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How to rescue Bombardier from the road-dust of fai 2023-10-07 04:47:00

How to rescue Bombardier from the road-dust of failed RIM

已有 1105 次阅读2016-3-19 18:10 |个人分类:Frank's Writings

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How to save Bombardier from the road-dust of failed RIM 

        Frank   Mar. 19, 2016 in Waterloo, Ontario, Canada 

www.kwcg.ca/bbs/home.php?mod=space&uid=61910&do=blog&id=4032

[Key point] In a long-run enterprise, due to the people are familiar between each other with friendship, the relationships between the managements and staffs are intricate complicated. It is difficult to deal with some problems decisively by the existing managements. It is not due to the ignorance or irresponsibility at all, but, due to the common nature of human beings. The best way is to introduce external powerful leadership with injecting into exotic vibrant DNA.

No matter who dealing with the problems in the business, the available solutions will much be same in the major, however, the introduced experts do not have the fetters of the friendship with the existing staff, so that they are less concern when dealing with inevitable personnel issue. More importantly, in this roundabout way, it will be less causing hostility and unrest.

This article discussed the lessons of failed former RIM, at this basis, introduced the successful practices of Dr. Ram Charan, the management consulting guru in ranking first in the world, who works as a consultant and to have fundamentally revived trouble ridden ZTE Corporation, a leading multinational telecommunications equipment and systems company of China. In business field, it is similar as that of failed RIM of Canada.

<<<<<<>>>>>>

Feb. 13, 2013, the Business Development Bank of Canada (BDC) issued the survey report to have given a bad information with exact datas – Canada's mid-sized firms have declinedby 17% — from 9,370 to 7,814 — from 2006 to 2010, in which, the manufacturing sector reduced more than half, from 2,807 to 1,381 between 2001 and 2010. 

In the Era of market economy, living space has changed into market space from geographic space of agricultural economy; the decline of Canada’s manufacturing is in destructing the living space of Canadians.

May 18, 2016, I once wrote article How to save Canada's manufacturing from disappearing to have indicated that 3M Canada saved 30% of energy by ISO50001, showed the magic of accountability of ISO management standard, by putting a label of responsibility on everyone's forehead to reward or punish, which provides us with an easy way to cash in on the huge profits that low productivity has stored in the society of Canada.

Many tragedies were man-made. As long as those democratic players in power have a slight sense of responsibility, theose tragedies would be never happen. People never understand that it was that the democratic polics has been in making disasters.

In 2019, current Canadian deputy PM Chrystia Freeland said that Liberal democracies are being "hijacked by angry populist politicians, “the doubts creeping in inside liberal democracy… liberal democracies that are becoming totally polarized societies, divided into these hostile – even warring – tribes who can’t talk to each other, and societies that have been hijacked by angry populist politicians;” ” where “the details may be unique but the basic storyline is the same.”

In 2019, the CEO of Business Council of Canada Goldy Hyder wrote article Our politics is suffering from analysis paralysis and the illusion of action: "Political pendulum has been thrown into extreme" “Canadian leaders don’t consider themselves to be nation-builders in a literal sense.” “The issue is that our desire to critique now exceeds our desire to create.” “The procedural obstacles we’ve put in place make it possible for a handful of individuals to hold up initiatives endorsed by most Canadians. Important projects, programs and policies can be delayed until supporters give up and move on.”

Democracy acts as that of religion tearing humanity, tears governments losing functions, and become the playgrounds of street boys and girls.

Today many international conflicts and proxy wars in world were purposefully provoked by democratic politicians for maintaining their political position in own country to enjoy luxury payment, luxury benefit and luxury previlige; without human sense and the most basic sympathy for caring about that will kill lives and made world unlivable.

Due to the exsistence of people who were inborn in brain defects; it was not all people in human feature in human nature, some are in low quality without ability for properly reasoning, in taking stupid as smart, taking wrong as right and promoting inhuman for human.

            Motivation of the topic

    1... Revive BlackBerry Limited by idea of consulting guru Dr. Ram Charan

2…How did fatal DNA and wrongful corporate culture failed RIM

2.1…Stifling intellectual work environment

2.2…RIM’s senior executive has to express suggestions by open letter

2.3…RIM’s responds to open letter with no thanks but hatred condemnation

2.4A scientist has similar experience with the Open Letter

2.5…A Middle management boldly exerts animal instinct

2.6…Researchers stop innovation due to the fruits seized by others

2.7…Comprehensive regulations did not properly carry out

3…Dr. Ram Chalan has regenerated China’s ZTE Corporation

3.1…The fatal DNA of ZTE corporation              

3.2…Invite consulting guru Dr. Ram Charan to help transformation

3.2.1…The philosophy of Dr. Ram Charan on ZTE operation

3.2.1.1…Dr. Ram Charan deals with thorny issue of personnel

3.2.1.2…Focusing on Execution and Accountability

3.2.2…Efficient decision making by president of the joint meeting

3.2.3…Solves problems in researching by morning meeting

3.2.4…Employees who work overtime are commonplace               

3.2.5…40% of total employees in R & D

3.2.6…The remuneration of Mr. Ram Charan is $ 20,000 hourly

4...The great benefit from consulting guru Dr. Ram Charan

5…Dr. Ram Charan makes many world business giants success

6…The business philosophy of Dr. Ram Chalan

Motivation of the topic

Mar. 19, 2016, I shocked by a Mandarin article Laid offs, downgraded, deferred delivery, Bombardier, the proud of Canada is quickly in closing that published in Aug. 8, 2015.

