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.

Internet games and Leadership

Most people argue that games are just for fun and to kill time. How would you consider gaming experience in person’s curriculum vitae asking for a leadership position vacancy? An asset?

Nick Yee surveyed MMORPG players for the first time at the end of the previous millennium. Since then, he has surveyed over 35.000 MMORPG players of the most popular USA MMORPG games. Near 280 respondents wrote about their guild leadership experience. Yee’s findings about leadership can be described in the same terms as in the real world.

First, most novice guild leaders fall into the trap of trying to be everyone’s friend and making sure that everyone in the guild is happy. The most common lesson learned was that it’s simply impossible to please everyone. Second, in any situation where people have different needs and motivations, conflicts will arise. These conflicts tend to be particularly stressful because of the existing friendships and ties within the guild. Inevitably, the guild leader will be asked to become the mediator. Third, many respondents noted that laying down a firm hand was important and that sometimes you have to be tough and say no. Because many guilds start off as small, casual, and friendly guilds, guild leaders often feel conflicted when it comes to disciplining guild members. The next finding was the difficulty in picking the right people for the guild, as well as the difficulty in kicking people out of the guild. In the game and in the real life, the duality of being a leader is well perceived. It is not easy to be a friend and a leader at the same time. The guild leaders highlighted the importance of having ground rules, making people aware of them and being consistent with those rules, which is equal to real-life leadership.

Organizational culture and martial arts

Organizations are made for employees to work there and not opposite: employee should fit the organization. As the organization grows larger and more complex, management at the top lead and decide less by firsthand experience, but rather more and more on heavily processed data. From their standpoint they rarely see business flowing in the same way as do people down in production or on the sales floor. To understand huge amounts of data and information that is streaming toward them, after a throughout long training, they finally achieve to see the reality through the distorting glasses they've had to put on. Decisions they make and the responsibility they shoulder relies on tangible data. But these glasses somehow filter out emotions, feelings, sentiments, moods, and almost all the nuances of human situations that are part of everyday organizational culture consequently filtering or better losing all the tacit knowledge that drives business processes.

Organizational culture is the sum of values and rituals defined by rules. It is also a part of a “bigger picture” that surrounds an organization. This poses some problems if organization shock-wave through different cultures.

Four decades ago IBM tried to unify corporate culture in its subsidiaries all over the world. Geert Hofstede carried out a world-wide survey on employee values. The result was very informative and demonstrative. There were other researchers of the same topic too. A common conclusion of all those studies is that “we are definitely different”.

Leadership and stability

Old Chinese philosopher Zhuangzi quoted Confucius: ‘Men do not use running water as a mirror; they only use the still water.’ Only things that are still in themselves can still other things.”

Why the power of stability is so important? The ground on which we stand can hold up tall buildings, high trees, and us as well. Gravity pulls us to the center of our planet. The ground pushes back with precisely the same force, effortlessly in the opposite direction of gravity, and is therefore called the ground reaction force. No wonder grounding is considered so important in martial arts. It resists power and accepts energies. A stability lies within what one knows and how one lives his live each day.

Stability is not equal to rigidity. It is fundamental to all fighting techniques. The ability to control your movements, to develop, and to receive power originates in stability. Losing stability means losing control. Without control you cannot win.  A good fighter knows that during the battle, the sun should be in the eyes of your opponent and not facing yours. Secondly, stability is being able to float safely on each wave of change. Lower a fighter’s position is and the lowest his center of gravity is, the better stability he has. But, while increasing stability lowering a center of gravity lessens mobility. There are always trade-offs but you should balance them into win-win situation.

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.

Leadership and “happy” organization

Have you ever wondered what the ultimate goal of an organization is?

Today’s management will conclusively respond that organization strives to achieve only one ultimate goal: to become a profit oriented “machine”. That is why the key device of modern management is in lowering costs: pushing on suppliers’ side, on employees, on product development and production, to name just some. But is this “ceteris paribus” solution, focusing only on one parameter and all other things being equal or held constant, sustainable in long term? Or it spirally aims down and not up? Cost reduction – instead of cost optimizing in an economic system causes the only possible outcome – less money in circulation. The customers are also reducing and optimizing their costs according to their income.

How often have we heard that people are the biggest asset of a company? They, on the other hand, are costs. If they work, they produce cost, if they attain a training program it is again cost, if they visit a customer ... costs. How differently people are treated from tools that for us represent the investment. But the smallest football club in the league knows that buying a player is not a cost – it is an asset, an investment. And they treat him accordingly. Not so in many modern companies. By, among other things, ignoring this, leads us to risky situations far away from the business objectives. There is a Gallup-poll of a 1.5 million sampling, and the result is: 30% of employees are happy with their managers, 20% are not, and 50% have disengaged themselves in having any feelings at all.

“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.’

External and internal control

“Please contact my secretary to find the time in my schedule, I’m over booked…”  Have you ever heard a similar from an important CEO or other top manager? He/she is obviously under the time pressure, a stress situation or … If this happens frequently it is normally understood that such people don’t have free time.

