Let me re-post this article: Communication is key to Any Success. It is still true.
Ten Characteristics of Great Companies
Feld posted an article about Ten Characteristics of Great Companies. Nice article. Among the ten, if you ask me to pick three, here it is:
3) Great companies make lots of money but leave even more money on the table for their users and partners.
4) Great companies don’t look elsewhere for ideas. They develop their ideas internally and are copied by others.
6) Great companies are led by entrepreneurs who own a meaningful piece of the business. As such, they make decisions based on long term business needs and objectives not short term goals.
There are some hard lessons on this to run great company.
Is This H1N1 Flu?
More and more people got flu these days. I have so many people around me to have flu: one after another in office, and about half already got flu. one colleague has 4 out of 5 people in the family to get flu. Yifan get flu, and is still coughing. I am not feeling good this morning but better this afternoon.
Most of the people visited hospital and confirmed it is not H1N1 Flu, including Yifan, but I just started to suspect why the flu got spread out so quickly? I never experienced flu infection as strong, and as fast as this.
I even started to guess whether the flu is actually H1N1 Flu, but it just proven not to be that harmful in China, so the hospital doesn’t report it as H1N1? Or, I hope, it is just an coincident.
Free Wireless in Starbucks Shanghai
I am sitting in Starbucks after talking with my friends. From mid of this year, Starbucks started to offer free wireless service partnering with China Mobile. (news)
Although only 80% of 120 Starbucks stores in Shanghai now provide the service, the most visited Starbucks stores have that access:
– Grand Gateway Store I
– Grand Gateway Store II
– Metro City Store
– Huashan Greenland Store.
It is not completely free. You need to have a mobile phone (not sure whether it has to be China Mobile mobile phone) to access it. You need to enter your phone number after you connect to CMCC-Starbucks wireless network, then the user name and password is SMSed to you via mobile phone. Then you can access the service on your laptop.
Very nice service!
I am happy that although Starbucks is relatively late to provide this service comparing to other players, they provided a pretty decent service by partnering with China Mobile. Other players like Coffee Bean and Tea Leaves provide the same service long time ago using their own managed Wireless hub, but the service was not stable.
I am Dreaming about Visiting India
Just had nice dinner of my Indian friend Pranay and Jiby. We spent two days together, when they visited us in our office.
Over dinner, we talked about a lot of politics, and shared about the change in China and India. It is interesting to see how the current Chinese system of a powerful central government can do whatever they want to do, and sacrificing individual rights for growth, and in India to sacrifice development for democracy. I do not agree on the general perception in India that China grows just because of one strong power. Will talk about it later.
At last, I suggested them to use Metro Line #1 to transit to Metro Line #2 at People’s Square and then transit to Maglev train to the Pudong Airport tomorrow morning. It is obvious that the Maglev part is a good suggestion, but transiting at People’s Square may not be as impressive for my India friends, who are used to the train station at Mumbai!
I am also impressed by the high house price (both rent and purchase) in Mumbai. I started to worry about my travel expense there.
MP4 is Cheap
I am not a big fan of MP4, or movie or music, but today, Wendy surprised me with some good hi-tech toys – the MP4 players that have been popular in the market for several years in China.
Our favorite is a MP4 player with many functions – Mahdi. It has 4GB of storage (many has much bigger than this), and can play HD MP4, display pictures, play music and record sound. The screen is very big – like two typical mobile phone combined (I mean the size of two phone, not their screen). The price is 299 RMB (40 USD). It is not bad at all.
With the cost of LCD and chip/processing going down, you can easily spend several hundred RMB to get a pretty decent player.
The usability is terrible, compared to iPhone or iPod, but on the function side, comparable!
The next big question is, when the Chinese manufacturer start to work on the design and software to leverage the cheap hardware.
Hospital is Badly Needed
Yifan got fever from Saturday. Not a very big deal – just the typical fever because of getting cold. However, I took the chance to get to a world that I haven’t touched too much before.
