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Globalization




This is a working draft.

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From The Drucker Lectures

On Globalization 2001

Let me start out by saying that maybe six weeks ago I had a visit from an old student.

Forty years ago, he was a young Taiwanese.

In the meantime, he has built a very successful business in Taiwan, and for the last seven years or so has been in Shanghai, where he is now head of a very large joint-venture firm.

And I asked him, "What has happened?

What's the most important thing that has happened in China the last three to five years?"

And he thought for about five seconds and then said, "That we now consider owning an automobile a necessity and not a luxury."

That is what globalization means.


It is not an economic event; it's a psychological phenomenon.

It means that all of the developed West's values—its mindset and expectations and aspiration—are seen as the norm.

Note that my friend did not say everybody in Shanghai now owns a car.

Far from it.

He did not say that everybody in Shanghai expects to own a car.

They're at the stage where they are shifting from bicycles to motorbikes, which is deadlier.

He said that owning a car is considered a necessity, and that is what globalization actually means.

It is a fundamental change in expectations and values.


And what are some of the implications?

Let me say there are still parts of the world where globalization has not happened.

Africa, certainly not yet.

But a few years back we were in Paraguay, which is not exactly in the center of things, especially if you get into the interior.

And yet it was very clear that in this desperately poor country with little education, the values are clearly those of, well, the developed world.

And maybe in the interior of China, way back in rural China, globalization has not yet really penetrated—though I think it might be getting there.

But other than that, this is now a universal phenomenon.

From The Perfect Drink with Apple Pie

Can Sokenbicha teach the world to sing?

The Coca-Cola Co.-produced tea, which has been sold for years in Japan, is now being introduced to U.S. palates.

Kohji Shinohara, an executive at Coke's Tokyo-based subsidiary and one of the developers of Sokenbicha, told The Wall Street Journal that he recommended the herbal drink for the U.S. market while on a two-year assignment in Atlanta. "How do we globally leverage our local genius?" he asked.

While ethnic foods are hardly new to America, we've noticed that many of the newer arrivals come with an interesting twist: They're not necessarily being marketed as ethnic. Such is the case with Sokenbicha (pronounced SO-can-BEE-cha), which is being touted by Coke for its health benefits, not for being an exotic import.

Perhaps this is what Peter Drucker meant when he called globalization a "psychological phenomenon." He noted, for instance, that the automobile had become "a necessity and not a luxury" for people in China. Globalization really "means that all of the developed West's values—its mindset and expectations and aspirations—are seen as the norm," Drucker said.

But this is now working in reverse, as well. People in the U.S. and Europe are so accustomed to having non-Western products pour in from all over the world that items which once would have seemed curious now barely raise an eyebrow.

How has globalization affected how you view what you purchase?

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“The greatest danger in times of turbulence is not turbulence; it is to act with yesterday’s logic”. — Peter Drucker


The shift from manual workers who do as they are being told — either by the task or by the boss — to knowledge workers who have to manage themselves ↓ profoundly challenges social structure

Managing Oneself is a REVOLUTION in human affairs.” … “It also requires an almost 180-degree change in the knowledge workers’ thoughts and actions from what most of us—even of the younger generation—still take for granted as the way to think and the way to act.” …

… “Managing Oneself is based on the very opposite realities: Workers are likely to outlive organizations (and therefore, employers can’t be depended on for designing your life), and the knowledge worker has mobility.” ← in a context

 

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working something out in time (1915, 1940, 1970 … 2040 … the outer limit of your concern)nobody is going to do it for you.

It may be a step forward to actively reject something (rather than just passively ignoring) and then figure out a coping plan for what you’ve rejected.

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