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was created in 1984 and was the first company to introduce the home computer concept
in China。 Since 1997； Lenovo has been the leading PC brand in China。 My favorite part
of the press release is the following； which identifies the new company's senior
executives。
〃Yang Yuanqing…Chairman of the Board。 ＇He's currently CEO of Lenovo。＇ Steve
Ward…Chief Executive Officer。 ＇He's currently IBM's senior vice president andgeneral
manager of IBM's Personal Systems Group。＇ Fran O'Sullivan…Chief Operating Officer。
＇She's currently general manager of IBM's PC division。＇ Mary Ma…Chief Financial
Officer。 ＇She's currently CFO of Lenovo。＇〃
Talk about horizontal value creation： This new Chinese…owned computer company
headquartered in New York with factories in Raleigh and Beijing will have a Chinese
chairman； an American CEO； an American CPO； and a Chinese CFO； and it will be listed
on the Hong Kong stock exchange。 Would you call this an American company？ A Chinese
company？ To which country will Lenovo feel most attached？ Or will it just see itself
sort of floating above a flat earth？
This question was anticipated in the press release announcing the new company： 〃Where
will Lenovo be headquartered？〃 it asked。
Answer： 〃As a global business； the new Lenovo will be geographically dispersed； with
people and physical assets located worldwide。〃
Sort that out。
The cold； hard truth is that management； shareholders； and investors are largely
indifferent to where their profits come from or even where the employment is created。
But they do want sustainable companies。 Politicians； though； are compelled to
stimulate the creation of jobs in a certain place。 And residents…whether they are
Americans； Europeans； or Indians…want to know that the good jobs are going to stay
close to home。
The CEO of a major European multinational remarked to me； 〃We are a global research
company now。〃 That's great news for his shareholders and investors。 He is accessing
the best brains on the planet； wherever they are； and almost certainly saving money
by not doing all the research in his backyard。 〃But ultimately；〃 he confided to me；
〃this is going to have implications down the road on jobs in my own country…maybe
not this year but in five or fifteen years。〃 As a CEO and European Union citizen；
〃you might have a dialogue with your government about how we can retain capabilities
in ＇our own country＇…but day by day you have to make decisions with the shareholders
in mind。〃
Translation： If I can buy five brilliant researchers in China and/or India for the
price of one in Europe or America； I will buy the five； and if； in the long run； that
means my own society loses part of its skills base； so be it。 The only way to converge
the interests of the two…the company and its country of origin…is to have a really
smart population that can not only claim its slice of the bigger global pie but invent
its own new slices as well。 〃We have grown addicted to our high salaries； and now
we are really going to have to earn them；〃 the CEO said。
But even identifying a company's country of origin today is getting harder and harder。
Sir John Rose； the chief executive of Rolls…Royce； told me once； 〃We have a big
business in Germany。 We are the biggest high…tech employer in the state of Brandenburg。
I was recently at a dinner with Chancellor ＇Gerhard＇ Schroeder。 And he said to me；
'You are a
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German company； why don't you come along with me on my next visit to Russia'…to try
to drum up business there for German companies。〃 The German chancellor； said Rose；
〃was recognizing that although my headquarters were in London； my business was
involved in creating value in Germany； and that could be constructive in his
relationship with Russia。〃
Here you have the quintessential British company； Rolls…Royce； which； though still
headquartered in England； now operates through a horizontal global supply chain； and
its CEO； a British citizen knighted by the queen； is being courted by the chancellor
of Germany to help him drum up business in Russia； because one link in the Rolls…Royce
supply chain happens to run through Brandenburg。
Sort that out。
From Command and Control to Collaborate and Connect
Before Colin Powell stepped down as secretary of state； I went in for an interview；
which was also attended by two of his press advisers； in his seventh…floor State
Department suite。 I could not resist asking him about where he was when he realized
the world had gone flat。 He answered with one word： 〃Google。〃 Powell said that when
he took over as secretary of state in 2001； and he needed some bit of information…say；
the text of a UN resolution …he would call an aide and have to wait for minutes or
even hours for someone to dig it up for him。
〃Now I just type into Google 'UNSC Resolution 242' and up comes the text；〃 he said。
Powell explained that with each passing year； he found himself doing more and more
of his own research； at which point one of his press advisers remarked； 〃Yes； now
he no longer comes asking for information。 He already has the information。 He comes
asking for action。〃
Powell； a former member of the AOL board； also regularly used e…mail to contact other
foreign ministers and； according to one of his aides； kept
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up a constant instant…messaging relationship with Britain's foreign secretary； Jack
Straw； at summit meetings； as if they were a couple of college students。 Thanks to
the cell phone and wireless technology； said Powell； no foreign minister can run and
hide from him。 He said he had been looking for Russia's foreign minister the previous
week。 First he tracked him down on his cell phone in Moscow； then on his cell phone
in Iceland； and then on his cell phone in Vientiane； Laos。 〃We have everyone's cell
phone number；〃 said Powell of his fellow foreign ministers。
The point I take away from all this is that when the world goes flat； hierarchies
are not being leveled just by little people being able to act big。 They are also being
leveled by big people being able to act really small … in the sense that they are
enabled to do many more things on their own。 It really hit me when Powell's junior
media adviser； a young woman； walked me down from his office and remarked along the
way that because of e…mail； Powell could get hold of her and her boss at any hour；
via their BlackBerrys…and did。
〃I can't get away from the guy；'' she said jokingly of his constant e…mail instructions。
But in the next breath she added that on the previous weekend； she was shopping at
the mall with some friends when she got an instant message from Powell asking her
to do some public affairs task。 〃My friends were all impressed；〃 she said。 〃Little
me； and I'm talking to the secretary of state！〃
This is what happens when you move from a vertical （command and control） world to
a much more horizontal （connect and collaborate） flat world。 Your boss can do his
job and your job。 He can be secretary of state and his own secretary。 He can give
you instructions day or night。 So you are never out。 You are always in。 Therefore；
you are always on。 Bosses； if they are inclined； can collaborate more directly with
more of their staff than ever before…no matter who they are or where they are in the
hierarchy。 But staffers will also have to work much harder to be better informed than
their bosses。 There are a lot more conversations between bosses and staffers today
that start like this： 〃I know that already！ I Googled it myself。 Now what do I do
about it？〃
Sort that out。
Multiple Identity Disorder
It is not only communities and companies that have multiple identities that will need
sorting out in a flat world。 So too will individuals。 In a flat world； the tensions
among our identities as consumers； employees； citizens； taxpayers； and shareholders
are going to come into sharper and sharper conflict。
〃In the nineteenth century；〃 said business consultant Michael Hammer； 〃the great
conflict was between labor and capital。 Now it is between customer and worker； and
the company is the guy in the middle。 The consumer turns to the company and says；
'Give me more for less。' And then companies turn to employees and say； 'If we don't
give them more for less； we are in trouble。 I can't guarantee you a job and a union
steward can't guarantee you a job； only a customer can。'〃
The New York Times reported （November 1； 2004） that Wal…Mart spent about 1。3 billion
of its 256 billion in revenue in 2003 on employee health care； to insure about 537；000
people； or about 45 percent of its workforce。 Wal…Mart's biggest competitor； though；
Costco Wholesale； insured 96 percent of its eligible full…time or part…time employees。
Costco employees become eligible for health insurance after three months working
full…time or six months working part…time。 At Wal…Mart； most full…time employees have
to wait six months to become eligible； while part…timers are not eligible for at least
two years。 According to the Times； full…time employees at Wal…Mart make about 1；200
per month； or 8 per hour。 Wal…Mart requires employees to cover