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

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WWhhat cat canan we learn from the Chairman … we learn from the Chairman …

… that can be applied today?

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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

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And, the Winner will be?And, the Winner will be?

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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

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The Long MarchThe Long March

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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

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The Unreasonable Man PersistsThe Unreasonable Man Persists

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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

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There’s 1.3 Billion of UsThere’s 1.3 Billion of Us

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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

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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

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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)!