Yifan started to be hot at round 5:00 AM in the morning. Wendy and I got up and sent him to Huashan Hospital. When we approached the hospital, we saw about 100-200 people lining up already. It is obvious that they have been there for a while. They waited just to get a “number” to see an expert doctor. The big gap of healthcare resources and people’s demand for such services is obvious. Among the hundred people, there are 10-20 agents greeted us and asked if we need to “buy” a “number”. They make a profit by getting tickets from either inside the hospital or wake up earlier to line up.
Huashan Hospital does not accept children, so we drove to another hospital – Ruijin Hospital. It is the same there – 100 people lined up at 5:00 AM. I am sure many of them need to go there to line up the second day because of the scarcity of the “numbers”.
Goal Driven vs Discovery Driven Life
From time to time, I reflect what I am doing and can find a strong tendency of living a “discovery driven life” in myself.
Sometimes, after doing a lot of things very excitingly, I found out I didn’t have a goal at the very beginning. I tend to discover the dots first, and then find ways to connect these dots together afterward, instead of having a prediction, a projected line, and drive things along that line and reach the goal. In MBTI analysis, it is a typical difference of P type of people and J type of people. Me as an ENFP tends to do things like that.
The reason I love the MBTI theory is, it helps people to understand the motivation of themselves, and the style of doing things, and how to intentionally develop the other side of the personality to be a better person.
For me, as an example, to develop the goal setting, and to focus on that goal for a given time period is something I need to train myself.
Shanghai for Disabled
I am a part-time disabled person now. I use crutches whenever I go. Let me report my two weeks of experience as a disabled in Shanghai.
Wheel Chair? No. Thanks
I did get a 300 RMB nice wheel chair but I only used it outside my home for once. It turned out that Shanghai is not a good place to use wheel chair. There are slops at the pedestrian at cross road, but it seems no one ever tested it. The gap (about half cm) is just too big for a wheelchair to pass. Wendy pushes the wheelchair to get me up to the pedestrian, but got stuck there. If she pushes harder, I will fall out from the front since it is stuck anyway. The only solution is for me to leave the wheelchair, jump aside, helped me to pull the wheelchair up, and get to the pedestrian, and then sit down. After several places like this, I gave up wheelchair.
Stairs
There are many places with lots of stairs, especially in restaurants. Once when I was shown of 20+ straight stairs to the second floor, my jaw dropped – just like the Panda in Kungfu Panda saw the stairs to the temple. I said: Thanks but no.
Crossing the Street
Crossing the street is so exciting! With cars horn and other people running as fast as rabbit, you quickly found out you are the only person left on the pedestrian, and the green light is almost over. The cars are like the race cars at the starting point – the engine is ready, and just wait for a green light! Well. I admit that I feel this type of tension only in Hollywood movie. Poor Jian Shuo!
Few Disabled on the Street!
I know the real reason why there are very few disabled in public space in Shanghai (and in China). The city is not designed for disabled (at least not for people losing a leg, no to mention people who cannot see). The only disabled people you see are very likely to be beggar – although some uses a crutch just to pretend to be disabled.
Yifan and Cars
Yifan is a big fan of cars. He loves all kinds of cars – the real car running on the streets, his toy cars (he has a lot) or cars on TV, magazines. He especially loves red car. He knows the cars by brand and can tell you the brand all the time. His favorite so far is Audi, followed by Mazda.
He loves everything related to car. He washes his car all the time, and leaving the table a mass with water.
He loves parking garage, and he especially loves the pole at the entrance of parking lots. He loves to treat our legs as parking lot, and repeat the following conversation 20 times a day:
Yifan: Parking pole!
Dad: You need to pay.
Yifan: seeking out to his pocket and put “air” into your hand Here you are.
Dad: How much is it?
Yifan: 100 Yuan.
Dad: Not enough.
Yifan: Price rise?
Dad: Yes.
Yifan: Too expensive.
Dad: No pay, no entrance.
Yifan: putting another piece of air into the hand This is 100 yuan.
Dad: OK. You can go.
Yifan: Hahaha. The car is coming in!
Then he drives his car around the table and get stopped by the Parking Pole again. “Parking Pole!” the whole story happens again.
