Friday, June 12, 2020

Main Food-My Gift


 

What does this phrase mean to you? Meat? Fish? Something you eat before dessert? Something else?

I have been traveling to China for 30 years, have lived there for 10, and visited more restaurants than I can remember or count.

Until recently, my focus was to enjoy as many of the unique dishes as I could- meat, fish, even blood and offal.

When I was asked, near the end of the meal, “what would you like for your main food?” I was a little lost. Wait-didn’t we just eat, like, 15 dishes? And we didn’t eat the main food yet? OMG my aching stomach!

Even once I understood what that question meant, it didn’t help me to answer why, even in today’s prosperous China, they are still asking me if I want rice or noodles?

A quick look at the cultural origins of this expression-

To understand, let’s look at what the typical Chinese (or Asian) diet is NOT. It is NOT meat and vegetables or salad with a side of bread, rice, potatoes etc. as in the Western way. Even the language of dining reveals this:

IN the US, a “main dish” is the protein, which also tends to be the largest quantity of food; a single dinner plate may be mostly occupied by meat or fish, with “sides” of vegetables, rice, potatoes, etc. In many restaurants, you order your protein and get your choice of “sides.”

In Italy, the meal is divided into sections: Antipasti-appetizers, “before Pasta”, Primi- Usually Pasta or Risotto; Secondi- the meat or fish; Contorni- the vegetables or rice; Dolce/Cafe- the sweets with coffee.

In Latin cuisine, the main food is known as “plato fuerte”- literally, Strong Plate, really the meat or fish course.

In a typical Chinese meal (not banquets or business entertainment), A large bowl of rice or noodles is by far the largest quantity of food eaten, which is accompanied by plates of meat, fish, vegetables, etc. which are eaten as “flavoring” for the main food.

I am not suggesting that Americans or Westerners change to eat exactly like everyday Chinese; most of us have our eating habits so embedded that it would be difficult to change.

HOWever, what I AM suggesting is that we take a look at our health profiles- cholesterol, overweight, liver and kidney ailments etc. and rebalance our diets to eat more of the “main food” and a LOT less of the meat and fish, PLUS increase the proportion of vegetables in our diet. So, the way I have learned to eat now, and the way that I am recommending for you, is to plan your meal quantities in the follow, descending order (most to least):

            1. Main Food- Rice, Potatoes, Grains, Noodles, etc.

            2. Vegetables- Leafy, Green, the more fiber the better.

            3. Meat or Fish- Don’t worry about the fat content of the meat if it tastes good, once you have the quantity under control.

But, you say, isn’t rice fattening? NO, rice is not fattening; eating too much is.

So your main objective will be to reduce how much you eat.

f you do this, you will be able to stop worrying so much and eat some things that you gasped at before with no negative consequence on health, but tremendous positive consequences on flavor. For example, when I cook duck, which I do often, I render the extra fat and use it later for cooking- you (unless you are a chef or a fanatic foodie like me) have no idea how much that and other tricks like it can change the flavor of your food, for the better.

My health profile, since I started eating this way, is immaculate, especially for someone of my age.

This tip is my gift to you- learned from the wisdom of the ages and a life of traveling to every continent.

(Notice in the picture that follows that the only dish which is yours is the rice; the others are shared)


(Author’s Note: The preceding is a small snippet from my upcoming book, “Travels With Mikey- Global Life of a Business Foodie,” which I am currently working on. The book will be a memoir of my experiences working, living and eating in more than 30 countries around the globe) Follow this blog and my LinkedIn page for more news!)

Friday, June 5, 2020

Productivity- A Key to Reviving our Standard of Living


 

In my recent article entitled, “And The Winner Is”, I showed a comparison that included the US and China in GNI at PPP. (What is that? GNI is Gross National Income, the sum of all income, domestic and international; PPP is Purchasing Power Parity, the income numbers relative to what that money can buy for the population of that country). Here it is again:

 

GNI, PPP 2008 and 2018  Comparison(Current US$ Billion)

Country

2008 GNI PPP

2018 GNI PPP

Difference $

Increase %

China

10001

21300

11299

113.0%

Vietnam

315

691

376

119.4%

India

4357

8966

4609

105.8%

Bangladesh

343

767

424

123.6%

US

14685

20837

6152

41.9%

 

 

 

 

 

So, if we take the GNI in international dollars without factoring in what it will buy, the US is still higher than China, but that doesn’t get you as many Big Macs. Some more graphic proof:

 


 

And more:

 


 

What happened? Don’t blame China. If anything, thank China and Walmart for helping us to hold on to more of our standard of living than we might have otherwise.

