Where Effort is All That's Required

As professionals, we’ve been told that effort is nice, but results are all that matter. Working hard but failing to solve the problem equals job failure. Fortunately, there is one arena where effort really does seem to be all that is required, and that’s personal relations with other cultures. Of course, more knowledge is usually better, and nothing can give you more insight into a culture than learning the language, but for most of our business dealings, trying will go a long ways towards establishing trust. Treat people with respect, don’t promise what you can’t deliver, try to understand the other point of view. Basic decency and a willingness to learn are all that are required.

The Nucleus

Beneath the clothes, we find a man... and beneath the man, we find his... nucleus. Nacho Libre.

Taking some time this morning to think about my nucleus. I hope you have time this weekend to do the same.

Who do you admire in your life? What's their work style, their leadership style? What skills and techniques do they have that you can add to your toolbox? Should you add them? Would they work for your style? You've got to find your nucleus to answer the last two questions.

It's Just Your Imagination...

I make data-driven decisions, or at least most of the time. As an engineer, I love data. I love to collect it, analyze it, and tease useful information out of it. I like to present the data in compelling ways that allow my clients to make sound decisions. In my love for data, I often fail to see that perceptions are just as important as reality. In fact, none of us really knows what's real, only our perception of it. We make decisions based on our perception of reality, whether that perception is backed by verifiable science or not.

Why do I mention this today? Why should you care? I'm currently planning a project with a long-time client. This is a client that has done a wonderful job of meeting the challenges of being a manufacturer in the global economy -- a manufacturer that's very profitable and located in the US! I realized that some actions that are being taken are based more on perception than data.

So which is more important? Data or perception? They are both equally important as factors in making decisions. If you are attempting to improve a process or a system, you must be aware of the factors driving decisions, and you must always bear in mind the impact of the filter through which each of us views our reality.

Memory Eternal

I waited, wondering whether or not to post about the recent falling asleep of Aleksandr Solzhenitsyn. I think it's appropriate, even in a blog theoretically aimed at China sourcing. Solzhenitsyn is a shining example of how one man can change the world. May his memory be eternal! http://www.nationalpost.com/news/world/story.html?id=707120

China and Renewable Energy

In today's daily brief from the China Economic Review, http://www.chinaeconomicreview.com/dailybriefing/2008_08_04/China_leads_world_in_installed_renewable_energy.html

China leads world in installed renewable
energy
Energy
4 August 2008
China now leads the world in installed renewable energy, the Christian Science Monitor reported, citing a report by the London-based nonprofit organization the Climate Group. China has now reached 152 gigawatts (GW) of renewable energy capacity. This compares to around 101GW of capacity in the US in 2006, according to data from the US Department of Energy. China also plans to double its renewable energy output to 15% by 2020. The country has the world's
largest hydroelectric capacity and the fifth-largest wind-power capacity. China is also a major exporter of renewable-energy technologies. Output of solar-voltaic
technology has doubled for each of the past four years and China will be
the world’s largest exporter of wind turbines by 2009.

I'll confess now to a conservative view on things. In fact, I was so pleased with President George W. Bush's acceptance speech at the 2000 Republican Convention that I hung a copy on my office wall. I especially remember the line,

"This administration had its moment. They had their chance. They have not led. We will."

I don't want to enter into a general debate on the accomplishments and failures of Presidential administrations, but I think it's pretty clear to all that on the issue of energy -- foreign energy reliance, renewable energy, energy research -- that the US has failed to lead.

China's leadership has acted with foresight and commitment to build a renewable energy infrastructure. The progress is nothing short of amazing, and the world should take note.

Of course, it also helps when you don't have to listen so much to local opinion. (Try building the Glen Canyon Dam today. The majority of Chinese renewable energy is hydro.) There is a considerable amount of "not in my backyard" syndrome going on in the US. I have to agree with much of it --not sure I want a nuclear reactor in my backyard, and I'm an engineer, for the most part capable of understanding the technology and its impressive safety record. A great example is the attempt to put a wind farm on Cape Cod, and the strong resistance by so-called environmentalist Robert Kennedy Jr.

I served for three years on a local Zoning Board of Adjustment. I can say from experience that any new project involving change in land use, "character of the area," or scenic vista is met with strong opposition. Certainly energy projects (and the ever problematic cell-phone towers) cause changes in all three.

I don't know what the answer is. Certainly, the Federal Government needs to take a strong role in promoting alternative fuels. I think the most effective way is through basic science research, in a way that allows the developing companies/agencies to commercialize the technology and realize the economic benefit. It's also important that local governments (strategic planning groups and zoning boards) recognize the importance of renewable energy and work with various other community groups to develop local policy that encourages the development of renewable energy.

Have any of you worked with local governments on zoning policy or other that encourages renewable energy development? Where?

Decisions, Decisions

For the past week, I've been pondering the nature of decisions. I'm doing so mostly because I'm still recovering from a very bad one. It's a bit of an after-action review for me -- trying to understand why I did what I did, but also a chance to ponder the nature of professional work, and how we make our living.

