Chinese intertwine business and personal affairs much more deeply. They do things for their partners even if they are personal affairs.

If you wander into any of China’s five floored bookstores, the first thing you notice right when you enter the store won’t be the newest hardcovered fictions. It’ll be management books written by successful American businessmen. On shelf after shelf, you could see copies of Jim Collins’s “Good to Great,” Jack Welch’s “Straight From the Gut,” Tom Peters’s “Re-Imagine!” and just about everything the late Peter Drucker ever wrote. One section you won’t find in Chinese bookstores is a section for management or human resources.

There’s a good reason for this. In the West (not to mention Japan and South Korea) management skills are a given. Graduate schools of management churn out M.B.A.’s, while instilling the basic processes and systems that virtually all multinational companies rely on. People who rise to the top of companies are the ones who have mastered the art of management. But there are also many first-rate managers who populate the middle ranks of companies. They are the lifeblood of most big companies.

That’s not the case in China. The shortage of managerial talent is huge. There just aren’t very many people here who have the range of skills you need in that position. Xiang Bing, dean of the Cheung Kong Graduate School of Business, said: “We Chinese are so willing to work hard for money. We are intelligent. We have the drive and the passion. But we put too much attention on technology and not enough on institution-building. And our soft skills are a real weakness.”

One issue with management is that most Chinese entrepreneurs hire friends and family because they don’t trust people they don’t know. And if they don’t get help fast, they are going to lose control of their rapidlygrowing businesses. Rapid growth, though, is only one of the issues these entrepreneurs are facing. Every bit as difficult are ingrained mind-sets and attitudes that can make it difficult for Chinese executives to adapt professional management techniques.

Many Chinese entrepreneurs (even those who have graduated from the executive M.B.A. program) don’t want to hire M.B.A.’s because they bridle at having to pay professional management salaries. Another problem is that many Chinese executives believe that because it is a Chinese business, professional managers won’t fit in the system.

When dealing with each other, the Chinese, quite simply, do business differently than Western companies do business. For one thing, there is a lot of petty corruption that is an ingrained part of business, especially among the state-run companies. Purchasing managers favor one vendor over another because they get a kickback. A sales rep buys customer loyalty with under-the-table payments. And so on. People also tend to put their own interests over the interests of their company — not a huge surprise, given that everyone worked for the state just a generation ago.

Finally, there is the gnarliest issue of all: the importance placed on the deep, intertwining set of relationships known as guanxi. Unlike the West, you don’t just have a business relationship in China; you have a relationship that interchangeably mixes the personal with the professional.

Study Shows Average Age of Management Positions Now 25 Years Old

Generation Y people born after 1981 tend to climb to managerial posts in companies at a relatively much younger age than their older counterparts. Employees born after 1980 tend to first become managers at an average age of 25.3, compared to 31.8 for their counterparts who were born in the 50s. The Y-generation people seem to climb the career ladder faster as they tend to have stronger ability to learn and a stronger work ethic, according to the poll.

Most of the business executives said they do not particularly consider employees’ ages when they are choosing new leaders within their corporations. They choose according to negotiation and coordination ability. The ability to solve problems and professional abilities are more important factors when they are considering promotions.

Interestingly enough, the Y-generation people do not necessarily perform well in management terms. According to company executives, managers aged 39-48 were the best performers.

 4 Companies That Conquered America

Accounting for almost 30% of world GDP, the United States is the world’s largest and most demanding market for almost everything from oil to microprocessors to premium coffee. Companies around the world aspire to do business in the U.S., or at least with U.S. companies in their home markets. By doing so, they learn much about the latest management practices, they can be closer to the cutting edge of innovation, and they can boost their reputations by supplying well-known U.S. firms.

So how do you penetrate the U.S. market? The annals of business are littered with foreign companies that have never quite succeeded in the USA. But here are four companies that have. Each carries a special lesson.