Sometimes when I ask for more than 200 yuan, he would turn to his mom to lend some money.
Yifan now is just like a small boy now, and can have meaningful conversation for a long time. He is happier than before since he found we started to understand what he wants, because he can say that!
Cute boy.
IBM vs Dell Laptop
When we read about books about several years of transition of competition, we take it for granted that some brands can quickly take over the other brand, but in reality, since that happens slowly, we are also slow to recognize the shift. IBM laptop vs Dell laptop is an example.
Previous Perception of Quality and Service
I always consider Dell as the brand of “bad quality + good service”. The image was there since I started to use Dell desktop and laptop in 1998 in Microsoft. Dell’s computer parts break easily, but they offer second day on site service, and they are happy to exchange any part in their service period. I especially love their “service tag” design.
On the contrary, IBM’s ThinkPad series is of so good quality. I switched to IBM many years after I used Dell, and started to understand why so many people insist in buying IBM ThinkPad over Dell, even when it is much more expensive. It just gives people the feeling of safety – never breaks, and works as solid as stone. However, IBM’s service is so bad – I never saw an IBM service people, but I even know some Dell guy by name and face.
What about Now?
Today, the IBM ThinkPad quality goes down dramatically. I feel it is even worse than Dell. Meanwhile, Dell’s E-series gets better and better reputation. I heard about many good things about it (just as I heard about good things about Windows 7).
Now the competition becomes:
ThinkPad = Bad Quality + Bad Service
Dell = Good Quality + Good Service
Dell is also relatively cheaper than ThinkPad.
I won’t hesitate to bet on the result.
IBM vs Lenovo?
To correct what I wrote, ThinkPad is no longer IBM ThinkPad. It is Lenovo ThinkPad.
Always Not Good Enough
Or the topic can be “Always Stay Humble”.
The best time I feel focused, and archived is when I was in middle school. Let me share the story that I have never shared in the last 17 years with you today. That was triggered by another great book I read many times Good to Great.
The Middle School
The best school I entered in my life is my middle school – much better experience than the Shanghai Jiao Tong University. The middle school has as long history as my university – the Luoyang No 1 Middle School.
That school is the best school in the city. Why? Because they way their students are chosen is very simple: at the middle school entrance exam, the top 352 students across the whole city (with 6 million population) are admitted into the school, and other schools choose the rest. It is a simple order by score from highest to lower.
I didn’t perform well in the middle school entrance exam (Seems an excuse. The result may have reflected where I were), and I was around the #352-360 range – one point lower than the entrance line. I should have not been able to enter that school, but they finally offered 10 more students in addition to their original plan. That is how I ended up appearing on that campus.
“Everyone else is Better than Me”
Imagine what it is like to clearly know that you are not as talented as everyone in this school! It is not you force yourself to believe so, it is that you firmly believed it from bottom of your heart! “Everyone is so talented, and much better than me!” This was my belief.
With that belief, life is actually much easier for me. Since you are at the rear of the line, the only possible thing to happen to you is to become better. I played hard and studied hard. Although sometimes my classmates asked me silly questions about homework, I just feel that everyone has some weak points, and I may have more.
The good (or bad) thing for a Chinese middle school is, they have mid-term exam, and the result of everyone’s score is public data – just like a NASDAQ system. The first mid-term exam came. It turned out I ranked 27th in the school (6 in my class? I forget. There are 8 classes in my grade).
Very exciting. It is the first night in my life I couldn’t fall asleep.
The Second Acceleration
I was stuck in the rank 15th – 30th range for grade one and two. When the Final Exam (College Entrance Exam) got nearer (one year away), I felt another round of acceleration. It was based on another belief that I didn’t really need to care how good the people around me were; I only needed to care what I can archive. In today’s view, it is called “a bigger goal than getting into top 15 of the school”. That, fortunately, worked very well for me.
In the last three simulation exam, I got better and better in position. Finally, I believed I took 4th place of the whole city. The guy before me was the #1 in the half million students in that exam in Henan Province that year. To make me look a little bit closer, I took the first place in one single course in the province. (Just FYI, Wendy did extremely well in the mathematics in the same exam, scoring 147 out of 150).