This year, the Bombardier Inc., the famous transportation equipment manufacturer that headquartered in Montreal, Quebec, Canada, has continued in bad news-ridden, from layoffs in May, deferred delivery of TTC streetcar in July, and to be downgraded in yesterday due to the debt level is too high.

In recent years, Canada's business giants in science and technology seem always in bad luck, after the painful failure of the Nortel Networks and RIM those were once the proud of Canada, the manufacturing giant Bombardier Inc. seems in stepping on the failed footsteps.

The plight of Bombardier is a microcosm of Canadian society at a whole: as that of a frog sat in the Well with limited vision,in lack of enterprising spirit, but, in blindly self-satisfied with the status quo. It is destined to be self-eliminated sooner or later.

In the Aerospace field, Bombardier Inc. cannot compete with Airbus and Boeing in technology, in the ground transportation, Bombardier Inc. cannot compete with China in productivity. Internal corporate culture and management have also a lot of problems.

The C-Series narrow-body aircraft had planned to be delivered by the end of 2013, but, recently, it was revised delivery in late 2015, which was delayed for two years, but, that is still in unknown whether it can be delivered on time. The inefficient is a typical characteristic of Canada, the BB10 (Black berry) was once also repeatedly delayed.

Above is excerpt translated from the article that was obviously by a writer in the culture background of China. Though, the languages were with somewhat extreme, however, it obviously came from a strong sense of social responsibility when facing Canada has been in self-abandon without sense to live up to expectations.

Following are some reports in public media about the decline of the Bombardier Inc…

Bombardier Inc shares fall below $1 — its lowest leve in almost 25 years

Bombardier Layoffs To Hit 7,000 In Canada, Europe

55 new TTC streetcars expected by end of year

Bombardier’s biggest gamble: How everything went so wrong with the CSeries dream

Bombardier Inc in talks with Canadian government on CSeries investment: CEO.

Here is a new report in shows that Bombardire Inc urgently needs to enforce management.

November 3, 2016  Metrolinx files notice of intent to cancel Bombardier Inc light rail vehicle contract worth $770 million: Metrolinx, the Crown agency that manages public transit in Ontario, confirmed Thursday it has formally notified its intent to cancel its $770-million contract with Bombardier Inc. to supply light rail vehicles in Toronto.

“There have been some concerns about Bombardier’s performance as there have been significant quality and manufacturing issues that, to date, have not been resolved,” said Metrolinx spokeswoman Anne Marie Aikins in an emailed statement.

“As a result, we have taken the next step available to us through our contract,” Aikins said. “We will continue to work with Bombardier on this issue and we will deliver on our transit commitments.”

With the culture background of China, I was shocked by that even Bombardier Inc. has lucky gotten the order of TTC street cars, but, it actually cannot produce on time. The shocking is at that the street car was the old matured products.

The plight of Bombardier Inc. is not simply due to the poor international economic environment, but, from the poor internal management, which is mainly influenced by the poor social governance based on the conservative social ideological.

It is a microcosm of Canadian society at a whole.

The plight is not derived from the lack of substance, but, is from the lack of spirit, from the sickness of nerve palsy without national pillar in soul - an innovative enterprising spirit.

In a long-running large enterprise, due to the people are familiar between each other with friendship, the relationships between the managements and general staffs are intricate complicated. It is difficult to deal with the problems decisively by the existing managements. It is not due to the ignorance or irresponsibility at all, but, due to the common nature of humanity.

The best way is to introduce external powerful leadership for manufacturing with injecting into exotic vibrant DNA.

For this concern, the best leadership is Jack Welch and Ram Charan, the successful business manager and management consultant, they are both derived from continuous studies and explorations that are driven by the strong sense of social responsibility.


                       WelchRam Charan

From above photos, we can feel the unique spirit and strong determination of the two powerful promoters in social progress, which is also what that Canada urgently needed.

About Dr. Jack Welch 

Jack Welch was the former chairman and CEO of General Electric between 1981 and 2001. The most report about him was focusing on that during his tenure at GE, the company's value rose 4,000%, But, few people realized the social significance of Jack Welch has contributed – it is that there about one-third of CEOs in the Fortune 500 companies was from GE, they promote GE's advanced experience in management to other companies with playing a role to promote the progress socially.

Sep, 18, 2010, CCTV Dialogue program interviewed with Jack Welch, in which mentioned that Jack Welch set employees as three group, 20% best performers, 70% as general, and 10% as poor performers that have to kick out, and in 20 years period, he kicked out 170 thousands of incompetent employees by giving them advice for improvement, if they fail, giving them one year time to look other job elsewhere.

For this issue, Jack Welch explained with that, Business is a kind of game, in any game, Football, Rugby, Hockey; the team with the best players wins. Well, in the companies, the team with best players wins. If you did not have a good team, in the long term run is not great. The achievements of GE did not made by my Jack Welch, but the employees. It was our employees to make these numbers a reality, because they have actively involved in the commercial activities.

About Dr. Ram Charan

In viewing that Bombardier Inc. is in following the road-dust of failed RIM, I reproduce my article in writing as follow, by which, we can understand the lessons that once failed RIM, and learn the successful practice of Dr. Ram Charan who works as a consultant and to have fundamentally rescued trouble ridden ZTE Corporation, a leading multinational telecommunications equipment and systems company of China. In business field, it is similar as that of failed RIM of Canada.

I know less information about internal management of Bombardier, but, from failed RIM, we can roughly judge the management in Bombardier as a business based on the same social culture of Canada, it will be the same generally with the difference partially.