1. Royal Bank of Scotland. This company built up a strong retail market share in the U.S., not under the RBS brand, but through a series of acquisitions of regional (not national) banks. RBS is adding value for its shareholders by letting these banks retain their individual brand identities, by focusing on improving back office efficiencies, and by having the highly respected CEO of one of the acquired entities lead the combined U.S. organization.

2. IKEA. IKEA offers a furniture retailing value proposition and experience unparalleled in the U.S. market. There are no national furniture retail chains, making market penetration easier. IKEA’s location selection expertise and their established global supply chains enable them to offer exceptional category-killer prices that are further keys to success.

3. ING. The Dutch bank converted its weakness (no retail branches in the U.S.) into a strength. Following a successful Canadian market test, ING gave its entrepreneurial general manager the green light to offer retail banking services to U.S. consumers but exclusively on an online basis. Taking advantage of its low no-bricks-and-mortar cost structure, ING was able to offer generous rates on certificates of deposit.

4. Dyson. The British home appliance maker earned a break when it managed to get a Best Buy buyer to take one of its vacuum cleaners home to test. The buyer was impressed. Fortunately for Dyson, Best Buy became the first U.S. retailer to stock Dyson vacuum cleaners. Electronics retailing in the U.S. is concentrated (10 chains control 60% of the market) and tough to penetrate. But Dyson could not have succeeded had its products not been superior to other vacuum cleaners already in U.S. stores.

You just know in your gut whether or not you can work with your spouse.

For many, the notion of working with a spouse sounds, at best, dangerous, and, at worst, like a direct path to marital collapse. But for a growing number of American couples, running a business together offers the best of both worlds: pursuing a professional dream with someone you love and respect, while getting a chance to spend more time with them. According to the National Federation of Independent Business, there were approximately 1.2 million husband- and wife-owned small businesses nationwide in 2003, the most recent year for which the group has data. Anecdotally, family-business experts say that number has only continued to climb.

The increase in the number of women choosing an entrepreneurial path is playing a role in the growth of husband-wife teams. In the past, men tended to open a business and often a wife is helping, but he doesn’t always see her as his partner. Now, women are more entrepreneurial and recognizing that more in themselves than they used to.

It’s nearly impossible for couples to completely separate their work and personal lives. Other couples say that a key to maintaining both a strong business partnership and healthy marriage is to establish distinct responsibilities that do not overlap. Still, it’s not for every couple. When personalities and business acumen mesh in a couple’s professional life, these married entrepreneurial teams say the personal relationship often follows suit.

Kissing @** is Tough Work. If You’re Going To Do It, Make Sure It’s The Right Way

There’s an art to sucking up, and if the boss (or your co-workers) can figure out what you’re up to, you’re not doing it right. More importantly, it will backfire. So while everyone calls it something different, it’s key to your success at work.

1. Speak your boss’ language. Figure out your boss’ style and adapt to it. Is your boss a huge sports fan? Learn sports metaphors and incorporate them into your conversations about work.

2. Make everything seem like it’s the boss’ idea. Instead of simply pitching the boss an idea, say something like, “Thanks for your guidance on that issue. As a result of your direction, here’s how I’d like to handle it.” That makes it seem like this bright idea you have is actually his.

3. Avoid gratuitous compliments. No need to gush over the boss’ new outfit. Instead, use compliments strategically. For instance, “That was a great idea you mentioned the other day. Here’s how I think we can execute it.”

4. Give the boss what he or she wants. If your boss is detailed and needs all your work to be the same, then do it. Give your boss the type of work he or she wants. Don’t waste time by complaining. It may not be the way you prefer to work, but it’s what your boss wants and that’s all that matters. Don’t complain or fight her about it.

5. Ask permission before offering input. This is a way of showing deference to the boss. Before offering your opinion say, “Can I give you some ideas that might enhance this project?” Or, “Would you be open to a different opinion than the one we’re talking about?” If you ask for permission to offer your thoughts, your manager will rarely say no.