In my post Cause and consequence / Urgent and important the pressure because of mainly dealing with urgent instead of important issues was already discussed. To further it, concentrate on the next problem, well described by Zhuāng Zǐ proverb: “If you cannot even govern your own self, how can you govern the world”.

How true and how often we do ignore it? When under the stress a basic martial arts skill is to control and not to fight emotions that are piling up. First try to ascertain what you sense or feel. Then do some concealed relaxation breathing to relax the tension.

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?”

Cause and consequence / Urgent and important

In psychology cause and consequence refers to the concept of causality. An action or event will produce a certain response to the action in the form of another event. People tend to have first reaction as a doubt. Doubt is defined as a safeguard, as the demarcation of truth and untruth, as well as the delimitation of the credible and incredible.

English: A doctor examines a female patient. (Photo credit: Wikipedia)

The basic “misunderstanding” of the concept of cause and consequence - two different parts of the same coin - is revealed time and again when visiting a medicine doctor in basically any country of the Western hemisphere. Based on your complaints a physician determines what is “wrong” with you and then prescribes a medicine. Normally, they don’t bother themselves with the cause of your problem. Why? Is it ignored due to insufficient and incomplete knowledge or are there other reasons? In ancient China there was a different practice when dealing with illness and medical doctor earnings. People gave payments to a doctor not when ill but when they were healthy. When sick they were invited by a doctor to live with him and a doctor had to treat them free of charge. And how do our “Western” physicians earn their living?

System thinking

Nature itself is a system with all parts entangled. Systems are like a human body: they are consisted of parts, and those same parts affect the performance of the whole. All the parts are interdependent. Just like a team of players during a game. But the team is not alone. They have the counter-party, there are judges, there are physical constraints engaged, and also spectators may be present. All of this forms a system. Times and circumstances may change, but systems tend to endure. If we don’t understanding this, wrong decisions, sometimes disastrous, can happen.

Also an organization is a system – a “living” system that performs by its own “will”. Rather than focusing on organizational goals and values, the management practice, when complying with the bureaucratic processes, sets the latter as the ultimate objective. Systems take on a life of their own and seem immune to common sense. When members of an organization feel as though, by circumventing established rules and procedures, they must constantly fight the system, the result can lead to cynicism, poor ethical climate, or forces them to jump from one urgent matter to another instead of worrying about important ones.

To trust the Capital?

You will all remember the oil spill across the Gulf of Mexico back in April 2010?

The oil spills are a classical ‘low probability -- high-impact events’ as the one in Santa Barbara, California, in 1969, when more than eleven million gallons were dumped into coastal waters. From there on, we’ve seen more than our share of these kinds of accidents.

If there are lessons to be learned from those catastrophes, among the first ones are that “pre-disaster assumptions tend to be dramatically off base” and that “the worst-case scenarios were downplayed or ignored”.

We could argue whether this attitude is driving us against all the basic principles of Nature. Uncontrollably destroying the natural environment and exploitation of resources beyond recovery are just some of the profit-oriented results. Is such a conduct responsible behaviour to future generations?

Virtue – Morality – Ethics and leadership

The three: virtue, morality and ethics are not new philosophical terms. To Aristotle the good for human beings must essentially involve the entire proper function of human life as a whole. And this must be an activity of the soul so that expresses genuine virtue or excellence.

Virtue, in short, is a desire for honourable things. Aristotle defined the virtue as habits of acting or dispositions to act in certain ways. In China the term Dé is probably the closest modern English equivalent that means ‘virtue’ in the sense of ‘personal character,’ ‘inner strength,’ ‘virtuosity,’ or ‘integrity.’ Chinese character Dé, written as 德, is composed of the radical彳followed by the number ‘fourteen’ or shí sì (十四) over ‘one’ or yī (一) ‘heart / mind’ or xīn (心). The simple meaning is that one has to have a big heart for fourteen people.

The Economy and a ‘cultural noise in the background of our minds’

The word economy can be traced back to the Greek word oikonomos meaning ‘one who manages a household.’ The first recorded todays’ meaning of  economy was traced in the work, although could not be proven but was very likely  composed in the year of  1440, referring to ‘the management of economic affairs,’ in this case, of a monastery.

Very few would argue that a modern economy is customarily said to have begun with Adam Smith (1723–1790). Smith characterizes economy as three orders in society: those who live by the rent, by their labor, and by the profits. Therefore we could say that we have been caught under the Smith’s ‘invisible hand’, the economic paradigm, more than 250 hundred years ago. And it was modeled upon the prevailing ‘cultural background noise’ of that age. It was also very much ‘trapped’ by religion.

Joseph Schumpeter described economy also as three-folded namely, monetary, interests, and value theory within a natural-law perspective. And those two economists were not the only ones thinking it this way. It really looks like the economy is based on three main concepts. One does not need be an expert to deduct: a (free) market, which can by definition is something imaginary as a Holy Ghost; a (private) property, which equals to omnipotence - the God; and the third is labor, which can be linked to a sacrifice - Jesus Christ.