Lesson Learnt
There is no positive co-relation between middle school score in exams and further achievement. But what I learnt from that particular experienced helped me in the future, especially when I fell too good about myself.
To genuinely believe everyone around you is better than you, and to always feel that you are far from what you want to archive, made a huge positive difference in my middle school age.
Steve Jobs said “Stay Hungry. Stay Foolish” to Stanford students. He said it in a humble way. Humbleness ignites hard work, and unlimited power.
So always stay humble, and you are always not good enough.
Whole Society is the Biggest Network Effect
I chatted with Doug on this the other day about the difference between people in China and US. I have written on this topic in many articles:
Why People don’t Use Voice Mail in China
Why Classified is NOT Popular in China, Yet
The Slow Move
You will find that people in US seem to move slower than people in China in all of the cases, just because most of the things are new to Chinese, and people in China can directly by pass voice mail and get to mobile era, by pass calendar and directly do real time planning (via IM and mobile), and no possibility for newspaper based classified in China forever.
The problem then will be, why it is slower to move in a more established market like in US?
My answer is about network effect.
In eBay’s case, in the cases of many SNS site, and in the case of telephone company, we are using the term “network effect” to describe the fact that by adding another point in the network, the whole network get more useful than before the addition.
In the voice mail case, since most of the people are already using voice mail, it is so hard for people to change the behavior to switch to mobile over night, since the voice mail network is so big and so useful to abandon. Think about fax machine! What is the point to print out a document and fax it and throw the paper away? The reason is, so many people are still using it and making the fax technology – the fax protocol still attractive.
When to do the Shift?
When the network effect there, change in a few of the users won’t impact the network. 10% of people don’t use fax machine actually does not take big impact to the whole network.
BUT, one thing can change it. That is some big social movement that changes everyone’s behavior at the same time. Let me give two examples.
1. The earthquake in Taiwan in 2007 that cut the cable between US and China. The week of pause of any service from US actually changed the nature of many Internet business in China – just because people (100%) are switch at the SAME time.
2. Another example is SARS. Since everyone choose to stay at home during May holiday in 2003 at the SAME time, online shopping site Taobao got its best push since a big social event like SARS not only changed the behavior of part of the network, it almost changed everyone, so changed the whole network effect.
The Biggest Network
In that sense, the whole society can be treated as the biggest network effect business. A shift is very slow, and takes long time to happen. The only way to change it is big social events like cut-off of Internet for several days (like the earthquake), or SARS. The recent Sichuan Earthquake, and H1N1 Flu are very likely those pushy event, but we don’t know the impact yet.
Craziness of Real Estate Market
Well. It’s me again, to complain about the craziness of the real estate market in Shanghai. I have talked about it many times in my previous post about real estate.
Let’s talk abut the recent round of rise of real estate market.
There is a new residential area called Xing He Wan 星河湾 near where I live – in Pudong, at Jinxiu Road and Long Yang road – within walking distance. They just opened to the market at 50,000 RMB/sq. meter. The market responded like crazy, and all the apartments were sold out in the first 3 days. That means 10 million to 20 million RMB (or 1.5 million to 3 million USD) per apartment there.
The rise of price in high end real estate showed, in my opinion, the expectation for inflation of RMB. Not only in Pudong, high end houses in Pudong get 50% raise in many places. 80,000 RMB/sq meter is the new high end house record, like the Kerry Garden near Huashan Rd, and Jiangsu Rd.
The other reason for the strong growth in housing market these days is about the lose of control of bank mortgage. It has never been easier to get loan from bank in the recent months.
Meanwhile, the real estate market for business seems to enter winter. The interesting contrast of summer in high-end house, and winter of office buildings are telling a solid story for me: it is a bad sign for the economy.
Disclaimer: Please note that I am not an expert in real estate. Don’t count on someone who never really looked into it to tell you any insights about this market. The only advantage I get is, I actually live in this city, and can hear some gossip, and news about the market.
