr. Liu Shaorong said that the survival condition is very difficult for small businesses.
In 2012, their bio-organic fertilizer plant, as small enterprises, to be included in the support platform of Heilongjiang Province cooperates with IAUSS.
With the help of IAUSS, Mr. Liu Haitao registered a fertilizer company in the US city of Los Angeles, and try to financing in US capital market, to make road show for a listed company and to meet potential investors.
He visited the NASDAQ and NYSE. Faced with the unfamiliar market, he was disturbed with some worries about own ability.
owever, the interest of the customer is on the ingredient of his bio-organic fertilizer and the real effect on crops yield.
After the efforts in the US, the market soon had a reaction, one customer from Indonesia signed US $20 million of orders since optimistic about his bio-organic fertilizer. Mr. Liu Haitao was even more surprised that, in September 2013, his company was approved in the US OCT market listing.
ith experience in the US, the operation philosophy of Mr. Liu Haitao has also been improved. He will be production according to market demand, to avoid blind expansion of production capacity, resulting in waste of equipments, which make funds meaningless occupation.
For Indonesia's orders, he does not intend to expand production capacity, but with commissioned production by integrating other related enterprises.
2.7…Governments of Heilongjiang provides full support to small enterprises
A good project or a big order can make a business turning point. And a good system of social governance can make a community continued to benefit.
Learnt from the experience of IAUSS helping small businesses to develop international market, the Heilongjiang provincial government produced a new idea to build a platform to help more small businesses play a greater role by helping SMEs to seek regional cooperation in resources and helps small food enterprises to develop new market.
In 2014, the Heilongjiang provincial government comes up with special funds to subsidize for SMEs products entering Hong Kong market.
2.7.1…The official of Heilongjiang Province explains why funds small businesses
Deputy Director of Heilongjiang Provincial Department of Commerce, Zhao Wenhua said that small food enterprises also known as the enterprises without worries, they feel very satisfied for their existing market. Because they only consider the issue from the perspective of their own business, and the government should consider the issue from the perspective of the province, for developing Heilongjiang's economy, we must find ways to promote these small businesses grow up, to promote them developing into medium-sized or even large enterprises.
Mr. Zhao said, we are ready to build 100 flagship stores and 1,000 retail outlets across China. We plan to establish 3-4 flagship stores in Hong Kong.
2.7.2…A mayor explains that why have to subsidize small businesses
The mayor of Shuangcheng city, Mao Chen said, this time we organized more than 50 kinds of foods in more than 30 companies into Hong Kong market; the enterprises are all small and micro one. Small and micro enterprises is the main business in our county, we have more than 4000 enterprises, small and micro one accounted for more than 90%. Total economic output reached more than 50 percent. They are the main force of our economy.
Mayor Mao Chen believes that for the development of small businesses, besides an effective market mechanism, that a potent government support is essential.
Mayor Mao said that small and micro enterprises are characterized in small volume, relatively weak in the market competition. Their talent, technology, capital, information, etc., cannot compete with large enterprises. So, in this respect, the government must give special support. Government holds a lot of resources; we should use those resources into development of small and micro enterprises, to help them open broader market.
Since Hong Kong using the most stringent EU standards on food testing and quarantine, it will cost 8000 Yuan for each entry of product. In order to encourage small food businesses to participate the exhibition in Hang Kong, Heilongjiang Provincial Government gives 50% subsidy, and ShuangCheng Municipal Government gives the other 50% subsidy, and also, the costs in design, packaging, testing, etc., are paid by the governments.
Mayor Mao said that if these costs borne by enterprises, it would not only increase their burden, more importantly, small companies do not have the confidence and courage to create an international market.
2.7.3…The professional researcher views on development of small businesses
Mr. Chen Naixing, the researcher of Institute of Industrial Economics of Chinese Academy of Social Sciences - CASS, who once wrote a report on the development of China’s SMEs.
Mr. Chen said, I have visited a lot of places. A few years ago, there was a place to reduce threshold for attracting business registration, with zero capital registering business, but there were very few people responded, why? Because this is a policy system, it only has this policy, other policies and the environment did not keep up.
Mr. Chen said many small businesses owners in our country are farmers, they rarely go abroad, and even rarely go out of the province, now running a business abroad, indeed, that is first time.
He found that the environment for SMEs development is improving. And, as in recent years, various countries have actively mutual communication and mutual exchanges, more and more SMEs have the opportunity to develop cross countries.
He suggested that, due to limited product yield of SMEs, that establishment of their own sales department is not worthwhile. To cooperate with existing sales organization is a good way. And professional sales organization serviced business in large number and product variety is more with large quantity, which will help them running in low cost and high efficiency.
2.7.4…The view of president of China Enterprise Confederation
President of China Enterprise Confederation Li Mingxing said: Decades ago, when beginning of China's reform and opening up, many foreign enterprises entered China and succeeded through the service agencies in Hong Kong. Now, many Chinese enterprises must rely on the service providers in Hong Kong to go to abroad, due to that many China’s companies do not know about foreign legal and taxation, do not know how they works. Especially for SMEs, so that use of the support of service agencies in Hong Kong is also a good approach.
2.7.5…The practice of Heilongjiang foods into Hong Kong market
In 2012, at the suggestion of Ms. Liu, Mr. Zhong Yongjian who associated several others to have established Hong Kong SME trade unions, and now, there are more than 300 members of businesses, which involve all industries with a sales network throughout Hong Kong.
This time, the Heilongjiang provincial government comes forward to cooperate with Mr. Zhou Yongjian’s trade union, to build a platform for Heilongjiang small food enterprises to introduce their green foods into Hong Kong market.
Mr. Zhong Yongjian said that Hong Kong businesses cooperate with Heilongjiang enterprises is not only to create business opportunities for businesses in Hong Kong, but also provide a convenient channel for Heilongjiang products into Hong Kong market.
In Hong Kong market, Heilongjiang companies do not need to hire employees, no cost for retail shop, no cost for sale shelves, as well as can enjoy the subsidy on logistics for products into Hong Kong, we will help to finish the imports inspection and quarantine. They just need to make and deliver their best products.
Mr. Zhong Yongjian said that they will build three flagship stores, and 300 chain stores in Hong Kong, to create entrepreneurial opportunities for young people. After the network established, we will look forward to Southeast Asian markets, European markets, and we are also considering the markets in North America.
Mr. Zhong’s confidence and ambitious came from his 9 times deep investigation in Heilongjiang province in 2 years times. They have carefully looked at the qualities of the products and determined which products will be welcomed in Hong Kong. Obviously, they are satisfied by the results of the investigation.
November 2013, he helps Heilongjiang provincial government to bring green foods into 48th Hong Kong Products Expo. Unexpectedly, those green foods were very popular and hot sell in the Expo.
Under the encouragement of the governments, Heilongjiang SMEs in 20 Cities and Counties actively bring their foods products for selection, includes, soybean oil, cakes, sausages, beverages, and other authentic northeast specialty foods.
The Heilongjiang government also hopes that there are more SMEs involved, so that can seek opportunities for enterprise development in a larger industrial basis.
A Heilongjiang business representative said that the core of the problem is that they do not familiar with Hong Kong market. They have good products, but do not familiar with outside market. They do not know how to adapt and correspond to abroad market.
In fact, Mr. Zhou Yongjian is precisely optimistic in the promising market prospect of China’s authentic northeast specialty foods, and he is good at the development of retail market internationally.
The two sides in cooperation complement each other; this is win-win cooperation actually. It will surely smoothly go forward.
In Feb. 25, 2014, Heilongjiang provincial Hong Kong flagship store opened, the first batch of 206 kinds of foods products from 64 Heilongjiang companies has been put on the sale shelves.
Foods from the black land in North China are eye-opener for Hong Kong people. Many representatives from Heilongjiang companies also came to the store, they hope their products hot sell, and through this window into broader international market.
As an international trade hub, Hong Kong is a good transfer station, whether it is come in, or goes out.
2.7.6…The practice of a small Heilongjiang vinegar manufacturer
Mr. Pan Chengku (right) is the leader of Industry and Information Bureau of Shuangcheng City. He specifically came to a vinegar manufacturer to check the cover leaking problem on vinegar bottle after repeatedly open daily. This time, in Shuangcheng City, there a total of 50 kinds of foods products were selected into Hong Kong market, the delivery date draws near; he needs to check the production of each selected food businesses.
This roasted vinegar manufacturer has a 100 years history; the high-quality food material of Northeast China ensures its vinegar product in good quality. It has a larger production capacity, but, due to the limitations of market volume, only produces 1000 tons per year.
In past 100 years, it is smoothly operation according to the demands of market and never encounters a major risk, without worry about survival, thus it also never seeks further development.
Because of this reason, their products are never out of Heilongjiang province, even never out of the provincial capital Harbin.
For such a long-established smooth running business, today, they try to sell their products to overseas market, it is an opportunity and a challenge for the municipal government and business.
In 2013, as small enterprise, the vinegar plant was included in the support platform of Heilongjiang Province cooperates with Hong Kong SME trade unions. The municipal government sent the roasted vinegar into 48th Hong Kong Products Expo.
Unexpectedly, the hot sale scene snapped. Some people bought a bottle of vinegar firstly, after tasting, they came back to buy more.
2.7.7…The practice of a small Heilongjiang beverage manufacturer
Mr. Cui Guoyi (right) is General Manager of Harbin dual deer drinks Ltd..
He introduced that, in before 2013, their products mainly are carbonated soft drinks and pure water, due to the low value-added, the products has been suffering restrictions in sales.
The production of carbonated beverages started in 1999, more than 10 years struggling in the market, Mr. Cui found that, in this field, the products of his small businesses simply cannot compete with international brands, even hard to sell his products out of Heilongjiang province.
By the end of 2013, he tried to add a production line for making fruit juice, in order to avoid market competing with large enterprises; he did not choose ripe products of big brands - common apple or orange juice, but to use with local resources - the natural wild blueberry that produced on the Heilongjiang Xing'an Mountains to make high-end beverages.
High-end beverage has a completely different sales channel with those ordinary carbonated beverages. Blueberry drinks produced but face of market problems.
At the time that Mr. Cui is head-aching for the sales of his new blueberry drinks, the opportunity came. Heilongjiang provincial government organized foods into Hong Kong, Cui Guoyi sent his blueberry beverage for selection and was adopted by Hong Kong after successful in Inspection and Quarantine.
Mayor Mao Chen (left) came to check the production of products for delivering to Hong Kong. It was in this time visit, he made the comments in section 8.2…A mayor explains that why have to subsidize small businesses.
Mr. Cui happily said that, our products take the opportunity into Hong Kong market, we have adopted in the form of detour, it is that firstly make brand in Hong Kong - international metropolis, then sale domestically, we will have a larger share in domestic market.
2.8…The establishment of tourism route between China Harbin and US Alaska
In 1964, the US Alaska's largest city, Anchorage City and China’s Harbin City associated as sister cities. However, since the two cities cannot be direct flight, must transit through Seattle and other places, the entire flight time is 15-16 hours. Thus badly affects the economic and cultural exchanges between the two Cities.
For 30 years, for coordinating direct flight, from the provincial to the municipal government have conducted several communication with Alaska government, however, because Anchorage City is an Air Force base of the United States, the sensitive geographic location failed official attempts.
Surprisingly, a China’s private travel agency made through this route.
It was Harbin Kanghua International Travel; the general manager is Wu Yuchu.
For opening this route, Wu Yuchu never thought. Because, it involved in aerospace, that requires a lot of money, their travel agents do not have assets for mortgage loans with a rented office place.
The success of Wu Yuchu was also benefited from the platform of support small businesses of Heilongjiang provincial government and IAUSS.
With the help of IAUSS, he registered international travel company in the United States, and produced a bold idea that opens the North American routes.
Mr. Wu said that Ms. Liu gave him a lot of support. In the United States, Ms. Liu did a lot of work, because the matter involves a very wide scope, the United States Department of Homeland Security, SBA, the US Foreign Ministry, US Consulate, US Embassy, but also involves Russia, because this routes need to go through Russian airspace. Alaska is a military base of the United States; it is very cumbersome and difficult.
Mr. Wu simply did not know how to do. The most of his headache is that more than 100 million US dollars for maiden voyage charter.
Ms. Liu said that, because we help Alaska opened this route, for their tourism economy and all economic sectors have great help. Therefore, we require Alaska should also help our small enterprises.
We boldly apply, because we knew that the US federal government has a special subsidy for tourism industry. Alaska State is rather special, because it is relatively rich, it has a good policy, that is, their citizen can invest into the project of government and get the dividend, even by just investing one dollar.
By the funds of Alaska government subsidies and raised from local private institutions and individuals, Sept. 18, 2014, the maiden voyage charter flight took off from Harbin to Alaska, monthly plan charter flight twice.
In 10 days time, North American Airlines’ Harbin - Anchorage tourist direct charter flight will go to Anchorage, Los Angeles, Las Vegas, Washington and New York five cities. This is shortest flight route at present between China and the US. Eight and a half hours, Harbin direct flight to Hawaii, nine and a half hours, Harbin direct flight to San Francisco.
3…The significance of promoting small businesses development
For the efforts in promoting the development of small businesses, there more significance is worth to further discuss.
eople worship Jack Welch, the former chairman and CEO of General Electric, mostly for his great achievement of company's value rose 4,000% during his tenure at GE in 20 years.
However, as my view, the most admirable point of Jack Welch was from outside of GE Company, which is the great contribution for the development of manufacturing industry world widely. He made GE acting as a training school to have bred great many outstanding enterprise leaders – the CEO for about one third of the Fortune 500 companies and the those CEOs excellent management made a great contribution to mankind material civilization.
No one would doubt that, in the term of promoting mankind material civilization, the role of Ms. Liu is similar as that of Jack Welch.
Jack Welch was struggling in making enterprise more productive; and Ms. Liu is struggling in making small businesses go through the difficult period of survival.
Their efforts are not only conducive to the economy of related countries, but also, in economy globalized today, that is conducive to the economy world widely.
4…Canada Small Business Financing
4.1…Canada Small Business Financing
The Government of Canada makes it easier for small businesses to get loans from financial institutions by sharing the risk with lenders.
Who is eligible?
“Small businesses or start-ups operating for profit in Canada, with gross annual revenues of $10 million or less.”
4.2…BDC Small Business Funding
Who can apply?
“Your business has been in operation for at least 2 years.”
Above are the financial supports available in the government level of Canada.
The first one seems that narrative is unclear or clear but in play of word game, to make people too confused to make a decision to apply for loans.
The second one is smart enough with a clear mind for reducing the risks in lending out money by icing on cake, to kindly help those who have been self survived.
5…Gov-funded Canadian Culture Center in targeted market countries
I once read a report that Canadian Lobster Framers complained they did not get enough share from soaring up lobsters’ selling prices, when increasingly demanding in China’s market.
Canada must take proper measure to protect the interest of hard working framers by reducing the loss in intermediate sales channels. The anomaly that middlemen take away most of the profits must be avoided.
In Canada, there still something as that of lobsters are most possibly welcomed world widely, not only in China, but, they were not paid attention yet or lack of promotion.
Trudeau government is preparing to seek a free-trade agreement with China similar to what Australia negotiated with more than 85 per cent of Australian goods entering China duty-free.
Even if that Canada can reach a free-trade agreement with China, but, without a proper promotion, it cannot reach the expected trade goal.
Canada should establish Gov-funded Canadian Culture Center in targeted market countries, such as in China, for promoting Canadian culture in every possible aspect with providing a favorable channel to showcase, wholesale and retail those made in Canada.
5.12…Development of television media industry
Television media industry can develop as money printer for Super Leadership.
Mainly focuses on the Science and Technology Education as well as profitable concern with making and translating some good programs that can promote positive social atmosphere.
For a long time, that sex and violence filled in the public media, even caused child to imitate criminal.
In China, there are a lot of good Movies and TV series that are showing positive life under well Gov-conducted.
In many countries, the China’s TV series that translated into local languages are very popular.
The Movies and TV series of China are inexhaustible resources.
While promoting socialist spiritual civilization, the television media also has huge profit margins.
In the West, film and television programs are lack of positive human civilization, but, full of inhuman violence and pornography, there are many reports of violence episode in film and television has been teaching children crime.
Such non-human behavior must be reversed.
5.13…How to save Bombardier from the road-dust of failed RIM
Frank Mar. 19, 2016 in Waterloo, Ontario, Canada
[Key point] In a long-running large enterprise, due to the people are familiar between each other with friendship, the relationships between the managements and general staffs are intricate complicated. It is difficult to deal with the problems decisively by the existing managements. It is not due to the ignorance or irresponsibility at all, but, due to the common nature of human beings throughout the world. The best way is to introduce external powerful leadership with injecting into exotic vibrant DNA.
This article discussed the lessons of failed former RIM, at this basis, introduced the the successful practices of Dr. Ram Charan, the management consulting guru in ranking first in the world, who works as a consultant and to have fundamentally revived trouble ridden ZTE Corporation, a leading multinational telecommunications equipment and systems company of China. In business field, it is similar as that of failed RIM of Canada.
The motivation of the topic
Mar. 19, 2016, I shocked by a Mandarin article Laid offs, downgraded, deferred delivery, Bombardier, the proud of Canada is quickly in closing that published in Aug. 8, 2015.
This year, the pride of Canada's Bombardier Inc., the famous transportation equipment manufacturer that headquartered in Montreal, Quebec, Canada, has continued in bad news-ridden, from layoffs in May, deferred delivery of TTC streetcar in July, and to be downgraded in yesterday due to the debt level is too high.
In recent years, Canada's business giants in science and technology seem always in bad luck, after the painful failure of the Nortel Networks and RIM those were once the proud of Canada, the manufacturing giant Bombardier Inc. seems in stepping on the failed footsteps.
The plight of Bombardier is a microcosm of Canadian society at a whole: as that of a frog sat in the Well with limited vision，in lack of enterprising spirit, but, in blindly self-satisfied with the status quo. It is destined to be self-eliminated sooner or later.
In the Aerospace field, Bombardier Inc. cannot compete with Airbus and Boeing in technology, in the ground transportation, Bombardier Inc. cannot compete with China in productivity. Internal corporate culture and management have also a lot of problems.
The C-Series narrow-body aircraft had planned to be delivered by the end of 2013, but, recently, it was revised delivery in late 2015, which was delayed for two years, but, that is still in unknown whether it can be delivered on time. The inefficient is a typical characteristic of Canada, the BB10 (Black berry) was once also repeatedly delayed.
Above is excerpt translated from the article that was obviously by a writer in the culture background of China. Though, the languages were with somewhat extreme, however, it obviously came from a strong sense of social responsibility when facing Canada has been in self-abandon without sense to live up to expectations.
Following are some reports in public media about the decline of the Bombardier Inc…
Bombardier Inc shares fall below $1 — its lowest leve in almost 25 years
Bombardier Layoffs To Hit 7,000 In Canada, Europe
55 new TTC streetcars expected by end of year
Bombardier’s biggest gamble: How everything went so wrong with the CSeries dream
Bombardier Inc in talks with Canadian government on CSeries investment: CEO.
With the culture background of China, I shocked very much by that even Bombardier Inc. has lucky gotten the order of TTC street cars, but, it actually cannot produce on time. The shocking is at that the street car was the old matured products.
