How to unsucceed in business on Saipan: Part II

There are reasons for failure and there are reasons for success. By studying each result we can improve on the next attempt. I am reminded of my first experience as an owner of a business in Japan.

For several months one of my top employees was having difficulty in working with other employees. Regardless who I assigned to work with him, no one could satisfactorily relate to him. At first I blamed the other employees for not getting along with him. However, after a while I realized that it was really him that had the problem, not the others. How could over eight or nine different employees be wrong and not him?

I solved the problem by helping him correct his attitude toward himself and to his fellow employees. After a brief period, he learned to work with everyone once he realized that he was the problem, not all the other employees.

Can this be one of the reasons the CNMI is having the troubles it is? Could it be our attitude toward foreigners as well as to statesiders? Think about it. Do we really accept outsiders or do we merely use them? Is it us against them? I have lived here for over 25 years and I often wonder am I really accepted?

After being in business for over 45 years in three different countries, I am convinced that one of the major reasons for our unsuccessful results is our approach to the relationship between the investor and us. We fail to take into account the human element.

We must understand that every thing we receive in life, every dollar we earn, is because another person works for or works with us. We can do little by ourselves. We are almost totally interdependent on others. And the results of the interdependency depend on our attitude.

It appears that every time we enter into any negotiation with an investor, we approach it as though we are in a poker game. As you know in a game of poker the aim is to win as much money as possible from the other players. We do this by various techniques. But the end result is that we win! We do not worry if the other guys walk away from the table happy or unhappy. We will use any advantage to win.

However, in a sound business arrangement all parties must win. No one should walk away from the table unhappy. If one of the players isn’t happy, in a short time he will shout: “Foul!” and the game is soon over. Any good business deal must result in all parties walking away and feeling they have gotten a fair shake in the deal. This arrangement will last a long time. Then when problems arise, they can and will quickly be resolved because all parties have a mutual respect.

I see and feel this “poker game” type of attitude in us when we negotiate with foreign investors. We tell them what we want! How we want it! Where we want it! Take it or leave it! We don’t understand what it is that they are seeking. We feel that they are trying to take advantage of us. We feel that they will make more money than us.

To be frank, I must use two words that describe most of our negotiation tactics. Too often we enter negotiations with a superior attitude and with an air of arrogance. We forget that we will get only what we negotiate for, not what we demand. These two feelings are not obvious or shown openly, but are felt by the other party. As a result the end results are not genuine. I may be wrong in this thinking. Please correct me and others who may feel as I do.

Also another thing that concerns me are the people we send in to do our negotiations. Many times they lack the necessary skill needed to negotiate. What training with large businesses do they have? What negotiation skills do they possess?

The worst scenario is when some of the negotiators try to act as brokers promising the investor that they can open doors from their connections. Of course, they expect to get paid. You and I have heard many of these horror stories. When that fails, disappointment sets in for the investor. We keep forgetting that bad management is responsible for 95 percent of all business failures.

No, I am not writing a treatise on how to conduct a successful business. There are more qualified people than I for that. But I am trying to stir up some thinking about why and how we are losing so many business ventures. We must do better.

Let us study why Singapore, the world’s leading country for business-friendly relationships, is highly successful. Let us study their Public/Private Partnership System. It would make good sense to send someone there and study from their government why they are so successful.

It is not lack of money that we so often fail. When a business plan is soundly put together, the money needed will find its way to the plan. I feel that it is lack of our willingness to let go of our personal agendas at the expense of the country. Why are we so different? Oh, I forgot, we must politicize all decisions. We want the credit.

I have just finished reading about Puerto Rico, a Commonwealth of the United States. It is interesting how many different industries they have. One is a big tourist market and another is the one we just helped to chase away—the garment industry. Puerto Rico produces over $400 million a year of garments for the U.S. military market and employs over 6,000 local people in that industry.

How much do we manufacture for the military’s garment needs? Incidentally, the U.S. military spends over $3 billion a year on its garment needs. Oh, by the way, the minimum wage in Puerto Rico is $5.25 an hour as opposed to our $4.05 per hour. Their government also enjoys basically the same benefits from the United States as we do. It might be wise to study how they do it. What do you think?

Look, I am not saying that everything we do is wrong. But we have to admit that we are messing up too often. We are screwing up too many good opportunities. We are under the flag of the United States, which is a major plus. We have the backing of the U.S. government for most ventures we want to do. We can borrow money if we really need it if we show the lenders that we know how to invest it. We are next door to over one billion people and next door to several prosperous countries. We have all the ingredients for success. What more do we need? Yet we cannot seem to make our economy grow. We keep relying on others to do what we must do ourselves. We find it hard to change our thinking and realize that many times the enemy is us.

Let’s begin with ourselves. To know ourselves is the beginning of wisdom and change. When we learn anything we change. Once we do this, economic plans will have a new meaning. We have all the tools and opportunities lying at our feet.

Let’s stoop down, pick them up, and let’s go to work! Let’s build our economy with our own two hands against all odds. We must cultivate a strong desire to be great and successful. No one else can do it for us! I believe in us. Do you? Have a pleasant week.