One Billion Customers - James McGregor [43]
Mutual Distrust
The distrust became painfully evident in relations between Wadsworth and Wang. That surprised some employees, who had initially thought that the two powerful executives were so much alike. But they were alike only in the context of their own cultures. Both seemed to possess an unshakable self-confidence and they each had a powerful presence. Neither suffered fools well. Neither would take no for an answer. And both of them were generous and steadfast mentors for bright people they recruited to work for them. The problem was that Jack Wadsworth was “too” American, and Wang Qishan was “too” Chinese.
Their communications problems were typical. Neither man could pick up the phone and have a private chat with the other to solve problems. All their conversations necessarily included translators. The information about the joint venture that each man received was filtered through subordinates who had their own agendas. The infighting and problems were magnified and distorted by the time they reached the two bosses.
The leaders also became ensnared by cross-cultural differences. Wadsworth didn’t mince his words. He always said what he thought, negative or positive. He was a stickler for rules, ethics, and good corporate governance. He was accustomed to getting his way and being respected by his subordinates and colleagues. Some of the CICC employees privately called him General Patton. Wang, on the other hand, exhibited the tough exterior characteristic of his generation of Chinese and, given his exalted position in Chinese society, he projected a strong sense of superiority. Yet he, like many leading Chinese government officials, also carried nagging feelings of inferiority, the result of how badly the Chinese had fallen behind the West in the past two centuries, after thousands of years of glorious history. Wang knew that while his bank was a giant, his commercial banking knowledge and skills were those of a beginner. Wang also had the Chinese politician’s affinity for avoiding conflict or commitment by speaking in vague Chinese parables so that listeners can hear what they want to hear. That drove Wadsworth crazy.
“In American business, you can argue, pound the table, and then be drinking buddies,” said a colleague of the two men. “But with the Chinese inferiority complex, every argument was more salt in the wounds for Wang Qishan.” It wasn’t long before the two men simply stopped talking to each other and began using Payson Cha, a board member, as an intermediary.
None of this helped Harrison Young. As CEO of the joint venture he quickly found himself squeezed between the two partners. The China Construction group wanted one thing, the Morgan Stanley group wanted something different. Young was deferential toward Wang Qishan, an attitude that marginally improved relations between the two sides. But Young had little clout with Morgan Stanley’s senior partners back in New York, and the Morgan Stanley bankers in Hong Kong took advantage of that to continue to bad-mouth the CICC venture. As time passed, Young began to spend more and more time in his office with the door closed.
A Missed Opportunity
CICC was clearly floundering only a few months after the bank opened its doors. Fang Fenglei