The plight of Bombardier Inc. is not simply due to the poor international economic environment, but, from the poor internal management, which is mainly influenced by the poor social governance based on the conservative social ideological.
It is a microcosm of Canadian society at a whole.
The plight is not derived from the lack of substance, but, is from the lack of spirit, from the sickness of nerve palsy without national pillar in soul - an innovative enterprising spirit.
In a long-running large enterprise, due to the people are familiar between each other with friendship, the relationships between the managements and general staffs are intricate complicated. It is difficult to deal with the problems decisively by the existing managements. It is not due to the ignorance or irresponsibility at all, but, due to the common nature of humanity.
The best way is to introduce external powerful leadership for manufacturing with injecting into exotic vibrant DNA.
For this concern, the best leadership is Jack Welch and Ram Charan, the successful business manager and management consultant, they are both derived from continuous studies and explorations that are driven by the strong sense of social responsibility.
From above photos, we can feel the unique spirit and strong determination of the two powerful promoters in social progress, which is also what that Canada urgently needed.
About Dr. Jack Welch
Jack Welch was the former chairman and CEO of General Electric between 1981 and 2001. The most report about him was focusing on that during his tenure at GE, the company's value rose 4,000%, But, few people realized the social significance of Jack Welch has contributed – it is that there about one-third of CEOs in the Fortune 500 companies was from GE, they promote GE's advanced experience in management to other companies with playing a role to promote the progress socially.
Sep, 18, 2010, CCTV Dialogue program interviewed with Jack Welch, in which mentioned that Jack Welch set employees as three group, 20% best performers, 70% as general, and 10% as poor performers that have to kick out, and in 20 years period, he kicked out 170 thousands of incompetent employees by giving them advice for improvement, if they fail, giving them one year time to look other job elsewhere.
For this issue, Jack Welch explained with that, Business is a kind of game, in any game, Football, Rugby, Hockey; the team with the best players wins. Well, in the companies, the team with best players wins. If you did not have a good team, in the long term run is not great. The achievements of GE did not made by my Jack Welch, but the employees. It was our employees to make these numbers a reality, because they have actively involved in the commercial activities.
About Dr. Ram Charan
In viewing that Bombardier Inc. is in following the road-dust of failed RIM, I reproduce my article in writing as follow, by which, we can understand the lessons that once failed RIM, and learn the successful practice of Dr. Ram Charan who works as a consultant and to have fundamentally rescued trouble ridden ZTE Corporation, a leading multinational telecommunications equipment and systems company of China. In business field, it is similar as that of failed RIM of Canada.
I know less information about internal management of Bombardier, but, from failed RIM, we can roughly judge the management in Bombardier as a business based on the same social culture of Canada, it will be the same generally with the difference partially.
In the end of the article, I searched some information about Dr. Ram Charan, so in here, I do not make extra introduction about him.
However, there is necessary to excerpt some of my Feb. 09, 2014 article Management is the art of playing human nature to here:
Human behaviors are determined by dual natures: The culture nature of those acquired qualities, and the animal nature of those inborn instincts.
The Management is to finish purposeful tasks with the culture nature driven by meeting the animal nature with payment under the enforcement of regulations.
Therefore, the Management is the Art of playing human natures.
Whether the Corporate Culture or the Organizational Culture, they all should be composed of the measures that can motivate the maximum exertion of employee’s cultural nature with minimum play of employee’s animal nature to maximize the production efficiency.
Do not simply use morality to cover up human animal nature.
Today I would like to emphasize that accountability plus with work performance linked payment is the magic to drive people work full heartedly.
Those above are just the short board on the bucket of management in Canada.
Follow is the article in writing.
Revive BlackBerry Limited by idea of consulting guru Dr. Ram Charan
Frank Jan. 19, 2016, in Waterloo, Ontario, Canada
BlackBerry Ltd. is an inheritor of RIM – the former flagship business of Canada. Its success will be not only able to motivate a lot of upstream and downstream enterprises to form an industrial cluster, but also it can boost related employment in social services – education, medical care, and commercial industries……, they are all crucial for developing economy and thereby to create a livable community.
More importantly, BlackBerry Limited is located in Waterloo City – a core area of Canada’s manufacturing industries. So that its revitalization will provide good experiences as reference to play a demonstration effect for revitalizing manufacturing sector in whole Canada.
Due to the good business foundation, it will be much easier to be revived as flagship business again than that of boosting startups. For this purpose, the difficult is not in funds, not in technologies, but is in the thought, in the regeneration of corporate culture.
The corporate culture is based on the ideology in conservative dominated with huge resistant inertia due to that people are used to the status quo with strong tendency to reject any changes with fear of uncertain risks. It is difficult to make any advancement socially and politically. For overcoming such resistance, the help of external force will be essential.
In this concern, the management consulting guru in ranking first in the world Dr. Ram Charan will be able to play a significant role, due to his unique prestige that gained from helping many top world class companies success with profound experiences from more than 40 years’ Consultant Career.
Dr. Ram Charan has successfully helped China’s ZTE Corporation revived from declining with downsizing 22.2% under huge loss. Due to the business is similar, both in the communication field; so that the experience of China’s ZTE Corporation will be exactly helpful for reviving Canada’s BlackBerry Limited.
Although, currently, Blackberry Limited has effective management team, however, based on my understanding for Canadian corporate culture, the management in Canada is far less rigorous and perfect than that of Dr. Ram Chalan participated management of China’s ZTE Corporation. In global marketplace, Blackberry may be still unsure to win its proper share with plenty room for improvement.
Contents
2…How did fatal DNA and wrongful corporate culture failed RIM
2.1…Stifling intellectual work environment
2.2…RIM’s senior executive has to express suggestions by open letter
2.3…RIM’s responds to open letter with no thanks but hatred condemnation
2.4…A scientist has similar experience with the Open Letter
2.5…A Middle management boldly exerts animal instinct
2.6…Researchers stop innovation due to the fruits seized by others
2.7…Comprehensive regulations did not properly carry out
3…Dr. Ram Chalan has regenerated China’s ZTE Corporation
3.1…The fatal DNA of ZTE corporation
3.2…Invite consulting guru Dr. Ram Charan to help transformation
3.2.1…The philosophy of Dr. Ram Charan on ZTE operation
3.2.1.1…Dr. Ram Charan deals with thorny issue of personnel
3.2.1.2…Focusing on Execution and Accountability
3.2.2…Efficient decision making by president of the joint meeting
3.2.3…Solves problems in researching by morning meeting
3.2.4…Employees who work overtime are commonplace
3.2.5…40% of total employees in R & D
3.2.6…The remuneration of Mr. Ram Charan is $ 20,000 hourly
4...The great benefit from consulting guru Dr. Ram Charan
5…Dr. Ram Charan makes many world business giants success
6…The business philosophy of Dr. Ram Chalan
April 30, 2015, China Central Television - CCTV reports the management innovation in ZTE, which mentioned Dr. Ram Charan, the management consulting guru in ranking first in the world, who is helping China’s ZTE Corporation to conduct business transformation. In a short time period, by some simple ways, he basically rescued the business by eliminating common diseases that cause business declining as that of in most large Companies.
The rebirth of China’s ZTE Corporation made me think of Canada’s BlackBerry Limited – the former RIM -Research In Motion Lmited.
Dec. 18, 2015, BlackBerry reports loss of $89 million in its fiscal third quarter, its shares have dropped 29 per cent since the beginning of the year. The stock has fallen 22 per cent in the last 12 months.
While, as reported, the loss was better than expected, however, it still disappointed me to consider how to make a way out.
Such mind is from the talks with my friend who is lucky enough to have kept his job in Blackberry Limited when we met in Wal-Mart shopping in months ago. We talked a lot, but, there was one word shocked me very much, he said that: “people who once worked in RIM become lazy.”
The BlackBerry Limited was born out of former RIM, such a background would make it still existing the DNA towards decline, since that BlackBerry inherited RIM’s employees that have accustomed Canadian pop corporate culture – a culture that is creating poor work ethic by encouraging people to striking more by doing less and dared boldly make pranks at workplace.
The poor work ethic is actually nourished by absurd Values that has been excessive self-appreciated and even to be legally protected under populist democratic polity.
Government paves a track through making policies, society runs on the track. If a society makes businesses - the main body of economy difficult in operation, indicates that the track - policies have problem.
Such ridiculous corporate culture and wrongful political practice is the fatal cancer in Canadian society, it will inevitably still dominate BlackBerry in corporate bone, corporate marrow and corporate soul, and it cannot be entirely regenerated.
Such corporate culture and political practice will disable any talented and experienced top executives, no matter how successful they are in other countries. Since that, as my view, when encountering the negative force of a country's conservative inertia, any strength of individual will be negligible.
We urgently need a high efficient prescription for entirely reviving Blackberry. The best way is transfusion with foreign benign enterprise DNA to essentially transform the fatal DNA of Blackberry and then by its exemplary role to revive the enterprises throughout Canada – the Canada, where is our home place – the place where our families are relying on surviving.
In same environment of economic recession, while RIM，BlackBerry and many companies in declining, there still a lot of enterprises are developing as powerful world-class market competitors.
The facts proved that, the failure or rise of an enterprise will certainly be due to its intrinsic reasons – the DNA that dominate a business to be developed as healthy or defective. Dig out such reasons will be significant for the successful development of Blackberry, and for the successful development of economy in Waterloo region.
We should also remember that Waterloo region is the manufacturing center of Canada.
2…How did fatal DNA and wrongful corporate culture failed RIM
2.1…Stifling intellectual work environment
The one of the important factor in the success of world-class enterprises is that encourages employees to participate in business management.
The successful enterprises are mainly driven by motivating their employees fully exerting intelligence.
The failed enterprises are mainly due to that their employees cannot free exerting their intelligence.
For RIM's decline, people can find many sound reasons, however, I think that, the most fundamental one is the stifling intellectual work environment, which is that suppresses the free exertion of intelligence of the employees without a effective channel for expressing and practicing their views freely to have damaged the driving force for continuously self-revolution to fit into the market that is increasingly rapid changing.
Such a corporate culture is common in Canadian enterprises, which is just opposite that of smart doing in The German Company and IBM.
May 28 2012, in my article The DNA of the Success of German Manufacturing, I indicate that the driven force for German outstanding manufacturing mainly comes from their legislated management for rationalization proposals, which is to extract bonus from the profit gained in the application of the proposals to motivate all staff to pay their full talent into the business running since Mr. Krupp initiated it in 1872. That is 142 years ago.
Dec. 22, 2011, in my article, The DNA of the Success of IBM & America's best-run companies, I indicate that the driven force for patent invention of 102 years old IBM has been counting on the top of those world-class corporate giants in the United States for 20 consecutive years is the patent-related bonus incentive system. In IBM, for any staff, published an article, approved a patent, all have assessment records with regulated cash awards.
However, Canadian companies are just going on the contrary. The cause may be from the instinct of human beings.
As a common sense in daily life, anyone heard suggestions from others will produce the feeling of being despised. In general, with the concern of offending others, people will not willingly make suggestion. Perhaps it is due to this concern; Germany has legislated to protect the activities of rationalization proposals.
2.2…RIM’s senior executive has to express suggestions by open letter
Two years ago, I read an article Open letter to BlackBerry bosses: Senior RIM exec tells all as company crumbles around him that posted in Jun 30, 2011. The writer is Jonathan S. Geller who is the founder of BGR - the biggest mobile news destination in the world.
In the article he said that: “We have received an open letter to Mike and Jim from a high-level RIM employee (whose identity we have verified), and in an amazingly honest and passionate plea, this letter gives fascinating insights into what RIM must fix, and fast. RIM did not immediately respond to a request for comment.”
The start of the open letter and the 8 suggestions as follow:
“To the RIM Senior Management Team:”
“I have lost confidence.”
“While I hide it at work, my passion has been sapped. I know I am not alone — the sentiment is widespread and it includes people within your own teams.”
“Mike and Jim, please take the time to really absorb and digest the content of this letter because it reflects the feeling across a huge percentage of your employee base. You have many smart employees, many that have great ideas for the future, but unfortunately the culture at RIM does not allow us to speak openly without having to worry about the career-limiting effects.”
8 suggestions:
1) Focus on the End User experience.
2) Recruit Senior SW Leaders & enable decision-making.
3) Cut projects to the bone.
4) Developers, not Carriers can now make or break us.
5) Need for serious marketing punch to create end user desire.
6) No Accountability – Canadians are too nice.
7) The press and analysts are pissing you off. Don’t snap. Now is the time for humility with a dash of paranoia.
8) Democratise. Engage and interact with your employees — please!
The proposals are not only pointed out the problems, but also offered workarounds, especially reconstruction of management, interaction with employees and to be managed in accountability. It shows the writer's honesty in deep concern for RIM's future, and well thought out.
Above 8 suggestions were all to hit on the root cause of the failure of RIM and perfect suitable for any businesses.
From above 8 suggestions, we could feel that chaotic in the management of RIM.
2.3…RIM’s responds to open letter with no thanks but hatred condemnation
However, RIM’s responds to open letter was not only with no thanks, instead, was somewhat hatred condemnation, the first paragraph is as follow:
“An “Open Letter” to RIM’s senior management was published anonymously on the web today and it was attributed to an unnamed person described as a ‘high level employee”. It is obviously difficult to address anonymous commentary and it is particularly difficult to believe that a “high level employee” in good standing with the company would choose to anonymously publish a letter on the web rather than engage their fellow executives in a constructive manner, but regardless of whether the letter is real, fake, exaggerated or written with ulterior motivations, it is fair to say that the senior management team at RIM is nonetheless fully aware of and aggressively addressing both the company’s challenges and its opportunities.”
With hatred and revenge mentality treats rationalization proposals is one of important lethal Gene fragment in RIM and Canadian enterprises.
Maybe, people may think that was the true fault of the senior executive as that of he did not in a constructive manner to submit the letter to the top management.
I can prove that even if the senior executive doing so, he will certainly run into a wall, and that run into a wall may be his times experiences in RIM.
2.4…A scientist has similar experience with the Open Letter
After reading the open letters, RIM's responds, the emails of RIM's employees and the readers' comments, I once talked with a material scientist who is working in the lab of RIM. She said that she once wrote a suggestion letter to the management, but without any response. She felt that the corporate culture of RIM is not worthy for appreciation and since then she stopped any effort to make suggestion.
Besides above, I once called my friends who were working in RIM at that time.
The one who works in the service department said that their work efficiency has a lot of room for improvement.
Obviously, in RIM, it has no normal channels for facilitating the communication between subordinates and superiors to promote the development with the wisdoms of all employees.
I call this phenomenon as the obstruction of enterprise, it is the main cause of RIM's decline, and the main cause of RIM did a dirty job with the outstanding employee.
2.5…A Middle management boldly exerts animal instinct
Followed RIM responds to open letter, Jul 1, 2011, BGR published More letters to RIM; employees rally alongside anonymous exec, the writer Jonathan S. Geller said that:
“BGR published an open letter to Research In Motion yesterday.” “RIM responded. It wasn’t pretty, and it really didn’t address a single point that was made by the original plea. It wasn’t just RIM that responded, however — we received dozens of emails from current and former RIM employees detailing their stories, and essentially all agreeing with the open letter that was published on BGR.”
Following is the part of an email from a former RIM employee.
“I was an employee at RIM for a year and a half. I worked in the legal and business affairs departments, and despite having originally thought I’d landed the jackpot job-wise, it took no time for me to begin planning my exodus.”
“My first week started with a complete change in my title and duties without anyone telling me, and when I dared ask what was happening, the director (my boss) and her BFF the OD business partner ganged up on me and threatened to let me go, setting the tone for the remainder of my time there.”
“Over a year and a half, the four of us in the same position dwindled to just me and yet I was responsible for getting all four jobs done for the better part of a year, since this is how long it took the department to hire other entry-level people. Two individuals who had less education and experience (not to mention drive or intelligence) than me were promoted several times while my boss continued to tell me up and down that I had reached my ceiling at RIM due to my lack of education (two degrees!) and experience (5 years!)–as an administrative assistant. Rather than attempt to fight this system I figured I could transfer departments, only the company policy requires the supervisor to act as a liaison and reference for internal applicants. The insanely high turnover rate meant the department head wouldn’t let anyone go, in addition to refusing to promote from within (pets excepted). People were pitted against each other and an incredibly tense and hostile work environment was fostered. People around the office started referring to the office politics as “Survivor: RIM edition.” And we all remember the great movement to make recycling physically impossible across the entire company because one person let some confidential information slip.”
“Then, as I was saving up to return to school and make a better life for myself, I received a series of nasty emails from HR letting me know that since my boss had failed to log my vacation time a year earlier on SAP (despite my insistence on her doing it at three different times), I would have two full pay cheques deducted to “pay back” the company for what was being portrayed as my mistake. I never received an apology and almost had to drop out of school due to the loss of a full month’s pay. On my last day my boss deliberately avoided me at all cost. The best part is that I recently heard that my boss just got promoted to the VP of the business affairs department.”
If above facts are true, then, we can say that the director of the legal and business affairs department was not only not qualified on her duty, but also not qualified as human member.
It was the wrongful execution caused by no accountability.
2.6…Researchers stop innovation due to fruits seized by others
I am eager to explore the management reason of the failure of RIM with any possibility, especially, I would eagerly ask related questions as long as meet the people who once worked in RIM.
In June 26, 2014, I discussed such issue with an art profession specialist who once worked in RIM for many years and now working as a general operator in the production line of the foods processing – DC Foods Waterloo.
She said that there was also the management for the rationalization proposals (RP) in former RIM. However, the fruits of the achievements of the RPs were seized by the management staff, so the technical personnel of the main body for the RP stopped their effort.
It was the wrongful execution caused by no accountability.
For dealing this thorny but important issue, in the article The DNA of the Success of IBM & America's best-run companies, I have made discussing, excerpt as follow.
IBM has a complaints system
Any business is made up of people, it is inevitable conflict between each other. especially in scientific activities.
R & D management is a dark field; it is difficult to control balance. Because, in the process of research and implementation of R & D project, will involve cooperation of many sectors, in particular, the need for leadership in coordinating role.
So, the distribution of the bonus created by R & D need to take care of all aspects, especially, the main management may take big share. Finally, the prize money into the hands of the actual developers will be rarely.
For dealing this thorny but important issue, IBM set up a complaints system, if someone feels unfairly, he or she can manage up a complaint to higher management, if it is not satisfied with the results; it allowed continuing to appeal to a higher level of, until reaches to top management.
As my view, besides complaint, for solving this problem, company should regulate the prize money as two parts, one for administrative staff, other one directly put on the hands of researchers.
Perhaps the inventor of the inventive concept has no ability to conduct implement, however, because the breeding process of the concept of invention is a special intellectual work, it is not that anyone can do, therefore, the inventor of the concept should get of 50 % above in total bonus.
The simple way is only to reward inventor, and treats others as normal job that they have to do without extra payment.
The purpose for this way is to encourage people to innovate, rather than that of only sit back waiting to share the fruits of others.
2.7…Comprehensive regulations did not properly carry out
She also said that, in former RIM there were also comprehensive regulations as that of other well managed world class companies, but, the regulations cannot function effectively, due to that managements play with own preferred accord with ignoring the regulations.
