The Chinese are coming! And one day they may lead the world. This is what we are increasingly hearing from those in the know. China’s old Maoist economic policy is being slowly replaced by new reforms that seem to support a spirit of entrepreneurship with more and more new businesses emerging in China. In fact it has been predicted that the Chinese economy is likely to overtake the United States by 2035.
But does China have enough up and coming, entrepreneurial, business leaders with the vision and capacity to think creatively, inclusively and flexibly enough to sustainably do business internationally and around the globe?
IBM recently conducted a survey of more than 1,500 Chief Executive Officers from 60 countries and 33 industries worldwide to discover which qualities would be required for effective leadership in the 21st century.
Less then half of the CEOs interviewed believed they are adequately prepared to handle a highly volatile, increasingly complex, global business environment. More than 60 per cent felt there was a vital need to develop innovative ways of managing organizational infrastructure including processes, systems, finances, people and overall strategy.
The findings overwhelmingly revealed that successfully navigating an increasingly complex world will require creativity, open communication and a networked mind-set. Understanding regional differences is increasingly important as economies and societies become more closely linked.
The IBM study also revealed that CEOs in China realise the need for a new generation of leaders with creativity, vision and international management experience and are devoting far more energy to building new skills and capabilities than their peers in the West.
The reason for the remarkable growth is the economic reforms implemented by China’s communist government. Less a case of change and more a case of the new ways gradually making the old ways obsolete.
Apparently in 1978 the government decided that the Maoist style economy had caused China to fall behind the industrialized nations of the West in terms of growth. Added to this the new industrial powers of Asia like Japan, Hong Kong and Taiwan were also growing and flourishing while China’s people had inadequate food supplies, clothing, housing, and a highly inefficient service sector. This was considered to be embarrassing for China internationally.
However the purpose of the economic reforms was not to abandon communism but to improve it’s effectiveness by increasing the role of market mechanisms in the system and reducing government controls. Once the market mentality surfaced, it would just be a matter of time.
By 1987 the people of China saw increased food supplies, more consumer goods and the possibility of new opportunities for outside investment and economic growth. So, while the banking sector, steel production, telecommunications and electricity generation are still essentially state owned; there are an increasing number of new businesses being created by China’s emerging entrepreneurs.
It is predicted that by 2015 there will be 500 million people under age 30 in China and it is becoming apparent that China’s younger generation are embracing entrepreneurship. According to Credit Suisse, the income of people in their twenties has grown by 34% in the past three years, the largest growth of any age group.
But here’s the biggest challenge.
Chinese culture is traditionally WE rather than ME orientated. The collective whole is valued more than the assertive individual. These are a people that are not used to autonomy and individuality. However the human organism itself is biologically coded to develop through stages of WE and ME on it’s way up the evolutionary chain.
For the purposes of this article and the perspective I am offering it may be useful to look through the lens of the theory of Spiral Dynamics Integral.
Developed by Dr Don Beck and Ken Wilber and drawing heavily on the research of Dr Clare W Graves, the central idea of SDi is that human behavior is dictated by our bio-psycho-social development. In other words, research into brain function has demonstrated that our environment and our intrapersonal and interpersonal experiences shape our neurology, which in turn determines the drives and values that dictate our behaviour. These drives form nested systems and express the evolution of each individual’s personality and our shared culture.
From a Spiral Dynamics Integral perspective the nations of the world are built on cultures that have emerged out of the expressed values, beliefs and drives of the people and their experience of (and adaption to) their given life conditions.
For example, people of nations in what are described by the West as the ’3rd World’ are dealing with basic survival needs in challenging environments with limited resources. They are often tribal communities trying to stay alive and safe on the edge of potentially feudal conflicts. They live with higher rates of poverty, low education and the risk of random acts of violence. As a result the peoples of nations like Sierra Leone, Mozambique and Niger express value systems that are focussed on basic survival needs and the search and hope for future security. While personal survival is vital, the survival of the tribe and its traditions can be valued above individuals. The tribe look to the tribal elders for instructions on how to live (and die). In the language of Spiral Dynamics Integral this society would be described as a ‘Beige – Purple’ culture.
In certain instances individuals will break away from the tribe and assert their autonomy. This can be healthy and result in an individual performing heroic deeds and ushering in a new way. However in it’s unhealthy expression individuals may begin taking advantage of those who are weakened by the life conditions. This can end up with the ‘break away’ individuals committing robbery, violence, and murder and in some cases genocide. These people would be described as expressing ‘Red’ values.
The ’2nd World’ describes countries that are in between poverty and prosperity and are often governed by a dictatorship and one authoritarian ideology. Obvious recent examples are the territories that were in the spheres of influence of the former Soviet Union, North Korea and China. The values and drives of the people of these nations are focussed around obedience to a one party state, or authority figure, following rigid rules and regulations. In these countries the ideology, whether religious, political or both, is the absolute power and the needs of the leader/s and the nation are more important than the needs of the individual. Everything to do with society and culture is controlled but the government and individuals work within a rigid disciplined system to support the incumbent rulers. SDi categorises this type of nation as expressing a potentially unhealthy ‘Blue’ value set.