Just FYI. I never opened a stock exchange market in the crazy Chinese stock market in the last few years. So you know how lazy/stupid/insensitive I am to the money market. Hope this additional disclaimer helps if you still think you should believe in what I tell you. — the other stronger way to say: I am not responsible for any investment made because of this article.
Talked with Friend about Money
Spent the morning, noon, and part of the afternoon with Wendy and my good friend. We talked a lot in a corner of Starbucks, and then moved to a quiet restaurant at Zhongshan Park area. Here are some of the points mentioned.
About Wealth. He is in the stage that wealth is not a problem. People don’t need to have too much money to sustain a good life. 1 million RMB per year maybe the top range for any moderate successful people to spend – excluding people who put an equal sign between money spent and their value to this world. I would tend to agree.
On practice in stock market and real estate market. He treated everything as a mathematic model. Money is just a side effect. On the market, everything he does is to practice self-discipline – it needs a lot of courage and discipline to say no to many attractive, but not disciplined opportunities. By saying no many times, the self-discipline gets better and better.
Many other good stuff. Nice time. As Bob mentioned in his twitter, it is not time together, it is “qualified time” together.
PS. It is a good principle to always consult someone with experience. Everyone’s life and experience are limited. Talking is a way to connect your brain with others’ and to get experience they had. To build a network of great people to consult is great wealth.
Reading Books – Built to Last
I don’t remember this is how many times that I read the book Built to Last. The first time I read it was still in the old Microsoft days. The last time I read it was among the time I was in deep passion for Fengshui, and these days, Xiaoliang falls in love with this book, thus I read this book again.
Interestingly. The book itself didn’t change, but the inspiration you got from it changed a lot. For a lot of things, if you are not in the position to think about it, you don’t understand it at all.
My learning is: for good book, read it again and again is better than reading many so-so book. (Well, keep reading is just to find out great books out of so-so books).
Full Content on Home Page of my Blog?
I am thinking about putting the full content of the last 20 articles onto the homepage of my blog, just as most of blogs. The goal is to help people to glance at what is the recent articles on this blog without clicking into each article. Is it a good idea? I know for many, it does not matter since they read through RSS. I have full content delivered via RSS anyway.
Good Morning, Shanghai
Another early morning. Good morning, Shanghai. Or good afternoon San Francisco, and good night, New York. Ops. For London, I’d rather don’t say anything since it is late night and people are sleeping.
Just finished another conference call, as one of the hundreds of conference calls I had. I found it interesting to have conference calls – for people from around the world, having different time zone, and different places to talk simultaneously over the thick line of phone. Well. I should not have been amazed by the telephone technology in this Internet era, but when you really think about it, this is quite amazing.
A time zone does change a lot of thing. Do you have the feeling that although you are talking someone in another time zone, you feel you share many context in common, you still feel something strange. For example, you cannot great the other party the way you great people around you (physically around you), and you can sense a feel of sleepiness when it is early morning (like myself), or the energy in someone else after completing one day’s of work (like in San Francisco), and at the same time, you can imagine what a beautiful night and the scene out of the window of the office building in New York – sweet night in a great city! To mix these different background together in a small telephone line is interesting experience.
Address of a place sometimes acts as subtle indication. Yesterday, when I trying to write down the address of a place, I smiled:
1 Wall Street, New York, USA
It is the Bank of New York.
What that address tells you in a subtle way? It echoes exactly what the conference call and timezone reflects.
What if Someone Cut my Tree?
I was asked the question in a family gather in the States on July 4 about “what happens if your neighbor gets to your garden and cut your tree?” I answered: “I will jump to their garden and cut their trees, and if I can break their window, that is even better”.
I was kidding, but the bitter reality in China today is, that is maybe the only solution left.
Legal System
Legal system is designed to protect the common people, but not so true in practice. As I said, I never sued someone in my life, and wasn’t sued, because suing is not that useful, in practice. People solve problems by themselves (some times violently).
My colleague A encountered something similar. Two guys got into our company violently on one weekend. They threatened to destroy the computers, and office equipment. At the emergency, my colleague had to defense and pushed them out of the office by violence – someone got hurt. My colleague then immediately called 110 and the police came.