 

Remember the 50s, when men had a job in an office, the wife didn’t work, and two kids went to school- oh, and let’s not forget the dog. I do. My parents bought a house in Brooklyn in 1959 for $25,000. What would that house cost in today’s money? Answer: $220, 265.46

 

Here are the way those numbers look on two graphs:

 


 

 

 

 


 

Today’s prices are 781.6 percent higher than in 1959

 

So, let’s look at those numbers a little more closely. The average US income in 1959, according to the Census Bureau, was $5400/year. In today’s dollars, that would have been worth $42,206.4; Today’s average income is $48,672, which would have been worth $6,226 in 1959 dollars. So, in real terms, our average income grew 15% over 61 years, which is .25% per year.

 

And, what can you buy with that nearly $50K today?

 

Business Insider did an analysis of what the situation would be for a family of four to live on $50,000 per year today. Their conclusion: Bottom line, that family is $400 in the hole.  But yet that family in 1959 could afford to buy a house, car etc. with no deficit.

 

So how do we fix this problem? Is it even fixable? I believe it is. But no doubt it will be a major task and take major reform of our economy, supported by the government (really supported- not talked about, played football with, and stagnated) and business.

 

Here I offer a starting point: Productivity. IN every area of our economy, we must get more out of our employment and other factors of production, thus lowering prices, or at least keeping them from increasing.

 

Let’s start with hiring practices. Today, hiring is a game to see how cheap you can fill a position. If there are two candidates with qualifications for a position, hirers will usually choose the cheaper one. Never mind that the more expensive one, with higher skills and experience, can do the job better and faster, thus adding more value.

 

I ran a $300 million-dollar business in China with 15 people, combined staffs from China and Hong Kong. I paid more before it was fashionable to do so. This accomplished two things: 1. I was able to hire (and retain, discouraging job jumping) better and more productive employees and 2. Lower the cost of these offices from 5% of sales to 1% (yes, sales increased, but the fact of decreasing cost by 80% overtook those increases).

 

Today, in the US, if you go to any restaurant and visit the kitchen, or go to any supermarket, you will be sure to notice that the basic tasks are done by immigrants (legal or not, doesn’t matter here) that will work for much less than average Americans. So, two questions arise for me here: 1. Are these immigrant workers as productive as they should be? I am always struck by how many of them there are at any given point when I shop; understanding the language, I hear lots of conversation and chat that has nothing to do with work. If there was a productivity standard, could I use fewer of these workers? And 2. Once I determined the productivity standard, could I hire locals at a higher salary and get higher productivity, thus reducing cost?

 

Anthony Bourdain, in his book “Kitchen Confidential” Challenged readers to staff a kitchen without these immigrant workers. Did anyone really try?

 

Let’s be clear: I am not against immigration. This is a nation of immigrants, including my forbears. I am against illegal immigration, especially when it is tolerated, even encouraged, by the prospect of cheap workers. When I applied for a work permit in Shanghai, my company had to affirm that I had special skills and was not taking a job that a local might hold. Does this standard not make sense? And, without that permit, I represented a big risk for employers.

 

Let’s take it a step further. As a hiring manager, I would put a premium on and pay a premium for productivity. Yet, in NY, where the apparel and retail industries have suffered huge setbacks and have had big layoffs, in rehiring you can bet the farm that it will be a race to the bottom- let’s hire as cheap as we can as sales have been battered. Right? Wrong. Let’s say you can hire your staff of 6 production managers at $50,000 per; I will hire 3 production managers at $85,000 per and beat you in productivity and value added. What is more, my managers can make ends meet while yours cannot. And, my total cost is $255,000 to your $300,000. My value equation in productivity will reduce my real cost even more. I guarantee it. So, now, did I add to the cost of living or reduce it? Not to mention that my 3 managers will add more to the economy and can even increase the savings rate.

 

I will also apply the same principle in my Global Sourcing. My first goal is to gain Comparative Advantage, which will result in a healthier Value Chain, and, ultimately Competitive Advantage through profit. But how do I accomplish that? By finding cheaper and cheaper labor, where I can convince people to produce at a rate that will not increase, or maybe even support, the standard of living of the workers in the countries where I source my product? NO.

 

I will seek to buy product where I can get competitive prices based on the comparative advantage of productivity, both in final product and materials, logistics and quality. But, most important, where I can at least maintain, and hopefully increase, the standard of living of those workers and their families in the factories where I choose to work. (Please see my recent article on my blog for an example of how this worked in Thailand)

 

I have suggested in recent articles that Mariana Mazzucato is on the right track in her book “The Value of Everything” when she suggests that, rather than see capitalism as we know it crash and burn to a nightmare scenario as Ayn Rand suggested in “Atlas Shrugged,”  which I wrote about recently,  we should look for a way to reform our system so it works better for everyone.

