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The
Can-Do high energy attitude and flexibility of the Chinese coupled with their
ability to hire the most talented to complement their own professional
management team is indeed the ultimate business weapon: the ability to merge the
Best of East Meets West.
As
fortunes continue to expand based on Asian growth predictions for the nest 20
years, the issue for wealthy Chinese to
consider is: Who to trust to operate and manage the overseas investments to the
standards we are accustomed to in Asia? The
location of the investment is irrelevant until the structure and information
systems are secure for managing the assets.
There currently is a shortage of such experienced operators.
Especially those in tune with technology,
telecommunications and cross-cultural marketing expertise.
Asset management is also an underrated task, which is essential to
maintaining wealth.
Chinese diligence can be famous for its attention to detail.
Consider for example, one occasion in my professional life, one of Canada's premier developers did not believe that
my Asian clients had engaged a rock climber to scale the walls of the portfolio
of office buildings in several cities, which they had under contract for
purchase. Such
attention to detail is uncommon in the West.
But its also this trait that allowed Victor Li to build Coda Plaza in
Hong Kong, at a plot ratio greater than envisioned by local authorities.
At
the beginning of each workweek in Hong Kong, a small team of professionals would
disperse to parts of the world in which we specialized for investment due
diligence and meetings to negotiate.
Fact-finding can generally be
done from abroad with access to the correct available public information.
The Internet has contributed greatly to advances in this area.
My territory was Real Estate, mostly North America although my mandate
and activities also included Hong Kong and
Singapore.
My daily activities covered responsibilities in London,
San
Francisco, New York,
Vancouver
and Toronto.
Preparation the week before a trip was through our network of contacts
around the world, often Chinese, but not necessary, who brought us up to speed
on practice and business gossips on the local scene.
We knew from experience to be respectful of local customs and practices.
Professional
management to complement family strengths is available today whereas our parents
did not have that luxury.
In foreign territory especially, know what you don't know and seek the
best help in the world.
Empowerment is a western concept which professional managers consider the
norm. How
many fund managers do you know who treat your money as if it were theirs?
The professional managers should, know that the person who owns the funds
must ultimately make the decision.
Knowing the logic of the decision
making is irrelevant and despite inference that decision making is logical, the
decision to proceed with a deal could be based on simply the mood of the family
patriarch. The
importance is to note and respect the established hierarchy of decision making.
Principals should be realistic and clearly know their limitations.
As investors, knowing trends first is important.
Rely on the system in foreign markets is fundamental to doing business
overseas so be respectful of local practices as we expect that Westerners do the
same in Asia.
Confidentiality is a must so do not be offended by request for
Confidentiality Agreements.
Know
the difference of norms in local markets.
How concepts like real estate as yet another commodity or derivative for
investment are translatable in cities like Vancouver and London for Chinese of
Malyasia, Singapore, or Beijing?
Inevitably
trust will be the main issue for consideration of authority for professional
managers. Ultimately
loyalty and a consistent record of profitable investments have ensured the
personal fortunes of trusted lieutenants.
The transition team of professional managers with multi talents in
finance and marketing especially are in high demand and expected to continue as
Asia develops as an economic force.
Borderless boundaries for investments around the world with the
Chinese connection strategically placed in the world.
by ANDREA
ENG
| ASIAN
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NORTH AMERICAN
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- Subtle
- Relationship-oriented, respect
elders
- Vertical and horizontal
integration
- Adaptable and flexible
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- Direct
- Transaction oriented
- Horizontal vision
- Bureaucratic
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DEALMAKING 101
by ANDREA
ENG
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