The police educated A that he should not have done it. When asked what he should do when two strangers get into the office and when there is only one person inside, this is what the police suggested:
You should not force them to leave, even when they are in your office. If they threaten to destroy something, you should let them destroy it. This way they break the law, and then you can call us. But before they destroy anything or beat you, you should NOT do anything.
Although we have all the CCAV record of what happened (how they broke in, and what happened), the police insisted that A pay 500 RMB for the damage he made to the two strangers. After several hours of wasting time, A finally paid the money and get the thing settled.
This is very common. I personally encounter stuff like this many time. The typical thing policemen will tell you is: “Do you want to spend endless time and effort to sue them? The court cannot solve the problem.” or “for small things like this, no court will handle it. Take it easy and let it be.” I recorded one of the even 5 years ago: Goudaner Scratched by Drunk Driver. My car was scratched badly by a drunk driver, and police came, and the driver/passengers left the car. The policeman came and said he could do nothing. I called to complain and I was told that if I insist, I can bring witness to their office to record it. Well. There is no chance for a file to the court without their written confirmation…
So, many years of social experience tend to teach people to protect themselves by themselves. That is maybe the reason many people (I mean my friends!) believed that violence is always a better choice.
BTW, any reader has any experience to sue someone on the court when the damage is less than 100K USD? What was the experience and how it worked out? (Well. Even if the court find the other party is guilty, there is few ways to enforce it.)
Legally Speaking…
When I encounter with the security guard in my residential area, I felt more confident than having the same conflict with the security guard in my office building. Why? Because I know in the first case, I am the owner of the property, but in the second case, I am just a leaser, not an owner. You see the difference? As a leaser, I only have the option to complain to the owner of the building, and if they refuse to take their right to do something with the property management company, my only choice is economical – move out. But if I own something, the right is more political – I have the *right*.
However, to think it deeper, even my own house, I don’t own it. I LEASED it from the country. I am a leaser of my own house. For many people who don’t have their residence permit (several million people live in Shanghai without that resident permit), they can only get a TEMP permit for living in Shanghai. In this case, they don’t have the right too – they are just visitors to this city, no matter how long they live here – 10 years? 20 years? and their children don’t have the residence status of this city. (Refer to this Hukou article).
In both situation, legally speaking, you don’t have any right. You have the right to complain to the landlord of your house, or complain to the city that you are visiting, but that is suggestion based right, not a legal binding right.
In that sense, we are all *leasers* or guest in this country, even after paying one million USD to get an apartment in Shanghai – the apartment still belongs to the government, and you just get a lease contract of 60 years.
The Hope
There is still hope though. Now we do have a legal system. Although it does not work as well as it was designed, but it is improving. More and more people turn to the legal system for justice, instead of violence.
Zhiyong is one typical example of it, although he himself was officially arrested the other day. He was accused for tax evasion. According to tax law, he is free of penalty if the company pays the tax and fine in full (the tax evasion is about a pending charity donation from Yale University for doing research.)
Many people from around the country donated to pay the 1.42 million RMB fine ticket (well. Think about it. People donate to pay the fine by government!), but the tax department rejected the money because the Legal Representitive of the company, Zhiyong, is not able to go to their office to sign the document. Zhiyong cannot go because he is arrested. He is arrested because he wouldn’t pay the fine. He wouldn’t pay the fine because he is arrested… the loop is intentionally kept there. In that logic, the only way for Zhiyong to solve the infinite loop is to complete his 7 years in jail, and then go to the tax office to pay the fine. At that time, I believe the penalty of delaying the fine (3% per day) would be 100 million.
However, I still keep the hope that as long as there is still a place to talk about the legal system. Just like the dead loop here – it is still legal term and legal process any way. There must be a way out as long as it is still legal talk. In this sense, the country has improved.
Keep the hope.
Yifan’s Drawing of Fish
This is the picture Yifan drew in the last few weeks. He enjoys to draw big circles like below:
Drawing of Yifan at age of 2
Drawing of Yifan
Drawing of Yifan
Like it?