Social vs. Economical system

If these two systems could or not be compared we should first lay out some definitions.

The social system is represented by people or groups of people. It is a social structure that refers to entities or groups of people that are definitively in relation to each other by having different functions, characteristics, origin or status. A social system is comprised of interdependent set of cultural and structural elements understood as a unit. Sociology is the study of human social behavior and especially the study of the origins, organizations, institutions and development of human society.

The economic system encompasses the production, distribution or trade of goods and services and consumption by different individuals, businesses, organizations, or governments. Economy as a study deals with the production and consumption of goods and the transfer of wealth and explains how people interact within markets to get what they want or how they accomplish certain economical goals.

To understand if the systems are comparable or not we should probably dig even more and try to outline also the basic differences between socialism and capitalism.

Qi–energy–leadership

In search for describing the Chinese term Qi (氣) I found: Ki in Japanese, Prana or Shakti in India, Gi in Korea, Ka in ancient Egypt, the ancient Greeks called it Pneum, for native Americans it was the Great Spirit, in Africa it’s known as Ashe and in Hawaii as Ha or Mana and the list is not yet complete.

In all those old philosophies, Qi expresses the life force which animates the forms of the world. It is the vital energy or circulating life force that is thought to be inherent in all things. A living being is filled with it. A dead person has no more Qi - the warmth, the life energy is gone. The Egyptian described the same concept very similarly. A living person has the Ka and in a dead one Ka left the body. They also believed that the Ka was sustained through food and drink. This is then the reason why food and drink offerings were presented to the dead. In traditional Chinese medicine, Qi is believed to regulate a person’s spiritual, emotional, mental, and physical balance. A healthy individual has more Qi than one who is ill. However, health is more than an abundance of Qi. Health implies that the Qi in our bodies is clear rather than polluted and turbid; it is flowing smoothly like a stream and does not appear to be blocked or stagnant.

In martial arts (or acupuncture) the capacity to perceive the flow of Qi or to actually see or feel it, is something that can be cultivated through Qi Gong training. During the practice one cultivates the capacity to perceive Qi on different levels. It seems like a potential to be yet expressed. One could say it is like fullness and/or emptiness (compared to yin and yang concept) when we perceive ourselves and the world around as fluid and spacious. In those concepts it is not just experiencing our body to be comprised of patterns and flows of Qì, but we also get to understand that ‘emotions’ and ‘thoughts’ are forms of energy. When a person understands this concept, it is possible to control and deviate the opponent’s energy with our own. Posing the question “Have you ever tried to pick up a child or a dog who did not want to be lifted?” Joe Hyams offers the result: “They both seem to be heavier—this is because the mind is truly a source of power, and when a mind and body are coordinated, Qi manifests itself.”

But Qi is more than the above. It is also the life energy one senses in Nature, the vibratory nature of any phenomena, the flow and tremor that is happening continuously at molecular, atomic and subatomic levels. The Earth itself is also moving, transforming, breathing, and alive with it.

Leadership by Virtue background

A common conclusion of all studies on our cultures is that we are definitely different. This is not really a great contribution but rather just a common knowledge. And this conclusion is what mostly challenged me. To successfully lead people you need to find what binds the people together and not what separates them.

Within globalization processes people that are now to work together do not come only from the same cultural background but were raised also in different cultures. And leaders are to take into consideration this new dimension, while, due to current perpetuating crisis, at the same time dealing with finding a way, a fresh and new leadership approach. And the stress should be put on the change of leadership practices and not only on a repainting of current ones. To introduce a new approach to leadership, the book “Leadership by Virtue” takes a different venue - a way that brings Far-East concepts into Western approaches and entangles both.

 The “Leadership by Virtue” approach is not about the instruction on how and what to do. It is rather a complex interlinked method to change oneself first. Accordingly, it is not ‘externally oriented’, as the case is in most of the Western culture’s way of management or leadership methodologies. Here the book takes  more Far-East tactic and is dedicated to ‘internal self’.

I Decided to Give My Book Away for Free

With a myriad of cultures in multinational corporations, research into leadership has been endless, yet not very conclusive. An old friend of mine posed me the question on leadership: “Could you please enlighten me in understanding how to lead a multi-cultural team?” So far we were pleasantly talking over a drink on a nice and warm summer morning. At the time I had no idea to offer. It initiated a long period of my research at the end of which I published the book “Leadership by Virtue”.

