Chapter 4: The Chinese Solution

It had taken only three days to wangle a meeting with Wray and John. I had fended off Wray's questioning about what the specifics of the meeting were by promising him it wouldn't embarrass him and it would be integral to our planning process. The last thing I needed was his second-guessing the strategy before it was even presented. He reluctantly agreed and set the meeting up for Friday afternoon at two o'clock. Not the ideal time, I thought, but I'd take what I could get.

Doogie was visibly nervous as we walked down the hall to John Hoffer's office. We'd both been there before, but not together and not for something as major as this shift in policy we planned to propose. I had thought about including Siobhan, but decided not to on the basis that it was an informal preliminary proposal and the formal part would come later.

There was a tendency to underestimate Doug Cruickshank at Emerald. Perhaps it was his ever-upbeat personality, or his quirky English vocabulary, or something else altogether. A number of my peers didn't understand what he contributed to the operation and dismissed him as a bit of a flake. I knew better.

He was bright, well educated, and crafty. When I thought about it, I realized I had been set up by him on this project. He had barely returned from his Montreal trip when he dropped his "oh by the way" comment about the conversation with a seatmate on the plane. He'd had some time to think about the concept and probably discussed with others outside our organization to see if there were any flaws in the strategy. The seemingly innocent conversation between Sassy and Siobhan was not accidental either. He wanted an ally and knew my P.A. was the best route to me. No, I'd been set up, but I didn't mind at all.

It wasn't like it was an original idea. I'd thought about going offshore for components, but I was looking in the opposite direction. I had been thinking of The Czech Republic or Latvia as possibilities. I had already discounted Germany, Italy and Spain. Either the economy was too risky or the costs were prohibitive. In the end, that's what stalled the concept for me. The Czechs and Latvians were too costly to make it work.

Japan made no sense for the same reason. Besides, they were already farming out their work all over the world. I had almost decided to investigate the options in Korea when Doogie mentioned China. Korea could be my fallback position. There was no doubt we could find a suitable manufacturer, but Korean costs were rising as well and were beginning to rival Japanese. No, China looked like the best bet for now.

"John, Doug came to me with a concept that I thought was worth investigating. Our concerns about offshore competition, particularly Chinese, are becoming realized. They aren't there yet with their quality or technology, but they are catching up fast. We're really vulnerable to them if we don't do something that will head them off.

"I know we've talked a number of times about cost cutting, but your mandate from the shareholders is to grow the business. We won't do that by shrinking. We need a strategy that will not only protect us from competitors, but will allow us to expand our markets. Doug and I have begun to look at an alternative plan that may bring us what we want. I'd like him to tell you about it."

I saw John and Wray's attention swing immediately to Doogie. If he was nervous, he hid it masterfully. He began by telling them about the conversation he had with the executive on the plane and then the conversations he and I had discussing the possibilities and our options. I could see Wray squirming in his seat, about to pounce I thought. He didn't and I wondered if it was because John was paying rapt attention to Doogie.

When he was finished his preliminary comments, Doogie turned it over to me.

"On my own hook, I've had a meeting with the Chinese Trade Consul to explore the possibilities of a supply or joint-venture option," I said, thinking this might bring about the end of the meeting.

I saw Wray's eyes grow big again but John was completely absorbed in my remarks. Again, Wray apparently thought better of interrupting, but he was visibly uncomfortable now.

"They have agreed to provide us with a list of potential suppliers based on some generic specifications that I've supplied them with."

"What!" Wray exploded. "Do you mean to tell me you provided them with our specifications? How the hell could you be so stupid?" He was really hot now.

"I gave them only generic items that several of our competitors use. Nothing proprietary was offered. Our name was not on the specs or the drawings, so they have no way to know the source."

"This is crazy. This is playing right into the enemy's hand," Wray shot back, looking daggers at me.

"Cool down, Wray," John said calmly. "If Cam is right, they don't have anything that they can use against us. Why did you give them that, Cam?"

"I needed some cost information to go with the supply details. We need to know that the savings are enough to justify the effort to use an offshore supplier."

John was nodding. "Makes sense," he said, not looking at Wray. "What's next?"

"They've indicated they'll get back to me by the end of the month with their list. At that point, I'd recommend I go to China to look at the various possible suppliers to see what kind of facilities they have. I want to be sure they can do what we need them to do."

"I'm not in favour of this, John," Wray said, still red-faced from his earlier explosion.

"With all due respect, Wray," I said before John could respond, "I see this as the only likely option to head off what could be a disastrous competitive situation in the next two or three years. Doing nothing is not an option. Shrinking the business down by cutting operations will, at best, only hold the line temporarily and it will inhibit growth. If we want this business to not only survive, but thrive, we need to think beyond traditional boundaries."

"You're absolutely right, Cam," John said. "But it also begs the question: how quickly can we make this happen?"

"I don't know that. A year I would guess. Part of my reason to go to China is to find the answers to those questions."

"Have you budgeted for this trip?" Wray asked, knowing full well I hadn't.

