One of the biggest misunderstandings of china is the thought that it has turned capitalist. While the economy is definitely more capitalist in nature, the vision of the country is still centralized and focused on overall success of the country. This allows china to "succeed" in ways other countries can't. For instance, in the just approved five year plan, the Chinese government is requiring over two thousand manufacturing plants be shut down because they are too old and can't compete. Additionally, there are going to be required investments in certain industry sectors. Here is a great qoute.
In the 12th Five-Year Plan, the nation is aiming to transform the country from a being “big manufacturer” to a “competent manufacturer”. After more than 40 years in the industry, Ling points out the two problems facing Chinese manufacturing across the board we do not know whom we are working for and we cannot work for ourselves.
So how to tie this to your organization? CFO magazine just had a similar lesson on growth, which is to develop a "no" list. These are areas that your organizations won't spend time innovating in.
In your organization, do you know your centralized growth strategy and what needs to be shut down?
(source: http://www.chinadaily.com.cn/cndy/2011-08/22/content_13159779.htm)
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