As my experiences from working in many different businesses, compared with foreign one, in Canadian businesses, for most management staff of locals, there are no sense for that what is the regulation, even, no sense of what is law?
It was the wrongful execution caused by no accountability.
Above is the fatal DNA in former RIM’s management.
From the report that BlackBerry loses $89 million in 3rd-quarter 2015, we can imagine that those old fatal DNA in former RIM is still playing its role in Blackberry Ltd…
Although, maybe Blackberry is still in the phase of restructuring and technological development, the time for profitability has not come, however, the Blackberry is born out of failed RIM that once had fatal DNA, and we cannot take it as lightly.
Then where is the way out?
How to get rid of the fatal DNA?
3…Dr. Ram Chalan has regenerated China’s ZTE Corporation
ZTE Corporation is a China’s multinational telecommunications equipment and systems company headquartered in Shenzhen, China in three business units - Carrier Networks (54%) - Terminals (29%) - Telecommunication (17%). ZTE is one of the top five largest smart phone manufacturers in its home market, and in the top ten, worldwide. With operation in 160 countries, over 30,000 research professionals in 107 subsidiaries devoted to innovation globally.
3.1…The fatal DNA of ZTE Corporation
As same as that of other big companies, in ZTE, the biggest problem is the slow in decision-making, retard in execution, unclear in rights and responsibilities, difficult for accountability and the barriers for cooperation between departments besides passing the buck, and……
ZTE chairman said that: large enterprise has disease of large enterprise, treated, recovered, but, will develop new kind disease again, thus endless. The large enterprise with more resources makes it more competitive. However, precisely say, because that staff are more and the resources are more, so that flexibly mobilize them is not easy. Each team has its own calculator for own selfish interest calculating: if I help you, you create a performance, and then, where is my performance? This naturally and inevitably occurred mode of thinking in large enterprise would certainly cause the difficulty for scheduling and integrating the resources.
More bad is that, like a community, the enterprise also has unspoken rules to be obeyed by employees.
The procrastination in work, unclear in rights and responsibilities, such problems are badly affect the systematic efficiency, even kill a good business. The problems and the causes are known very well by everyone, but, there no one is like to put them on the table. This is crowd psychology that will occur when people grouping in regardless with race and nationality. This is the thorniest problem in corporate management.
According to article The Road of ZTE reversing loss: layoffs + Slimming, ZTE suffered loss of 2.6 billion Yuan in 2012. It was first time since it listed in 1997. ZTE had to downsize, the total number of Group employees was down from 89,786 people at the end of 2011 to 69,093 people in the end of 2013, and income scale has shrunk 11 percent. ZTE has been taking a system that eliminated 5% of staff annually, before, the normal staff resign included into the statistics of 5 percent eliminated rate. Since experienced huge loss in 2012, the company strictly enforced the mandatory elimination rate of 5% without including resigned staff. Resignation rate was about 8%. For the resignation, mostly, was not in personal willing, but due to the pressure under poor evaluating results of work performance.
Even so, ZTE still decided to carry out reform for corporate management to quickly adapt to market changes.
However, after 30 years of development, a lot of running pattern has been formed and all staff have used to it with seeing it is as norms. The habit is not easy to change. For management reform, the most difficult is to find out the problems. Who would like to do such a things that is doomed to offend massive others.
Such thorny problems are turned out one by one when discussion with consulting guru Dr. Ram Charan. And they are solved by divided into projects of human resources, cost control, performance breakthroughs and so on.
3.2…Invite consulting guru Dr. Ram Charan to help transformation
The April 30, 2015 video management innovation in ZTE immediately shows that, in every quarter, the management consulting guru in ranking first in the world Dr. Ram Charan comes to ZTE for carrying out advisory activities.
Senior vice president of ZTE Chen Jianzhou who is responsible for enterprise architecture and firstly suggested to invite Dr. Ram Charan, due to that he analyzed many historical situation of multinational companies’ transformation, to have realized that the transformation is not easy; the success rate is not high. In order to promote the company transformation smoothly and quickly, he believe that company needs external professional talent.
3.2.1…The philosophy of Dr. Ram Charan on ZTE operation
Dr. Ram Charan said that, we should focus on the issues of management staff in key areas, especially, the project management.
The project management is a kind of way of life, because we launch new research to create new products, to cover new markets. It is looking for the project and to be implemented into improvement of company's efficiency. At this point, ZTE has made good progress. Of course, there is still great room for improvement.
Dr. Ram Charan emphasizes that insight into customer, the user's behavior, what is users’ like and how can be outstanding in competition? Such things are the most important.
He said that great enterprises have a common characteristic, it is that they can continuously capture external changes, and to make adjustment according to external changes. China has entered the global market, the China’s government, is creating better operating conditions, which will be given more freedom, and to bring more competition, companies must adapt to the new competition rules, that is huge challenge for companies’ transformation.
3.2.1.1…Dr. Ram Charan deals with thorny issue of personnel
Personnel arrangements are the most intractable issue. As an outcomer, Dr. Ram Charan is easily dealing with, in a calm but effective way.
Regarding dealing with personnel issues, whether the executives are competent? He tests by requesting senior executives to study the financial statement of company. A qualified executive must be able to identify problems through the financial data. He often makes spot checks through private conversations. It was a window that Dr. Ran Charan tests the health level of the enterprise.
For ZTE executives, every time meet with Ram Charan, are all feel as facing a major surgery, because that Dr. Ram Charan will make operation for a management problem. This time, he will solve the thorniest problem for any businesses – dealing with management personnel.
---- Indeed, dealing with personnel issues, it does not necessarily need to make replacement, but, merely, simply, by questioning to update their methods of work, while urging them to do their best.
3.2.1.2…Focusing on Execution and Accountability
In first day first time, Dr. Ram Charan came to ZTE, he casually asked executives some operating data that must be skillful memorized, but, few of them can answer, to have made an awkward scene.
In the discussion of some specific project, some people mentioned that he needs the support from other departments. He unceremoniously interrupted the speaker: which department? Who is needed? What is to do for you? And how long time to complete?
Repeatedly as this, he often made senior executives embarrassed, but, he still sticks to his stand, because he is toward problem, not toward any individual.
--- Always Focusing on Execution and Accountability.
3.2.2…Efficient decision making by president of the joint meeting
In order to solve the problem of corporate strategic objective to be decentralized, Dr. Ram Charan recommended ZTE to adopt mechanism of president of the joint meeting.
At the start of every year, the executives elected 5 projects to focus on promoting, and around five goals, to make clear the tasks for various departments, to set agreements for across sectors cooperation, to be promoted by responsible person replies regularly to ensure that the company's goals are clear from top to bottom and is able to be concerted in action.
In original conference room, the comfortable sofa chairs were moved out, the decoration on the walls has also been replaced by whiteboard that can be casually scribbling. Every Tuesday, in this room, the top executives hold regular meeting. In order to achieve the objectives of the meeting efficiently, the participants have to standing.
The assistant to the president, Dai Peng who said that: when discussion of some specific project, the executives that related with the project are all in the conference room to make decisions on-site. When project encounters problem, there is no one shuffling or complaining, but, putting forward how to help each other solve the problems. Such process is very simple, but, very effective. Since the president of the joint meeting launched in last November, the efficiency of meeting and the flow process of the project development, etc., from a statistical point of view, are accelerated and more efficient.
--- It is to promote on Execution by distinguishing Accountability in face to face.
3.2.3…Solves problems in researching by morning meeting
Above is the flow charts of project scheduling in ZTE Research Institute that located in Xi'an City China. The Mandarin titles that can see clear are: waits for developing, in developing, waits for verifying, in verifying, had delivered, and in obstruction......
In Xi'an Research Institute, every day holds morning meeting. Everyone's working process and the target of the day are all posted into the flow charts. For any delay, the project leader must be aware at first time and have to propose a solution. It is said that this method can increase the efficiency of R & D by 50%.
The president of the Research Institute was asking a researcher: why was delayed? This was a voice-based technology. The researcher replied that he needs a special meter.
For such a harsh working way, the president told reporter that: there is no way; the lead times for Internet companies are shorter and shorter. For example, in the last year, the lead time was one year; this year is six months, and next year, may be only three months.
He continued with that, originally, our field of industry was easily to earn good money, but, now, it is more and more difficult. The reason is that the Internet with other industries integrated closer and closer. We have to make some quick changes, so that our products’ adaptability can be much wider.
--- It is to promote on Execution by distinguishing Accountability in face to face.
3.2.4…Employees who work overtime are commonplace
In ZTE Shenzhen headquarter, it was 21 pm, still there is commuter bus to send overtime employee home.
In order to save time, even, there are employees to sleep in the office.
--- Employees are being fully motivated by distinguishing Accountability
3.2.5…40% of total employees in R & D
Every year, investment for R & D maintained at 10% of sales, nearly three years R & D investment over 20 billion Yuan, there 30,000 are R&D researchers in amounting 40% of total employees.
In 2014, in global enterprise submitted international patent application through PCT - Patent Cooperation Treaty, those 2179 patents of ZTE is in the top 3, which is China's only company for five consecutive years.
Dec. 23, 2015, China Intellectual Property News reports that ZTE has more than 60,000 domestic and foreign patents, in which there more than 90% are with a high degree of stability right and technical quality to have build a cornerstone for development globally.
3.2.6…The remuneration of Mr. Ram Charan is $ 20,000 hourly
Video also mentioned that the open declared remuneration of Mr. Ram Charan is $ 20,000 hourly (I think he will spend a lot of time for preparation, if we take this into account, the average hourly paid rate will be much less).
Above is the excerpts from April 30, 2015, CCTV report the management innovation in ZTE.
The facts are clear that after the help of Mr. Ram Charan, ZTE Corporation has reborn entirely in a calm and effective way, to have recovered from the fatal disease as large enterprise – slow in decision-making, retard in execution, unclear in rights and responsibilities, difficult for accountability, and the barriers for cooperation between departments, and ……
4...The necessity and benefits for consulting Dr. Ram Charan
Nov. 4, 2013, in article Family Business and Management Board, I have said that, within the business, because of the members are familiar and have associated friendship with each other after long time work together, even some are in kinship relations, so that it is difficult to deal impartially with some problems that inevitably happen in daily business operation due to the worry of harming friendship or losing friends. In particular, rare people would like to bear the embarrassing that face to face points out the shortcomings of others. By establishing the Management Board and collectively make decision in document form, that some thorny problems may much easily be handled.
That hires some professional managements outside of the business to establish a management board has unique advantage, because of those outcomers have no former relations with those original employees, they will be able to relieve or resolve down the conflict that may originally exist between the employees and managements. Such conflicts are hardly to handle by existing management.
Former RIM was listed with a standardized Board of Directors, now in viewing back, no matter how justifies in any way, for its failure, the Board of Directors could not escape from the blames, the failure had nailed them in shame, they had to pay for their dereliction of duty. Due to they was not only in failed developing competitive products, but failed in kick out incompetent management, such as, the director of legal and business affairs department was even wrongfully promoted.
For the reason that RIM’s Board of Directors failed in properly playing its role, it also inevitably involves the thorny issues, which is those board members were familiar, even associated close friendship with the senior and the junior staff, it certainly would impact they make rational decision for improving management by replacing some poor performers.
Dr. Ram Chalan can effectively solve such issue.
4.1…The unique advantage of Ram Charan is as an outcomer without relations with members in the company, so that he is without the fear of breaking the friendship with others.
4.2…As a world-renowned management consulting guru, his outstanding prestige will help him to reduce unnecessary trouble in work with a role as that of a Mighty Hawk into the forest; all other birds are scared to stop chirping.
4.3…Rich wisdom: Dr. Ram Charan has been working in many different types of world class top business with 19 best-selling books in management according to personal practice; such experiences will help him to concentrate management advantages from all top companies.
4.4…Unique working skill: as Jack Welch praised: "He has a rare ability to extract meaning from meaningless things, and in a calm and effective manner to affect others."
4.5…Practical operational advantage: Dr. Ram Charan have a strong practical operational advantage based on profound foundation in the area of leadership, corporate governance, profit growth, social systems reform, global matrix organization, etc..
4.6…Focusing on key point – Execution: Review back his work in ZTE Corporation, we can find that he is always focusing on the key point in business management - Execution - The Discipline of Getting Things Done.
5…Dr. Ram Charan helps many world class business giants success
The success of many international well-known large enterprises has the decisive contribution of Dr. Ram Charan.
Over the past 40 years, Dr. Ram Charan has been working as executive consultant for dozens of Fortune 500 companies, such as General Electric, DuPont, Ford, Bank of America, and Intel……
In 2007, it was 37 years of Dr. Charan working for General Electric Company, and 33 years working for the DuPont.
Jack Welch most respects Dr. Ram Charan due to "He has a rare ability to extract meaning from meaningless things, and in a calm and effective manner to affect others."
After Jeff • Immelt took over the position of Jack • Welch, his first outward counsel for advising was Dr. Ram Charan.
6…The business philosophy of Dr. Ram Chalan
I searched, translated and excerpt edited some information about Dr. Ram Charan from several articles in Mandarin.
Dr. Ram Charan runs his business management consulting company under the name Charan Associates that established in 1981 and located in Dallas, TX. He sits on the board for Austin Industries, SSA & Company (formerly Six Sigma Academy), and TE Connectivity.
Ram Charan’s business philosophy
Any business, no matter it is what kind of scale, culture, and industry? They all operate in revolving around six core elements - profitability, capital intensity, cash flows, business growth, market share, customer, etc.. Therefore, the leaders need to have unusual business intelligence to rip the complex relationship between these elements, and the mechanisms that adapt to external changes.
The key in determine success or failure is in leadership. In the current complex economic environment, leaders should follow three points: First, capture changes in the external environment, to be able to first see the changes in the external environment than that of others. Second is to tell your team that what kind of changes have taken place in outside. The third is to inspire the team brainstorm and find response to the changes.
In this process, the hardest part is found the changes in the external environment. Leaders should be honest and at the same time to seize the opportunity form these changes. Also, the leaders must inspire their team; at least the senior executive team must unify their thinking.
A significant point to note is that company must innovate continuously. The traditional advantages does not exist, the company has to look for new profit model with boldly abandoning the previous advantages. In particular emphasis on the training of personnel, especially for those talents who are with a global vision, it not limited in the company's own personnel, but also, to cultivate local talent when entering foreign countries.
There is no market is eternal, there is no strategy that can guarantee never obsolete and never fail. Companies must always look at the reality, and resourceful timely. If only defending past business model, even the best execution will be wasted.
Dr. Ram Charan said that in the consulting career for large organizations and organizational leadership, he has come across countless similar events, even in top meeting of the organization without expected result due to that participants kept in silent, and therefore bring false decision.
In 25 years of personal experience, he concludes some experience: the root of execution difficulty is due to invalid dialogue. In other words, it is that lack of effective communication and interaction between policy-makers and implementers. Due to be confined to organizational hierarchy and red tape, coupled with the lack of trust between each other, people are lack of confidence for the decision, only mechanically echo. When implementing such decisions, people would certainly lack decisive execution.
This invalid interactive mode usually does not exist in isolated, but in multi-aspect. In many cases, the large and small decisions are cooked up in this way; for the same reason, a lot of decision-making could not be reached as expected. The poor in execution has in-depth bone marrow of the corporate culture, employees also seem in complacent, are unwilling to change.
In order to overcome the difficulties in execution, leaders need to build sincere and trust in the dialogue to lay a tone for the dialogue in entire organization.
However, that laid a tone for dialogue is just the first step of a long journey. Leaders must also ensure social operating mechanism, namely business communication between employees, such as, budgeting, executive meetings, strategic decision-making, etc... The dialogue must be real. Through continuous improvement of social operating mechanism, the responsibilities will become clearer in decision-making and implementation.
Follow-up and provide feedback is the final step for overcoming the difficulties in execution. Through follow-up and provide honest feedback, outstanding leader can inspire star employees and to help to improve the performance of poor performing employees, and improve the behavior of employees who are hindering organizational progress.
All in all, if leaders can pay attention to the dialogue, to improve social operating mechanism and to provide appropriate follow-up and feedback, will build a successful execution culture.
BlackBerry receives investment of U.S. $1 billion from Fairfax
V. Prem Watsa, Chairman and Chief Executive Officer, the Founder of Fairfax
5.14…Save Canada’s manufacturing from disappear
Frank May 18, 2016, in Waterloo, Ontario, Canada
Contents
5.14.1…Manufacturer is the cornerstone of social stability
5.14.2…Entrepreneurs are the most valuable asset of a society
5.14.3…The decline of manufacturing in Canada
5.14.4…My view on the decline of manufacturing in Southwestern Ontario
5.14.4.1…The decline of former RIM
5.14.4.2…The NCR relocated to Mexico
5.14.4.3…The closure of Triton Company
5.14.4.4…The relocation of Taming Foods
5.14.5…The decline of manufacturing caused ripple effect negatively
5.14.6…The potential for helping manufacturers stay in Canada
5.14.7…The U.S. business environment is better than that of Canada
5.14.8…The private enterprises are playing a role as social wealth shared publicly
5.14.9…Re-evaluate the social significance of the Unions
10…We still have hope to reopen Electro-Motive plant in London
5.14.11…The solution for helping manufacturers running in Canada
5.14.11.1…ISO, BRP and Amoeba can well realize Accountability
5.14.11.2…Evaluates employees' work performance by Computer
5.14.11.3…Work performance linked payment can save NCR
5.14.11.4…The timely policy adjustment of the government
5.14.11.5…Partisan politics disabled government of Canada
5.14.11.6…Canada need a non-political Super Leadership as assistant
5.14.1…Manufacturer is the cornerstone of social stability
April 29, 2015, in the article Canada’s economy is faced at vital crossroads, I once indicate that:
“Manufacturer is the basic cell and main driving force of the real economy by integrating the intelligence, Capital, Knowledge, Technology, and Market together to play the role as protagonists of scientific and technological invention and innovation.
“Manufacturer is the organizer of large-scale socialized production, it organizing and training social members to create material wealth with providing jobs for living making and tax revenue for social governing, thus to create a stable community, at which that people can work and live to enjoy a prosperous life.”
“Manufacturer is the cornerstone of social stability and sustained progress.”
“However, with rapid development of low-cost manufacturing in underdeveloped countries, Canada’s traditional manufacturing has been permanently losing.”
5.14.2…Entrepreneurs are the most valuable asset of a society
Governments are highly valued significance of the businesses, and highly emphasized the importance of the enterprise, but, wrongfully ignoring entrepreneurs.
If we liken the enterprise to a tree, then the entrepreneur is the gardener who plants the tree and promotes it growth.
Viewing in this way, the entrepreneur is the fundamental motivation for enterprise development. If there is no entrepreneur, there would be no enterprise.
Entrepreneurs are the most valuable asset of a society.
After working 16 years in Canada, I deeply felt the hardship of the Entrepreneurs who are hardly operating enterprises in lack of support from society and have to independently bear the pressure from multi-aspect, which badly affects their health.
Only among the several Entrepreneurs that I have associated, one suffered stroke, one suffered two times heart attack, and one even died earlier at his prime age. I once wrote articles to release my puzzled feeling, such as:
Jun. 25, 2013, My view on enterpreneurs and enterprises inspired bu Peter Shoor.
Sep. 11, 2014, The death of a Canadian business owner.