In the end of the article, I searched some information about Dr. Ram Charan, so in here, I do not make extra introduction about him.

However, there is necessary to excerpt some of my Feb. 09, 2014 article Management is the art of playing human nature to here:

Human behaviors are determined by dual natures: The culture nature of those acquired qualities, and the animal nature of those inborn instincts.

The Management is to finish purposeful tasks with the culture nature driven by meeting the animal nature with payment under the enforcement of regulations.

Therefore, the Management is the Art of playing human natures.

Whether the Corporate Culture or the Organizational Culture, they all should be composed of the measures that can motivate the maximum exertion of employee’s cultural nature with minimum play of employee’s animal nature to maximize the production efficiency.

Do not simply use morality to cover up human animal nature.

Today I would like to emphasize that accountability plus with work performance linked payment is the magic to drive people work full heartedly.

Those above are just the short board on the bucket of management in Canada.

Follow is the article in writing.


1.. Revive BlackBerry Limited by idea of consulting guru Dr. Ram Charan


BlackBerry Ltd. is an inheritor of RIM – the former flagship business of Canada. Its success will be not only able to motivate a lot of upstream and downstream enterprises to form an industrial cluster, but also it can boost related employment in social services – education, medical care, and commercial industries……, they are all crucial for developing economy and thereby to create a livable community.

More importantly, BlackBerry Limited is located in Waterloo City – a core area of Canada’s manufacturing industries. So that its revitalization will provide good experiences as reference to play a demonstration effect for revitalizing manufacturing sector in whole Canada.

Due to the good business foundation, it will be much easier to be revived as flagship business again than that of boosting startups. For this purpose, the difficult is not in funds, not in technologies, but is in the thought, in the regeneration of corporate culture.

The corporate culture is based on the ideology in conservative dominated with huge resistant inertia due to that people are used to the status quo with strong tendency to reject any changes with fear of uncertain risks. It is difficult to make any advancement socially and politically. For overcoming such resistance, the help of external force will be essential.

In this concern, the management consulting guru in ranking first in the world Dr. Ram Charan will be able to play a significant role, due to his unique prestige that gained from helping many top world class companies success with profound experiences from more than 40 years’ Consultant Career.

Dr. Ram Charan has successfully helped China’s ZTE Corporation revived from declining with downsizing 22.2% under huge loss. Due to the business is similar, both in the communication field; so that the experience of China’s ZTE Corporation will be exactly helpful for reviving Canada’s BlackBerry Limited.

Although, currently, Blackberry Limited has effective management team, however, based on my understanding for Canadian corporate culture, the management in Canada is far less rigorous and perfect than that of Dr. Ram Chalan participated management of China’s  ZTE Corporation. In global marketplace, Blackberry may be still unsure to win its proper share with plenty room for improvement.

April 30, 2015, China Central Television - CCTV reports the management innovation in ZTE, which mentioned Dr. Ram Charan, the management consulting guru in ranking first in the world, who is helping China’s ZTE Corporation to conduct business transformation. In a short time period, by some simple ways, he basically rescued the business by eliminating common diseases that cause business declining as that of in most large Companies.

The rebirth of China’s ZTE Corporation made me think of Canada’s BlackBerry Limited – the former RIM -Research In Motion Lmited.

Dec. 18, 2015, BlackBerry reports loss of $89 million in its fiscal third quarter, its shares have dropped 29 per cent since the beginning of the year. The stock has fallen 22 per cent in the last 12 months.

While, as reported, the loss was better than expected, however, it still disappointed me to consider how to make a way out.

Such mind is from the talks with my friend who is lucky enough to have kept his job in Blackberry Limited when we met in Wal-Mart shopping in months ago. We talked a lot, but, there was one word shocked me very much, he said that: “people who once worked in RIM become lazy.”

The BlackBerry Limited was born out of former RIM, such a background would make it still existing the DNA towards decline, since that BlackBerry inherited RIM’s employees that have accustomed Canadian pop corporate culture – a culture that is creating poor work ethic by encouraging people to striking more by doing less and dared boldly make pranks at workplace.

The poor work ethic is actually nourished by absurd Values that has been excessive self-appreciated and even to be legally protected under populist democratic polity.

Government paves a track through making policies, society runs on the track. If a society makes businesses - the main body of economy difficult in operation, indicates that the track - policies have problem.

Such ridiculous corporate culture and wrongful political practice is the fatal cancer in Canadian society, it will inevitably still dominate BlackBerry in corporate bone, corporate marrow and corporate soul, and it cannot be entirely regenerated.

Such corporate culture and political practice will disable any talented and experienced top executives, no matter how successful they are in other countries. Since that, as my view, when encountering the negative force of a country's conservative inertia, any strength of individual will be negligible.

We urgently need a high efficient prescription for entirely reviving Blackberry.  The best way is transfusion with foreign benign enterprise DNA to essentially transform the fatal DNA of Blackberry and then by its exemplary role to revive the enterprises throughout Canada – the Canada, where is our home place – the place where our families are relying on surviving.

In same environment of economic recession, while RIM,BlackBerry and many companies in declining, there still a lot of enterprises are developing as powerful world-class market competitors.

The facts proved that, the failure or rise of an enterprise will certainly be due to its intrinsic reasons – the DNA that dominate a business to be developed as healthy or defective. Dig out such reasons will be significant for the successful development of Blackberry, and for the successful development of economy in Waterloo region.

We should also remember that Waterloo region is the manufacturing center of Canada.

