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UPDATED: January 30, 2008 Web Exclusive
So You Want to Be an SME Hero?
12 pills of local wisdom will make your SME work life a little easier in China land
By MATT YOUNG
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Hey you.

You in the home office working 16 hour days.

You lonely business guys and gals in isolated startup purgatory.

You anything-but-average Joe wearing seven different job hats trying to stay afloat.

We feel your pain.

So we come bearing anti-anxiety medication from China's SME Challenge, held on January 25, by AmCham-China.

We hope these 12 pills of local wisdom will make your small and medium-sized enterprise (SME) work life a little easier in China land. So down these tidbits, then go ahead and take a much-needed Ambien-free nap.

On HR Solutions…

1) To find those angel employees, spread your wings. Meet with college representatives face-to-face to build long-term recruiting relationships. There's nothing like having a third-party eye watching out for the moment manna falls from the sky.

2) Forget corporate culture. Think team spirit. And you're the lead cheerleader. So ra ra ra! Don't you dare put that pom-pom down. A sheet of paper with company values is nice, and that's what your employees will cite if anyone asks about corporate culture there. But the invisible mojo of team spirit is what counts. So let the girls paint their nails in unison on the job if you're in a creative field. "When I see that I'm very happy," said Hersey Cao, President and CEO of AcrossChina Communications Group. "Then I believe they will have more passion for work as well." Yep, they'll chip a nail soon enough banging out well-done work on their laptops.

3) Train and develop employees like you're at a multinational. You don't have to be a disciplinarian. It's not about beatings continuing until morale improves. But a well-oiled machine is a beautiful SME thing.

4) Put your smallness to use. You're not at a Fortune 500, so when you stand up, you can see everybody. "That's the beauty of small," said Simon Wei, Vice President of ChinaOK Network and Technology Ltd. Open your mouth. Communicate with the whole team. Repeat.

On Partnerships…

5) Thank your lucky stars, even though they can't be seen in China. Joint ventures used to be the only navigable foreign business route; they could last for 10 years, and have a maximum 50 percent of foreign ownership, said John O. Hjelset, Executive Director of Norse Dragon Co. Ltd. Now lots of industries can benefit from wholly foreign-owned enterprises (WFOEs), and if you can, you absolutely should opt for this over a joint venture. Let's say this as straight as an arrow: No panelist recommended a joint venture over a WFOE.

6) If you absolutely have to have a Chinese partner because it's required in your industry, get the guy to bring one of the following to the table: either a building, land, or a good vibe. "If it's a person you can just get along with, that's a great asset too," said David Wood, President of The ChinaCare Group.

7) Chinese partners may seem coy when it comes to running the CEO show, but don't be fooled. They often want to control personnel, Mr. Hjelset said. Modified word to the wise: HR is power. And absolute HR power is power absolutely. So when your company suddenly seems haunted by apparitions of new faces and mysterious employee disappearances, remember: There's no such thing as corporate ghosts--only foreign managers in nervous-breakdown mode after losing company control.

On the Next Best Thing…

8) It's hot sauce. The kind you make after growing hot peppers on you rooftop. Get going because David M. Jacobson, Managing Director of SinoFile Information Services, hinted he's getting some jalapeno seeds ready.

On Corruption…

9) Maybe you're damned to hades if you do, but you could be damned out of luck if you don't. Of course, no panelist openly advocated crossing the ethical line in the sand. However, some companies (and maybe your competitors) have handed over a nice car or apartment for personal use to someone exceedingly useful. And that scholarship for "smart" little Jimmy might just be bankrolled by his powerful uncle's greatful client.

10) Mr. Wood, however, noted there's a big difference between good guanxi and corruption, and he's disgusted with the latter. If you're a healthcare company in need of good docs, maybe you could woo them by organizing professional events to help them build their reputation. It's better than going down a devilish path, or baijiu-ing.

On 1.3 billion Chinese customers…

11) It's ok to ignore them. "The foreign market in Beijing is already large enough for us to grow and stay busy in," said David J. Roberts, Managing Director of Kroznot, a multimedia company. There's also fewer cultural faux pas when aliens deal with other aliens. Except Mars/Venus relationships. Those are just impossible.

12) Then again, we've all been boys chasing girls at some time or another (where boys are companies and girls are customers). "Why should I [a Chinese client] pay you?" wondered Priscilla Ho, founder and Managing Director of Prescient Marketing Ltd. "You have to show them the value," she said. "Make your value a little more scientific, a little more concrete," she said. Then you can charge a more premium price.

(Matt Young is editor & publisher of bizCult.com)



 
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