May 16, 2015, I updated my Dec. 21, 2010 article Grote Electronics evaluates employees' work performance by Computer that is introducing the good management methods according to the experience when I was working in there before Financial Crisis 2008, with the hope that can help reduce the pressure for those Entrepreneurs in business operation.
Recently, I learnt that the business of Grote Electronics went to slow; I eagerly went the plant with the hope to give some comfort to the top director. In there, I learnt that the top director was undergoing medication, which confirmed my concern.
Then I wrote other article as medication for the director: A letter to Grote Industries - good use of employee's innovative spirit, with a subtitle --- Grote Industries should be developed as R&D-oriented with a broader scope in product development.
And then, from the perspective of market of the Grote Electronics for their products in car signal lights, I searched information about auto industry in Canada; the results shocked me very much.
5.14.3…The decline of manufacturing in Canada
Apr. 14, 2015, there was a report Canada's auto industry could disappear within 15 years, I excerpt some as follow:
“Global automakers invested $7 billion in Mexico last year, compared to $750 million for Canada. Labour costs in Mexico average about $7 an hour, including benefits.”
“Canada’s auto industry may be headed down the same road as Australia’s and cease to exist between 2030 and 2040, says auto analyst Dennis DesRosiers.”
“Once home to six carmakers, Australia is expected to lose its remaining manufacturers – Toyota, Ford and Holden – a General Motors subsidiary – within three years. After the government turned down a request for a $275 million subsidy, Holden announced last year it would shutter its operations by 2017. Soon afterward, Toyota Motor Corp. said it too would shut down its plants by 2017. The automakers cited the high value of the Australian currency as the key reason for their decision.”
“’DesRosiers said Canada could meet a similar fate as long as it continues to lose out on new capacity investments to such jurisdictions as Mexico and the U.S. south. ‘In the longer term we’re heading toward Australia,’ he said. ’Every vehicle produced in Canada, every plant is vulnerable.’”
Feb. 10, 2015, article Canada falls to Mexico in share of North American auto output said: Automakers have made big investments in Mexico, where wages are in the $8 an hour range, compared with close to $40 in Canada.
The problem is not limited in the auto industry.
Oct. 15, 2015, the article Caterpillar to close Ontario locomotive office, sets layoffs reports that:
“Ontario’s industrial heartland is losing more skilled jobs as Illinois-based Caterpillar Inc. cuts costs and closes its Electro-Motive Diesel rail locomotive office in London, Ont. About 50 people have been given layoff notices and the office will close by Dec. 31. The staff includes locomotive testers, design engineers and production planners who were spared the axe when Caterpillar closed the nearby locomotive factory in 2012 and fired hundreds.”
“Canada’s manufacturing sector, centered in Southern Ontario, has been hit by shutdowns of several factories and shed thousands of jobs in the past few years.”
“Companies have cited the strong dollar, high operating costs and expensive labour as they shut their doors and moved production lines to the United States or elsewhere.”
“In 2012, the company locked out 450 people who built locomotives at the factory in London and told them to take a 50-per-cent pay cut before announcing the plant would close for good and the work would move to Indiana.”
“The company said the most recent London layoffs were part of “continued cost reduction actions.” The company said in September that job cuts among its 111,000-strong work force could reach 10,000 by 2018 as it reduces operating costs by $1.5-billion.”
“In 2014, Caterpillar closed its Toronto tunnel-borer factory and put 330 people out of work.”
“Recent plant closings in Southwestern Ontario include H.J. Heinz Co.’s Leamington ketchup factory in 2014, eliminating 740 jobs and gutting local tomato growers who supplied the factory for generations.”
“Cereal maker Kellogg Co. in 2014 shut its London plant and put 550 people out of work.”
“In 2011, Ford Motor Co. of Canada shut its plant in nearby St. Thomas, wiping out more than 1,200 jobs.”
When talking about business closures and relocation, people only consider the negative impacts on economy and employment with some critical tunes, few people consider that, in this process, the psychological harm that entrepreneurs and their families suffered. They did not want to see their companies to be closed or relocated, but helpless.
Sep. 13, 2014, I wrote article A Belated Thanks for RIM’s Founders and Their Families.
Above information made me more concern about the health of the top director of the Grote Electronics, due to that he is facing a problem that definitely cannot be fixed by any efforts personally, which is a problem that even cannot be easily fixed by federal government.
Manufacturing is the pillar industry in the economy with most large-scale employment in Canada, if it disappeared, it is not only to affect the people who are working in the industry, but also, it will badly affect many other industries, due to the decline of social purchasing power.
5.14.4…My view on the decline of manufacturing in Southwestern Ontario
Southwestern Ontario where has been a powerhouse in manufacturing of Canada, and due to geographic reason of Waterloo city located, the Waterloo region seems a synonym for Southwestern Ontario. It has been playing a leading role in Scientific and Technological personnel training of Universities, R&Ds researching, manufacturing basis, especially in software development. There many world-class software companies opened branches in there, for example, Google, China's Huawei, and so on. May 25, 2016, Forbes reported that China's Huawei 'Growing Up' To Become The World's No. 1 Smartphone Brand.
I knew several manufacturers in Waterloo and Kitchener closed or relocated in recent years, such as, RIM – 20 thousand employees, now declined as Blackberry, NCR – 1300 employees relocated to Mexico and now only left a design team, Triton Company – more than 100 employees closed, and Taming Foods – about 100 employees moved to Guelph.
Nowadays, in a similar business environment, many companies have gained big development against economic recession, in comparison; the decline of many Canadian businesses was just simply due to the poor management based on the poor social ideology and corporate culture of Canada, which could have been avoided.
Follow is examples according to my experiences.
5.14.4.1…The decline of former RIM
Jan 27, 2014, I wrote article The Fatal DNA of RIM & Canadian Enterprises to have discussed the reason for the decline of former RIM.
For RIM’s decline, people can find many sound reasons, however, I think that, the most fundamental one is the stifling intellectual work environment, which is that suppresses the free exertion of intelligence of the employees without a proper channel for employees expressing their views freely to have damaged the driving force for continuously self-revolution to fit the market that increasingly rapid changes.
Such a corporate culture is common in Canadian enterprises, which is just opposite that of smart doing in IBM & America’s best-run companies and German Companies.
This is one of important lethal gene fragment in ruining Canadian enterprises.
An RIM senior exec has to express opinion by Open Letter
Two years ago, I read an article Open letter to BlackBerry bosses: Senior RIM exec tells all as company crumbles around him in Jun 30, 2011. The writer is Jonathan S. Geller who is the founder of BGR – the biggest mobile news destination in the world. He currently acts as President and General Manager of the newly formed BGR Media, Inc., and Editor-in-chief of the BGR website.
In the article he said that: “We have received an open letter to Mike and Jim from a high-level RIM employee (whose identity we have verified), and in an amazingly honest and passionate plea, this letter gives fascinating insights into what RIM must fix, and fast. RIM did not immediately respond to a request for comment.”
The start of the open letter and the 8 suggestions as follow:
“To the RIM Senior Management Team:”
“I have lost confidence.”
“While I hide it at work, my passion has been sapped. I know I am not alone — the sentiment is widespread and it includes people within your own teams.”
“Mike and Jim, please take the time to really absorb and digest the content of this letter because it reflects the feeling across a huge percentage of your employee base. You have many smart employees, many that have great ideas for the future, but unfortunately the culture at RIM does not allow us to speak openly without having to worry about the career-limiting effects.”
The 8 suggestions:
1) Focus on the End User experience.
2) Recruit Senior SW Leaders & enable decision-making.
3) Cut projects to the bone.
4) Developers, not Carriers can now make or break us.
5) Need for serious marketing punch to create end user desire.
6) No Accountability – Canadians are too nice.
7) The press and analysts are pissing you off. Don’t snap. Now is the time for humility with a dash of paranoia.
8) Democratise. Engage and interact with your employees — please!
The proposals are not only pointed out the problems, but also offered workarounds, especially reconstruction of management, interaction with employees and to be managed in accountability. It shows the writer’s honesty in deep concern for RIM’s future, and well thought out.
From above 8 suggestions, we could feel that chaotic in the management.
Above 8 suggestions were all to hit on the root cause of the failure of RIM and perfect suitable for any businesses.
However, RIM’s responds to open letter was not only with no thanks, instead, was somewhat hatred condemnation, the first paragraph is as follow:
“An “Open Letter” to RIM’s senior management was published anonymously on the webtoday and it was attributed to an unnamed person described as a ‘high level employee”. It is obviously difficult to address anonymous commentary and it is particularly difficult to believe that a “high level employee” in good standing with the company would choose to anonymously publish a letter on the web rather than engage their fellow executives in a constructive manner, but regardless of whether the letter is real, fake, exaggerated or written with ulterior motivations, it is fair to say that the senior management team at RIM is nonetheless fully aware of and aggressively addressing both the company’s challenges and its opportunities.”
5.14.4.2…The NCR relocated to Mexico
Dec. 21 2010, in article Canada’s Corporate Management & Reducing Psychological Pressure in Workplace, I discussed the poor management in NCR Company.
When I newly work there was with 6 people to assemble a machine. My job is installation of electrical wires and switches on the empty case-frame of the machine, and then other people install the parts insides and make final testing for sending to customers.
The people are very friendly in the work team. After one hour of my first day’s work, a gentleman called Jim friendly told me that: “please do not work too hard like this; you may go to washroom to have a rest, or go to other work station to talk with friends. Any way, you should slow down the work.” Then, I noticed that other people were talking and joking with a slow working.
Compared with other Companies, that NCR Company has occupied the top of the food chain with welcomed end products, it certainly has greater profit margins supported by an enviable team of skilled technicians and operators. So that it should be running better and sustainable. However, it was being shut down earliest before the Financial Crisis 2008.
Now, looking back the overall production efficiency at that time, in my work team, only reached about 50% of total production capacity.
About half a year later after the NCR Company was shut down; in a supermarket, I met Jim who once advised me to work slowly. We were talks a while. At that time, he was looking for a new job after worked for a job agency a couple of months.
Now, from whatever point of view, in NCR Company, he asks others to lower down the work speed are not associated with any reasons for his own interests. His payment was over $ 20/h in NCR, but for Job Agency or any other job may less than $12/h. I wonder that maybe was him to have made the Job Agency closed again, because that was his hobby.
A NCR’s supervisor dared not supervise in work.
Before NCR moved to Mexico, every year before Christmas, the company must recruit a lot of temporary workers to complete the backlog of the orders.
One day, the Supervisor who took charge of my team told me that he will leave for vacation about two weeks. At first, I was very surprised and even doubted whether I misheard what he said, or he was joking.
Since that the production was so busy with so much new temporary workers, as a Supervisor who takes the main management responsibility, why, at this juncture to leave for vacation?
A few days later, I went to work, my team colleagues asked me that: did you watch the TV this morning, in other department, the night shift temporary workers collectively made trouble, even to have smashed some equipments after learnt that they was laid off.
Some people might doubt that how did this happen?
A few years later after the NCR closed; I talked with an acquaintance who once worked in NCR Waterloo, to have known that, in the NCR, the payment will be more than $14 per hour after hired as full-time employee, which is much higher than that of any other companies.
Now, we would realize the reason that Supervisor left for vacation in the busy juncture. He was to dodge for avoiding trouble. Also, we may easily imagine that the Supervisor leaving for vacation might become routine manner at the busy juncture in before Christmas every year.
It is really an incredible matter. A Supervisor as middle management in a legitimate multinational company, his work should be aboveboard and dignified; however, he had to act as that of criminal to dodge some time every year, but conversely, the criminal manners of those workplace troublemakers were acting as aboveboard and dignified, there no one dared inhibit them.
This might be the most absurd thing in the world. It is simply as that of the sky and the earth has been swapped the position.
Indeed, the supervisor never says anything for that Jim slowed down the work. He seemed have never taken his supervising responsibility besides hard work as a general operator.
Now, we can see the difficulty of the corporate management.
We need a powerful means to prevent such sadness playing continuously.
For this point, the ISO standards will play a perfect role.
5.14.4.3…The closure of Triton Company
Dec. 21, 2010, in article Canada’s Corporate Management & Reducing Psychological Pressure in Workplace, I discussed the poor management in Triton Company.
A Canadian PCBs manufacturer once located in Kitchener Ontario, Job assigned by team leader, supervisor supervised there every day. Operators could talk each other whispered, sometimes some young operators speak loudly, and supervisor would condemn them loudly, too.
As human culture nature, usually, most people have the self-esteem and eagerly to do perfect job to avoid being suspected by the eyes of contempt. In Triton Company no one can keep their self-esteem because they finished products were being put together in two or three operators’ group, which cannot distinguish who is defects maker. They have bonus too, but the amount is not linked with the work performance and the profit. There were different in paid amount of bonus between the employees, but the determination was according to the personal impressions of team leader and supervisor without a convincible objective data supported. So, the result was negative. It acted as paying money to lower down the production efficiency with causing argument and psychological pressure.
In most of the time, the old employees worked as a teacher with the new comers because employees quit frequently. I think, the partial reason of those people quitting was due to the confused management cannot preserve their self-esteem. In this kind of work mode, the products’ quality is certainly uncontrollable. The Company was being run as a training school paid training fee for their competitors. Finally, a large number of products’ returns happened, then the orders reduced, and then Company’ door was being shut down.
There an operator named John is worth to special mention in this company.
He was a drunkard and heavy smoker. Due to the bad habit damaged his brain; he was unresponsive with hands palsy. He obviously cannot do a perfect job, especially the production of PCBs, which needs more mental concentration and deft hands. But, because of that supervisor also was a heavy smoker and at break time they belched out smoke and swallowed fog together.
John could not do any job properly, supervisor changed his job position many time, finally sent him to make final functional testing for PCBs by a test-machine. Obviously, this was a critical position that controls the quality before sending PCBs to customers.
Obviously, that John has played a key role in the closure of the Triton Company. We may say that is a mindless employee to have ruined a good business – good products with stable customers. But the key cause was the chaos in the management; it could not exclude such an incompetent staff timely.
Since some individuals’ work harder, so they was hired as permanent employee much earlier than that of others and the bonus was higher than that of others, also those outstanding individuals was troubled by others, not only defamation, even being made defects on their finished products. This is the reasons that people are often willing to flow others and do not want to outstanding.
This manner is no problem in daily life interpersonal activities. However, in the large-scale production, it is hazardous because it would reduce overall production efficiency, even force good employees to leave. Sooner or later the enterprise would be destroyed.
In the most of time, the most of people are self-esteemed. They more concerned about is not the money, but eagerly hope to be fairly and dignifiedly treated. A work performance evaluation system is the best way to meet the need perfectly.
Grote Electronics is a vivid example, now is still healthy running.
5.14.4.4…The relocation of Taming Foods
Taming Foods was a cookie manufacturer located in Waterloo city. I worked there for two weeks from a job agency before financial crisis 2008.
Every day, there a lot of cookies were put into garbage from exterior damages; due to the cookies cannot be reused as raw materials besides as the feed of livestock farms.
Such loss was easily avoided.
I worked in packing position in a cookie production line followed with a baking machine that was like a Ferris wheel under the charge of other team inside of a door. The newly molded biscuits were soft, sticky, and easily adhered together to stack on the conveyor belt in the entrance area of the baking machine. Each time the stacked alarm sounded, the operator inside rushed out to fix the problem, the stacked cookies were already in a large number of, the operator has to stop the production line for processing. Not only cause a big loss of biscuits, also badly affected normal production.
My job was put boxed cookies on the skid from a conveyor belt that can keep more than 10 boxes in a line at same time, after put the boxed cookies on the skid; I have a lot of free time. I often quickly put the boxes on the skid and then quickly run to the position that can both watch the cookies stack in the entrance area of the baking machine and the boxes of boxed cookies on the conveyor belt.
When found the cookies started to stack, I quickly fix it easily without the stop of the production line anymore. Thus I worked at a position that totally avoided the stop of the production line at the time that I could well finish my normal duty.
But, my team members were angered for that what I did, they many times warned me to stop to help the work of other team, so that they have the chance to happily watch the operator inside rushed out to fix the problem and to stop the production line to create a time for rest.
About one week later, the site supervisor told me that, hi, Frank, I appreciate your work very much, I would like to give you another job. I said, no, thanks; I will quit this job here in next week.
Obviously, my team members have complained about me to the supervisor.
The talks of the supervisor made me dismay, he had no sense to improve the unreasonable operation process, but mindless followed the opinion of the mindless employees. My practice had proved that let packaging group responsible for baking machines is the most reasonable way.
A little improvement without any extra spending will totally improve the production efficiency, but, cannot practice in Canadian business.
Later, I learnt the Taming Foods in Waterloo will be merged into the plant in Cambridge, Ontario, but, finally, with the plant in Cambridge together to be merged into the one in Guelph, Ontario.
Before, worked in the plant in Waterloo, the people could walk home, but, now they have to drive more than half an hour to Guelph, many of them have to quit the jobs.
5.14.5…The decline of manufacturing caused ripple effect negatively
May 27, 2016, the article Liberals, Tories spar over fiscal figures reported that: “For March, the government posted a $9.4-billion deficit compared with a deficit of $3 billion in the same month last year. The shortfall came as revenue fell $5 billion to $24.1 billion. Personal income-tax revenue fell by $1.1 billion or 9.4 per cent and corporate income-tax revenue fell by $2.1 billion or 37.3 per cent.”
The reason for the decline of the revenue in personal income-tax and corporate income-tax maybe has the reason of government tax adjustment policy, but, main part, I think, was from the decline in businesses operation.
Such as, Dc Foods Waterloo, a meat foods processing company, the profit of per unit sales has been sharply shrunk in recent years. Some of the products are even profitless; the production is only for keeping the jobs of the employees. Above two Entrepreneurs of the stroke sufferer and the heart attack sufferer were both from in this plant.
For the profit of per unit sales sharply shrunk, the direct cause was that prices of the raw materials are rising, but the prices of the products sales did not sync up under increasingly fierce market competition. The meat foods processors have to keep or even lower down the selling price for keeping their market share, while bearing high raised production costs.
That is the fact and an intuitive view in the obvious way. Perhaps, few people would see the problem in a little deeper scope.
The root cause is the increasingly deterioration of the economy, which caused decline in the purchasing power of society due to that there more and more business closed or outsourced, and more and more Canadians jobless or work on the position with lower paid.
Mar. 16, 2012, the article Fight Union Busting Through United International Class Struggle revealed: “Unemployment in cities like London and Windsor is around 10 percent. Many workers who still have jobs have been forced to take huge cuts in pay and benefits. This race to the bottom was kicked off by the CAW leadership’s surrender of $19 to $22 an hour in givebacks to General Motors and Chrysler three years ago as part of the auto company bailouts engineered by the U.S. and Canadian governments.”
“Some 450,000 manufacturing jobs have been destroyed in Canada since 2006. Southwestern Ontario, long the country’s industrial heartland, increasingly resembles the adjacent U.S. Rust Belt with its abandoned, hollowed-out factories.”
Suffered with such tough economic environment, for years, Canadians have to carefully manage their increasingly deflating wallet, to limit the spending on the basic necessities of life. For them, the delicious high-protein meat foods have become a luxury; it is too expensive to touch.