"No," I admitted. "but I don't think an investment of a few thousand dollars is too much to find out if this is a solution to our concerns."

John was nodding again. I was sure now he was onside with the proposal. Wray, however, was another matter. He was angry that I had essentially shown him up. It wouldn't make me his favorite employee any more. But then again, he wasn't my favorite boss.

Doogie has sat quietly watching this little drama as it played out. Gone was the perpetual smile and happy-go-lucky demeanour. He was worried, particularly about Wray.

"Bugger me, Cam. Your boss looked like he was about to spit nails there for a bit."

"Yeah. I didn't do myself any favours in there today. On the other hand, I really believe this is our only likely chance to hold off the competition. Wray isn't a risk-taker. Never has been, never will be. How many times have we gone over the 'Consolidation Plan' in the last three years? It's the same story over and over again. It won't work for more than a year or two, then we'll be right back where we are now and nothing to show for it. Your presentation said it all. It's our only clear road to growth, not to mention survival."

We walked into my office and immediately Siobhan was up and following us in.

"Well?" she asked, looking at both of us.

"Approved," I smiled.

She clapped her hands together and let out a small "hooray."

"Cripes, girl, you should have seen your boss. I reckon old Henderson is having six kinds of fits right now. He was all set to shoot Cam down and Cam kept coming back with guns a-blazing. John was siding with Cam, so Wray was right narked that this wasn't going his way."

Siobhan had her hand over her mouth and a look of horror mixed with surprise about her.

"Oh, Cam. I hope Wray doesn't punish you for this. You took a terrible chance with him."

"Had to be done. Once I realized I believed in the concept, it had to be done."

"You're a braver man than I am, Gunga Din," Doogie chuckled ruefully.

It wasn't twenty minutes before Wray called me into his office. I was ready for an unpleasant session and steeled myself before I approached Donna.

"He's in a nasty mood, Cam. Be careful in there," she warned.

"Thanks. I'll survive it," I said, hoping in fact I would.

I walked into Wray's office. He looked up at me and motioned me to sit in front of him.

He ignored me for a few moments and I looked at him carefully. He was a fairly tall man, over six feet, a wiry frame with a shock of grey hair and a florid, rugged complexion. I seldom saw him smile and when he did, it seemed forced and never in his eyes. I doubted I would be seeing a smile from him at this meeting.

"I thought we had an understanding you wouldn't embarrass me, Cam," he snapped after looking up at me. "I'm not very pleased with your stunt this morning. What do you have to say for yourself," he snarled, leaning back in his thick leather chair.

"I was there to support an idea of Doug Cruickshank's that I thought had merit. The actions I took cost nothing and may lead to something important to this company."

"I don't call a junket to China nothing. As far as the Chinese go, I don't trust them. They'll steal the gold out of your teeth if you let them. And I'm damned upset that you've given them our specifications and drawings. You had no right to do that without my permission."

"Would you have given it?" I asked without thinking that I was challenging him.

"Hell, no! Let the bastards figure it out for themselves. But it's too late now, isn't it. You've already done it. Let me tell you, MacDonald. You haven't done anything to enhance your reputation today. I'm not going to sit back and let you do whatever you please just because it suits you. From now on, if you want something, you come and see me first. I'm not going to be ambushed by you in Hoffer's office again. Got it?"

"Yes sir," I said, wishing I hadn't.

"Go on, get out. I've seen enough of you today," he growled.

Well, that was fun, I thought as I left. Donna looked up and me and gave me a rueful smile with a shake of her head. She'd probably heard the whole exchange. I didn't mind. She wasn't a gossip and was clearly in my camp. She was exactly the kind of executive secretary anyone would want.

As promised, the Chinese got back to us at the end of the month. I met with Chung Yee briefly to pick up the list, but he had a surprise for me.

"Our Ministry of Industry has supplied a list of possible manufacturers that can meet your needs. I have had them listed in order of most favourable. Our ministry would be pleased to supply you with a translator and transportation to the factories of your choice. You will be guests of the Peoples Republic while you are there."

"Oh ... well ... thank you. I didn't expect that. That's very generous of you. Please thank the ministry for me."

"You are welcome. We are pleased that you will consider our manufacturers as an important supplier to your company. Do you know when you will be able to travel?"

"No, not yet, but I will decide in a day or two and let you know when I can be available. The sooner the better if that isn't inconvenient for you."

He smiled, as he had several times during our discussions.

"Excellent. I look forward to hearing from you. Also, we have a reception for a number of Canadian companies doing business in China. I would like to offer you an invitation to attend."

"I'd like that very much. When is it?"

"Two weeks from Wednesday at five in the afternoon. Would it be possible for your president to attend?"

"Mr. John Hoffer is the Chief Executive Officer of Emerald," I said with a grin. "I would be very pleased if you sent him an invitation. He is very interested in my project."

"Excellent," he smiled broadly. "We will look forward to seeing you then."

"Thank you, Mr. Chung. I'll let you know about the timing of the trip soon."

I bowed the traditional bow and left his office. This time, there was just Chung Yee in attendance. The other three men were nowhere to be seen.