Saturday, July 27, 2013

In China the highest tower in the world won't be...

We hear a lot about it these last months:
The Chinese company Broad said it will build the highest tower in the world in... 8 months.

Then it is the big suspense. We hear that the project is abandoned. But  no! construction just started... without the official authorizations.
Authorities shut down the construction site this week. The project seems abandoned for good.

Anyway this is certainly a clever buzz for the Broad company...
What really happened?
  • The tower project was irrealistic and even dangerous?
  • Broad didn't pay enough to get the official authorizations. His guanxi was too small as compared to competition?
  • Too many hate M. Zhang Broad president?
Clashes with the central government
You should know that M. Zhang Broad ceo has not always been in good terms with the  central governement... Years ago M. Zhang Broad ceo wanted to build his private jet landing track. He didn't have the authorizations but nonetheless started building the track and even cut some electricity lines on the nearby road... wakening Beijing wrath. Beijing sent the army! Several Broad employees ended up in the hospital in the ensuing fights! M. Zhang had to beg  for forgiveness.

A dubious management and behaviour!
I was amazed at this article on Hunan Government official wesbsite.
Clearly the article criticizes M. Zhang. It says that M. Zhang is not humble. 
You should know that humility is the most important quality in traditionnal China. A great man is humble and controls his temper.

"Zhang Yue, founder and chairman of Broad Sustainable Building, is not a particularly humble man. A humble man would not have erected, on his firm's corporate campus in the Chinese province of Hunan, a classical palace and a 130-foot replica of an Egyptian pyramid. A humble man, for that matter, would not have redirected Broad from its core business-manufacturing industrial air-conditioning units-to invent a new method of building skyscrapers. And a humble man certainly wouldn't be putting up those skyscrapers at a pace never achieved in history...."

The article openly criticizes M. Zhang lack of humility, then the personn cult, the chef cult and /the weird management rules he puts into practise in his company:

"At the end of the video, the camera spirals around the building overhead as the Broad logo appears on the screen: a lowercase b that wraps around itself in an imitation of the @ symbol...
In person, Zhang himself seems to move at an impossible time-lapse clip. He's almost always surrounded by Broad employees, all wearing identical white button-front shirts (the uniform for the corporate office) and all offering papers for him to review or sign. When I arrive, he's issuing a steady barrage of instructions while spinning himself around in his office chair. When he's finally ready to start the interview, he abruptly stops spinning and, without looking at me, barks out, "Begin!...Employees call him not "the chairman" or "our chairman" but "my chairman." To become an employee of Broad, you must recite a life manual penned by Zhang, guidelines that include tips on saving energy, brushing your teeth, and having children. All prospective employees must be able, over a two-day period, to run 7.5 miles. You can eat for free at Broad Town cafeterias unless someone catches you wasting food, at which point you're not merely fined but publicly shamed."
  • The skycity project was just a way for Broad to advertise the company? 

  1. One branch of Broad builds central air conditionning sold to hotels, airports, large real estate complexes...
  2. Another branch of broad builds decorated ready to live appartments
I believe that Broad owes its success to:
  • A pyramidal organization around his president M. Zhang
  • A strict set of rules with bonu/s/malus
  • Illimited working hours for all employees
  • The predsident network
M. Zhang, is one of the richest men in China. He is the first to own private helicopters and luxury cars...
Clever but megaloman and authoritative, he is also an important donor for France China partnership and received the french legion d'honneur.

But I will tell you more about this "model" Chinese company in another article.
As I worked there two weeks...

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