 

Per Mazzucato, we should also look at the divide between the makers and the takers in our society to revive value creation. This is also directly related to Productivity. For example, if the top executives of a failed, Chapter 11 company get $10B in bonuses, that is a slap in the face of Productivity.

 

I am sure that reforming our economy and restoring our standard of living is a huge undertaking; I am also sure that changing our mindset and our paradigm to emphasize Productivity and Value is a great leap in the right direction.

 



Thursday, June 4, 2020

Lovely Thailand Ka: A Success Story Paradigm for Global Sourcing

A Success Story Paradigm for Global Sourcing

 


(Author’s Note: The following is a chapter excerpt from my upcoming book, “Travels With Mikey- Global Life of a Business Foodie,” which I am currently working on. The book will be a memoir of my experiences working, living and eating in more than 30 countries around the globe. I may serialize some chapters from time to time. Follow this blog and my LinkedIn page for more news!)

 

 

“Lovely” is the only way to describe my experience in Thailand; the people are lovely- always smiling and without an agenda; The country is lovely- can get a little hot but the tropical beauty is as good as anywhere; the food is lovely- always fresh, spicy or not, with clear and clean flavors; the golf is lovely- Thai people love them some golf.

 

The word “ka” depicts Thailand as well as anything else. Hello= Sawasdee Ka; Thank You= Kapkoon Ka. Ostensibly “Ka” means you, but it is in the affectionate sense- Ka, you are a person worthy of my friendship/love/respect. Combined with the hands together and the humble upward glancing eyes, if it doesn’t melt your heart, you don’t have one. (Technically, “ka” is said by a woman and “krab” or “krap” by a man- same point)

 


 

As a businessperson, you should always be aware of who you are dealing with. To be successful, you should be good at making character judgements just as effectively as technical ones. In Thailand, while you never can totally let your radar go down, you can totally feel comfortable with the honesty and sincerity of the people you are dealing with.

 

Why is that? My conclusion is that their devotion to Buddhism is behind it. They take the precepts of Buddha and their responsibilities as people very seriously. It guides their life and their actions. You can say that you are a Buddhist, or Christian, or whatever, but do you act in the way that your chosen belief system guides you? We all can agree- not always.

 

One characteristic I would strongly ascribe to the Thai people is tolerance. Which is at least one reason that Thailand is such a study in contrasts. In Bangkok, for example, you have lovely temples, palaces, and the beautiful Chao Priya River. But you also have Patpong, where you can buy illegal copies of just about anything; can see live sex acts being performed; women doing things with their vital organs that you didn’t imagine could be done; beautiful young ladies who believe it is honorable to have sex for money because it will feed their family; bars with every stripe of activities and workers who look like beautiful women- but aren’t.

 


 

The people are hardworking and are eager to please you- not only because you can bestow more business and money on them, but because they take pride in doing so. No extra effort is too much. The manager of the office whom I worked with was named Songdej. Great friend, great manager, always calm and smiling. When he did something above and beyond the call and I thanked him, he would always say just, “It’s my job.” I am sure that he sincerely believed that.

 

When I first started there making underwear for Joe Boxer, there were many choices of factories. The one I chose in the end was a storefront one named Nava Arporn. Why choose a storefront for an important product with a finicky and often-changing company? Because Songdej asserted that Chaisit was his friend and would work very hard to achieve every goal that I set. Chaisit was an unassuming little man, but obviously very smart and driven.

A very few years later, our business together had increased many fold, and so had my trust. But here’s the best part: because of the business we did together that I brought, Nava’s street had gone from a storefront on a deserted street to a little, thriving, happy community with shops, residences and lots of economic activity. Songdej clearly made the point by saying, “You see this? You built this?” I could not have been prouder, and I still am.

 

But here’s the best part, for me: The experience broadened the scope in my mind of what I was doing. Sourcing product is not an impersonal act of dollars for product. It is a living thing, upon which people, their families and children depend for sustenance or survival. We are giving orders to PEOPLE. In today’s world, where buyers heartlessly cancel orders that have already been made, that someone should take these people to the homes of the people affected by their callous and greedy actions. See how they live, eat and try to survive. Or maybe walk a mile in their shoes for a little while….


Oh, and...Good people, Good business- on both sides.


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