My last job of being an employee was the deputy managing director of China operation for an international PR group, albeit this was 26 years ago.
There was an interesting incident during my stint with this company. The group’s CEO once paid a visit to China and chaired a so-called town hall meeting with all the employees in Beijing.
In the Q&A session, an account director asked the CEO a question: “What are your advice to compete in the China market which is featured by fierce price-cutting competition?”
In my opinion, this was not a clever question – The global CEO would expect his local managers to give him the answer instead of the other way round!
The CEO’s answer was equally disappointing. He casually gave some cliches like “We should demonstrate our values to clients rather than focusing on price, bah bah bah…”. I expected him, as a leader, to do a better job in terms of mentoring this junior manager even her question was slightly dumb. He should further elaborate how to demonstrate values to clients as well as its implications to managerial maneuvers. Any pragmatic manager would know that the only way out in a cut-throat competition and a price-sensitive market environment is a three-step strategy: Firstly, make offers to clients that they can’t refuse (sounds like the famous narrative from the movie Godfather!). This implies making your price be competitive; Secondly, in order to make up the reducing profit margin, you have to look for more businesses. This means the entire operation may skew towards a volume business; Thirdly, being frugal in terms of cost control is inevitable.
This does not sound polished and stylish, but I think such candid, straight-from-gut managerial advice is key to forge a dynamic and pragmatic company culture. But I did not think this managerial style would be well received in this company.
Therefore, I established my communication consultancy in China in 1998!
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2wCongratulations Stephen Robertson !