Samsung Vice Chairman Yun Jong Yong says "you don't 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. It's
the reason for the company's existence."
He practices what he preaches. When paternalistic management
practices threatened Samsung's 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
company's 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 J ong Yong's 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, that's 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
insourcing--foreign 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. It's stock sells at paltry $8.00 per share--rock
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, it's 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 just sales, and stay focused on
your core business mission, not being distracted with less
relevant possibilities.
Overall, we must create the future--our own future. Let's get
on with that.
About the author:
John J. Alquist is a professional speaker, author, and business
consultant. His is a powerful champion of almost universal selfe
employment. His company, Alquist Enterprises, champions
self-employment is a multiplicity of ways. He is on the Internet
at:
www.tell-it-well.com