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2…How did fatal DNA and wrongful corporate culture failed RIM


2.1…Stifling intellectual work environment

The one of the important factor in the success of world-class enterprises is that encourages employees to participate in business management.

The successful enterprises are mainly driven by motivating their employees fully exerting intelligence.

The failed enterprises are mainly due to that their employees cannot free exerting their intelligence.

For RIM's decline, people can find many sound reasons, however, I think that, the most fundamental one is the stifling intellectual work environment, which is that suppresses the free exertion of intelligence of the employees without a effective channel for expressing and practicing their views freely to have damaged the driving force for continuously self-revolution to fit into the market that is increasingly rapid changing.

Such a corporate culture is common in Canadian enterprises, which is just opposite that of smart doing in The German Company and IBM.

May 28 2012, in my article The DNA of the Success of German Manufacturing, I indicate that the driven force for German outstanding manufacturing mainly comes from their legislated management for rationalization proposals, which is to extract bonus from the profit gained in the application of the proposals to motivate all staff to pay their full talent into the business running since Mr. Krupp initiated it in 1872. That is 142 years ago.

Dec. 22, 2011, in my article, The DNA of the Success of IBM & America's best-run companies, I indicate that the driven force for patent invention of 102 years old IBM has been counting on the top of those world-class corporate giants in the United States for 20 consecutive years is the patent-related bonus incentive system. In IBM, for any staff, published an article, approved a patent, all have assessment records with regulated cash awards.

However, Canadian companies are just going on the contrary. The cause may be from the instinct of human beings.

As a common sense in daily life, anyone heard suggestions from others will produce the feeling of being despised. In general, with the concern of offending others, people will not willingly make suggestion. Perhaps it is due to this concern; Germany has legislated to protect the activities of rationalization proposals.

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2.2…RIM’s senior executive has to express suggestions by open letter

Two years ago, I read an article Open letter to BlackBerry bosses: Senior RIM exec tells all as company crumbles around himthat posted in Jun 30, 2011. The writer is Jonathan S. Geller who is the founder of BGR - the biggest mobile news destination in the world.

In the article he said that:  “We have received an open letter to Mike and Jim from a high-level RIM employee (whose identity we have verified), and in an amazingly honest and passionate plea, this letter gives fascinating insights into what RIM must fix, and fast. RIM did not immediately respond to a request for comment.” 

The start of the open letter and the 8 suggestions as follow:

“To the RIM Senior Management Team:”

“I have lost confidence.”

“While I hide it at work, my passion has been sapped. I know I am not alone — the sentiment is widespread and it includes people within your own teams.”

 “Mike and Jim, please take the time to really absorb and digest the content of this letter because it reflects the feeling across a huge percentage of your employee base. You have many smart employees, many that have great ideas for the future, but unfortunately the culture at RIM does not allow us to speak openly without having to worry about the career-limiting effects.”

8 suggestions:

1) Focus on the End User experience.

2) Recruit Senior SW Leaders & enable decision-making.

3) Cut projects to the bone.

4) Developers, not Carriers can now make or break us.

5) Need for serious marketing punch to create end user desire.

6) No Accountability – Canadians are too nice.

7) The press and analysts are pissing you off. Don’t snap. Now is the time for humility with a dash of paranoia.

8) Democratise. Engage and interact with your employees — please!

The proposals are not only pointed out the problems, but also offered workarounds, especially reconstruction of management, interaction with employees and to be managed in accountability. It shows the writer's honesty in deep concern for RIM's future, and well thought out.

Above 8 suggestions were all to hit on the root cause of the failure of RIM and perfect suitable for any businesses.

From above 8 suggestions, we could feel that chaotic in the management of RIM.

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2.3…RIM’s responds to open letter with no thanks but hatred condemnation

However, RIM’s responds to open letter was not only with no thanks, instead, was somewhat hatred condemnation, the first paragraph is as follow: 

“An “Open Letter” to RIM’s senior management was published anonymously on the web today and it was attributed to an unnamed person described as a ‘high level employee”. It is obviously difficult to address anonymous commentary and it is particularly difficult to believe that a “high level employee” in good standing with the company would choose to anonymously publish a letter on the web rather than engage their fellow executives in a constructive manner, but regardless of whether the letter is real, fake, exaggerated or written with ulterior motivations, it is fair to say that the senior management team at RIM is nonetheless fully aware of and aggressively addressing both the company’s challenges and its opportunities.”

With hatred and revenge mentality treats rationalization proposals is one of important lethal Gene fragment in RIM and Canadian enterprises.

Maybe, people may think that was the true fault of the senior executive as that of he did not in a constructive manner to submit the letter to the top management.

I can prove that even if the senior executive doing so, he will certainly run into a wall, and that run into a wall may be his times experiences in RIM.

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2.4…A scientist has similar experience with the Open Letter

After reading the open lettersRIM's respondsthe emails of RIM's employees and the readers' comments, I once talked with a material scientist who is working in the lab of RIM. She said that she once wrote a suggestion letter to the management, but without any response.  She felt that the corporate culture of RIM is not worthy for appreciation and since then she stopped any effort to make suggestion.

Besides above, I once called my friends who were working in RIM at that time.

The one who works in the service department said that their work efficiency has a lot of room for improvement.

Obviously, in RIM, it has no normal channels for facilitating the communication between subordinates and superiors to promote the development with the wisdoms of all employees.

I call this phenomenon as the obstruction of enterprise, it is the main cause of RIM's decline, and the main cause of RIM did a dirty job with the outstanding employee.

