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Unintended Damage in Business and Geopolitics

Beware of Executives with Personal Agendas

November 2007 By Denny Hatch
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In the News

Rights Defender Guo Feixiong Sentenced to 5 years in Prison
(Hong Kong): Human Rights in China has learned that human rights defender and legal advisor Guo Feixiong (also known as Yang Maodong) was convicted in Guangzhou at 8:30 am today of “illegal business activity” and sentenced to 5 years’ imprisonment and fined 40,000 yuan. Human Rights in China condemns Guo’s conviction, particularly following a trial marked with serious procedural irregularities. “The imposition of this heavy sentence for what appears to be a politically motivated prosecution has a chilling effect on other rights defenders and undermines China’s efforts to build a rule of law,” said Executive Director Sharon Hom. “This result following a procedurally flawed process, a year in detention, and reports of torture, is particularly ironic in the case of Guo Feixiong, who advocated the use of law to seek justice.”
—Human Rights in China, November 14, 2007
The record of human rights in China today is abysmal. From the Amnesty International Report 2007:

An increased number of lawyers and journalists were harassed, detained, and jailed. Thousands of people who pursued their faith outside officially sanctioned churches were subjected to harassment and many to detention and imprisonment. Thousands of people were sentenced to death or executed. Migrants from rural areas were deprived of basic rights. Severe repression of Uighurs in the Xinjiang Uighur Autonomous Region continued, and freedom of expression and religion continued to be severely restricted in Tibet and among Tibetans elsewhere.

Now various organizations and individuals with single-issue agendas are making noises about boycotting the 2008 Olympics in order to punish China for its human rights record. Among them so far: Republican members of congress spearheaded by Rep. Dana Rohrabacher (R-CA), Governor Bill Richardson, Senator John Edwards, French politicians, Global Human Rights Torch Relay, International Campaign for Tibet, US Campaign for Burma, Reporters Without Borders, Human Rights Watch, and the Coalition to Investigate the Persecution of Falun Gong in China (CIPFG.org).

What would be the net effect of a Beijing Olympics boycott? Would the possible positives of such a decision outweigh the unintended damage?

In business, snap decisions are dangerous. How dangerous they can be is illustrated by massive gaffes in judgment by governments in the world of geopolitics—in particular, the boycott of the 1980 Moscow Olympics.

When a Test is not Possible
As readers know, I come from the direct marketing arena, where freelancer Malcolm Decker’s dictum is inviolate:
In direct marketing, two rules—and two rules only—exist. Rule #1: Test everything. Rule #2: See Rule #1.

When it is impossible to test, it is imperative to go through two exercises before making a decision:

(1) Study everything available on the subject and reach back in memory (and your files) to draw on experience and common sense.

(2) Play “What if . . .” Think through every possible scenario that can result from the decisions you are about to make and look everywhere for possible unintended damage.

For example, it is not possible to test an Olympics boycott. You do it and see where the chips fall.

In business, unintended damage is usually buried in the files and computers of CEOs, accountants and marketers with agendas that went sour.

In geopolitics, unintended damage hangs out like laundry on the line for the world to see, and the lessons relate directly to the world of business and, specifically, to marketers.

Takeaway Points to Consider:

* “In direct marketing, two rules—and two rules only—exist. Rule #1: Test everything. Rule #2: See Rule #1.”
Malcolm Decker

* When it is impossible to test, it is imperative to go through two exercises before making a decision:
(1) Study everything available on the subject and reach back in memory (and your files) to draw on experience and common sense.
(2) Play “What if . . .” Think through every possible scenario that can result from the decisions you are about to make and look everywhere for possible unintended damage.

* In business, unintended damage is usually buried in the files and computers of CEOs, accountants and marketers who screw up.

* In geopolitics, unintended damage hangs out like laundry on the line for the world to see, and those lessons relate directly to the world of business and, specifically, to marketers.

* “Those who cannot learn from history are doomed to repeat it.”
—George Santayana.


Web Sites Related to Today's Edition:

Jimmy Carter Crises of Faith “Malaise Speech”
http://tinyurl.com/79cj9

Video: Iranians Seize the U.S. Embassy
http://www.youtube.com/watch?v=tkv1A-LSh2Y

Debacle in the Desert
http://tinyurl.com/2e6qky

Video: Carter Announces Olympic Boycott
http://tinyurl.com/2ycns3

American Hostages Freed
http://www.youtube.com/watch?v=_i5ufT2fjaY
 
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COMMENTS

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Most Recent Comments:
Jim - Posted on December 01, 2007
The human rights issues in China are very real and clear?while the course of action to try and affect change is more cloudy. Openness and trade promote the ?seeding? of ideas about freedom in a country?but isolation and punishment hits countries where it hurts today. I don?t think we should boycott the Olympics, either?but the world must always keep some constant level of pressure on China.
Julie Adams - Posted on November 30, 2007
Perhaps you should have tested your naive theories and amateur political hypothesizing first. Now where do I unsubscribe?
Matt Magallanes - Posted on November 29, 2007
Denny: Your points are well made. Unfortunately, I think you give the politicians more credit than they deserve, implying they actually want to improving the problems in China... but tchoosing a bad path. Unfortunately they are just looking for publicity and soundbites. If a boycott gets traction they know it won't make a difference. Why am I so sure? Like Carter, they have much more effective methods at thier disposal, including holding China hostage on the balance of trade, tariffs, product safety, monetray policy and buy-american promotional programs here at home. Talking big about the Olympics is easy, safe and gets good press. Making a real difference would be hard work and less newsworthy.
Jay Keany - Posted on November 29, 2007
I was close friends with an USA summer games athlete. She was a javelin thrower who had competed in the '76 games and 1980 would probably been her last games due to her age. She was extremely disappointed when Carter decided to boycott the games.
John Bergh - Posted on November 29, 2007
Reminds me of very good advice from one of the best businessmen I've ever worked for: "Don't let your ego get in the way of making money!" And I have to remind myself of that, regularly.
Click here to view archived comments...
Archived Comments:
Jim - Posted on December 01, 2007
The human rights issues in China are very real and clear?while the course of action to try and affect change is more cloudy. Openness and trade promote the ?seeding? of ideas about freedom in a country?but isolation and punishment hits countries where it hurts today. I don?t think we should boycott the Olympics, either?but the world must always keep some constant level of pressure on China.
Julie Adams - Posted on November 30, 2007
Perhaps you should have tested your naive theories and amateur political hypothesizing first. Now where do I unsubscribe?
Matt Magallanes - Posted on November 29, 2007
Denny: Your points are well made. Unfortunately, I think you give the politicians more credit than they deserve, implying they actually want to improving the problems in China... but tchoosing a bad path. Unfortunately they are just looking for publicity and soundbites. If a boycott gets traction they know it won't make a difference. Why am I so sure? Like Carter, they have much more effective methods at thier disposal, including holding China hostage on the balance of trade, tariffs, product safety, monetray policy and buy-american promotional programs here at home. Talking big about the Olympics is easy, safe and gets good press. Making a real difference would be hard work and less newsworthy.
Jay Keany - Posted on November 29, 2007
I was close friends with an USA summer games athlete. She was a javelin thrower who had competed in the '76 games and 1980 would probably been her last games due to her age. She was extremely disappointed when Carter decided to boycott the games.
John Bergh - Posted on November 29, 2007
Reminds me of very good advice from one of the best businessmen I've ever worked for: "Don't let your ego get in the way of making money!" And I have to remind myself of that, regularly.