It was no easy matter. Four decades ago, IBM tried to unify corporate culture in her subsidiaries all over the world. Geert Hofstede carried out a world-wide survey on employee values with a very informative and demonstrative result. Based on his approach, Turner pointed out the problem of international projects and claimed that “when working on international projects we need to understand the approaches of different cultures to be able to work with people and predict behaviors, and not to give and take offence”. More researchers followed the same topic. A common conclusion of all those studies is: “we are definitely different”. And this conclusion is what bothered me the most. It is a common knowledge. To successfully lead people you need to find what binds the people together and not what separates them.

My research goal was to support the idea that, at their core people are similar no matter where they come from. The new leadership approach should follow these principles. This is why I aimed to find at which level we are “the same!”

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.

Leadership dilemma

What made Apple so successful and a very good place to work? ”The lack” of bureaucracy within projects, engineer-focused corporate culture, emphasis on passionate and loyal employees, the huge company has maintained the corporate culture from the start-up days, said Bianca Males in ‘8 Management Lessons I Learned Working at Apple.’ Is that all?

John Harvey-Jones claims: “If a company is successful, it is due to the effort of everyone, but if it fails, it is because of the failure of the board. If the board fails, it is the responsibility of the chairman, notwithstanding the collective responsibility of everyone.” This is a better, but still not an all-encompassing answer.

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.

China’s history and culture impacting Leadership - 3

The third example I would like to share with you is the historical novel Three Kingdoms, written in the tradition of the Spring and Autumn Annals which are attributed to Confucius. The historical novel of the Three Kingdoms is so important because it describes China’s tradition of political culture and the struggle to define its political form, transporting the reader from the highest councils of dynastic power to the lowest fringes of society, from the capital and key provinces to the edges of the empire and beyond. The novel offers a startling and unsparing view of how power is wielded, how diplomacy is conducted, and how wars are planned and fought. The novel has in turn influenced the ways that the Chinese think about power, diplomacy, and war. It is a tale of China itself in its infinite variety.

While ‘preserving moral judgment’ in every turn of phrase the novel marks the ‘rise and fall of kingdoms’ in a grand sweep of time. The novel has added to this tradition by reaching the broadest possible public with its message. This challenges a reader to reflect on how his own conduct measures up to the standards of loyalty and filial piety as they are fulfilled or betrayed in the novel. As Jiang Daqi said in the preface to the novel ‘merely to read it but not apply [its lessons] vigorously in one’s own life, is inferior to [real] study.’

China’s history and culture impacting Leadership - 2

The second example from China’s history for an outstanding leadership can be taken from the novel: Journey to the West. The main character is Sūn Wùkōng, Brother Monkey or Great Sage. The narrative uses a lot of symbolism and is based on the Daoist philosophy. Brother Monkey represents the heart and resides in fire, which is a fifth Daoist element. He was born from a stone and acquired supernatural powers through Daoist practices on the Mountain of Flowers and Fruits, which is the source of yīn and yang. The whole settlement and the place represent the Daoist theory of five elements where the other four are: Fruit and Flowers represent wood, Water Curtain where Brother Monkey hides refers to water, Iron-Plated Bridge leading to his camp refers to metal, and Rocky hill refers to earth. 

China’s history and culture impacting Leadership - 1

In this and the next two blogs I will try to shed some light on the topic of how one should behave and what one should aim for to be a successful and superior leader. Here I will take it from a non-Western perspective – from China’s history that is quite rich and could be the source of potentially broader viewpoint in today’s (mostly western) leadership methodologies.

I begin with a story Outlaws of the Marsh. The main character Sòng Jiāng, the descendant of a landowner's family, nicknamed Timely Rain, was a clerk of the county magistrate’s court in Yuncheng. He was especially adherent to playing with weapons and adept at many forms of fighting. At the same time he had a reputation for being extremely filial and generous in helping those in needs. He helped anyone who sought his aid, high or low, making things easy for people, solving their difficulties, settling differences, saving lives, even providing his guest with food and lodging in the family manor. And so he was famed through the province of Shandong and Hebei. However, in silence he suffered in the face of the arbitrariness and corruption of the imperial justice system.

Martial arts philosophy

Better sweat in practice than bleed in battle (Wǔ Shù wisdom)

The combats and strategies were a constant topic through the human history. In China only there are seven important military texts. First is from worldwide well-known Sun Zǐ, (The Art of War), the next are from general Wèi Liáozi (The Art of War), Wú Qǐ (The Art of War), Sīmǎ Fǎ (The Marshal's Art of War or The Methods of the Sīmǎ Fǎ), the legendary figure Jiāng Zǐyá (Six Secret Teachings), general Zhang Liang (The Three Strategies of Huáng Shígōng), and finally: Questions and Replies between emperor Táng Tàizōng and general Lǐ Wèi Gōng. The texts were practically canonized under the name “The Seven Military Classics” already in 11^th century, and were later on included in most military encyclopedias. In military spheres it was as important as Confucius’s work is for the bureaucrats.