6. Match the boss’ energy. If your boss is short, sequential and fast, match that. If he or she is leisurely and ponderous, match that. You get it. Each time you match the boss’ energy, you build trust and strengthen the relationship.

7. Respect the boss’ position. Remind him or her that you know who’s the boss. For instance, say, “I have these ideas, but I will defer to your decision.”

When people are feeling negative, they want to cheer themselves up by shopping. People have no idea this is going on.

A new study shows people’s spending judgment goes out the window when they’re down, especially if they’re a bit self-absorbed. Study participants who watched a sadness-inducing video clip offered to pay nearly four times as much money to buy a water bottle than a group that watched an emotionally neutral clip.

The new study released Friday by researchers from four universities goes further, trying to answer whether temporary sadness alone can trigger spendthrift tendencies. The study found a willingness to spend freely by sad people occurs mainly when their sadness triggers greater “self-focus.”

The researchers concluded sadness can trigger a chain of emotions leading to extravagant tendencies. Sadness leads people to become more focused on themselves, causing the person to feel that they and their possessions are worth little. That feeling increases willingness to pay more — presumably to feel better about themselves.

The Importance of First Impressions

The first impression a CEO gives, even based solely on certain facial characteristics, could predict how successful his company will be, a new study suggests. First impressions (what others think of a person at a glance) can tell us a lot about another person, and several psychological studies have shown that they can predict success in areas such as running for elected office or teaching. But how well a teacher teaches and how much a candidate appeals to voters are both subjective ideas.

Psychologists Nicholas Rule and Nalini Ambady of Tufts University set out to study whether first impressions could predict performance in a more objective evaluation: how successful a CEO’s company was. In their experiment, the researchers had college students rate the faces of the CEOs of the highest and lowest ranking Fortune 1000 companies according to their perceived leadership abilities. Certain personality traits associated with leadership, including competence, dominance, likeability, facial maturity and trustworthiness, can be judged from a person’s face, previous studies have shown.

The researchers grouped these traits into two factors influencing leadership. Competence, dominance and facial maturity were combined to represent “power,” while likeability and trustworthiness represented “warmth.” The CEOs who were rated as more powerful by the students turned out to be running more successful companies.

Look at the World Differently and Come Up With New Solutions

 As our knowledge and expertise increase, our creativity and ability to innovate tend to taper off. Why? Because the walls of the proverbial box in which we think are thickening along with our experience. “When everybody knows that something is so, it means that nobody knows nothin’,” said Andrew S. Grove, the co-founder of Intel. In other words, it becomes nearly impossible to look beyond what you know and think outside the box you’ve built around yourself.

This so-called curse of knowledge, a phrase used in a 1989 paper in The Journal of Political Economy, means that once you’ve become an expert in a particular subject, it’s hard to imagine not knowing what you do. Your conversations with others in the field are peppered with catch phrases and jargon that are foreign to the uninitiated. When it’s time to accomplish a task — open a store, build a house, buy new cash registers, sell insurance — those in the know get it done the way it has always been done, stifling innovation as they barrel along the well-worn path.

That’s a common reaction when experts set out to share their ideas in the business world, too, say co-authors and brothers Chip and Dan Heath. It’s why engineers design products ultimately useful only to other engineers. It’s why managers have trouble convincing the rank and file to adopt new processes. And it’s why the advertising world struggles to convey commercial messages to consumers. People who design products are experts cursed by their knowledge, and they can’t imagine what it’s like to be as ignorant as the rest of us. But there are proven ways to exorcise the curse.

To innovate you have to bring together people with a variety of skills. If those people can’t communicate clearly with one another, innovation gets bogged down in the abstract language of specialization and expertise. “It’s kind of like the ugly American tourist trying to get across an idea in another country by speaking English slowly and more loudly,” says Heath. “You’ve got to find the common connections.”

