Appreciating Mao’s Revolutionary Genius: Appreciating Mao’s Revolutionary Genius: Applying Mao’s ways of winning hearts and minds to commerce in China today
Jim Cook, Chairman
CHA, Inc.
Sponsored by : The Confucius Institute Wayne State University
Confucius Institute
Wayne State UniversitySlide 2 of 13
March 7, 2013
WWhhat cat canan we learn from the Chairman … we learn from the Chairman …
… that can be applied today?
Confucius Institute
Wayne State UniversitySlide 3 of 13
March 7, 2013
An Ambitious Vision - China for Chinese under Party rule
Daunting Obstacles - tradition, army, war lords, history, $$
Resources - knowledge, determination, mastery, innovation
Innovations? - troops, military, enemy, occupation, culture, pace
Lessons – odds, process, “behavioral culture”, social benefits
Case – KFC learned the lessons that made the revolution succeed
ContentsContents
Confucius Institute
Wayne State UniversitySlide 4 of 13
March 7, 2013
And, the Winner will be?And, the Winner will be?
Confucius Institute
Wayne State UniversitySlide 5 of 13
March 7, 2013
Well entrenched and vested competitor who has a large, well equipped, and well trained army
Well heeled (farm land) owner class with war lords for enforcement
Deeply held Confucian traditions (creating order at the cost of repressing all but first born males and any structural change)
An ignorant, fractured, and penniless peasant class accustomed to being crushed whenever they so much as protest
Lack of financial aid and lack of an army, but nonetheless considered the number one threat to status quo
Mao’s ChallengesMao’s Challenges
Confucius Institute
Wayne State UniversitySlide 7 of 13
March 7, 2013
A wealth of knowledge about China’s history, great ideas from the West, and peasants’ lives
An unsentimental readiness to go the way that facts, logic, and history dictate
An unrelenting pursuit of his vision coupled to a readiness to accept risk and to inflict pain
A mastery of organization and an authenticity and fairness that inspires others to follow
Innovation, grounded in the above, resulting in ways to transform his ideals into effective action
Mao’s ResourcesMao’s Resources
Confucius Institute
Wayne State UniversitySlide 8 of 13
March 7, 2013
The Unreasonable Man PersistsThe Unreasonable Man Persists
Confucius Institute
Wayne State UniversitySlide 9 of 13
March 7, 2013
Arm peasants and don’t wait for urban uprisings as Marx’s theory stipulates
Conquer minds and spirits, not territory (hold nothing, but treat people fairly and they’ll follow), address the needs they understand
Discard tradition in the military and elsewhere if it isn’t true to the (political) message
Unify Chinese sentiment by picking a universal enemy –Japanese, for disgracing China’s face
Take the long view, 20-30 years, not the quick one commanded by Sūn1 Zǐ3 孙子
Mao’s InnovationsMao’s Innovations
Confucius Institute
Wayne State UniversitySlide 10 of 13
March 7, 2013
There’s 1.3 Billion of UsThere’s 1.3 Billion of Us
Confucius Institute
Wayne State UniversitySlide 11 of 13
March 7, 2013
Don’t be discouraged if you are in the minority (e.g., 2009 Ford with 2.6% while GM has 13%)
Learn from Mao’s process: study (behavioral culture) intensively then explore China intimately, innovate appropriately
Consider Behavioral Culture as “everyday decision making below articulation and awareness”
“Face” trumps performance as one example: status and alliance messages, values, dynamics, …
Be sure to benefit the customers/Chinese as a GROUP, not just as an INDIVIDUAL
Lessons from the ChairmanLessons from the Chairman
Confucius Institute
Wayne State UniversitySlide 12 of 13
March 7, 2013
KFC China headed by a Chinese reporting to Yum! Chairman
“Localization strategy has been a key to the company's success” KFC = 40% of fast food market (McDonalds = 16%)
part of the local community, not a foreign presence
(Mao’s enemy was Japanese; Food can’t be foreign, tech can)
Adapted USA model to serve Chinese consumer(Mao adapted Marx and military to Chinese Characteristics)
Foods for Chinese tastes + specific local/regional(Mao’s government set up autonomous ethnic governments)
Chicky says, 认真 rènzhēn 学习 xuéxí, 开心 kāixīn 游戏 yóuxì(Mao said 敢 想 gǎnxiǎng 敢 干 gǎngān = dare to think, dare to act)
KFC develops partnerships with schools, teachers, & parents
(check the #s; 6 pocketbooks/doters for every child)
Lessons Applied by KFCLessons Applied by KFC
Confucius Institute
Wayne State UniversitySlide 13 of 13
March 7, 2013
Questions and Comments
Take this with you: 天时、地利、人和
Thank you, again.
On the Internet at (5.33 MB): http://cha4mot.com/Mao-lessons.ppt
For more on Mao, you’re welcome to visit: http://cha4mot.com/Mao.html
Finally China’s Open (for discussion)!Finally China’s Open (for discussion)!