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2.5…A Middle management boldly exerts animal instinct

Followed RIM responds to open letter, Jul 1, 2011, BGR published More letters to RIM; employees rally alongside anonymous exec, the writer Jonathan S. Geller said that:

“BGR published an open letter to Research In Motion yesterday.” “RIM responded. It wasn’t pretty, and it really didn’t address a single point that was made by the original plea. It wasn’t just RIM that responded, however — we received dozens of emails from current and former RIM employees detailing their stories, and essentially all agreeing with the open letter that was published on BGR.”

Following is the part of an email from a former RIM employee.

“I was an employee at RIM for a year and a half. I worked in the legal and business affairs departments, and despite having originally thought I’d landed the jackpot job-wise, it took no time for me to begin planning my exodus.”

“My first week started with a complete change in my title and duties without anyone telling me, and when I dared ask what was happening, the director (my boss) and her BFF the OD business partner ganged up on me and threatened to let me go, setting the tone for the remainder of my time there.”

“Over a year and a half, the four of us in the same position dwindled to just me and yet I was responsible for getting all four jobs done for the better part of a year, since this is how long it took the department to hire other entry-level people. Two individuals who had less education and experience (not to mention drive or intelligence) than me were promoted several times while my boss continued to tell me up and down that I had reached my ceiling at RIM due to my lack of education (two degrees!) and experience (5 years!)–as an administrative assistant. Rather than attempt to fight this system I figured I could transfer departments, only the company policy requires the supervisor to act as a liaison and reference for internal applicants. The insanely high turnover rate meant the department head wouldn’t let anyone go, in addition to refusing to promote from within (pets excepted). People were pitted against each other and an incredibly tense and hostile work environment was fostered. People around the office started referring to the office politics as “Survivor: RIM edition.” And we all remember the great movement to make recycling physically impossible across the entire company because one person let some confidential information slip.”

“Then, as I was saving up to return to school and make a better life for myself, I received a series of nasty emails from HR letting me know that since my boss had failed to log my vacation time a year earlier on SAP (despite my insistence on her doing it at three different times), I would have two full pay cheques deducted to “pay back” the company for what was being portrayed as my mistake. I never received an apology and almost had to drop out of school due to the loss of a full month’s pay. On my last day my boss deliberately avoided me at all cost. The best part is that I recently heard that my boss just got promoted to the VP of the business affairs department.”

If above facts are true, then, we can say that the director of the legal and business affairs department was not only not qualified on her duty, but also not qualified as human member.

It was the wrongful execution caused by no accountability.

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2.6…Researchers stop innovation due to fruits seized by others

I am eager to explore the management reason of the failure of RIM with any possibility, especially, I would eagerly ask related questions as long as meet the people who once worked in RIM.

In June 26, 2014, I discussed such issue with an art profession specialist who once worked in RIM for many years and now working as a general operator in the production line of the foods processing – DC Foods Waterloo.

She said that there was also the management for the rationalization proposals (RP) in former RIM. However, the fruits of the achievements of the RPs were seized by the management staff, so the technical personnel of the main body for the RP stopped their effort.

It was the wrongful execution caused by no accountability.

For dealing this thorny but important issue, in the article The DNA of the Success of IBM & America's best-run companies, I have made discussing, excerpt as follow.

IBM has a complaints system

Any business is made up of people, it is inevitable conflict between each other. especially in scientific activities.

R & D management is a dark field; it is difficult to control balance. Because, in the process of research and implementation of R & D project, will involve cooperation of many sectors, in particular, the need for leadership in coordinating role.

So, the distribution of the bonus created by R & D need to take care of all aspects, especially, the main management may take big share. Finally, the prize money into the hands of the actual developers will be rarely.

For dealing this thorny but important issue, IBM set up a complaints system, if someone feels unfairly, he or she can manage up a complaint to higher management, if it is not satisfied with the results; it allowed continuing to appeal to a higher level of, until reaches to top management.

As my view, besides complaint, for solving this problem, company should regulate the prize money as two parts, one for administrative staff, other one directly put on the hands of researchers.

Perhaps the inventor of the inventive concept has no ability to conduct implement, however, because the breeding process of the concept of invention is a special intellectual work, it is not that anyone can do, therefore, the inventor of the concept should get of 50 % above in total bonus.

The simple way is only to reward inventor, and treats others as normal job that they have to do without extra payment.

The purpose for this way is to encourage people to innovate, rather than that of only sit back waiting to share the fruits of others.

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2.7…Comprehensive regulations did not properly carry out

She also said that, in former RIM there were also comprehensive regulations as that of other well managed world class companies, but, the regulations cannot function effectively, due to that managements play with own preferred accord with ignoring the regulations.

As my experiences from working in many different businesses, compared with foreign one, in Canadian businesses, for most management staff of locals, there are no sense for that what is the regulation, even, no sense of what is law? 

It was the wrongful execution caused by no accountability.

Above is the fatal DNA in former RIM’s management.

From the report that BlackBerry loses $89 million in 3rd-quarter 2015, we can imagine that those old fatal DNA in former RIM is still playing its role in Blackberry Ltd…

Although, maybe Blackberry is still in the phase of restructuring and technological development, the time for profitability has not come, however, the Blackberry is born out of failed RIM that once had fatal DNA, and we cannot take it as lightly.

Then where is the way out?

How to get rid of the fatal DNA?