Author Cynthia Barton Rabe proposes bringing in outsiders whom she calls zero-gravity thinkers to keep creativity and innovation on track. When experts have to slow down and go back to basics to bring an outsider up to speed, she says, “it forces them to look at their world differently and, as a result, they come up with new solutions to old problems.”

Dyslexia Forces People To Master Verbal Communication 

It has long been known that dyslexics are drawn to running their own businesses, where they can get around their weaknesses in reading and writing and play on their strengths. A new study of entrepreneurs in the United States suggests that dyslexia is much more common among small-business owners than even the experts had thought. Julie Logan, a professor of entrepreneurship at the Cass Business School in London, found that more than a third of the entrepreneurs she had surveyed — 35%— identified themselves as dyslexic. The study also concluded that dyslexics were more likely than nondyslexics to delegate authority, to excel in oral communication and problem solving and were twice as likely to own two or more businesses.

“We found that dyslexics who succeed had overcome an awful lot in their lives by developing compensatory skills,” Professor Logan said. One reason that dyslexics are drawn to entrepreneurship, Professor Logan said, is that strategies they have used since childhood to offset their weaknesses in written communication and organizational ability — identifying trustworthy people and handing over major responsibilities to them — can be applied to businesses. Entrepreneurs are hands-on people who push a minimum of paper, do lots of stuff orally instead of reading and writing, and delegate authority, all of which suggests a high verbal facility. Compare that with corporate managers who read, read, read. Only 1% of corporate managers in the United States have dyslexia.

Individuals who have difficulty reading and writing tend to deploy other strengths. They rely on mentors, and as a result, become very good at reading other people and delegating duties to them. They become adept at using visual strengths to solve problems.

Parallel Lessons

• Let Them Cry   Sometimes, no matter how hard it may be, you need to let them cry it out. Whether it’s an employee who wants more of something but hasn’t quite earned it yet or a baby who is overtired and needs to sleep, you can’t always get what you want. As a parent and a CEO, you can’t always give them what they ask for.
• Count to 10   Losing your temper is not a good way to show that you are in charge and worthy of respect. It’s also not a good way to help your staff/child improve. Count to 10 before you react, and think about how a measured response will get you much better results. I’ve found that in most cases when I’m really angry, it’s a very temporary thing.
• Let Them Fail   There are many times when you just need to sit back and watch people fail for their own good. Employees need to botch a sale, sometimes, in order to learn how to do it correctly. Kids have to fall down when trying to stand, walk or ride a bike. If you save either from the mistakes before they happen, you’ll deprive them of the chance to learn important lessons firsthand.
• Carrots, Not Sticks   This is a wonderful lesson that really works with kids. Rewarding good behavior creates a desire to behave well without all the trauma of avoiding pain.
• Be the Boss/Parent   There is a desire among bosses to be friendly with your staff. When push comes to shove, you have to be able to separate as a friend and be the boss. There is a huge difference between being friendly and being friends. Parents are in the same boat — you can love your kids, but you are not their friend. You need to have that separation for times when you need to use your authority.

If you love each other, shouldn’t you be able to live and work together, right?

For many couples, this major decision is the ticket to wealth, self-actualization and happiness. For others, it can lead to severe financial and relationship stress. Such a move takes more than planning; it requires a full assessment of your personalities and your money issues to determine whether working and living side by side is right for you. Your first step should be a visit to a trusted certified financial planner. Here are some key steps to consider:

Give yourselves a timetable to startup. You might be tempted to give notice tomorrow morning, but it’s much wiser to lay out a timetable over the coming months with specific tasks, goals and objectives.

Study the viability of your business model. Talk about worst-case scenarios. Bring in trusted advisors to ask tough questions about what you’re planning to do and the viability of your idea. Convincing each other you’ll make it work isn’t enough.

