Delisted, because that dividend made industrious Germans lazy

 

2013-04-12 03:00:44|  分类： Frank-Writings

                      

Delisted, because that dividend made industrious Germans lazy

                         ----- Frank  Ontario, Canada

                             Dedicated to 密西根红枫

       http://frank- waterloo.blog.163.com/blog/static/205239029201331225856466/

 

     Germany may be one of the few rich countries relying on their people’s hard working rather than that of natural resources, which has attracted many international dignitaries to explore the secrets of its success. Such as, Steven Rattner, the lead auto advisor (Car czar) in the United States, who published an article on Foreign Affairs July/August 2011, namely The Secrets of Germany's Success: What Europe’s Manufacturing Powerhouse Can Teach America.

Mr. Steven Rattner described a miracle of Germany: “Germany's optimism appears warranted: whereas unemployment in the United States rose during the recent economic recession, from 4.6 percent in 2007 to 9.0 percent in 2011, in Germany, it fell, from 8.5 percent to 7.1 percent. For the first time since 1992, fewer than three million Germans are unemployed. By the time U.S. President Barack Obama was telling Americans in his January 2011 State of the Union address that the United States needed to double its exports, Germany had quietly become the world's second-largest exporter (after China).”

People could not help but may associate German achievements with that of German conscious, initiative, and enthusiastic on production, or may say that the quality of the German must be higher than that of most other country. For this regarding, I would not like to make comment, since that I respect Germans, and respect Germany sincerely. I do not want to offend them.

However, in order to prove the importance of management methods for the production efficiency, I have to introduce a fact – by a story of a German enterprise that experienced to be listed and delisted.

Robert Bosch, the German industrialist, engineer and inventor. He has found the Robert Bosch GmbH in 1886. His philosophy is that “we should all strive to improve current situation.”

As same as that of many German enterprises, the Robert Bosch GmbH is significant in great scale of operation with many inventions, but rarely aired. The name of this company is not popular, but their products are popular, very popular. Here, I mention two inventions of them to demonstrate its popular: Automotive spark plugs, and Car anti-lock braking system – ABS.

As that of general popular practice of business operation world widely, in 1930s Robert Bosch GmbH once had listed and gave the stock to the management team. 

After a while, Mr. Robert Bosch found the top mangers changed their habit and attitude, they went to lazy and not work as hard as before. The dividend income encouraged them paying attention on enjoying life. So Mr. Robert Bosch changed his mind to have bought back the stock and delisted.

At that time, only three people knew this secret, and it was disclosed until recently by Mr. Franz Fehrenbach, the incumbent president of Robert Bosch GmbH, when he was accepting the interview of talk show of China Central Television in May 20 2012.

The delisting has played a positive effect to the development of the enterprise. The interview also has revealed that Robert Bosch GmbH is ranked at 119 in the world’s top 500 enterprises. The sales revenue is 50 billion euros, in which the profit is about 8%. It is inventing 16 patents a day. Its technology is playing a role of determining the level of the development of the automotive industry of the world and is earning most of the profits of the vehicle manufacturing.

Since, its every effort is affecting the development of the world's automotive industry, and thus, it is referred to as the Intel of automotive industry. As long as you drive, you can not do without it, because the core components of the inside of your car are almost all manufactured by Robert Bosch GmbH.

Above is the story of listed and delisted in inspiring the work enthusiastic of staff. But that is not enough, Mr. Robert Bosch also summarized other bad effects as listed Company.

1. Loss of autonomic power in decision-making.

2. Loss of autonomic power in financing.

3. The pursuit of the stock market value will be made fall into a short-term behavior in business running, to affect long-term development investment.

4. Listed Company cannot keep excellent CEO, they may be ousted due to poor short-term profit caused by focusing long term investment. 

Some prospective researches may need long time to reach practical results, such as, 5 years, 10 years, even more. 

The hard experience of Steve Ballmer and Bill Gates is a good example. They are being attacked by Deadly Side Effect from Microsoft to be listed.

In the article The DNA of the Success of German, I have introduced more significant incentive measure that is popular in Germany. It is the Key of German companies keeping in full vibrant.

The experience that the Mr. Robert Bosch had to make Robert Bosch GmbH delisted from listed, showed that even if in the business of Germany that composed of high quality of German people, it was still need of some pressure to drive them work harder.

From the experience that decisively delisted form listed of an individual business, we can easily think of hard experience of the whole country of Germany.

For this concern, I wrote article Germans are always able to make decisive decisions in the toughest critical time.