Enjoying delicious meat foods is next to the basic necessities for survival.
In viewing above, no matter how difficult it is? We have to manage a way out to save manufacturing in Canada.
5.14.6…The potential for helping manufacturers stay in Canada
Obviously, for saving manufacturers, only relies on the blood transfusion from government subsidies is far enough, nor a long-term solution.
Such problem must be solved in the root level, which is to essentially reduce the operational cost of manufacturers in Canada, by reducing payment, cutting off tax, tariffs and so on. All in all, we must help manufacturers to reach a basic balance in operational cost between in Canada and in underdeveloped countries (UC), even in the United States. So that stop them outsourcing, even attract investment into Canada.
According to my long observation and consideration that helps manufacturers to reach such balance is easier than that of people’s common imagination at the acceptable way in both of employees and employers, due to the hidden costs for business operation in the UC.
I remember a story that once happened in Kitchener Ontario years ago.
A company outsourced to an UC, but, soon it moved back; because of the production there cannot properly control quality. The company had to call back their former skilled employees with higher payment than that of before. The company was with a beautiful dream to gain, but, got a return in bigger loss.
There was a similar case from China.
It was a company of China outsourced to a UC in Southeast Asia under the pressure from a main customer of Japan, but, after the products produced out, there was no expected room for lower down the price at all, due to that, though the payment was really largely lowered down, but, many other unexpected costs emerged, such as the cost in materials transportation due to have no essential supply chain in this country, with unreasonable high customs fees, and such kind of unreasonable fees under poor social governance, especially the local workers were difficult to be well organized to make a production for delivery on time with a confident product quality.
Poor social governance with low quality citizen is a main reason that a country stays in poor, and also it is the big obstacle for business operation.
Above unfavorable factors in other countries are just the favorable factors for us to help manufacturers stay in Canada.
Then, let’s take auto makers as example, to see that how much payment that they can afford in current Canada?
I have a friend from Laos, recently, he job-applied and was interviewed in Toyota. He said that if he get job there, the payment will be over $20 hourly, I remembered about $22 something.
We can roughly consider that $20 hourly payment is the balance point for auto makers stay in Canada, and $20 - $8 = $12 is the hidden operational cost in Mexico.
Suppose that we take $20 hourly as reference to conduct auto makers reduce their operational cost by lower down payment for general operators, local employees may be most possibly accepted in comparison of losing current job to hardly look other one with more lower paid.
Above, only is an example for demo, indeed, such process has been done already in 7 years ago, according to Mar. 16, 2012 Fight Union Busting Through United International Class Struggle reported, in Canada, General Motors and Chrysler has lowered payment to $19 to $22 an hour in three years ago as condition of getting governments bailouts. The three years was counted back from the publish date of the report in Mar. 16, 2012, now is 7 years in 2016.
The significance of such process at that, it is not only to have saved auto manufacturers, but, it has provided a feasible method for saving other manufacturers.
Now, let takes U.S. Illinois-based Caterpillar Inc. closes its Electro-Motive Diesel (EMD) plant in London as reference to discus.
5.14.7…The U.S. business environment is better than that of Canada
Mar. 16, 2012, the article Fight Union Busting Through United International Class Struggle provided some useful data for understanding that why Caterpillar Inc. largely cut the payment and benefit of the employees in the factory in London Canada. It provided a balance point in payment between Canada and the United States for similar manufacturers.
“Caterpillar’s move to lock out the 465 members of Canadian Auto Workers (CAW) Local 27 at its London, Ontario, Electro-Motive plant on New Year’s Day marked a further escalation in the capitalists’ war on labour. The company, notorious for union-busting in the U.S. Midwest in the 1990s, demanded that the CAW swallow a pay cut of nearly 55 percent—from $35 to $16.50 an hour—along with the elimination of the pension plan.”
“Rejecting these outrageous demands, the CAW set up round-the-clock pickets and called on the labour movement to hot cargo (boycott) any locomotives sent out of the plant.”
“But Caterpillar dealt its final blow two weeks later by announcing the permanent closure of the factory. Production is to be shifted to a retooled, non-union plant in Muncie, Indiana, where workers will be paid $12.50 to $14.50 an hour. The announcement came two days after the Indiana state legislature adopted an anti-union law that bans the Closed shop.”
The report provided evidence that Caterpillar made pay cut from $35 to $16.50 an hour in London plant was according to the availability in the United States, where the payment was $12.50 to $14.50 an hour and without the interference of the Unions.
The significant was that Indiana has legislated anti-union law to limit the activities of the Unions, which has created the favorable business environment for manufacturers. Such as:
Feb. 1, 2012, reports Indiana becomes 23rd right-to-work state.
Nov. 6, 2014, reports In defeat for unions, Indiana's top court upholds right-to-work law.
The right-to-work law was enacted by many states in the U.S. in the 1940s. It prohibits the requirement that non-union employees at unionized workplaces pay a monthly fee comparable to union membership dues.
From above information, on the standpoint of employers, in the respect of lower wages and limited the activities of the Unions, the employment environment in Indiana U.S. was better than that of in London Canada.
One tree can reflect whole forest.
In general, the business environment in the United States has been better than that of in Canada.
Besides objective policy factors, that optimal enterprise management creates a high production efficiency has been playing key role. Such as:
Canada’s productivity lags U.S. in ‘virtually every instance’.
Canada losing steam in its push for an export boom due to the high cost in making goods than that of Japan or Britain.
Canada's mid-sized firms have declined and the manufacturing sector reduced more than half between 2001 and 2010 only.
Since Jan. 20, 2009, Barack Obama took office; the United States has gradually introduced a number of policies conducive to enterprise development in the United States. Such as:
Dec 16, 2009, United States Manufacturing Enhancement Act of 2010.
Aug.11, 2010, Another Step for American Manufacturing.
According to the Acts, the United States made tariff reductions on imported raw materials for the local manufacturing sector, and implemented tax incentives for US companies that invest in the local community, and so on.
Such policies attracted manufacturers returning to the United States, also attracted a lot of China’s enterprises investment.
We cannot ignore the impact of illegal immigrates on the lower down the payment.
And also, the wages reduction has been a trend globally.
Sep. 06, 2014, Throughout the rich world, wages are stuck.
Jul. 13, 2015, Since the financial crisis, almost all Americans have seen their wages fall.
In addition, there was important part that people rarely pay attention, it is not about employment and wages, but, for long strategy in economic development, though there is some digressing, but, it is worth to mention, which was Gov-funded non-profit R&D Institutions.
Jan. 23, 2013, in article Gov-funded R&D Center Boosts Taiwan as One of Four Little Dragons, I have discussed its significance.
Taiwan’s Industrial Technology Research Institute (ITRI) is a Taiwan Gov-found and later self sustained non-profit R&D institution in 1973, and headquartered in Taiwan, with the branches in Tokyo, Berlin, Moscow, Eindhoven and California Silicon Valley. Currently there are 5,777 members with background of 1,392 PhDs and 3,126 Masters.
Its practice is new tech R&D and business incubator by spinning off the matured research achievements with related researchers together as independent enterprises.
By this way, Taiwan have created more than 228 start-ups and spin-offs with over 140 CEOs in the local high-tech industry, among them many are world-renowned high-tech companies, such as TSMC and UMC. Now, it holds more than 19,890 patents.
The Gov-found non-profit model in enterprise management with no shareholders can ensure the R&Ds future oriented by avoiding the pursuit of short-term profits, and the earnings can be used for new R&D investments rather than to be distributed to the individual hands.
The ITRI has been the essential innovative force and think-tank with open Laboratory to provide full serve for small and medium sized enterprises and drive Taiwan developing as one of The Four Little Dragons.
Now, China and the United States are eagerly replicating the model in a large number of.
Jan. 1, 2012, a Mandarin article indicates that, in China, the model of ITRI is being reproduced in many provinces and cities, in continuously heating up throughout China.
May 15, 2013, the article Obama Administration Announces 3 Advanced-Manufacturing Innovation Institutes said:
“The administration of US President Barack Obama announced this week that it is committing US$200 million to create three advanced-manufacturing innovation institutes, focusing on digital manufacturing, lightweight composites and next-generation power sources.”
“The new institutes are another step in Obama’s plan to reboot America’s manufacturing sector with a National Network for Manufacturing Innovation. Obama’s fiscal 2014 budget requested a one-time $1-billion investment to fund the network, which would consist of 15 more institutes around the country.”
“’Several of our main global competitors in advanced manufacturing have established innovation centers to bridge this “missing middle.’ In Germany, there is an extensive network of announced this week that are funded by industry, universities, and government. In Taiwan, there is the Industrial Technology Research Institute, jointly funded by industry and government. But in the United States, no such national network of innovation centers exists.”
When writing this article today, when reviewing my article Gov-funded R&D Center Boosts Taiwan as One of Four Little Dragons, it made me more sadness.
Needless to say low wages in Mexico, only the rational initiatives to promote manufacturing of the United States, Canada is far behind, I deeply worried about Canada's economic prospects.
Please look at follow video, what are Canadian policy makers doing in the sacred legislative Hall. Some MPs were willfully obstructing legislation.
Justin Trudeau's supposed elbow assault nothing but a set up. NDP deception.
Where is the hope of Canada?
5.14.8…The private enterprises are playing a role as social wealth shared publicly
Above I said that manufacturer is the cornerstone of social stability and the entrepreneurs are the most valuable asset of society.
However, people have been regarding the owners of the enterprises in a hostile state, which is one of the reasons that are difficult to reach a consensus between employees and employers on some simple issue. Workers are lack of enthusiasm for the work, resulting in low productivity.
The abnormal behavior is derived from the ideological confusion in lack of understanding for the nature of the enterprises.
Jun. 25, 2013, in the article My view on Entrepreneurs and Enterprises inspired by Peter Shoor, I appeal:
Enterprises are the important organization of social production to create material wealth for human survival, and the entrepreneurs invest their money to run the enterprises with a frugal living and risk taking, to provide employment for public living making and revenue for social governing. Thus, their enterprises are to be shared publicly in playing the role as social wealth.
The entrepreneur is the best social servant and the communist in the reality.
However, historically, in worldwide, it has been lacking of concerning and supporting for Entrepreneurs, even, until now, there great many people are with hostile attitude toward them. The law seems to have ignored this group also, but tended to protect employees without updating of the outdated traditional concept of ideology from the times of Industrial Revolution with ignoring that modern society has provided thoughtful social welfare and comprehensive legal protection.
The outdated ideology and practice has badly affected the work ethic of employees and to have made Enterprises difficult for managing, even, encouraging some mindless employees’ pranks boldly in the workplace without the fear of being punished. It is not only badly affecting the production efficiency, but more terrible, it even caused the closure of some Enterprises.
In viewing of above, I have wrote Family Business and Management Board, My View on the Argument of Social Polarization with the purpose to reduce or avoid the hostility of Employees toward the Entrepreneurs by properly understanding the Rich, in which I indicated that the money of those Rich is not in handy for self enjoyment but mostly being used in the business’ running with creating employment and revenue. Therefore, in fact, it is being shared by public actually in playing the role of public wealth.
In view of this, we can draw a general conclusion: it is that the means of production is not personal consuming goods, no matter who owns it, the owner only possess the power of disposal or organization of the production of social material wealth.
Besides the payment, employees are also enjoying the share of the expensive investment in the facilities of the production by free use.
Viewing in this practical way, the Poor are not poor as some people complained; and the Rich are not rich as some people fantasized at all.
In fact, the Enterprise is shared to make living by Employees & Employers together.
I hope that from a rational way look at enterprises will reduce people's hostility to the entrepreneurs, and thereby improve people's work ethic, thus, by improving production efficiency to improve the economy of Canada.
5.14.9…Re-evaluate the social significance of the Unions
In an environment of market economy, as labor, each of us has become a commodity to be freely chosen. As consumer, in malls, we have right to free choice of high quality and inexpensive goods, why that entrepreneurs cannot freely choose their staff with lower cost in payment?
That reduces the production costs to create profit is the priority of the business operators, for this concern, the free trade and economic globalization has provided a broad range of options for relocating their production base under the concern of lowering down the operational cost, especially in payment.
When talking about profit, the majority of people will come to mind in greedy, and the fat cat firstly. Few people can take into account of the difficult of the business operation, which is that it is profitable in today, maybe unprofitable tomorrow; business operator must make long-term considerations in spending. It is just as that of our family life; we must manage enough money for unexpected needs in future.
With the deterioration of the business environment world widely, the operation of the business is increasingly difficult. For example, above mentioned DC Foods, the profit margins is increasingly shrinking, and business operators have suffered psychological pressure related diseases.
Though the legal protection for the existence and activity of the Unions is reasonable, however, it cannot stop manufacturers to free chosen the place for setting production base and bring their job position to new place elsewhere.
In 2012, I once read a post, in which, a workers appealed that they would like to accept the pay-cut to keep the jobs in Electro-Motive Diesel plant London.
However, Jan 03, 2012, there was a report that CAW vows no retreat after Electro-Motive lockout. On January 21st, thousands of union activities, labour lraders, and local politicians gathered in London Ontario for a massive rally against U.S.-based Caterpillar's lockout of 465 workers at the city’s Electro-Motive Diesel plant. The demonstration was organized by the Canadian Auto Workers union and the Ontario Federation of Labour.
Obviously, the demonstration has played a role to have further stiffened determination of Caterpillar’s management to escape from the kidnap of the Unions.
Actually, with a kind purpose of helping workers, the more effort of the Union, the more manufacturers to be relocated, as a consequence, more workers will completely lose their jobs with great hurt to their interests.
In consideration socially, as long as possible to ensure the manufacturers to stay in Canada, government has to play its governing role, rather than to allow Unions free play.
5.14.10…We still have hope to reopen Electro-Motive plant in London
In current economic situation, it is difficult to create new jobs, for the 450 job positions of Electro-Motive plant in London, we should cherish.
From the fact that Caterpillar to close Ontario locomotive office until Dec. 31, 2015 in 3 years later since it closed the plant in 2012, which was announced in Oct. 15, 2015, it was in advance of two months to deadline, I firmly believed that Caterpillar was still with the hope of reopen the plant in London, with enough time for Canadian government to deal with this issue.
There was other proof, in final closed office, they kept 50 people since 2012, which includes locomotive testers, design engineers and production planners, and they are the essential staff for reopening the plant.
Long-time laid business foundation - sound production systems – well equipped equipments and well skilled personnel, matured products under a matured market. For any business, it is hard to be broken away.
I firmly believed that, for keeping Caterpillar’s London plant to stay in Canada, we still have room for making final effort.
Jan. 26, 2012, the report What will it take to win the lockout at Electro-Motive Diesel revealed the truth of workers did not accept the conditions of the Caterpillar.
It was that the workers have fantasy.
"If they wanted to move the plant already it would be gone. They don't have the skilled [work] force, I don't think," said Chris Whitty, a locked-out maintenance electrician.
"You can't learn it overnight, it's not like an assembly line where you put the part in and push the palm buttons down. It’s old-school manufacturing; you're assembling massive pieces of equipment with a highly skilled workforce."
Now, the fantasy of the workers was totally broken, they have to accept the reality of pay-cut.
The conditions for reopening of the Electro-Motive Diesel plant are ready; the key is how to trigger. I think that start unofficially is better.
The Mayor office of London (mayor@london.ca) may contact local newspaper, let some reporters to investigate the life status of the workers, and write investigation report about the life of the workers after lost the jobs.
At the same time, to learn the opinion of the workers for reopening the plant. If the majority of them are support, the things will be easier; we can have the workers self- organized to contact with Caterpillar Inc. to discuss to reopen the plant.
In the process of investigation, the reporters may seek the advice of employee, to identify candidates for the formation of workers' self-management committee.
Telephone contacts by workers themselves may simplify and speed the process of the investigation.
The workers' self-management committee may act as a bridge to connect workers and management to join hands promoting the development of the company.
The hostile era of workers against employers has become obsolete, we need to start a new era of workers and employers cooperate together, to struggle together, to enjoy the fruits together.
Under our hands create a new era of business management.
TV interviews workers' life after losing job may help people cherish enterprises where they work in.
5.14.11…The solution for helping manufacturers running in Canada
Old way cannot go through, we must smartly explore a new way out, no matter is in social governance or business operation.
According to my experiences, the poor management based on poor social ideology and corporate culture is the main cause that Canadian manufacturing declines. So that firstly is to reverse poor management.
5.14.11.1…ISO, BPR and Amoeba can well realize Accountability
5.14.11.1.1…ISO
There were reports taking saves Energy 30% by ISO50001 in 3M Canada as a proud achievement. However, I would like to question that, by the same group of people with the same equipments in the same place, why they could not effectively save the energy similarly before the implementation of ISO50001 standards?
The achievement in energy saving is also reflecting the CHAOS in the management of 3M Canada. It is common in many Canadian enterprises, which is one of the reasons of the Canada's Mid-Sized Firms in Decline.
If there was no mandatory of the ISO50001 standard to strictly enforce the staff as that of the law enforcing social members, only relying on their management team and their own developed management rules, 3M Canada would never get such an achievement.
In China, as a senior engineer in metal material, I once participated in the drafting of the application documents of the ISO90001 for Oil wells drilling pipe. The deep impression on the ISO documents is that every aspect of the production to be refined and provided concrete steps with formulates specific instructions and regulations. More importantly, each specific operation puts specific person in charge - the responsibilities are clearly assigned to the specific individuals.
The ISO standards are acting as that of powerful business-law regulates the behaviors of the business’ members by exactly identifying that who are responsible to be punished or to be awarded.
In fact, the role of ISO is to prevent mistake in the production by tracing responsibility with tagging responsible mark on the forehead of individual who is on responsible - accurate accountability. At this process, ISO plays a role as enforcing people work carefully.
The experience of 3M Canada in energy saving has provided us a direction for reversing the state of CHAOS in business management, which is to copy the model of ISO standard to develop regulations, with the regulations to optimize the management in our firms, thereby, to dig out potential for gaining profit with an easy way.
We are clear that, in the business running, besides energy saving, there are many management aspects with the plenty of room for improvement in cost-saving. We can imagine that, if 3M Canada improves efficiency by 30% in all of their management aspects, then, see, what will happen? If we all firms in Canada are able to improve the efficiency by 30%, and then, see, what it will happen?
Accurate accountability will dramatically motivate employee’s self-esteem, and the self-esteem driven them consciously full-hearted work in higher speed with avoiding mistake.
In the practice of ISO, the management is being conducted by the written instructions and to be enforced by written regulations, rather than by the management staff orally according to person accord.
5.14.11.1.2…BPR
Indeed, the practice of ISO is similar to the practice of Business Process Reengineering - BPR that is focusing on the analysis and design of workflows and business processes within an organization to dramatically improve customer service, cut operational costs.
In this process, the significant one, maybe that the operators are working according to processes, standards and regulations of the system in detailed instructions, to replace that of taking orders from management staffs.
After a thorough business process reengineering, employees developed a conscious production habits in "thinking according to the production process, speaking according to the production process, and acting according to the production process", thus, the work load for business management is greatly reduced.
In such practice, the achievement of China’s Haier Group in admirable, after business process reengineering, it cut off 26000 middle managers accounting for 30.2% of total staff in a two year period. It achieved great reduction in management cost and largely improved productivity with huge profit gains.