Leadership and Charisma

What makes a leader motivating others? The most common answer I have come across is "charisma." People want to hear what charismatic leaders have to say and do, what they advise. “Charismatic people always combine two messages,” says Fox Cabane. “They give the impression that they have a lot of power and also that they like you, or could like you, a lot. Humans are hard-wired to dislike uncertainty, so when they come across someone who shows none they tend very hard to resist.” Therefore, it is not surprising that in nowadays of crisis many organizations seek to hire those who exhibit charisma.

Today more than ever we are in need of inspiring employees to confront problems, the need of workers that focus on tasks, and voice their opinions. Here leaders and not managers are setting their organizations up for needed transformation. Leaders, which have virtue, vision and “internal” power to do it.

It is not about the definition of a bad or good leader, it is about how he or she should behave and what she or he should aim for to be a successful one.

Martial arts are a value-driven system

In the past, the main objective of martial arts was effective and efficient combat that regularly resulted in mortality or caused some degree of injury, often very severe, while today, martial arts are being used in more than one way. The first would be in the direct usage of martial arts that serves the original purpose. It is only used in extreme situations by military, police, and such organizations.Nowadays, the term is usually associated with various unarmed Asian martial arts, such as Wing Chun, karate do, judo, taekwondo, aikido, and others, and martial arts using mostly cold weaponry, such as kendo, ninjutsu, battojutsu. In reality, it encompasses a whole plethora of martial arts from around the world, like boxing, savate, capoeira, jeet kune do, krav maga, fencing, and much more. But here we need to be aware of the differences in the ways of thinking coming from the environments influenced by Confucianism, Daoism, or Buddhism on one side, and the West on the other. This is all reflected in those martial arts. While the Chinese martial arts are predominantly rhythmic in movement, the Western tend to be more dynamic and tense.

Why this book (West vs. East) ...

There are hundreds of books addressing the yáng of outer leadership, complete with checklists, game plans, and first person accounts of how successful people exercised leadership. But I wanted to write a book about the yīn or an inner leadership.

Connected to those leadership issues, my other different views and thinking came from my martial arts practice and their philosophy toward life and fights.

I've learned that East wants to be in harmony with nature; the Western approach is to control nature also spurred by the Western way of life and religion. Martial arts in the East have a focus on the martial way and the mental culture united with body, while in the West their perspective is sportier and competitive, where winning becomes their main objective. We could say, using the concepts of Eastern is a ‘soft’ approach as in yīn, and Western is ‘hard’ as in yáng. Eastern mentality is like a bamboo tree which is quick to bend with wind, but in its absence becomes stronger. The West is like an oak tree unperturbed by the wind, only to be ‘unfortunately’ pulled out by a hurricane later on. There are other areas where similar contrasts can be made. The West talks about human rights, whereas the Far East understands collective rights or even more profound, rights for all living life-forms. The West is not economical with energy, whereas martial arts including Tai Chi, are good at preserving it and only call on it in an emergency.

Why yellow

A Chinese character for colour is 顏色 (yán sè). Before the Five Elements Theory was used and according to Daoists’ believe, there were only two colours: opposing, yet complementary principles, black and white, yīn (阴) and yáng (阳).

According to Chinese calendar system, the Ten Celestial Stems (shí tiān gān 十天干) are connected with the Five Elements or Phases (wǔ xíng 五行) representing five states of forces of expansion or condensation (the plus energy, or , expansion; the minus energy, or , condensation) and their corresponding colours are:

Are leadership and management different?

This topic always fires a "never ending" debate. But I like it. It shows how we perceive our surroundings, leaders, managers and our life in whole. It implies that having different opinions is better than having none.

Therefore, some people describe it as two different positions – like:

• A manager is a person who do things right; A leader is the person who do the right things.
• A manager puts on the first place the results and indicators – numbers. A leader puts on the first place the people to achieve those results.
• A manager imitates others. A leader originates.
• A manager has a short-range perspective (Present = Manager). A leader has a long-range perspective (Future = Leader).
• A manager manages the things so that dreams/visions of a leader come true.
• A manager plans tactics. A leader plans strategy.
• A manager is risk cautious. A leader takes the necessary risks.

Why dragon

Dragons are deeply rooted in the Chinese culture. This mythological symbol dates back to 3000 BC and stands for happiness, immortality, procreation, fertility and activity. The Chinese call the dragon lóng - 竜 and it is the first of the four Divine Creatures to Chinese – the others being the unicorn, the phoenix and the tortoise. The Chinese often consider themselves, 'the descendants of the dragon' (龍的傳人; pinyin: lóng de chuán rén).

Chinese dragon has the following nine characteristics: 

• head is like a camels,
• horns like a deer's,
• eyes like a hare's,
• ears like a bull's,
• neck like an iguana's,
• belly like a frog's,
• scales like those of a carp,
• paws like a tiger's, and
• claws like an eagle's.

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.