Rural Reconstruction Seminar of CEN

University of Michigan, Ann Arbor

Good Horse SenseGood Horse Sense

goes a long way in the Countryside! goes a long way in the Countryside!

Jim Cook, China enthusiast since 1985 Management Strategist

On the occasion of : China Rural Reconstruction Seminar on : March 3, 2014

Sponsored by : China Entrepreneur Network and the

Detroit Chinese Business Association

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University of Michigan, Ann ArborSlide 2 of 10

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University of Michigan, Ann ArborSlide 3 of 10

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“So you're the one who's going to solve all our problems, welcome!”

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University of Michigan, Ann ArborSlide 4 of 10

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They came, they saw, they crapped on us, and then flew away

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University of Michigan, Ann ArborSlide 5 of 10

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Who would have predicted? Who would have predicted? Clue: Not Gandhi

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University of Michigan, Ann ArborSlide 6 of 10

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Meet Your Clients!Meet Your Clients!

Rural China 2013

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University of Michigan, Ann ArborSlide 7 of 10

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Remember: Appearances aren’t Everything!Remember: Appearances aren’t Everything!

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University of Michigan, Ann ArborSlide 8 of 10

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When visiting a foreign land learn their language!When visiting a foreign land learn their language!

Work is an exchange for money Work is an exchange of sentiment

Governance is central and by rule of law Governance is local and by rule of nature

Law trumps sentiment Sentiment trumps law

Rules are made to benefit people Rules are made to benefit nature

Economy is by symbols (brands, prices, ..)

Economy is by accommodating the earth

Motivation is for money Motivation is for sons

Old age care is from pensions Old age care is from sons

Wish is for Spring all year long Wish is for four well behaved seasons

Pets are there to be served Pets are there to serve

Boasting and bragging are commonplace Honesty and frankness are commonplace

Social order from invoices and laws Social order from trust and integrity

Urban Speak Rural Speak

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University of Michigan, Ann ArborSlide 9 of 10

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First Principles of Country Side’s ComplexityFirst Principles of Country Side’s Complexity

The countryside will have contradictions (farmers will milk cows every single morning before 8, but would hate punching a clock).

The countryside will have stability up to some unpredictable point that involves many dimensions and/or many standard deviations.

Once a wide fluctuation (like the US Dust Bowl in the 1930s) upsetting a symbiotic balance occurs, the countryside may take decades or never return to its previous stable and robust state.

The experience of the countryside in one place will not necessarily transfer.

Diversity is at the core of the sustainability of the countryside’s existence; destroy it and you will destroy the countryside.

The Countryside is more like a baby than like a machine; it will flourish with love and die with exploitation.

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University of Michigan, Ann ArborSlide 10 of 10

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Villages are as diverse as their land and history

Respect villagers’ real abilities, character and values

Be patient, let villagers trust and tell you their needs

It’s vital to be fluent in the villagers’ values and culture Villages are complex societies (as contrasted to Cities)

Disturb their robust stability and it may take decades to recover Experience may not be transferrable even from similar places The countryside is more like a baby than like a machine

Ignoring above has been the major source of set backs!

Summary of good Horse Sense

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University of Michigan, Ann ArborSlide 11 of 10

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Thank you from the bottom of my heart!

Sincerely, Jim Cook

jim.cook@cha4mot.com

I welcome your email and will try to answer, promptly, and remember:

“The universe is full of magical things patiently waiting for our wits to grow sharper.” Eden Phillpotts (1862-1960)

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University of Michigan, Ann ArborSlide 12 of 10

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This powerpoint and the accompanying transcript are at:

http://cha4mot.com/CEN-CRR.ppt

http://cha4mot.com/CEN-CRR.doc

A review of The Rural Way by Sun Jun is at:

http://cha4mot.com/theruralway.html

An analysis of Mao as Entrepreneur (1927-1947) is at:

http://cha4mot.com/mao in English & Chinese

The DuPont Business Case for executing Step Change is at:

http://cha4mot.com/HBS-step-change-case.pdf

Links for the Interested and Curious

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University of Michigan, Ann ArborSlide 13 of 10

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Villagers are:As resourceful as they can be given their current context.More anxious to better their lives than ordinary Urbanites.Not brand followers, rather choose to fill real-life needs.Driven by different values and behaviors than Urbanites.Highly dependent on the their location and its history.Not going to be helped by “one size for all” programs.Too deferential to local and central government officials.Going to be helped by creative alliances & flexible support.Not going to be helped by usual ways of MNCs & SOEs.THE MOST PROMISING MARKET IN CHINA TODAY!

Declaration of BeliefsDeclaration of Beliefs

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University of Michigan, Ann ArborSlide 14 of 10

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I know far too little about the:Political dynamics of initiating and sustaining village action.Priorities that Villagers themselves have in any given village.Behavioral culture of Villagers as contrasted to Urbanites.Past experiences with outsiders coming into villages to help.Rhythm of the season’s impact on the Villagers’ daily lives.Aspirations that Villagers have for their families and lives.Things taken for granted in the city like security, water, sewage.Impact of “progress” on existing relationships and social power.Way that I &/or my initiatives might be accepted and rejected.

Declaration of IgnoranceDeclaration of Ignorance

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University of Michigan, Ann ArborSlide 15 of 10

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Investigate the “Base of the Pyramid” opportunity space.

Check out “The Rural Way” by Sun Jun (农道 , 孙君著 )

Tap Michigan’s special access to China New Countryside Projects.

Intern with a New Countryside NGO or team up with a Project.

After research, try innovating some business models for Villagers.

Commitment to ActionCommitment to Action

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University of Michigan, Ann ArborSlide 16 of 10

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Jim Cook’s JourneysJim Cook’s Journeys President, CEO of NASDAQ Listed Company (Software Tools) and on the board of

two publicly held and numerous private companies, all high technology

President, CEO of Exxon-Mobil financed venture (Electronics)

President, CEO of Globatech, Inc. in Beijing (Japanese financial portal)

Vice President (Technology) Computervision, Fortune 500 Company (CAD/CAM)

Taught MBA courses at UCSD (Economics of Mfg.), Worcester Polytechnic Institute (Advanced Mfg.), and U. of Melbourne (Entrepreneuring)

Lectured on management at: Northeastern U., People’s U., and Chinese Academy of Sciences; BS math RPI, graduate math MIT, on CCTV news with Jiang ZeMin

Consulted on management to: DuPont, Motorola, Bell Labs, D & B, Fiat, …

Interviewed 6 times on FNN (now, CNBC Financial) about High Tech investing.