A few years back, I was working in the undersea cable division of one of Japan’s major electronics makers. How incompetent was this company? They were so blatant in the way they overcharged their clients that even the Defense Ministry busted them.
Anyway, we had a major project to lay a fiber optic cable that would loop around the western Pacific to connect Japan, Korea, China, Taiwan, Singapore, and a few other locations. The size of the cable wasn’t unusual, but the number of clients was; while most projects had one or two telecom companies doing the buying, this one was being done by a consortium of 26 telecoms from around the world. The meant that absolutely every aspect of the project was spelled out to the letter in the contract, with nothing left to just a nod, wink and a mutual understanding, which is how my boss (and the company as a whole) was used to working.
One of the important points brought up in the contract was the matter of who would be providing the cable. The clients insisted on using a company called OCD, while my boss wanted to go with Pirelli. The clients absolutely refused to agree to this, based on prior bad experiences, and insist that OCD absolutely must be used, and any emergency changes had to be cleared through them first. Boss agrees to this, signs the contract, and then immediately calls up his buddies at Pirelli and tells them to start making the cable. Whenever I questioned this, I was told that I simply didn’t understand the Japanese way of doing business, and was instructed to never mention to the clients that Pirelli was being used. “Yeah, but won’t someone think it’s strange that the ship laying the cable has to start from Italy instead of Fukuoka?” “Don’t worry about that, it’s not a big deal.”
Two months later, there’s a big conference with reps from every client company meeting to discuss the progress of the project, and they’re pissed.
Head Client Rep: “First, why are you subcontracting with Pirelli when we specifically said not to in our contract, and second, why didn’t you clear this change with us first, as is also stipulated in our contract?”
Idiot Boss: “Well, there was an emergency with OCD, and they weren’t going to have the capacity to meet the needs of the project, so really, Pirelli was our only option. As for the second point, this problem just came up, so this conference is really the first oppurtunity we’ve had to bring up the issue with you.”
HCR: “Oh, well, that explains everything. Except… this.”
He then put a slide up on the wall for everyone to see. It was the project schedule report, sent in by Idiot Boss, which did not mention any emergency setbacks, very clearly showed that we’d been using Pirelli as our supplier from day 1 yet were still reporting that everything was going as agreed, and also very clearly caught Idiot Boss in a number of blatant lies.
HCR: “So… please explain exactly what made this change necessary.”
IB: “Ah. Well, you see… This is a very important project to all of us, and so the efforts of everyone involved… Very difficult to bring together so many different groups… Thank you for your understanding… Very long and difficult project. Yes.”
HCR: “Ok, great. Now, please explain exactly what made this change necessary.”
And so on for at least three rounds, with Idiot Boss hemming, hawing and growing increasingly befuddled at the temerity of these rude gaijins for actually asking direct questions and expecting direct answers. Didn’t they understand the Japanese way of doing business?
I, meanwhile, was fighting to keep from giggling like a loon because a) after putting up with months of his smug, belittling crap I was now enjoying watching him getting his ass handed to him in as publicly humiliating a way as possible, b) I had warned him repeatedly that this exact thing would happen, and c) I had gotten a phone call earlier that day from a headhunter telling me that the small internet start-up I’d talked with wanted to hire me at 15k more than I was getting then, so I knew that no matter how he took out his frustration on the rest of us afterwards (which he did), I’d soon be free of him forever.
In the end, the clients accepted Pirelli (since there wasn’t much else that could be done without scrapping everything and starting over), but on the condition that the price be lowered by about 20% and that my company pay to have the new cables fully tested and certified (long and very expensive work). The final kicker was that this project was never going to make money at all, even if it had gone perfectly. It was intended as a loss leader in order to build up our reputation with the clients so we’d get profitable projects in the future. Instead, Idiot Boss managed to shoot himself in the foot in front of 3/4ths of the world’s potential customers.