In view of above achievements, ISO management system may make some improvement to be associated with the popular practice in business management - Business Process Reengineering, thereby, to make the development of ISO in more applicability and suitability with easily riding on the development trend.
According to Business process reengineering - Wikipedia that is updated in 5 February 2016, in the mid-1990s, as many as 60% of the Fortune 500 companies claimed to either have initiated reengineering efforts, or to have plans to do so. Now, in 20 years later, that number will be much more.
If associated with Business Process Reengineering, the practice of ISO will be able to dramatically improve productivity in manufacturing, and will be able to play more significant role in the process of promoting the progress of human civilization.
Now, we can see the magic of the ISO in improving efficiency. In turn, the efficiency will produce profit that companies have been hard pursuing.
Even so, the ISO has its shortcomings; it is that it does not touch the management in business expense. For this concern, we need Amoeba Management that takes into account of cost and profit.
5.14.11.1.3…Amoeba
Amoeba is a Management System designed by the creator and the current Kyocera honorary chairman, Kazuo Inamori, Japan.
“Amoebas are in general groups of 5 to 50 people, composed of personnel in a company, with a clearly defined purpose of making profit for itself. Profit is measured using this simple formula: ("Profit per hour = (sales - cost) ÷ working hours"). It is calculated in each Amoeba with the goal being to identify and maximize profitability per hour.”
“Amoeba profit is usually calculated on a monthly or annual basis. The aim is to target plans into action, and create a system of metrics which can lead to increased efficiency working hours.” “Amoebas keep changing from time to time, and the roles inside an amoeba are changed as well.”
The advantage of Amoebas is exactly distinguishing responsibility on cost and profit, but, it seems not directly touch the responsibility on individual.
If we combine use of advantages of ISO and Amoebas to make up the shortages of each other, the result will be perfect.
The combined use of ISO and Amoebas still has some shortage, which is not linked with incentives. Therefore, we still need more measures in incentive and enforcement.
My articles may provide references for this regard.
May 28, 2012, The DNA of the Success of German Manufacturing.
Dec. 22, 2011, The DNA of the Success of IBM & America’s best run companies.
5.14.11.2…Evaluates employees' work performance by Computer
Dec. 21, 2010, in article article Canada’s Corporate Management & Reducing Psychological Pressure in Workplace.
Grote Electronics located in Waterloo, Ontario, Canada, it is a branch of the U.S. based Grote Industries, a manufacturers and marketers of vehicle lighting and safety systems. Before Financial Crisis 2008, I worked there for over a year, the commendable point of this plant is that it records and distinguishes employees’ work performance accurately by computers, which can promote the production in highest efficiency with lesser psychological pressure producing, especially timely identify and kick out those people who are lack of responsibility to avoid bigger lost.
In their production site, those needs to be processed semi-products are being put in the containers with a Work Log that provides the products’ information: name, quantity, batch number, barcode, a brief instruction of operations and the place for operator’s signature and stamp with a ID number stamp.
Usually, the operators take the semi-products to work individually without any people’s tasking in advance. This will save some work time.
The first step of operators was to take the Work Log to go to a scan-machine that looks like a telephone hangs on the wall, to scan own palm print, enter own work ID numbers and scan Work Log barcode, and then start to work.
After finished whole container of products, sign own name and stamp with a stamp of ID number on the Work Log and to repeat the first step again as an important procedure to entirely finish one container products. And then put them on a shelf for finished products before working on other products.
Team leader only acts as a nice teacher and consultant. Due to the employees’ team is stable; everyone knew how to do the best job. So, in most of time, in the workplace, you cannot distinguish who is team leader and who is general operator. The team leader is doing the same job with general operator together rather than as doing in the most of other Companies – just walking and looking around. Here, no one was doing this kind job that is directing with an old management method inherited from slavery. The method should be rest in their grave after the slavery was abolished long time ago.
In the working time, everyone is focusing on own job without free talking unless the operation needed because that of work efficiency of the individual is being calculated and recorded between the two time’s scan before and after finishing one container products, which is acting as an invisible eyes to supervise people to force them working harder without the negative feeling that produced under the slavery-like supervision.
Because of the work performance evaluated by computer based on the daily records, no one would doubt its impartiality. Thereby reduce the displeasure or even argument between the staffs or staff with management personnel, which is the main generator of psychological pressure.
The records may be used to peacefully solve the thorniest issue – layoff people when Company downsizing without hatred causing. Because the layoff process is based on the work performance backed by daily records. People would be self-convinced that they were being laid off by own work performance rather than by improper judgments of any individuals.
In fact, the products of Triton Company are similar with the products of Grote Electronics. Only the purposes and the target markets are different. They could copy the management model of Grote Electronics in 100%. In production site of Grote, there are two team leaders, both works hardly with ordinary operators together. In Triton Company, there are two team leaders and one supervisor, in most of the time, they chat with operators after finished their production report on computer and answered some possible questions.
5.14.11.3…Work performance linked payment can save NCR
Management is a kind of art rather than a rigid technology, it provides a special stage for performing intelligent dramas.
For the shutdown of the NCR Company, one of important reason might be unsatisfactory productivity that caused by that of payment was not associated with the working-performance, which was no different for operators who finished 3 machines or 6 machines in a shift. Obviously, this kind of payment method was acting as a cooler to cool down employees’ working-enthusiasm. It also was one of the reasons that had triggered the collapse of former socialist countries. So I once said that in other article, capitalist countries are following the dust of the road that socialist countries have been past.
Suppose that, in the NCR Company, takes 3 machines as basic task of a team per shift, after finished first 3 machines, the fourth one pays $6 to each operator as bonus, the fifth pays $9, the sixth pays $12. Thus would incent the operators to work with full-load. In this way, every day will make extra profits from three extra machines by only extra payment of $189 that may only a little bit compared with gained extra profits. If so, the Company would be still running, that gentleman Jim might still work there with a better payment rather than that of anxious for job-looking.
Here, there a more detailed account can be calculated. When production without bonus, finished 3 machines per shift, suppose the profit margin is 20% after deduction of raw materials, wages, utilities and other basic costs. On this basis, for finishing extra 3 more machines, only need to increase the cost of raw materials and bonuses, then, the profit margins from extra 3 machines may be much higher than that of 20% of from first 3 machines. The bonus possesses magical effect that can satisfy both employees and employers at the same time.
An important step of the success of China’s economic reform was have broken the old wage system that was continuation from that of the Soviet Union, and largely increased the share of payment that associated with individual’s work performance.
Some simple management measures could reduce the severity of the antagonism between employees and employers, and that will be good for all with reducing psychological stress in workplace, also can increase social wealth by improving the efficiency of production. That is the origin of that article.
5.14.11.4…The timely policy adjustment of the government
The strong contenders are there in competing, Canada has been forced into corner with no redeeming retreat.
The option is limited.
Government of Canada should conduct comparative investigation for the business environment in the country of potential manufacturing competitor, and timely adjustment of Canada's policy to ensure a competitive business environment.
Even if that we totally cut off the tax that business has to pay for government, the government will still have incomes from those Canadians who keep the job. Those working Canadians will have ability to pay consumption tax, unemployment insurance, pension insurance and so on.
If we continue at current way to drive manufacturers out of Canada or closed, it is not only that government has nowhere for taxing, the worse is that Canadians lost the foundation for making livings.
In the difficult time, those entrepreneurs are suffering the most psychological pressure; the difficulties in business operation have made them mentally exhausted.
The government should full heartedly take care of entrepreneurs and go to together with them to discuss how to solve the difficulties that enterprises encountered. At least, government should give them psychological comfort by giving them confidence of the full support of government.
Government does not have the ability to provide financial support, but the intimate word of comforts is more effective. A strong psychological support from government will be able to enhance their courage to overcome difficulties.
This little support may be able to help entrepreneurs who make every effort with final physical energy to make businesses success from the edge of failure.
5.14.11.5…Partisan politics disabled government of Canada
The society is running on the track that paved by the policies of the government, any social problem is the problem in policy making.
Dec. 15, 2014, I once wrote article Justin Trudeau appreciates executive power of the China inspired by Trudeau’s disappointment for the incompetence of democratic governance and which has caused strong social criticism. In the article I indicate that:
“I write this topic today without any political purpose, instead, I eagerly hope that people can rationally give up no sense and ignorant ideological bickering on the political forms – multi-party democracy or one-party in power, but, to look at the actual social governance. To put valuable energy on true worthwhile matter, to consider that how to develop economy of Canada, and how to strive for avoiding to be starved to die, while the depreciation of the Canadian dollar with the oil wealth lost value.”
“Irrational people are mostly ignoring the nature of the problem, they never ask that: why do we want a government, why do we want the democracy? What is the ultimate aim of the government or democracy?”
“The only ultimate aim of the government or democracy is to proper govern society, is to proper develop economy, is to improve people’s lives.”
“However, looking around the world, there fewer democratic governments are playing right function. Holy dignified Congress became the place of those irrational politicians bickering.”
“A government designed as election of several gang to fight as that of street punks in the holy hall for the nation’s destiny decisions making, mutually constraints to make a government cannot make major decisions in a timely manner. This is absurd, abnormal, and it is a typical retrogression of human civilization.”
Oct. 2, 2014, in the article Why China did not produce native religions, I indicate that, “a wisdom from 2400 years ago China lessons us that, the ordinary people can happily share in enjoying fruit, but they never willingly share the effort in growing the fruit. A rational government has to enforce people to do something that will benefit to them, but, do not expect to convince them in advance.”
Such rational practice in social governance is just the dead knot for democratic Canada.
In Canada, there are many problems need to be solved urgently, and also can be solved easily, but current electorate-kidnapped government cannot reach that.
Any process of social advancement is the process of redistribution of interest socially, it will inevitably touch the interest of certain group of people, and they would fiercely fight against of. Under electorate kidnapped democratic Canada, any opposition, in regardless of right and wrong, it will work well.
More shocking was that recent Prime Minister Justin Trudeau's elbow incident revealed the absurdity of Canada’s democracy.
Follow is the video record about the process of the incident.
Justin Trudeau's supposed elbow assault nothing but a set up. NDP deception
Some people seem simply cannot distinguish that what is wrong; what is right; what is crucial for saving the economy of Canada. They actually have no rational sense for caring about the deteriorating social environment will negatively affect the normal life of themselves and their families.
Faced with a declining economy, those people without the slightest sense of urgency, the issue of the euthanasia is really important than that of the suicide of health people who simply caused by the loss of confidence in life due to jobless when economy helpless declining.
Such sadness can be avoided by timely rational policy making.
However, in the sacred halls of Parliament of Canada, some MPs actually acted as kids play to hinder such a simple law to be passed. In parliamentary procedures prescribed time, they did not return to seat to vote, but formed a human wall by constantly moving position to block other to organize the vote.
Their ignorant behavior simply made rational Canadians infuriating.
The problem was not at Justin Trudeau's elbow, but, at that those who willful bodily hindered the normal parliamentary procedures.
Even more frightening is that those abnormal acts are being legally supported by constitution of Canada, according to the question and answer of Canadian Citizenship Practice Test:
Q: What is the role of the Opposition parties?
A: To oppose or try to improve government proposals.
It is that divine Constitution of Canada regulated that sacred parliament hall accomplished as a kindergarten, in which, the parliamentarians - the representatives of Canadians careful elected, are playing as that of brain immature children in the process of legislation, by which childish way to decide our fate – the future of Canadians.
Why that hard working Canadians have to elect and feed those people who are intended hindering government in timely policy making, in hindering government to play the role in social governing?
Old way cannot go through, we must smartly explore a new way out, no matter is in social governance or business operation.
Above, I have said that the option is limited, it is not only limited in saving manufacturers, but, in broad aspect socially in Canada, which means that is not in the choice of the method, due to the method is obvious, it is in the decisively execution.
5.14.11.6…Canada needs a non-political Super Leadership as assistant
On this global, any social problem is the problem of politics. Since that human society is as that of a train in running on the track. Unexpected social problem is as that of the train derailment, the root cause is the poor track. The track for human society is the policies that legislated by government, and the government is the major means of politics to influence on human society.
All in all, ultimately, the most fundamental cause for the problems that threaten human survival is in absurd social governance, especially the wrongful organizational model for policy formulation. The problem is not in the democracy itself, but, at that any people can free campaign as a policy-maker with no essential prerequisites for the quality of the candidates.
Therefore, the non-partisan politics will be compose of a group of social elite who are with outstanding personal quality based on the outstanding studies and works, the key is that they are recommended, rather than campaigned or self-grouped.
In comparison with those democratic policy-makers who are working in the Stately Parliament, those knowledgeable high quality social elites who are working in the non-profit Societies, Institutes and related organizations actually are being politically marginalized.
This is downright ridiculous and irrational in a huge waste of intelligence in social governance.
The feasible approach for saving the world from the road of being destructed is at those politically marginalized real social elites can proactively manage a way to involve in the national policy making, and to develop current partisan politics as non-partisan politics gradually.
As truly social elites, truly talents, who must be proactively to change dissatisfied reality, rather than passively seeing the absurd partisan politics destroying the world.
In the Era of agricultural economy, the geographic space is the living space. In the Era of market economy, the market space is the living space. The low productivity and high cost in goods manufacturing would make Canadians lose living space due to doomed fail in the market competing.
The success of China’s economy relies on the top leader Mr. Deng Xiaoping who played a role as a political bulldozer to push away social resistance, in order to limit or avoid heavy social impact, government authorized economic zone in limited area without the support in financing, but independent policy making, and then with the convincing achievement to update the policies nationally.
Canada needs to gov-authorize a Super Leadership of a group of non-political social elites as a political bulldozer with the power of independent policy making to deal with on limited urgent social issue in a limited area, in a environment of least social impact to explore a effective governance way out, then, by the convincing achievements to update the policies federally.
Without populist-kidnapping, with the power of independent policy making, the Super Leadership of a group of non-political social elites can successful manage a way out, hardly, but finally can help those manufacturers stay in Canada.
May 11, 2016, I found article France labour reforms: Protests as government pushes through bill in May 11, 2016.
In France, the labor laws reform is right and necessary, however, for months; the protests against it never stop. This time, after government forced through the labor reform bill, the protests have broken out across France with some protesters injured in clashes with police.
The labor law that every citizen must commonly abide by is basically fair, not to mention it has been implemented a long time in other countries. Any society inevitably has irrational people, as long as there is an excuse, they will be ganged to make mischievous. The one of the important roles of the government is to control these people to endure a peaceful society.
The greatest sadness of modern government is at that it cannot effectively control of the ridiculous behavior of those irrational people who are under the protection and encouragement of the Universal Values. It is same in both of one party ruling or multiparty ruling.
If the French government also practices as that of China's economic reform, to set up a zone with special policies to break the limitation of 35 work hours with more work hours getting more paid, after the success with convincing achievement to promote it across France, it will reduce or even avoid the social unrest.
In viewing that what is happening in France, the government authorizes a group of non-political social elites – Super Leadership as assistant will be an only feasible way.
The disadvantage of current difficult economic situation also has its advantage, which is that, under the pressure, the government would easily accept new idea and help to promote it.
The Majority government of Liberal Party under the leadership of rational Prime Minister Justin Trudeau has forged legislative condition to pave the way for this concern.
Recently, the Finance Department of Canada revealed that in March, the government posted a $9.4-billion deficit compared with a deficit of $3 billion in the same month last year. The shortfall came as revenue fell $5 billion to $24.1 billion. Personal income-tax revenue fell by $1.1 billion or 9.4 per cent and corporate income-tax revenue fell by $2.1 billion or 37.3 per cent.
For the Government of Canada, the greatest difficulty is at reducing the cost in government operation, rather than overdraft in debt or over taxing from hard running businesses that are running at the edges of Bankruptcy.
In the section of Downsizing governments in all level by e-Government in my article Authorize non-partisan Super leadership to assist social governance, I have discussed the potential of government largely downsizing with the nature retirement of baby boomer generation to gradually develop as e-Government.
Partisan politics has been evolved as the harm for human survival, human being should not continue on the way that is clearly in self-destruction.
Canada and this world urgently need a revolution in social governance - toward non-partisan politics.
5.15…How to develop a business as R&D-oriented
--- Grote Industries should develop as R&D-oriented
Frank April 29, 2016, in Waterloo, Ontario, Canada
Contents
2…The meaning of the Entrepreneurs and Enterprises
3…The review of former employees of Grote Electronics
4…The inspiration from IBM’s incentives
4.1…The DNA of the Success of IBM
4.2…The patent and reward system with a Plateau Award in IBM.
5…The contribution-linked bonus motivating Germans outstanding
6…Management is the art of playing human nature
7…How to distinguish a person who possesses innovative potential
8…How to good use of the innovative potential?
8.1…Promote general operator as R&Ds developer
8.2…Self-developed simple equipments are better than expensive imported
9…Industrial Engineering, the magic for improving production efficiency
10…The incentive system for Grote Electronics
11…The envision for Grote Industries
11.1…Develop as a producer and marketer of inventions and innovations
11.4…An example develops as a company in R&Ds oriented
11.4.1…The definition of the innovation in Germany
11.4.2…Legislated bonus standards in Germany
11.4.3…The wages of Board members lower than that of workers
12…To disperse risks by diversifying investment
1…The motivation of the letter
Feb. 18, 2016, I excerpt and update the article Grote Electronics evaluates employees’ work performance by computer from my Dec. 21, 2010 article Canada’s Corporate Management & Reducing Psychological Pressure in Workplace.
I appreciate invisible supervising method of Grote Electronics that can maximize productivity by timely kick out incompetents with lesser inducement of psychological pressure, and also, I have been concerning this company.
I have a friend who is working in there. He told me that his payment is $14.99 per hour as a general operator. The information induced me think of that when I worked there before the outbreak of Financial Crisis 2008; the payment was $12.99 per hour for general operator, and I think of some reports regarding wages stuck or lower down after the Financial Crisis.
Sep. 06, 2014, Throughout the rich world, wages are stuck.
Jul. 13, 2015, Since the financial crisis, almost all Americans have seen their wages fall.
The $2 increase means that increased the cost about 15.4% in payment. In consideration of years’ span since 2009, it was in line with the 2% inflation rate that is a popular financial measure of the government to control economy. The measure has been practicing by most countries except rational Germany since Britain economist Keynes recommended in The General Theory of Employment, Interest and Money in 1936.
In consideration of a better benefit with a better work environment of Grote Electronics, the $12.99 per hour payment was able to keep operators’ team, especially, in the poor employment environment after many businesses closed or outsourced.
The reason for increasing payment, as my view, in the large, was the concern from employees’ sake. It further confirmed my long thought of the meaning of Entrepreneurs and Enterprises..
2…The meaning of the Entrepreneurs and Enterprises
Jun. 25, 2013, Dr. Peter Shoore, the owner of Vancouver based food processing business - Sunrise Farms, who increased the payment for all employees and redecorated workshop in the branch – DC Foods Waterloo, at the time that most other companies were tightening spending.
Only the cost for redecoration will be more than one million, but Dr. Peter Shoore insisted that: “I would like to see my employees work in a comfortable environment.”
The kindness of Peter Shoore moved me to write article My view on Entrepreneurs and Enterprises inspired by Peter Shoore.