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3…Dr. Ram Chalan has regenerated China’s ZTE Corporation

ZTE Corporation is a China’s multinational telecommunications equipment and systems company headquartered in ShenzhenChina in three business units - Carrier Networks (54%) - Terminals (29%) - Telecommunication (17%).  ZTE is one of the top five largest smart phone manufacturers in its home market, and in the top ten, worldwide. With operation in 160 countries, over 30,000 research professionals in 107 subsidiaries devoted to innovation globally.

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3.1…The fatal DNA of ZTE Corporation

As same as that of other big companies, in ZTE, the biggest problem is the slow in decision-making, retard in execution, unclear in rights and responsibilities, difficult for accountability and the barriers for cooperation between departments besides passing the buck, and……

ZTE chairman said that: large enterprise has disease of large enterprise, treated, recovered, but, will develop new kind disease again, thus endless. The large enterprise with more resources makes it more competitive. However, precisely say, because that staff are more and the resources are more, so that flexibly mobilize them is not easy. Each team has its own calculator for own selfish interest calculating: if I help you, you create a performance, and then, where is my performance? This naturally and inevitably occurred mode of thinking in large enterprise would certainly cause the difficulty for scheduling and integrating the resources.

More bad is that, like a community, the enterprise also has unspoken rules to be obeyed by employees.

The procrastination in work, unclear in rights and responsibilities, such problems are badly affect the systematic efficiency, even kill a good business. The problems and the causes are known very well by everyone, but, there no one is like to put them on the table. This is crowd psychology that will occur when people grouping in regardless with race and nationality. This is the thorniest problem in corporate management.

According to article The Road of ZTE reversing loss: layoffs + Slimming, ZTE suffered loss of 2.6 billion Yuan in 2012. It was first time since it listed in 1997. ZTE had to downsize, the total number of Group employees was down from 89,786 people at the end of 2011 to 69,093 people in the end of 2013, and income scale has shrunk 11 percent. ZTE has been taking a system that eliminated 5% of staff annually, before, the normal staff resign included into the statistics of 5 percent eliminated rate. Since experienced huge loss in 2012, the company strictly enforced the mandatory elimination rate of 5% without including resigned staff. Resignation rate was about 8%. For the resignation, mostly, was not in personal willing, but due to the pressure under poor evaluating results of work performance.

Even so, ZTE still decided to carry out reform for corporate management to quickly adapt to market changes.

However, after 30 years of development, a lot of running pattern has been formed and all staff have used to it with seeing it is as norms. The habit is not easy to change. For management reform, the most difficult is to find out the problems. Who would like to do such a things that is doomed to offend massive others.

Such thorny problems are turned out one by one when discussion with consulting guru Dr. Ram Charan. And they are solved by divided into projects of human resources, cost control, performance breakthroughs and so on.

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3.2…Invite consulting guru Dr. Ram Charan to help transformation

The April 30, 2015 video management innovation in ZTE immediately shows that, in every quarter, the management consulting guru in ranking first in the world Dr. Ram Charan comes to ZTE for carrying out advisory activities.


    Ram Charan-ZTE

Senior vice president of ZTE Chen Jianzhou who is responsible for enterprise architecture and firstly suggested to invite Dr. Ram Charan, due to that he analyzed many historical situation of multinational companies’ transformation, to have realized that the transformation is not easy; the success rate is not high. In order to promote the company transformation smoothly and quickly, he believe that company needs external professional talent.

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3.2.1…The philosophy of Dr. Ram Charan on ZTE operation


Dr. Ram Charan said that, we should focus on the issues of management staff in key areas, especially, the project management.

The project management is a kind of way of life, because we launch new research to create new products, to cover new markets. It is looking for the project and to be implemented into improvement of company's efficiency. At this point, ZTE has made good progress. Of course, there is still great room for improvement.


         Ram Charan-ZTE-1

Dr. Ram Charan emphasizes that insight into customer, the user's behavior, what is users’ like and how can be outstanding in competition? Such things are the most important.

He said that great enterprises have a common characteristic, it is that they can continuously capture external changes, and to make adjustment according to external changes. China has entered the global market, the China’s government, is creating better operating conditions, which will be given more freedom, and to bring more competition, companies must adapt to the new competition rules, that is huge challenge for companies’ transformation.

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3.2.1.1…Dr. Ram Charan deals with thorny issue of personnel

Personnel arrangements are the most intractable issue. As an outcomer, Dr. Ram Charan is easily dealing with, in a calm but effective way.

Regarding dealing with personnel issues, whether the executives are competent? He tests by requesting senior executives to study the financial statement of company. A qualified executive must be able to identify problems through the financial data. He often makes spot checks through private conversations. It was a window that Dr. Ran Charan tests the health level of the enterprise.

For ZTE executives, every time meet with Ram Charan, are all feel as facing a major surgery, because that Dr. Ram Charan will make operation for a management problem. This time, he will solve the thorniest problem for any businesses – dealing with management personnel.

---- Indeed, dealing with personnel issues, it does not necessarily need to make replacement, but, merely, simply, by questioning to update their methods of work, while urging them to do their best.

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3.2.1.2…Focusing on Execution and Accountability


In first day first time, Dr. Ram Charan came to ZTE, he casually asked executives some operating data that must be skillful memorized, but, few of them can answer, to have made an awkward scene.

In the discussion of some specific project, some people mentioned that he needs the support from other departments. He unceremoniously interrupted the speaker: which department? Who is needed? What is to do for you? And how long time to complete?

Repeatedly as this, he often made senior executives embarrassed, but, he still sticks to his stand, because he is toward problem, not toward any individual.

--- Always Focusing on Execution and Accountability.