At risk of damaging my professional reputation, I'll explain a bit what happened. It's really a simple story. I decided to act exclusively for one client. I turned down new work, eliminated some other clients, and went to work exclusively for one person. Why? Well, the economy is slowing, the rmb is appreciating, business is tough right now! Moving to secure anchorage in times of storm seems a good decision. It would be, if the anchorage were safe. Now, imagine if the anchorage is actually in the territory of a very hostile tribe, bent on your destruction, and caring nothing for human life!! Ah, this is the anchorage I pulled into. What's worse, I had met the chief of this tribe before. Once, he tried to eat my ear and shrink the heads of my landing party. The next time, he smiled and offered me some type of fermented beverage. I accepted it, I drank, I danced.....I woke up missing an ear.

This decision is not hard to analyze. I made a decision based exclusively on fear -- fear of the looming ecomonic hardships ahead. I acted from the most primative reaches of the reptile brain. In this case, I need only flog myself for cowardice.

Decisions in general (let's assume a higher level of thinking than I displayed) are the basis of our livelihoods. A corporate finance instructor in B'school told me once that grey was his favorite color -- the color of money. Easy decisions don't pay. The more grey, the more money to be made by those who operate in those uncharted waters.

Decisions always involve insufficient information. Good leaders gather all they can. They delay decisions until the last possible minute (not procrastinating, but gathering and analyzing). They analyze, they agonize, but they can't know everything. When the time is come, they decide, based on objective analysis, experience, and their "gut." They then step forward and accept the results of their decisions.

At some point, you have to fall back on "gut feeling" for part of a decision, nobody will dispute that. In my case, it wasn't "gut feeling," it was reptile-brain fear. It was the irrational dominating the rational. "Gut feeling" is not fear, it is listening to your heart (may I say that here?). After all the analysis is done, there should be a time of inner reflection (the situation will decide how much), but if you've got some experience, and some moral compass, one direction will be a brighter shade of grey.

Your papers are not in order!

...or I think that's what I recall the Russian-accented border guard saying in some 80's cold war movie. My first trip into China, I thought that's what I might encounter, only to be pleasantly surprised -- visa's were easy to get, easier to extend, and I was never asked for my passport.

Times are changing, as most of you already know! Over the weekend, I was asked by a potential customer about the current visa situation. I told him that I was certain that in the runnup to the Olympics, that visas were being restricted. My advice was to apply early, read the instructions carefully, and maybe even consider using a visa agent. I also know for certain that authorities are checking passports at hotels and apartment buildings.

Here are a couple of related stories:

http://www.chinalawblog.com/2008/07/take_that_funky_passport_with.html

http://www.caijing.com.cn/20080704/72951.shtml

I've never lived close enough to a Chinese embassy to apply for visas in person. My family and I have always used G3 Visas with very good result. Someone has always been available to answer questions, and I would recommend them to anyone who needs visa services.

Lastly, here is the link to the Chinese embassy in the US:

http://www.china-embassy.org/eng/

Chevy Volt, Tesla, EV Controversy?

Allow me one more day to muse about electric vehicles, please, before I turn my attention back to China sourcing. There's been much written lately about electric vehicles (EVs), particularly the Chevrolet Volt and the Tesla roadster. For more information, check them out here:

http://www.chevy-volt.net/chevrolet-volt-specs.htm

http://www.teslamotors.com/

The heart of the story is the assertion by Elon Musk that the bridge to full electric vehicles will be short, given the inherent flaws of hybrids (neither good with electricity or with gas). Read more here: http://www.blog.speculist.com/archives/001788.html

The other side (well, not really a controversy, or the other side, just a slightly different read on a great topic, but hey, words like controversy are so lame-stream media, one has to use them) is more in favor of continuing a hybrid-type drive train -- essentially full battery operation with internal combustion range-extender, or battery chargers. Nice article here: http://www.autobloggreen.com/tag/chevrolet+volt/

For another fun read, check out this interview with Elon Musk: http://www.pbs.org/newshour/bb/science/jan-june08/musk_06-25.html

Enjoy, and tomorrow, we talk about China!

Corbin Sparrow

I've always been interested in alternative energy. In fact, my first job was as a research engineer, and many of the projects I worked on involved using hydrogen and hydrogen blends in internal combustion engines. It was very interesting stuff!!

Anyway, I had a great weekend, because one of my good friends invited me over to help get his Corbin Sparrow back on the road. We installed a new set of batteries and a newly rebuild motor! What a great little vehicle! Check out the pictures below, and to learn more, visit http://corbinsparrow.com/index.html

The Latest

This is an attempt to combine blogging efforts into something meaningful. Previous attempts have limited content to only China, only small business, or only political rants and beer reviews. I hope, in this blog, to cover a wider range of topics, but eventually, and usually, stick with issues of business in China, especially issues effecting small businesses in China. Topics may vary, however, to include some ranting, helpful product or book reviews, and leisure travel. Eventually though, I will return to the business of China. Likely I will repeat some material from previous blogs, because I'd like to capture some of the articles that I've written, and some of the helpful processes that I've developed to make your efforts in China more successful.

Comments, questions, and suggestions are, of course, welcomed and encouraged.