Draft a business plan. Even if you don’t anticipate the need to seek outside financing, it is always a good idea to formalize your ideas with a business plan. Include profit and loss projections, so that you have a benchmark for evaluating your progress at a given point in time. Factor in both best- and worst-case scenarios, which could help with decisions down the road.

Understand how your tax situation will change. Depending on which business structure you choose, you may need to plan for income taxes, self-employment taxes and payroll taxes. You want to make sure you have reserves set aside for these liabilities. 

Set a spending plan for your business and personal life. Since startups have unpredictable cash inflows, you will want to establish adequate emergency funds–both business and personal–to carry you through the startup phase.

Set boundaries. Couples who live and work together need to assess whether they want to keep their work and personal lives separate. Some people are comfortable discussing their personal lives at work, while others make it clear that during working hours, they are at work and won’t discuss personal matters.

Make sure your legal documents are in order. If you haven’t had your estate planning documents updated in a while or don’t have them at all, this is a great time to have them drafted. Don’t forget to tell your attorney about your new business venture, which should be factored into the equation.

Plan for your kids in the business. There may be good opportunities to employ children for work commensurate with their skills.

 How Well Are You Dealing With Stress?

One-third of Americans are living with extreme stress and nearly half of Americans (48%) believe that their stress has increased over the past five years. Stress is taking a toll on people — contributing to health problems, poor relationships and lost productivity at work, according to a new national survey released today by the American Psychological Association (APA).

Money and work continue as the leading causes of stress for three quarters of Americans. Nearly half of all Americans report that stress has a negative impact on both their personal and professional lives. Stress causes more than half of Americans (54%) to fight with people close to them. One in four people report that they have been alienated from a friend or family member because of stress, with 8% connecting stress to divorce or separation.

Stress in America continues to escalate and is affecting every aspect of people’s lives — from work to personal relationships to sleep patterns and eating habits, as well as their health. Physical symptoms of stress include: fatigue); headache; upset stomach; muscle tension; change in appetite; teeth grinding; change in sex drive and feeling dizzy.  Psychological symptoms of stress include: experiencing irritability or anger,  feeling nervous, lack of energy and feeling as though you could cry.  In addition, almost half (48%) of Americans report lying awake at night due to stress.

While many Americans recognize that stress has a negative impact on their health, they may lack the motivation to make lifestyle and behavior changes. Only 35% report that they would modify their behavior following the diagnosis of a chronic condition. Encouragement from a spouse or partner would motivate 38% to make behavioral changes.

If it’s done anything, it’s made me never, ever want to buy a Chevy.

Who hates those Chevy commercials because of their song “Our Country,” by John Mellencamp? According to Newsweek, everybody hates it. Mellencamp’s melancholy anthem have become so ubiquitous that they’re driving sports fans to distraction. Chevy thinks the campaign has been a success, and are actually making more “Our Country” commercials, despite heavy criticism from people who are sick of the song.

The company used Bob Seger’s “Like a Rock” for 11 years, helping drive up truck sales 61%. Chevy spokesman Terry Rhadigan is aware of the negative buzz but has no plans to throttle back.  When it comes to building awareness, experts say, nothing succeeds like excess—even at the risk of overkill. Just great!

A busy workload means less time at home and therefore less time for housework, regardless of income.

A new University of Massachusetts Amherst study finds married women do about one less hour of housework per week for every $7,500 they earn as full-time workers outside the home, regardless of the husband’s income. Married women who work full time may be looking largely at their own salaries — not those of their husbands — when deciding which routine chores can or should get done in their home. So why does the wives’ higher income translated into less time on housework? The reasons could include the financial freedom to hire a housekeeper; the time demands of some higher-paying jobs; different standards of tidiness; more outside activities and therefore less wear and tear to clean up in the house; or other factors.