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3.2.2…Efficient decision making by president of the joint meeting

In order to solve the problem of corporate strategic objective to be decentralized, Dr. Ram Charan recommended ZTE to adopt mechanism of president of the joint meeting.

At the start of every year, the executives elected 5 projects to focus on promoting, and around five goals, to make clear the tasks for various departments, to set agreements for across sectors cooperation, to be promoted by responsible person replies regularly to ensure that the company's goals are clear from top to bottom and is able to be concerted in action.


        ä¸-å…′éšè®ˉ

In original conference room, the comfortable sofa chairs were moved out, the decoration on the walls has also been replaced by whiteboard that can be casually scribbling. Every Tuesday, in this room, the top executives hold regular meeting. In order to achieve the objectives of the meeting efficiently, the participants have to standing.

The assistant to the president, Dai Peng who said that: when discussion of some specific project, the executives that related with the project are all in the conference room to make decisions on-site. When project encounters problem, there is no one shuffling or complaining, but, putting forward how to help each other solve the problems. Such process is very simple, but, very effective. Since the president of the joint meeting launched in last November, the efficiency of meeting and the flow process of the project development, etc., from a statistical point of view, are accelerated and more efficient.

--- It is to promote on Execution by distinguishing Accountability in face to face.

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3.2.3…Solves problems in researching by morning meeting


       中兴西安技术研究院早晨碰头会中兴西安技术研究院早晨碰头会-2

       中兴西安技术研究院早晨碰头会-3中兴西安技术研究院早晨碰头会-1


Above is the flow charts of project scheduling in ZTE Research Institute that located in Xi'an City China. The Mandarin titles that can see clear are: waits for developing, in developing, waits for verifying, in verifying, had delivered, and in obstruction......

In Xi'an Research Institute, every day holds morning meeting. Everyone's working process and the target of the day are all posted into the flow charts. For any delay, the project leader must be aware at first time and have to propose a solution. It is said that this method can increase the efficiency of R & D by 50%.


              ä¸-å…′西安æŠæœˉ研究院院长èˉ¢问员å·¥ä¸oä»ä1ˆæ‹–延

The president of the Research Institute was asking a researcher: why was delayed? This was a voice-based technology. The researcher replied that he needs a special meter.

      

        ä¸-å…′西安æŠæœˉ研究院早晨碰å¤′会-4

For such a harsh working way, the president told reporter that: there is no way; the time that technology is at the leading position for Internet companies are shorter and shorter. For example, in the last year, the time in leading position was one year; this year is six months, and next year, may be only three months.

He continued with that, originally, our field of industry was easily to earn good money, but, now, it is more and more difficult. The reason is that the Internet with other industries integrated closer and closer. We have to make some quick changes, so that our products’ adaptability can be much wider.

--- It is to promote on Execution by distinguishing Accountability in face to face.

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3.2.4…Employees who work overtime are commonplace


             Bus send employee home at 9pm

In ZTE Shenzhen headquarter, it was 21 pm, still there is commuter bus to send overtime employee home.


              Sleep in office

In order to save time, even, there are employees to sleep in the office.

--- Employees are being fully motivated by distinguishing Accountability

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3.2.5…40% of total employees in R & D    

Every year, investment for R & D maintained at 10% of sales, nearly three years R & D investment over 20 billion Yuan, there 30,000 are R&D researchers in amounting 40% of total employees.

In 2014, in global enterprise submitted international patent application through PCT - Patent Cooperation Treaty, those 2179 patents of ZTE is in the top 3, which is China's only company for five consecutive years.

Dec. 23, 2015, China Intellectual Property News reports that ZTE has more than 60,000 domestic and foreign patents, in which there more than 90% are with a high degree of stability right and technical quality to have build a cornerstone for development globally.

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3.2.6…The remuneration of Mr. Ram Charan is $ 20,000 hourly

Video also mentioned that the open declared remuneration of Mr. Ram Charan is $ 20,000 hourly (I think he will spend a lot of time for preparation, if we take this into account, the average hourly paid rate will be much less).


Above is the excerpts from April 30, 2015, CCTV report the management innovation in ZTE.

The facts are clear that after the help of Mr. Ram Charan, ZTE Corporation has reborn entirely in a calm and effective way, to have recovered from the fatal disease as large enterprise – slow in decision-making, retard in execution, unclear in rights and responsibilities, difficult for accountability, and the barriers for cooperation between departments, and ……

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4...The necessity and benefits for consulting Dr. Ram Charan

Nov. 4, 2013, in article Family Business and Management Board, I have said that, within the business, because of the members are familiar and have associated friendship with each other after long time work together, even some are in kinshiprelations, so that it is difficult to deal impartially with some problems that inevitably happen in daily business operation due to the worry of harming friendship or losing friends. In particular, rare people would like to bear the embarrassing that face to face points out the shortcomings of others. By establishing the Management Board and collectively make decision in document form, that some thorny problems may much easily be handled.

That hires some professional managements outside of the business to establish a management board has unique advantage, because of those outcomers have no former relations with those original employees, they will be able to relieve or resolve down the conflict that may originally exist between the employees and managements. Such conflicts are hardly to handle by existing management.

Former RIM was listed with a standardized Board of Directors, now in viewing back, no matter how justifies in any way, for its failure, the Board of Directors could not escape from the blames, the failure had nailed them in shame, they had to pay for their dereliction of duty. Due to they was not only in failed developing competitive products, but failed in kick out incompetent management, such as, the director of legal and business affairs department was even wrongfully promoted.