“Enterprises are the important organization of social production to create material wealth for human survival, and the entrepreneurs invest their money to run the enterprises with a frugal living and risk taking, to provide employment for public living and revenue for social governing. Thus, their enterprises are to be shared publicly in playing the role as social wealth.
The entrepreneur is the best social servant and the communist in the reality.”
“In some extent, in fact, the Enterprise is shared to make living by Employees & Employers together.”
“In view of this, we can draw a general conclusion: it is that the means of production is not personal consuming goods, no matter who owns it, the owner only possesses the power of disposal or organization of the production of social material wealth.”
“To view in this practical way, the Poor are not poor as some people complained; and the Rich are not rich as some people fantasized at all.”
“However, historically, in worldwide, it has been lacking of concerning and supporting for Entrepreneurs, even, until now, there great many people are with hostile attitude toward them. The law seems to have ignored this group also, but tended to protect employees.”
“The outdated ideology and practice has badly affected the work ethic of employees and to have made Enterprises difficult for managing, even, encouraging some mindless employees’ pranks boldly in the workplace without the fear of being punished. It is not only badly affecting the production efficiency, but more terrible, it even caused the closure of some Enterprises.”
“Please remember: Peter Shoore – a Billionaire Entrepreneur, his first concerning is his Employees rather than that of money.”
In Canada, even world widely, the governments emphasize the importance of enterprises, but, ignored the importance of the entrepreneurs. the Entrepreneurs are lack of support from society; they have to independently bear the pressure from multi-aspect. This is the sadness of modern society.
In Canada, among the several entrepreneurs that I have associated, one has died earlier due to business helpless decline and two of them, one suffered stroke and one suffered two times heart attack.
In 2010, the death of my former boss shocked me to think that how to help those helpless business owner. In Sep. 11, 2014, I wrote article The death of a Canadian business owner as a souvenir.
As an ordinary individual, I have no ability to reverse wrongful social ideological, but, I would like to help them reduce the psychological pressure as possible as I can, such as, to summarize some good management methods that can reduce their psychological pressure that easily produced from the management in organizing production.
Dec. 21, 2010, in the section of An Electronics in article Canada’s Corporate Management & Reducing Psychological Pressure in Workplace, I have mentioned that the top director (Grote Electronics Waterloo) paid much attention on me – a general operator due to that I asked him about the new product development, that was a question not being carefully prepared, only for easing the embarrassing situation, due to that no one answered after he asked the meeting attendees to raise some unclear issue regarding his quarter statement.
His deep attention on me by my casual question induced me to have felt the lonely and helpless as a business manager, any word that is with somewhat concern about his hardship will be deeply touching his nerve that long suffering helpless and loneness. This was one of the reasons that I have been concerning this company.
Recently, I learnt that business went slow in Grote Electronics, and I knew that this time slow is different with that of in Financial Crisis 2008 in temporary, this time is from customers permanent reducing due to that in Canada, the automakers has been outsourcing.
In the Morning, May 9, 2016, I eagerly went Grote Electronics with the hope of giving the top director some comfort. Ms. Rose Morris who works as customers’ service told me that the top director will busy in daylong meeting and in two days’ medication, without time to meet me.
Though, I was clear that she was politely refused me, but, I understood that meeting and medication was true under the pressure of business helplessly went slow.
The physical problem caused by psychological pressure is better to treat by psychological easing medicine, so, I wrote How to save Canada’s auto industry from disappear within 15 with the hope to help the top director from root level socially.
This article is to point the way out for Grote Electronics from the limitation of current products towards broader market field with some feasible examples to follow.
I browsed the website of Grote Industries, as my view, in the situation that underdeveloped low payment countries quickly develop as manufacturing powerhouse, the products of Grote Industries cannot keep competitiveness, In this concern, Grote Industries should make transformation in business strategy towards R&D oriented with a larger scope in products from current limited in auto safety system and signal lights.
On the globe, there is no one would like to be lectured, no matter it is what kind of sake for.
The talkative above is for following annoying talks, I hope those I will be talked do not hurt any people, especially I admired top director of Grote Electronics Waterloo, who has been hard struggling for the plant better.
April 29, 2016, I occasionally found reviews from former employees of Grote Electronics on Working at Grote Electronics: Employee Review, I strongly felt have something to say, and also it was the reason that I eagerly review this company again.
3…The review of former employees of Grote Electronics
Electronic Assembler (Former Employee), Kitchener, ON – November 24, 2013
“I improved work procedure which resulted in a 40% increase of efficiency during the Lean program. My work procedure was videotaped and being shown to other workers to follow.”
The achievement of the increase of 40% efficiency revealed the direction and potential that enterprise enhances own competitiveness.
For the enterprise that is struggling for survival in the increasingly fierce competing marketplace, the sustained development of competitive product and sustained lower down the cost in the production is equally important.
On other hand, human beings are never lack of great ideas for competitive product, but lack of the manufacturing technologies to translate those new ideas into reality, which needs the outstanding people who have the ability and desire to develop such technologies.
In the process of the new product development, in most of cases, that how to make the new designed products into marketable is more difficult than that of the design of the new products itself, for example, as general imagination, until to today, the production of three-dimensional large-scale integrated circuits was most complicated and difficult, however, it has been gradually developed forwards.
In this process, that motivates employees actively exploring the new ways for overcoming the difficulties was the key, and also was the ways that world-class companies have been developed as world-class.
4…The inspiration from IBM’s incentives
IBM is an over 100 year’s old world–class manufacturer and marketer in computer hardware, middleware and software.
For a company that can survive more than 100 years is harder than that of human who can live to be 100 years old. The average life expectancy of the enterprises is far below than that of human beings.
Maybe, that is why that so many articles, books and professional meetings in exploring good management methods in every possibility.
Think of here, I feel somewhat disappointment, due to those studies are mostly focusing on how to defeat competitors under Law of the jungle - kill or be killed, and eat or be eaten. Lesser people concern the significant for human survival.
4.1…The DNA of the Success of IBM
In Dec. 22, 2011, I once wrote article The DNA of the Success of IBM & America’s best run companies, in which I quoted a book - 26-years’ IBM career.
The writer Mr. Kenneth Chang, who emigrated from Hong Kong to United States in 1958 when 40 years old, after 4 years’ work on the production of semiconductor chip from a beginner in GI Company, he transferred into IBM in 1963, and in the following nine years period, he was promoted 4 times and reached the highest technical position of IBM due to his creative works with many innovations and inventions, which shocked all people in IBM.
After worked 26 years in IBM, when he was preparing for retirement at his 70, his immediate executive requested him to summarize his achievements as archives for retaining in IBM. So the prototype of the book 26-years’ IBM career was born. Later, under the request and the help of his youth’s classmate in Beijing China, the prototype was further detailed and refined into a 158 pages’ book to have published 5100 copies. The book was not only introduced his achievements, but also involved great many details of incentive method of IBM for encouraging employees to make creative job. It revealed the secret of IBM growing into Big Blue.
Oct. 7, 1995, I fortunately discovered it in a heap of used books at an outdoor book stall in a Saturday flea market in North East China. Since then I take it as valuable treasure.
In the past years, I once several times moved home, even when immigrating to Canada, the entire family properties have to be compressed into a few suitcases and weighed accurate to grams, in this process, I have to throw away a lot of favorite books, however, I never consider to discard this book. Because of I deeply believed that the successful experiences of well organized manufacturer are significant for helping other manufacturers’ stable running. It is not only important for whole society, but also for any individual, since it is the preconditions that can provide a stable and peaceful community, in which that people can work and live to enjoy a prosperous life.
Follow was the covers of the book.
Mr. Kenneth Chang who worked as an engineer of manufacturing technology on integrated circuits in the historical period from planar integrated circuits developing as three-dimensional large-scale integrated circuits.
As that of sophisticated lattice showed on the cover of the book, the task of Mr. Kenneth Chang was trying to find way to fix the diodes, transistors, resistors, capacitors and so on in the designed point on the space of a set of lattice and to be well connected.
As a common person, I never understood that, on a silicon wafer of only a square millimeter, how can integrate tens of millions of electronic elements.
Until to today, that three-dimensional LSI has been playing a leading role in daily life and industries. We may say that is revolution in human civilization.
Such as, without three-dimensional LSI, there would be no portable computer, we can easily image that what the world would be if without personal computer?
In the process of this great civilization, Mr. Kenneth Chang played a significant role with great contribution, since that he worked on the leading position that made every efforts to make new ideas as usable products in IBM - the leading body of the design and manufacture in the three-dimensional LSI.
The achievement of Mr. Kenneth Chang benefited from the favorable corporate culture of IBM.
Here, there is necessary to talk a little more with the excerpts from my article The DNA of the Success of IBM & America’s best run companies.
4.2…The patent and reward system with a Plateau Award in IBM.
It will accumulate one point on each published article regarding science and technology on the Science and Technology Bulletin of IBM.
For each patent, the inventor will accumulate 3 points. The bonus for first patent is $1,500, plus souvenirs and gold-plated pins, etc.. For each subsequent patent will award cash $ 500.
For each accumulation of 12 points, issue a Plateau Award $ 3600 with publishing the names and photos of the winner in company publications. Another accumulation of 12 points with another Plateau Award, and so on.
Company may also give awards from $10,000 to $100,000 according to contribution.
It is very few of people who could achieve third Plateau Award.
Mr. Kenneth Chang entered the IBM in 1963, but until 1968, by the reminding of others, he began to pay attention on the reward system. And since then he achieved seven patented patents, published 9 papers, and gained 30 points with one patent still on pending.
The incentive policy of IBM largely promoted the inventive activities of employees. The report of U.S. patent awards surge in 2010; IBM still tops is the vivid proof.
I think those incentives above are main reason that IBM can grow into the Big Blue today and outstanding in the forest of the world-class companies.
The success of IBM has benefited from its unique corporate culture, which is emphasizing people-oriented, and taking the employee as “working capital”.
Here, I would like to specially mention that, whether in GI Company or in IBM, many innovation and invention of Mr. Kenneth Chang, were made by self-determined test in the production line without advance-applying for the permission of any management.
Suppose that Kenneth Chang was working in some of other Companies, he would be ousted in weeks due to his self-determined to do innovation, and straightforward proposals for improvement, especially in the businesses of Canada.
Because of, as normal human psychological reaction, when facing the proposals, in most of the cases, for most of bosses, supervisors, or colleagues, the first feeling were that of they have been despised, the first feeling is uncomfortable. Thus they would make everything possible even by despicable way to squeeze out the thorns from their eyes.
They never care about the benefit that company would be gained from those proposals. This is not the nonsense; it was the personal experiences of mine in some Companies of Canadian owned.
Now, return to Grote Industries.
5…The contribution-linked bonus motivating Germans outstanding
People admired the products that Made in Germany, but, few people knew that was derived from the good use of employees’ innovative potentials.
From above concern, in May 28, 2012, I specially wrote an article The DNA of the success of German manufacturing to introduce method that German government legislated for the management of Rationalization Proposal of the employees, which was initiated by Mr. Alfred Krupp of German ThyssenKrupp AG firstly in 1872. Now it is popular in German society.
May 1, 2016, I wrote article Germans are always able to make decisive decisions in the toughest critical time to indicate that:
“The admirable performance of German economy was not mainly due to the high quality of German people, but, due to the rational governance.”
“Since that, only in 13 years ago, the German economy was still considered a "sick man of Europe". Because of the economy of many European countries was in steady growth, while the German economy is in the anemic state. Such as, in 2003, the German economy grew by - 0.4%, just better than the other negative growth country - Portugal.”
It was former German Chancellor Gerhard Schröder who saved Germany by Agenda 2010, with the harsh measures to reduce social benefit that were encouraging people lazy. But, he had to pay the price of 60 thousands party members quitting and failed in the oncoming general election.
Jan. 15, 2012, Mr. Gerhard Schroeder was invited in the talk show of China Central Television – CCTV - The Choice of germany in the economic reform.
When answering the question of the host, Mr. Schroeder said: there was no any rational alternative. Now, we all knew that the reform was necessary, we must make the reform. Even it will adversely impact our election, and also we certainly did not want to defeat in the general election, which was a risk for us at that time, we had to weigh between that whether for the future of own country to face the risk, or for the win in the re-election to avoid the risks. However, if we avoided the risk, future generations would say that we did wrong thing at the right time. I think, in comparison with avoiding the risky, my choice was correct.
The legislation for the management of Rationalization Proposal shows that Germans well understands the harm of the weakness of human nature and specially set a strong measure to suppress it.
It was the parts of the reasons that motivated me to write Germans are always able to make decisive decisions in the toughest critical time.
Now, you may understood that, if Grote Industries has similar incentive policy, the operator who has made a 40% increase in efficiency would be still working in there, and maybe made other improvements with great contributions.
6…Management is the art of playing human nature
What talked above was from my long concerning – Management is the art of playing human nature.
“Generally view the results of many studies, human behaviors are determined by dual human natures: The natural (animal) nature of those inborn selfish instincts and the cultural nature of those acquired altruistic qualities.”
“The best example for understanding human natures is the process of taming animal actors, in which, the beast-master tempts animals to learn cultural nature for serving human by meeting their greedy of animal nature with foods under the enforcement of whipping.”
“In consideration of human natures, we may say that, the Management is the Art of playing human natures, which is to finish purposeful tasks with human culture nature by meeting human greedy of animal nature with payment under the enforcement of regulations.”
“For the success of taming animal actors, the foods and the whips are equally important, both are indispensable. In the same way, for well playing the Art of the human natures, the payment and regulations are both indispensable.”
“The failure of the socialist practice was not fully due to the Autocracy Governance and the Planned Economy, but essentially was due to that it over relied on the human culture nature by madly suppressing the exertion of human animal nature under the enforcement of State Apparatus.”
“The success of the capitalist practice is not fully due to the Democracy Governance, but due to the Market Economy that benefits society by meeting the greedy of human animal nature through gaining profit according to the needs of the society in the marketplace.”
“There were a lot of researches on the economic success of China, and most of them attributed the success to the magic of the Invisible Hand. But, that was not fully true with ignored the essence – it was that China has broken the egalitarian wage system, that implemented for decades in the socialist period, to have largely increased the share of work performance-related payment.”
“In consideration of market competing, Adam Smith’s Invisible Hand is mainly driven by human animal nature – selfish and greedy.”
“The driven force for German outstanding manufacturing mainly comes from their legislated management for rationalization proposals, which is to extract bonus from the profit gained in the application of the rationalization proposals to motivate all staff to pay their full talent into the business running since Mr.Kruppinitiated it in 1872. That is 142 yeras ago.”
“The driven force for patent invention of 102 years old IBM has been counting on the top of those world-class corporate giants in the United States for 20 consecutive years is the patent-related bonus incentive system.”
“The payment of Canada with less work performance-related is following the dust of failed road of former Socialist Camp. It is the main reason that Canadian firms are less competitiveness or even vanished, and it provided significant potential and direction for saving our firms.”
“Whether the Corporate Culture or the Organizational Culture, should be composed by those measures that can motivate the maximum exertion of employee’s cultural nature with minimum play of employee’s animal nature to maximize the production efficiency.”
Above I have talked about how to save the innovative flame of the employees, then, how to distinguish a person who possesses innovative potential.
From April 29, 2016 online live chats with responder Jenifer of Grote Industries http://www.grote.com, I learnt that there are R&Ds and engineering at many of Grote’s locations. This is a good practice and that how to distinguish a person who possesses innovative potential is important for Grote Industries also.
7…How to distinguish a person who possesses innovative potential
July 26, 2014, I once wrote article Recruit employees by the quality of brain, not the academic degree. I excerpt some as follow.
In the article Don’t Send Your Kid to the Ivy League, the writer William Deresiewicz said with that: “Our system of elite education manufactures young people who are smart and talented and driven, yes, but also anxious, timid, and lost, with little intellectual curiosity and a stunted sense of purpose: trapped in a bubble of privilege, heading meekly in the same direction, great at what they’re doing but with no idea why they’re doing it.”
According to my own experience and the comments of others when working in a research institute, among the people who achieve higher academic degree, especially those graduates of prestigious universities, only few are with better research ability, mostly are mediocrity that cannot independently complete simple research tasks with no ability for innovation.
Therefore, the recruitment of the employee, besides the qualification of the academic degrees, we should also examine the mature degree of the brain of the candidates by intellectual and physical ability testing, for example:
1… By abbreviating a certain length English article to a certain shorter length with keeping the original meaning as much as possible to test the abilities in writing and wording.
Neat and beautiful handwriting shows that writer’s brain and nerve is well functioning so that hand can well follow brain’s command signal without tremble. The good rhetoric indicates that the brain is efficient enough in logically think.
2…By glancing or listening to a group of over ten random numbers then writing down from memory to test the capacity in concentration and short-term memory.
Good results suggest that attention can be well focused with a good short-term memory; it shows that brain well developed.
3…By threading the buttons together in certain time, to test the ability of hand-brain coordination.
Threading buttons fast is a sign of good hand-brain coordination.
4…By watching videos in violent or sorrow to test the reaction in compassion of the candidate.
No feeling of compassion is a sign of defective brain. A person less in compassion cannot make a perfect job with a potential stirring up trouble in workplace.
5… The harmful hobbies, such as, the smokers, alcoholics are also the sign of the brain defective.
Such people are unable to properly self behavior control.
6…The sense of humor
Easy in laugh, witty humor language and response, is also the symbol of well developed brain in high intellectual level.
A depressed people will be no sense of humor, but will be endlessly complaining. They are not only in low efficiency of their own work, but also will badly influence others, to make others in depressed state.
7…Chatting
An intelligent person can well follow the topic and exactly answer what is asked with simplest words. Otherwise is a mental defective.
And so on…….
Such skills are very simple and being often used in doing daily tasks, but less people can do perfectly, especially those people of brain development is not matured, or with a bad living habits, such as, smokers, alcoholics. Those harmful hobbies are also the sign of brain not well developed, so that they are unable to proper behavior control.
Those brain development normal people, in general, will be able to do their best in whatever they engaged in and continuously concentrating on their professional studies, rarely complaining and more importantly, they will be very good in cooperation with others.
On the contrary, those non-normals will be the players of the troublemakers with endless complaining due to their sustained in depressed mood under defective brain. The worse is that they would badly influence others by causing bad mood and their bad work ethic will lower down systematic efficiency due to the magnifying effect of herd mentality in grouping work environment.
Only high-quality people can ensure the high quality work. This point is extremely important for those who work as management.
Apr. 6, 2016, I wrote article Chrystia Freeland, a capable Minister od International trade of Canada to have further discussed personal intellectual issue, especially those acquired.
8…How to good use of the innovative potential?
Follow is a best example of a China’s company that gained a lot from flexibly choosing people who are truly with innovative capacity, especially the strong personal innovative motivation, according to the actual performance, rather than according to academic qualifications.
Gree Electric is the world's largest residential air-conditioner developer and manufacturer headquartered in Zhuhai, Guangdong province China. The Company also provides electric fans, water dispensers, heaters, rice cookers, air purifiers, water kettles, humidifiers and induction cookers, and so on, with the market in both of domestic and overseas.
Nov. 28, 2016, in the documentary To feel Made in China: Who can make money of the future? China Central Television reported that, the Gree Electric has been training the young general operators as R&D developer, who were only with an education of high school or even lower, but, with a strong sense and good performance in the activities of the invention and innovation in the daily operation.