How Could You NOT Judge This Guy? 10 Popular Myths About Wealth and Luxury

1. The Wealthy made their money easily and spend their money easily. Most wealthy individuals spend far more hours working, embrace far more risk, and create far more value for society than their mainstream counterparts. Even today, for most, it still takes years of immense sacrifice to achieve wealth. Wealthy consumers are therefore very value conscious and discerning when they buy luxury goods and services.

2. The Wealthy are conspicuous consumption machines living in another reality. The minority of wealthy individuals who live ostentatious, opulent lifestyles are often portrayed as stereotypical wealthy consumers. In reality, most wealthy consumers are value creators, who seek quality and value, including authentic prestige, in luxury goods and services. Like many of us, some of their biggest concerns include taking care of aging parents and raising well-educated, generous children. When marketing to them, acknowledge their basic human values and show you understand them as the well rounded and balanced individuals they really are.

3. The Wealthy can’t really define luxury. Put a list of brands in front of the typical wealthy consumer and she, or he, will not only be able to articulate the attributes that constitute a luxury brand, but will also discern differences between brands better than any luxury marketer. The ability of wealthy consumers to define true luxury, individually, and as a group, is laser-accurate.

4. Luxury goods are a far larger industry than luxury services. Luxury goods such as couture fashion, watches and jewelry, get all the attention, yet, are dwarfed by the size of luxury services such as wealth management, travel and leisure, security, etc. Innovative services, including those as basic as nanny services, concierge services, and medical services, aimed at the wealthy, will grow faster and more profitably in the future. Many luxury goods firms are busy transforming themselves into services, or adding services to add value.

5. The Wealthy don’t participate in consumer satisfaction surveys. Wealthy consumers provide feedback and respond to surveys, sometimes more that the general population. Most wealthy consumers are highly educated businesspeople. They recognize the value of feedback and will provide theirs candidly to brands they trust. No metric is more highly correlated with financial success than customer satisfaction. Brands that fail to solicit and measure their customers’ feedback and continuously seek to improve customer satisfaction will become extinct.

6. The Wealthy don’t go online. A recent survey by the Luxury Institute found that the vast majority of wealthy consumers are regularly online. The wealthy work long hours, are more time-starved than the general population, and use the internet more heavily for researching luxury goods and services, and conducting transactions.

7. The Wealthy don’t use ratings and reviews to make purchasing decisions. A recent survey by the Luxury Institute found that over 80% of wealthy consumers use ratings and reviews sites to facilitate purchasing decisions. While the wealthiest may rely on a few trusted experts, many have middle class values and lead regular lives that include seeking information from ratings and reviews sites and publications. The difference is that these savvy consumers steer clear of biased websites and publications and “Best of” lists that pretend to provide non-conflicted advice.

8. Luxury marketers should be targeting only the wealthiest clients. Luxury brands that seek to serve only the $100 million plus net-worth consumer are usually small and often have fairly low profit margins. The truly under-served wealthy, in luxury goods, and, especially in luxury services, are households with a net worth from $ 1 million to $50 million. Their lives are busy, and often complex, and require many types of trusted advice. There are far more of these individuals globally, and growing in numbers.

9. Wealthy clients do not give referrals. Research with wealthy and ultra-wealthy consumers indicates that the vast majority are willing to refer trusted brands to friends and family. Yet, ask luxury goods and services CEOs what their client referral rates are, and the answer is usually well below 50%. This disconnect is due to the fact that most luxury goods and services firms rely on individual salespeople for referrals rather than creating a company-wide referral program. It is one of the greatest revenue opportunities in luxury today.

10. Wealthy consumers are not very loyal since they can go anywhere. The majority of wealthy consumers are among the most loyal customers. Their loyalty must be earned with great service. Ratings show that most luxury goods and services firms have yet to internalize what brands such as Ritz-Carlton, Nordstrom, Neiman Marcus, and Bessemer Trust inherently know: That the entire customer experience, from A to Z, must be at a level that makes customers happy to do business with the brand. This is the greatest, and easiest to implement, opportunity for luxury goods and services brands globally today.