First World nations are built on free market democracies where individuals are free and able to achieve high levels of affluence. People have the opportunity to work within a free market system and develop a healthy sense of autonomy as independent agents acting within society. There is a good balance between security, law enforcement and individual freedoms. Entrepreneurialism, inclusivity, egalitarianism and respect for (and acceptance of) cultural diversity are some of the prevalent values in the 1st world. In the theory of SDi this is described as a culture expressing ‘Orange – Green’ values.
As nations develop from 3rd to 1st world conditions, they transcend yet include each stage. In the 1st world there are still elements of 2nd and 3rd world value systems operating in micro communities within the larger society. However it is the integration of all previous stages of development that make for a healthy and whole expression of human being within a culture.
Human beings develop in much the same way as we grow and move up the developmental scale through:
• Birth to Early infancy- Oceanic, symbiotic, full dependency.
• Infancy to Early childhood – Safety needs, belonging, magical thinking.
Impulsive, narcissistic, growing need to assert self as an individual entity.
• Early childhood to early adolescence- Egocentric, driven need to develop self esteem, mythic thinking and adherence to certain rules to meet safety needs.
• Adolescence to early adulthood – Rebellious to conformist, rational and reflexive. Pluralistic and relativistic thinking.
• Adulthood – Inclusive and integrated, utilising systemic, global and universal thinking.
You will have developed through several stages of growth during your lifetime. The values and drives from all previous stages of your development will have been expressed, exhausted, integrated, transcended and included to form your current personality. Hopefully you will feel well adapted to your current life conditions and optimistic about your ability to face any personal or professional challenges that may arise in the future.
So this brings us neatly back to the current situation in China.
The Six dynasties that ruled in Imperial China between 221 BCE – ACE 1912 were essentially controlling many tribal cultures across the country, each full of it’s own beliefs, values and traditions. Governing this country would have been a momentous task for each dynasty in every age and led to many autonomous kingdoms struggling for independence as each ruling dynasty took hold. However, in the age of Imperial China people were very much at the tribal and mythical stage of development and valued their religions, rituals, communities and their ancestors and elders above any ‘one’ individual.
However, things would change again with the birth of Chinese communism in 1921 and by 1949 the government under Chairman Mao had taken over and was well established. The age of tribes, religion, magic and mythic beliefs was replaced by a dictatorship that flattened local hierarchies and imposed on the people rigorous, rules and regulations, in service of a one party state.
But eventually Western influence stealthily jostled it’s way in and by 1987 there was an increasing acceptance of Western culture by many young Chinese people living in urban areas. And by 1989, students together with reformists, were organizing protests against the leadership. This reached a peek in the Tiananmen Square protests in Beijing since when the Chinese communist party have been making serious made attempts to participate in global politics and business.
China today is looking more like it may be entering the 1st world of individualism as it’s people begin expressing ‘Orange’ values – the opportunistic, innovative, strive drive for success. But as a people the Chinese have not had an opportunity to truly actualise and express their individuality for centuries. So, what might the consequences be for a nation whose people are suddenly driven to assert themselves as unique individuals?
Russia is a good example of what happens when there is a cultural shift from WE to ME. While modern Russia is struggling to find its identity after the fall of communism, it’s business and political communities are dealing with large-scale criminal activity and corruption. Allegedly, more than 15% of Russians paid a bribe in 2010 and according to Georgyi Satarov, bribe money in the Russian economy reached $400 billion per year. Apparently this is the result of gangs of greedy yet powerful individuals in leadership positions looking to accumulate large amounts of wealth by implementing radical, short-term strategies.
It is believed that corruption will eventually affect the growth of new businesses and foreign investment eventually slowing down economic growth overall. In fact, some say that if the current high price for gas and oil suddenly fell, Russia may face some fairly difficult economic challenges in the future.
What will prevent this state of affairs occurring in China?
What China needs now are a new generation of Flex and Flow leaders.
Leaders who can handle complexity, ambiguity and diversity. Leaders who have an integral, systemic and global perspective on culture, and an understanding of psycho- bio-social-economics. Leaders committed not only to profits but also to human development and evolution. Leaders who understand human psychology, motivation, values, drives and spirituality, Multi lingual leaders who are creative and innovative thinkers with highly developed communication skills.
This is a tall order indeed in terms of leadership training and development, but if there is one nation of people on earth that has demonstrated it values education, it is the Chinese.
In British schools it has been found that Chinese pupils tend to outperform their classmates. A two-year study, by Dr Becky Francis and Dr Louise Archer, of London Metropolitan University found that 74.6 per cent of British- Chinese pupils achieved at least five A*-to-C grades in English at GCSE level in 2003, compared with a national average of 50.7 per cent. 83 per cent gained the benchmark level 4, compared with 75% of pupils from other cultures.
The study also identified that a defining aspect of British-Chinese identity, regardless of social class and gender was the high value they placed on learning and education.
To lead a nation of Chinas size, depth and breadth into the global market place as it produces future generations of workers and consumers looking for opportunity and their share of the good life will require exceptional leadership.
The Chinese people are known for their humility, wisdom, discretion, kindness and generosity. I hope they will continue to express these qualities as they further integrate with the nations of the globe. Women and men who will become ambassadors for a new world order, in which everyone benefits. Business leaders who genuinely walk the talk of: ‘With great power comes great responsibility’. Integral, Flex and Flow leaders.
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February 15th, 2012 | 
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