Better spend three years looking for a good master than ten years training with a bad one (Wǔ Shù wisdom)

In China a philosophy does not come only from the country’s rich culture but also from martial arts. The keystone in Chinese philosophy is a strong humanism that became a focus of numerous Chinese philosophers throughout the ages. This humanism does not imply exclusion or indifference to a supreme powers and the nature. Instead, the general conclusion goes towards the unity of human and ‘heaven.’ This spirit of synthesis has characterized the entire history of Chinese philosophy.

A range of similarly motivated philosophical doctrines is covered by Daoism. Two great philosophical systems of China stand alongside: Daoism and Confucianism. Somehow less influential and less important to the development of Chinese culture are ‘the School of Mo’ and ‘the School of law’. The latter was a utilitarian political philosophy that did not address higher questions like the nature and the purpose of life. Both of them evolved at about the same time as Confucianism and Daoism during the ‘Spring and Autumn Period’ (770–476 before our era), and ‘Warring States Period.’

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.

Control and Reward

“People work predominantly for a reward”. Many MBA students hear and then use in order to control workers’ performance.

Motivation is an enigmatic thing. In different types of organizations managers all around the world struggle to motivate employees to get the best out of them.  And this is a crucial activity on all levels of an organization.

Being a boss does not necessarily mean being a good leader or motivator. There are countless examples reporting intolerable task masters, or ultimate micro-manager, or even horrid manager thus creating a horrible work environment... and the list goes on and on. This kind of a boss is definitely not favored by employees and no motivation comes from him/her. Instead, workers are deeply demotivated by injustices, emptiness of demands, inconsistencies, lack of transparency, self-importance, arrogance, superiority, miss-communication, or even management incompetence. They just try to survive. Still, some of these bosses climb the current Forbes 400 list.

“The Way” of Leadership

Dào – the Way and Confucianism

Although Dào literally means ‘a way’ or one of its synonyms, the meaning was extended to mean ‘the Way.’ And this term, variously used by many Chinese philosophers such as Confucius, Mencius, Mò Zǐ, and Han Fei Zǐ, has a special meaning within the context of Daoism, where it implies the essential, unnamable process of the universe.

Daoism is traditionally traced to the mythical philosopher Lǎo Zǐ , the ‘Old Master’ to whom the text Dào Dé Jīng has been attributed. Dào Dé Jīng is translated as ‘The Classic/Canon of the Way/Path and the Power/Virtue,’ the title was generally used from the Tang dynasty period (618–905).

And the Daoism philosophy owes more to Zhuāng Zǐ (4^th century BE) the author of the core texts of the Chinese way of thinking known as ‘Daoism.’ Zhuāng Zǐ is traditionally credited as the author of at least part of the work, the one bearing his name, the Zhuāng Zǐ.

English: Analects, by Confucius. Östasiatiska Museet, Stockholm. (Photo credit: Wikipedia)

Confucianism principles are based on the written work The Confucian Analects (Lún Yǔ) ‘found’ by Confucius who lived two thousand and five hundred years ago.  The Chinese language does not use the word Confucianism, instead it is called Rú Jiāo meaning ‘scholar’ and ‘teach.’

Nonverbal – body language and Leadership

There are two types of people—those who come into a room and say, “Well, here I am!” and those who come in and say, “Ah, there you are.”(Frederick L. Collins)

Communications are verbal but, equally, if not more important, are those that are non-verbal. This accounts to between 50 to 70 percent of all communication – facial expression, eye gaze, gestures, and tone of voice. The way you listen, look, move and react lets other people know whether or not you pay attention, if you are being truthful, and how well you are listening.

Martial arts are based predominately on non-verbal communications. Once I asked my teacher: “Shifu, when two great martial arts masters meet how do they recognize who is better?”

New @

Almost three years ago (April 2010) I have made a real lengthy dream of mine to come thru – to write a book. But not any book. A book about my two passions: Leadership and Martial arts. It was the time of my visiting exchange to the Xi’an Technological University as a professor.  Both professors at the Economic & Management College of Xi’an: Chunqing and Gang during my teaching and researching at first did not understood but later on grasped my thoughts and research intentions. The aim was to use Martial Arts doctrines based on two fundamental Chinese philosophies Daoism and Confucianism for Leadership. They helped me in grasping through long talks the ideas behind those two philosophies. At that time I didn’t know yet what would follow … Ok, I’ll tell this in ensuing blogs.