In Gree Electronic, there great many improvements in the production were made by them due to they were well familiar with their operated equipments in repeated daily operation, and understand that what kind of improvements can make the equipments operate perfectly. Due to the improvements were well matching the production condition, so the equipments that were improved by the simple and cheaper way, mostly, were much better than that of recognized world-class most advanced equipments with huge purchase-cost, due to they were not special designed according to the situation of Gree Electronic.
It said that in the Gree Electronic’s main workshop do not need lightening any more, since that Industrial Roberts do not need the vision as that of human eyes.
8.1…Promote general operator as R&Ds developer
There no one would think of that, in this company, it was the involvement of those enterprising young people who never get higher education, but, actually, started to tailor-custom design and manufacture Industrial Robots for other companies. It is taking shape as new pillar products quickly.
Following are the Video Screenshots of the documentary.
A young man Qi Feiyong who was trained as a developer of production-automation from an ordinary welder
Right photo is the certificate of seventh prize for the automatically loading, unloading and end-flaring for the shaped pipe.
Qi Feiyong has gotten a lot of awards with bonuses over 500 thousands Yuan in Total.
The highest bonus was 120 thousand Yuan in one award. April 29, 2016, 15:17pm, I searched that I Yuan equal to 0.154452 US dollar. 120 thousand Yuan equal to 18534 US dollar.
As a large business, Gree Electronic makes over 100 Billion Yuan sales annually, that Mr. Qi got bonus may be only a little share of that he made profit for company, may be far away from the share of 20% in profit he contributed.
The documentary said that, in Gree Electronic, there are about hundreds young people, as that of Qi Feiyong, who working on R&D positions from the general operators previously.
Here was an example.
8.2…Self-developed simple equipments are better than expensive imported
Usually, the air deflector of home air conditioner is made of plastic; it is easy deformation. The air deflector made of aluminum will well anti-deform with good sealing performance, but difficult in manufacturing. Worldwide, Gree Electronic is the first to use aluminum one. Originally, the aluminum air deflector was manufactured by expensive imported equipments with cost of 30 minutes to finish one piece, but, it only cost about 30 seconds by the equipments that company self-developed by those young people, and much simple, much cheaper.
Following are the Video Screenshots of the documentary.
Left, Wang Xin who was a common operator previously now is the developer of the machine for manufacturing aluminum air deflector.
Right, the aluminum air deflector manufactured by self-developed machine in 0.02 mm accuracy.
In Gree Electronic, there are over 5 thousand people who work on R&Ds with over 300 research labs as a company of 80 thousand employees.
April 29, 2016, the article in Mandarin - Gree artisan spirit eligible awarded "National Pioneer Workers" reported that: In 2015, the Bending and Welding Group have identified 12 unreasonable points from the job positions, 8 operate-actions that did not produce value. Through improvements of the equipments and optimal re-layout of 26 sets of equipments, have largely re-integrated production process, so that production flow significantly improved, the time from tasking to delivering, from 36 hours reduced to 8 hours, thus, resulting in the profit of over 10 million Yuan annually.
A photo that a young man who was welding on bended tubes from the report.
9…Industrial Engineering, the magic for improving production efficiency
Aug. 10, 2013, I once wrote article Industrial Engineering, the magic for improving production efficiency to have indicate that:
“There was a story, it happened in China after economic reform from planning economy to marketing economy.”
“A garment factory received a large order, it should have been a good thing, but the factory owner worried about very much without the feeling of happy. Because of, according to the existing production capacity, he could not finish the order on time. Also, it was too late to buy equipments and training new operators.”
“Mayor learnt that and came to have a check, then, he gave a solution: Rearranging the sewing machine to be connected each other closely according to the process of production from the state of evenly dispersed, so that operators could push their semi-finished products directly to the operators in next process.”
“This way largely accelerated the efficiency of the production and completed the order ahead of the deadline without penny spending but saved the cost by cutting down the job positions for transferring the semi-finished products’ between the different production processes, which is the way that has been working for decades in the period of planning economy.”
“The Mayor told the owner, the improvement method is called as industrial engineering. It can get larger output by a lesser input even without any spending.”
“As my experiences, that many initial designs of machines or production technologies are not perfect with somewhat shortcomings despite the designer has considered every possibility carefully. They need to be found and improved in practical use.”
“In the realistic production, there is much such room for improving but lacks being paid attention because most of business’ owners are never thinking of motivating their employee to think about why and how. The production lines’ operatives are the main force of this activity.”
“Since that the improvement requires repeated personal observation or experience, the operators who are working daily on the production line is easily to find them, rather than that of technicians or management staff who never practically operate in person.”
“The improvement processes are often very simple but have big potential of cost saving. The results are often contrary to the common sense of the public. People would be surprised to ask that, why I did not think of that before. Because the improvement process is too simple, too easy, so that beneficiaries are even unwilling to pay for the suggestions provider.”
“In China, the Enterprises set up three-pronged team by operators, technicians and management. The operators are able to find the problems, but may be without the ability to solve the problems, so they need the help of the technicians for doing some design, and the management may help to organize the whole practice.”
“Above incentive methods are common in China for decades, which is why that China’s economy has rapidly developed within a decades and it said that is the process of a century in other countries, and now the daily goods that labeled with made in China are throughout the world.”
10…The incentive system for Grote Electronics
From the review, we could learn that “Former Employee” of Grote Electronics was working on the production line, and his new idea was also on the improvement of manufacturing technologies. From his concerning and achievement, as my view, he has strong ability to make more and greater contribution, whatever he will be engaged in.
The innovative sense under strong desire is essential driving force for innovation and invention.
For encouraging the employees who are rich in innovative spirit, the rational way, as employer, should be as that of taking 20 or even 50 percent of cost saving form the production improvement in the first year, as bonus to the contributors. It is accounted only one year.
The cost saving is the pure profit and company will be able to continuously enjoy for great many years with a greater gains.
The profit-shared bonus is the essential driving force for employees making more innovative contribution and thereby company can get more gains in sustainable.
For the suggestions that cannot be put into practice immediately, or even if it is not feasible practically at all, from the concern of protecting the innovative spirit, under the name of the company, to give suggestion provider certain encouragement, and archive the suggestions to show respect. The company should set special person to take care this regarding.
Innovative spirit is precious flame that may ignite greater competitive force, but, in easily extinguished. The smart companies will make innovative flame stronger, never simply pouring it off.
As human nature, as common sense, no matter which race and which nationality, including myself, when we heard advice from others, the first feeling is to be despised; the uncomfortable reaction may easily show on our face, or even verbal unfriendly.
Enterprises should establish a reasonable and effective system from organizational base to avoid or may say that is to overcome the incontrollable instinct-play of the weaknesses of human nature - cannot rationally treat advice of others, which is t.he inborn weaknesses of ourselves – me, he, and she, everyone on this globe.
The system should be including two aspects:
1…Be able to clearly archive any suggestions with providing contributor a printed certificate and incentive, such as, a T shirt with printed thanks, or a pair of socks, and so on. Such incentive is not at the value in money-counting but, at the value in respect-showing.
The sincere respect can play a significant role in encouragement for fuelling the innovative flame sustained and vigorous in the mind of every employee.
The respect will play an encouraging role as that of the rain, the dew and the sunshine to bud the innovative flowers booming sustainably.
2…With written records ensure that the fruits of the inventor’s intellectual labor do not be grabbed by others, in particular, the management staff in the company.
The management staff, who involved in the management of the practice for the suggestions, has enough position-related reason and power to grab all or take bigger share of the fruits. The harm is fatal, it would totally extinguish innovative flame in whole company, it is the main reason that many companies failed.
Such as, the former RIM – Research In Motion Limited.
RIM, once a successful high-tech enterprise and the proud of Canada, its Headquarter located just several blocks away from the site of Grote Electronics Waterloo. In Jan. 27 2014, I specially wrote article The fatal DNA of RIM and Canadian enterprises to discuss the causes of its failure, in which that it had extinguished innovative flame in whole company was the main cause.
11…The envision for Grote Industries
Above has showed my respect for Grote family, I would like to say more of my thoughts.
The long duration of the serving-life of LED in car signals light, it is an advantage for marketing, but, also a disadvantage in market volume.
In consideration of the limitation of market volume in car safety signals, especially in Canada, the auto makers are outsourcing to Mexico and the United States and importing cars from those countries. Grote Industries need a new way out.
11.1…Develop as a producer and marketer of inventions and innovations
Grote should enlarge the products range into whole car system, especially in R&Ds, to make Grote Industries from a manufacturer and marketer of car signals light to a producer and marketer of inventions and innovations, with a brand new model - by 20% or 30% profit-shared bonus in first year, and 5% in following years, to attract the talents world widely. In this way, it will attract many talents who already have matured ideas that can be made as competitive marketable products quickly.
This idea is in viewing that, in nowadays world, it is more and more difficult in keeping talent employees who have creative ability with potential making great contribution, as a way that is in no proper way, is to ensure their income to be proportional to their contribution.
I felt that it is a new start up or may say it is potential trend that builds a company as an ecosystem that can help talented employees to start a business up within the company, by this way to keep those capable employees stay in the company.
In February 2016, in the article Authorize non-partisan Super leadership to assist social governance, I quote China’s Haier Group as example. I excerpt some as follow.
For reengineering business process in Internet Era, China’s Haier Group lay off 26000 middle managers accounting for 30.2% of total staff in a two year period.
Sept. 15, 2016, a Mandarin article Viewing change from Haier layoffs, what did change mean for business reported that.
The CEO of China’s Haier Group Zhang Ruimin who said that：Haier removed middlemen in outside and removed wall insulation in inside. The wall insulation is those middle managers. As intermediate layer, those middle managers are a group of roasted goose, they can not reflect market situation due to they have no nerves.
Besides, the reason that roasted goose, the intellectualization in management has replaced the jobs of those middle managers.
As a result, Haier set up more than 2,000 self financing and self management bodies - small and micro companies. Mr. Zhang made clear that "the company now is not to provide a job for every employee, but to provide a business opportunity." “Haier now is to provide staff with a platform, a parallel ecosystem.”
In such parallel ecosystem, everyone has to face market. If who attract more customers with more order, whom will get more paid with no capping, otherwise, has no income, there is with no idle person raised in Haier anymore.
Those changes can enforce every staff towards market R&Ds and marketing.
April 25, 2016, article Google's Startup Incubator 'Area 120' May Lure Employees To Stay with a subtitle Google Reportedly Hatching Startup Incubator to Keep Employees:
Google may be trying to get more of its staff to stick around with the company a little longer, hoping to keep startup ideas in-house and encourage current employees to pursue concepts with the Internet giant’s help.
The Mountain View, Calif.-based company is reportedly launching a new startup incubator called “Area 120,” where employees will be able to apply to work on their own startup ideas full-time, The Information first reported.
The new “Area 120” name is play on the company’s 20 percent formula, which lets employees work on their own creative business projects 20 percent of the time. The new deal would bump that one-fifth promise up to a full-time gig.
Over the years, former Googlers have gone on to create some of the biggest household names in the startup world. There was Evan Williams, who worked briefly at the company before he went on to create both Twitter and Medium. Kevin Systrom joined Google right out of college and spent two years there before moving on to eventually found Instagram. Justin Rosenstein dropped out of college to join Google, but later left and eventually co-founded the software company Asana.
Alphabet, Google’s parent company, reported first quarter earnings last week, matching expectations by raking in $20.3 billion in revenue. But losses on some of Alphabet’s so-called “other bets” (a.k.a. not search advertising) like connected homes and self-driving cars disappointed analysts.
Still, it appears Google could be readying to take a crack at keeping more Silicon Valley tech startups at home, even as venture capitalists grow more cautious about funding these same kinds of young ventures.
11.4…An example develops as a company in R&Ds oriented
May, 20, 2012, CCTV talk show program - Decoding the DNA of successfull manufacturing in Germany interviewed Mr. Franz Fehrenbach who was the board Chairman of Robert Bosch GmbH (Bosch), the German multinational engineering and electronics company headquartered in Gerlingen, Germany. It is the world's largest supplier of automotive components measured by 2011 revenues. The company was founded by Robert Bosch in 1886.
It was this company that has invented Automobile signaling systems, Automobile spark plugs, Automobile anti-lock braking system, and so on.
If without the invention of Automobile signaling systems, we may still need to have our arm out of car window to show direction, do not mention that as a manufacturer of car signal light.
In the talk show, the host said that: Automobile manufacturers are in hype self-praising with floating on the water, but, the automotive parts manufacturers are sink underwater due to make more profit. The Bosch Group is the largest auto parts manufacturers in the global giants. Its every action will dominate the entire industry. There a lot of first inventions are offered by Bosch.
Follow photo was the screenshots of the TV talk show; it revealed the R&D’s process of Automobile spark plugs in the company.
Left spark plug was the one in 1902, and the right one was 2012.
11.4.1…The definition of the innovation in Germany
In the talk show, Mr. Franz Fehrenbach said: the chart of the spark plugs shows the business philosophy of the founder Robert Bosch: “we should all strive to improve current situation.”
He also said that: Bosch invested a lot in research and development, we also got a lot patents, in 2011, we have 4100 patent application, it means that every day was born 16 patents, 16 per day, you can imagine that we have invested much in research and development. This is our advantage. I think that if you want your business to be the cutting edge in the innovation, you must let your engineer have innovative spirit; I think the most important thing is to give them freedom, to give them the freedom to create.
Then, what kind of act it is called innovation? Mr. Fehrenbach expressed that, we has a unique understanding: "Sometimes, people think that innovation is an brand new creation, but, this is a totally wrong concept, we believe that some small improvement also is an innovation, such as, a small improvement in the processes or business operation, so, for us, the innovation has a relatively broad definition. We issue award every year for the innovation of our employees.
May 28, 2012, in the article The DNA of the Success of German Manufacturing, I indicate that: Germany may be one of the few rich countries relying on the hard working rather than that of natural resources, which has attracted many international dignitaries to explore the secrets of its success, but, they seem to have focused on the macro policy with ignoring the micro details. The significant one of being ignored is the management on rationalization proposals (RP) in German Companies since Mr. Alfred Krupp firstly coined the concept in 1872, later was legislated Their RP is not only pointing out the existing problems, also proposing appropriate solutions and company extracts bonus to proposals provider according to the net cost savings after implementation of RP in the first year.
11.4.2…The bonus standards in Germany
The award criteria for RP are basically same in different German companies. It is according to the net cost savings after implementation of RP in the first year. It divided into several grades as follow:
Annual net cost savings Bonus
250 Euros 20 Euros
251-750 Euros 75 Euros
751-1750 Euros 150 Euros
1751-2500 Euros 250 Euros
Annual cost savings are more than 2500 Euros, then, the bonus is 25% of the actual amount of net cost savings. For example, net cost savings is 5000 Euros, and then the prize money amounted to 1,250 Euros.
Some RP cannot estimate the direct economic benefits, but can play an important role in improving safety, preventing accidents, protecting environment, improving product quality and enhancing corporate-image, and thus can make indirect economic benefits, then, according to the grade of lowest, low, medium and high respectively give 20, 75, 150 and 250 Euros or material reward. In accordance with “Personal Income Tax Law” of Germany, material reward is tax-free. The taxes of bonuses are paid by enterprises.
In the IEC Global Visions interview, Franz Fehrenbach explains the philosophy that has driven Bosch since its found days and how the company has always tried to have a long-term orientation, striking a balance between business, society and the environment to achieve sustainability.
“I would say that business thinking and social thinking go back to the founder of Bosch, Robert Bosch. What we added are environmental considerations. Today Bosch seeks to optimally balance its business thinking with society and the environment and this allows us to grow in a sustainable way. It makes a lot of business sense too. In all our actions and activities we have never strived for short-term profit maximization. We have always seen the need for a long-term outlook on things because the development of new products and systems takes time. If we had short-term profit optimization we would not be able to bring as many innovative products to the market. Sustainable thinking is definitely not new for Bosch, this is something we have been pursuing already for many decades.”
Mar. 21, 2016, article Bosch ranks as No. 1 motor vehicle parts supplier on Fortune's World's Most Admirable Companies list reports that: Bosch ranks first on eight of nine key reputation attributes within motor vehicle parts industry and is among top third of Fortune’s Global 500.
Bosch has been named the world’s most admired motor vehicle parts supplier by the U.S. business magazine Fortune. In the motor vehicle parts category, Bosch leads in eight reputation attributes: innovation, people management, use of corporate assets, long-term investment value, quality of management, financial soundness, global competitiveness, and quality of products and services. The company was ranked second in social responsibility. Overall, Bosch ranks among the top third of companies in Fortune’s Global 500 list.
My April 12, 2013 article Delisted, because that dividend made industrious Germans lazy was talked about this company:
“As that of general popular practice of business operation world widely, in 1930s Robert Bosch GmbH once listed and gave the stock to the management team.”
“After a while, Mr. Robert Bosch found the top mangers changed their habit and attitude, they went to lazy and not work as hard as before. The dividend income encouraged them paying attention on enjoying life. So Mr. Robert Bosch changed his mind to have bought back the stock and delisted.”
11.4.3…The wages of Board members lower than that of workers
Feb. 16, 2014, in the article Why Can German Economy Fly Against Economic Recession, I introduced that in Robert Bosch GmbH, the wages of the board members was lower than that of workers, the information was also from above CCTV talk show program - Decoding the DNA of successfull manufacturing in Germany.
When talking about the payment, Mr. Franz Fehrenbach said that, the workers in Robert Bosch GmbH belong to the Metal Union, the salary is highest in the Germany compared with other industry or Unions, The wages of the Board members lower two salary grades than that of the workers. We think that amount of payment is enough and reasonable. After heard what he said, the onsite audience were laughing loudly with unbelieving look, Mr. Franz Fehrenbach immediately explained: this is not a joke, it’s true. Our annual report has this information; you can find the payment of each board member.
I think that, besides Germans, for any people in any countries, the wages of the Board members lower than that of their workers is incredible, not mention that even lower two salary grades.
There some audiences in above talk show were from the copartners of China’s auto makers, they say that the researchers of the Bosch Group are working together with China’s researchers in the production field to develop new products. The Bosch Group and China’s enterprises has constituted as inseparable symbiotic bodies.
The success of Bosch Group is from their rational business philosophy in a broad range: incentive measures, flexible management model, new product development-oriented, and so on.
The Bosch Group do not make autos at whole besides developing new parts, but, it made big profit share in auto industry by patented inventions – the legal protected profit from continuously Intellectual efforts.
Germany is a country that is most rational in both a social governance and businesses management.
In my memory, German Chancellor Angela Merkel is the first Head of State to criticize the unreasonable high payments of the corporate executives.
12…To disperse risks by diversifying investment
In order to put eggs in more baskets, Grote should invest in venture some potential products as carpool in driving by experienced others, such as, functional drinks with health-aid herbal additives. The market will be huge due to the studies have revealed that current drinks – Cocola and pepsi has potential in cancer-causing from its medicine taste additives.
Some of my writings on my blogs
Authorize non-partisan Super leadership to assist social governance
Canada Pension Plan must develop in kind base and as key body of state-owned economy
How to rescue Bombardier from the road-dust of failed RIM
Grote Electronics evaluates employees' work performance by Computer
