Samsung Vice Chairman Yun Jong Yong says you dont predict the future and wait; you create the future. The South Korean adds, we cannot live without change. The race for survival in this world is not for the strongest, but the most adaptive. And, he continues, quality is the conscience of a company. Its the reason for the companys existence. He practices what he preaches. When paternalistic management practices threatened Samsungs well being, Yun Jong Yong made bold, decisive actions. Declaring that piling up inventory is a vice, he allowed production of goods only to fill orders. He reduced company debt, got rid of products and divisions not related to the companys core business, (electronics) and slashed the workforce by 30%. It worked and now Samsung enjoys a major business turnaround. Samsung now thrives on change and creating the future. We need to view the dismal situation here in America, then apply Yun Jong Yongs principles to flourish under difficult, economic circumstances including: 1. News of the sharpest monthly increase in the Consumer Price Index (CPI) in 25 years, up 1.2%. Annualized, thats 14.4%. Hello, inflation. Remember Jimmy Carter? 2. Also news of the highest monthly increase in the Producer Price Index (PPI) (wholesale prices) in 31 years, up 1.9% or 22.8% annualized. 3. $700 billion in US Government debt, or 7% of Gross Domestic Product, the highest debt percentage in a long, long time. 4. In 2005, stocks up 52% in Latin America, up 17% in Europe, but US stocks down 5%. 5. Some 30 million American jobs eliminated in recent years. Of these, 98% were due to downsizing. Only 2% were the result of offshore outsourcing. In fact, 4.8% of new jobs resulted from insourcingforeign companies creating jobs here. 6. The American auto industry emits a Detroit death rattle these days. Delphi, the parts company spun off by General Motors, filed for bankruptcy (Chapter 11). Ford announced $284 million quarterly loss. Its stock sells at paltry $8.00 per sharerock bottom. We must demand our political leaders start slashing taxes and government spending, get rid of federal and state income taxes (using consumption taxes in their place), end employer paid health insurance plans, and stop whining--wrongly blaming overseas trade and globalism for eliminated jobs. Actually, government cannot solve these problems. As Ronald Reagan taught us, government is not the solution, its the problem. He was 100% correct. And as Yun Jong Yong reminds us, we must: 1. Create the future, not wait for it and react to it. 2. Welcome change cheerfully as necessary. 3. Be adaptive, not rigid and backward. 4. Realize that quality is the reason for our existence, particularly in business. 5. Emphasize profitability, not sales, and stay focused on your core business mission, not being distracted with less relevant possibilities. Overall, we must create the futureour own future. Lets get on with that. |
