De – Virtue - Dé

In my blog: Virtue – Morality – Ethics and leadership I wrote that virtue motivates and morals and ethics constrain. To support that statement here I’d like to describe virtue through Chinese  ancient text ‘Dào DéJīng’.

Dé is conventionally translated as ‘virtue’ or ‘power,’ and refers to how the Way or Dào functions, or literally “walks” throughout the visible world. ‘Moral authority’ is probably the closest modern English equivalent to Dé. It was an opening stanza in the oldest version of Dào Dé Jīng, now it is introduced in stanza 38 that describes virtue:

High virtue by obliging not - acquires moral force.

Low virtue obliges always and thus lacks moral force.

High virtue neither strives nor acts for its own ends.

Low virtue does not strive but acts for its own ends.

High kindness does strive but not for its own ends.

High service also strives and does so for its ends.

High ritual not only strives but compliance failing stops at nothing to compel conformance.

Thus the loss of the Way meant the advent of virtue.

The loss of virtue, the advent of kindness.

The loss of kindness, the advent of service.

The loss of service, the advent of ritual rule.

Ritual rule turned loyal trust to deceit, leading to disorder.

All that has been learned adorns the Wayand engenders delusion.

Hence those strong and true keep commitment 

shun deceit, stay with the kernel that’s real and shun flowery adornment, choosing the first, refusing the last. (Moss)

Dào (Dao, Tao) – the Way

In my blogs I have been using a term Dào (Dao, Tao) and would like to share with you my understanding of the meaning of the concept.

Dào is usually translated as way, road, channel, path, doctrine, or line. Chinese language is a tonal language so we must not confuse Dào with Dǎo, although for us it sounds the same. The latter, Dǎo, has an entirely different meaning: to lead, to transform, to guide, to conduct and or to direct.

There are some who would like to believe that Dào is a sort of ultimate creator, a God? It is not. God interferes with people and things, Dào never does. It is said that he who pursues Dào does less day by day. Less and less is done until nothing is done at all; when nothing is done at all, nothing is left undone. This is the fundamental difference between God and Dào – there is no interference when Dào is in concern. At the same time we should understand that Dào in Daoism can have dual meaning. One is religious and the other philosophical. The understanding and use of Dào in my book Leadership by Virtue is the latter.

Two sides of the same coin

What constitutes to be a superior leader? F. Marcos said: Leadership is the other side of the coin of loneliness, and he who is a leader must always act alone. And acting alone, accept everything alone (brainyquote). So, is it a head or is it a tail?

My lessons from “the other side of a coin” started when, together with my sons, we decided to go to the Mount Kilimanjaro. My decision had nothing to do with Kilimajaro being the biggest free standing mountain in the world or because it is the tallest mountain of the African continent and not even because it bares my name in it. I joined the idea because it was my long lived dream since the times I lived in Africa.

To climb the summit of 5.895 m in eight days via Lemosho route had to be planned well in advance as we were not physically fit for such a challenge. For months prior to the challenge we have been successful at climbing and trekking to each and every hill or mountain available to us in Slovenia. After Kilimanjaro I realize that it was not the trekking of more than 70 km or freezing temperatures that we have underestimated. It was “the other side of a coin.”

High altitude and lack of oxygen proved to be subjected to our naivety in thinking that climbing such a mountain is only a physical challenge. Slow walk, introduced by our guides from the ANDA African Adventure, at the beginning of our tour seemed ridiculous to us, but each succeeding day on the mountain proved that it was the only compulsory physical possibility for success.

Management practices and tools that just “don’t work”

From the management’s perspective managers perform tasks, manage people and do business. Accordingly, there are numerous methodologies and tools helping to manage business and people:

(1) In Japan at Toyota Motor Company, Taichii Ohno and Shigeo Shingo incorporated Ford’s type of production and some other techniques into an approach named the Toyota Production System or Just In Time Production (JIT). The inventory strategy strives to improve a business return on investment by simultaneously reducing in-process inventory and associated costs.
(2) The core idea of a Lean organization is to maximize customer value while minimizing waste. Simply, lean means creating more value for customers with less resource.

(3) Iwao Kobayashi’s 20 keys is a longer list that can be used in manufacturing audits. It reads very much like a “who’s who” of manufacturing innovations and hence makes a very useful checklist.

(4) Six Sigma (6б) is a business management strategy originally developed by Motorola in 1981. It was initially aimed at quantifying the defects that occurred during manufacturing process first and then at reducing those defects to a very small level.

(5) Business Process Reengineering (BPR) is a top-down approach in which organizations become more efficient and modernized. Reengineering is a fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in cost, quality, speed and service.