For the reason that RIM’s Board of Directors failed in properly playing its role, it also inevitably involves the thorny issues, which is those board members were familiar, even associated close friendship with the senior and the junior staff, it certainly would impact they make rational decision for improving management by replacing some poor performers.

Dr. Ram Chalan can effectively solve such issue.

4.1…The unique advantage of Ram Charan is as an outcomer without relations with members in the company, so that he is without the fear of breaking the friendship with others.

4.2…As a world-renowned management consulting guru, his outstanding prestige will help him to reduce unnecessary trouble in work with a role as that of a Mighty Hawk into the forest; all other birds are scared to stop chirping.

4.3…Rich wisdom: Dr. Ram Charan has been working in many different types of world class top business with 19 best-selling books in management according to personal practice; such experiences will help him to concentrate management advantages from all top companies.

4.4…Unique working skill: as Jack Welch praised: "He has a rare ability to extract meaning from meaningless things, and in a calm and effective manner to affect others."

4.5…Practical operational advantage: Dr. Ram Charan have a strong practical operational advantage based on profound foundation in the area of leadership, corporate governance, profit growth, social systems reform, global matrix organization, etc..

4.6…Focusing on key point – Execution: Review back his work in ZTE Corporation, we can find that he is always focusing on the key point in business management - Execution - The Discipline of Getting Things Done.

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5…Dr. Ram Charan helps many world class business giants success

The success of many international well-known large enterprises has the decisive contribution of Dr. Ram Charan.

Over the past 40 years, Dr. Ram Charan has been working as executive consultant for dozens of Fortune 500 companies, such as General Electric, DuPont, Ford, Bank of America, and Intel……

In 2007, it was 37 years of Dr. Charan working for General Electric Company, and 33 years working for the DuPont.

Jack Welch most respects Dr. Ram Charan due to "He has a rare ability to extract meaning from meaningless things, and in a calm and effective manner to affect others."

After Jeff • Immelt took over the position of Jack • Welch, his first outward counsel for advising was Dr. Ram Charan.

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6…The business philosophy of Dr. Ram Chalan

I searched, translated and excerpt edited some information about Dr. Ram Charan from several articles in Mandarin.

Dr. Ram Charan runs his business management consulting company under the name Charan Associates that established in 1981 and located in Dallas, TX. He sits on the board for Austin Industries, SSA & Company (formerly Six Sigma Academy), and TE Connectivity.

Ram Charan’s business philosophy

Any business, no matter it is what kind of scale, culture, and industry? They all operate in revolving around six core elements - profitability, capital intensity, cash flows, business growth, market share, customer, etc.. Therefore, the leaders need to have unusual business intelligence to rip the complex relationship between these elements, and the mechanisms that adapt to external changes.

The key in determine success or failure is in leadership. In the current complex economic environment, leaders should follow three points: First, capture changes in the external environment, to be able to first see the changes in the external environment than that of others. Second is to tell your team that what kind of changes have taken place in outside. The third is to inspire the team brainstorm and find response to the changes.

In this process, the hardest part is found the changes in the external environment. Leaders should be honest and at the same time to seize the opportunity form these changes. Also, the leaders must inspire their team; at least the senior executive team must unify their thinking.

A significant point to note is that company must innovate continuously. The traditional advantages does not exist, the company has to look for new profit model with boldly abandoning the previous advantages. In particular emphasis on the training of personnel, especially for those talents who are with a global vision, it not limited in the company's own personnel, but also, to cultivate local talent when entering foreign countries.

There is no market is eternal, there is no strategy that can guarantee never obsolete and never fail. Companies must always look at the reality, and resourceful timely. If only defending past business model, even the best execution will be wasted.

Dr. Ram Charan said that in the consulting career for large organizations and organizational leadership, he has come across countless similar events, even in top meeting of the organization without expected result due to that participants kept in silent, and therefore bring false decision.

In 25 years of personal experience, he concludes some experience: the root of execution difficulty is due to invalid dialogue. In other words, it is that lack of effective communication and interaction between policy-makers and implementers. Due to be confined to organizational hierarchy and red tape, coupled with the lack of trust between each other, people are lack of confidence for the decision, only mechanically echo. When implementing such decisions, people would certainly lack decisive execution.

This invalid interactive mode usually does not exist in isolated, but in multi-aspect. In many cases, the large and small decisions are cooked up in this way; for the same reason, a lot of decision-making could not be reached as expected. The poor in execution has in-depth bone marrow of the corporate culture, employees also seem in complacent, are unwilling to change.

In order to overcome the difficulties in execution, leaders need to build sincere and trust in the dialogue to lay a tone for the dialogue in entire organization.

However, that laid a tone for dialogue is just the first step of a long journey. Leaders must also ensure social operating mechanism, namely business communication between employees, such as, budgeting, executive meetings, strategic decision-making, etc... The dialogue must be real. Through continuous improvement of social operating mechanism, the responsibilities will become clearer in decision-making and implementation.

Follow-up and provide feedback is the final step for overcoming the difficulties in execution. Through follow-up and provide honest feedback, outstanding leader can inspire star employees and to help to improve the performance of poor performing employees, and improve the behavior of employees who are hindering organizational progress.

All in all, if leaders can pay attention to the dialogue, to improve social operating mechanism and to provide appropriate follow-up and feedback, will build a successful execution culture.

BlackBerry receives investment of U.S. $1 billion from Fairfax

V. Prem Watsa, Chairman and Chief Executive Officer, the Founder of Fairfax

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