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Sunday, January 1, 2012

New Year, New Courage

It was a gift talking to an uncle whom sometimes takes time to counsel some of his nieces and nephews about life. He counseled me about workaholism (and the consequent weight loss and stress). He’s been there, he said, and it was not a good place to be. A good place to be is to know limits and talents.

Entrepreneurship and workaholism. What a love/hate relationship.

Going back to school with such a high opportunity cost was not easy. Leaving the oilfield behind and job offers was frightening at the least. Choosing a private school in DC and living there was not a completely informed decision. [Texas messed up my financial sense.] Being in school by spending savings, while being an entrepreneur who needs capital, is quite foolish, allegedly. But schooling is such an investment. Eyes and doors have opened. Horizon has broadened. Confidence and humility are tested.

And then the conversation shifted. Of course this uncle reads and keeps up with the global economies and domestic politics. There was a discussion about how the Chinese frugality put them where they are today. There is an uprising of middle class, new wealthy individuals, along with spoiled children. Can the West keep up? He said, maybe not, they like to spend, as peoples and a nation.

The subject somehow evolved to managing a country, and ultimately to something he is much more familiar with, managing a business with multiple branches. Exercise of power is key. Loose leadership is necessary. It is like managing a small country, he said.

What a perfect timing to catch up on Saul Alinsky’s Rules for Radicals that talks about power and self-interest, two things that have become my uncle’s main devices. An entrepreneur must know its powers, because “to do a thing well a man needs power and competence”, according to Jesuit founder St. Ignatius.

“It is impossible to conceive of a world devoid of power; the only choice of concepts is between organized and unorganized power. .. Every organization known to man, from government down, has had only one reason for being – that is, organization for power in order to put into practice or promote its common purpose.”

My uncle’s power as the business owner and his intellectual competence shines as he spends most of his time in Surabaya, my hometown, and pays two visits monthly to his 5-6 stores. Theft is highly expected. He stands outside to outsmart opportunistic employees. Knowing the accounting and inventory system inside out, planning each conversation before each visit, using rehearsed persuasion to investigate and interrogate, politely provoking their mental state to confess petty thefts, and getting them at an increasingly uncomfortable position until they voluntarily quit. Employees of 4 or 5 years still deservce such treatment if they cheat. Money speaks; sometimes it takes up to a few 100,000 Rp notes to get a confession. Of course, these tiny monetary gifts are rewards for honesty and loyalty, because employees’ mothers and kids get sick and it is easy to reward silently by referring to kindness. “Hey, I heard your mother was hospitalized this past week, and you don’t need to tell anybody here’s some …” is the way to end a successful back-room questioning. My uncle does not need to keep his stores and employees on constant watch. In fact, he needs to be away from them to be able to engineer his ingenious tricks, often written down in Chinese letters to avoid readability (and he giggles as he told me this). Loose leadership.

Self-interest is the key to get optimum performance from anybody. To be continued.

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