(6) The Self Directed Work Team (SDWT) is perhaps the most powerful organizational concept that motivates, coordinates, solves problems and also makes better decision than an individual could. But this performance comes at a price: decisions are slow, work teams require extensive training and months to mature.

(7) Total Quality Management (TQM) is a set of management practices throughout the organization geared to continuously improve the business processes in order to ensure that the organization consistently meets or exceeds in satisfying a customer or a supplier.

(8) … others.

Mission and vision

Is the mission in a company a driving force for actions? Does a mission provide overall goal, a path, and is it a guide for decision-making?

And a vision? Is it an aspiration for a company? Does it focus on the potential essentials in the company's mid-term or long-term future, or what company intends to be?

Most of mission and vision statements are generic, therefore awfully deficient. A result of long-drawn meetings where in the end everyone is so tired and approves any nonsense just to bring it to the conclusion. They are full of phrases like ‘market-leader’, ‘best-in-region’,  ‘most successful’, ‘best customer/owner value’, ‘leading in this and that'. Fluffy words that mean nothing. They just repulse a reader and make skip the text!

Gong Fu (drinking) tea

The traditional way or the Chinese method of tea making is called gōng fu chá or meaning “making a tea with great skill or great efforts.” It is as much about escaping the pressures of life for a few moments as it is about enjoying every drop of a tea.

 Tea and coffee bear some similarities. The energizing effect of the coffee bean plant is thought to have been discovered in Yemen in Arabia from where the Muslims spread coffee first to Italy, then the rest of Europe, and finally it was spread throughout the world. In English and other European languages, the word coffee derives from the Ottoman Turkish kahve.  As for tea, there are at least six varieties of tea: white, yellow, green, oolong, black and pǔ’ěr. Just to name some: jí pǐn lóng jǐng or Dragon Well, high-grade green tea that was granted the status of luán chá or imperial tea during the Qīng Dynasty and is nowadays frequently given to very important visitors of China; a tiě guān yīn tea – a wǔ yí wū lóng or oxidized oolong tea with a creamy taste; refreshing nutty taste and aroma tea lì zǐ xiāng that translates as “fragrance of chestnut” is a green tea from the Guangdong province; cultivation of pu’er, also known as Yunnan tuó chá, can be traced as far back as the Han Dynasty and has been used in traditional Chinese medicine for generations to build up internal energy and to invigorate the activity of the spleen and stomach. All teas are made from the same species of plant, but processed differently. And there are others which are not to be mistaken by a ‘herbal tea,’ or an infusion that is made from leaves, flowers, fruit, herbs, or other plant material that contains no Camellia sinensis as coffee and tea do.

Corporate governance in multicultural organization

Corporate governance refers to the issues associated with the way corporations are structured, managed and operated. The use of the term “corporate governance”, the evolution of the concept and what it entails has started in the early 1980’s.

 Among the first was the Cadbury Committee. They defined the purpose of corporate governance in 1992 namely, as a set of processes, customs and policies that frame the business of the company and help manage the subsidiaries. This is then operationalized in a uniform method through administered or controlled directives.

The most quoted and referred to document in this field is the OECD principles corporate governance. OECD defines it as a set of relationships between a company’s management, its board, its shareholders, and other stakeholders. Corporate governance also provides the structure through which the objectives of the company are set. The means of attaining those objectives and performance monitoring are determined. So, the main recommended principles are stated as rights and equitable treatment of shareholders, interests of other stakeholders, role and responsibilities of the board, integrity and ethical behavior, disclosure and transparency.

Knowledge - the main driving factor of productiveness

In modern economy, an insight, based on explicit and tacit knowledge and the wisdom are the main driving factors for value-added creation and sustainable growth. With appropriate understanding and the allocation of resources Violeta Bulc (innovator, entrepreneur and founder of Vibacom Ltd.) describes how the creation of added value in a company can be defined as a progression of different evolutionary stages in the business environment.

In the book “Rhythms of business evolution, systems, tools and experience for brainstorming” Bulc bases her ideas on four phases. The first one begins with the most fundamental “working environment”. At this stage companies are mostly focused on production and activities. Machines (equipment) are very important; the labor force can be relatively easily replaced, so they should be obedient and diligent in maximizing the output at the lowest costs possible.

The second phase is a “learning environment”. The productivity becomes a factor of input. New resources and knowledge start to play a major role as quality is introduced. Knowledgeable workers become of core importance. Those who have knowledge - employees, leaders, managers - create the conditions for further growth and differentiation on the market.