INSIGHT
 

Globalization (Really)
Kao Shu-Lin is senior advisor at Mitsubishi Electric Taiwan. Born in 1937, he worked at a Taiwanese mining company after graduating from university and joined Mitsubishi Corporation in 1970. Mr. Kao became the first non-Japanese executive to fill the post of chief representative at Mitsubishi Corporation's Amoy (China) office in 1993, and he retired from the trading house three years later. The CEO of Mitsubishi Electric Taiwan, Isao Kameyama, persuaded Kao to join that company 1996 as an advisor.

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  Kao brings a wealth of experience in international business to Mitsubishi Electric Taiwan.
Globalizing by localizing
"Lots of Japanese companies talk about globalizing themselves. But few of them become truly global. The reason that most of them fail is that they don't begin by localizing operations thoroughly.
    "Localizing operations in every principal market is fundamental to globalization. That needs to include providing employees and executives in each region with persuasive incentives. Stock options, for example, could be a valuable tool for attracting and motivating capable managers in some markets. The people at headquarters in Japan need to be attentive and responsive to the special needs of each subsidiary."

Employee responsibility
"We who work at subsidiaries of Japanese companies need to do our part. We need to understand how our Japanese colleagues think and make decisions. Helping people at Mitsubishi Electric Taiwan fulfill that responsibility is a big part of my job as advisor.
    "Twenty-six years at Mitsubishi Corporation gave me a great deal of insight into Japanese values and perceptions. It gave me a great deal of practice in combining the best of Japanese and Chinese practices. My job now is to help equip our people with the skills and understanding they need to contribute fully to the Mitsubishi Electric Group.
    "That includes providing employees with solid capabilities in the leading-edge technologies that are essential to our products and markets. We do business in information technology. So we need to be experts in that technology. We also need to be quick in responding to fast-changing customer needs in information technology solutions."
"This company traditionally has relied on Mitsubishi Electric's global organization for most of its business. To continue growing, we need to take more initiative in developing new business on our own. That will include localizing our operations further and entering into strategic alliances with diverse partners."
Fulfilling human potential
"The work that has given me the greatest satisfaction at Mitsubishi Electric Taiwan has been in human resources. I have had the opportunity to oversee a sweeping revision of our system for evaluating and compensating employees.
    "Our improved system provides a clear link between performance and rewards. For example, we added two ranks to the previous seven to allow for rewarding young employees sooner with promotions. The changes have made our company a more-appealing employer for people who want to make the most of their potential."

Winning new business
"I also am proud of our success in winning new business. I participated in winning orders for hydraulic power plants when I was at Mitsubishi Corporation. And most of the equipment for those plants came from Mitsubishi Electric.
    "After joining Mitsubishi Electric Taiwan, I participated in successful bidding for an automated distribution system for an electric power grid. Other bidders offered lower-cost proposals. But the teamwork and negotiating skills at Mitsubishi Electric proved decisive."
Coping with adversity
"Market conditions remain trying for the next couple of years. We need to be alert to trends in demand and to emerging business opportunities. At the same time, we need to be especially careful to avoid getting stuck with uncollectable receivables. We need to monitor our customers closely, that is, and manage our accounts receivable rigorously."
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  Mitsubishi Electric president and CEO Ichiro Taniguchi (center-right) pays a visit to his company's Taiwanese subsidiary. At center-left is Mitsubishi Electric Taiwan's CEO, Isao Kameyama. Kao is at the far right.
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