03 | 2017 | ORGANIZATIONAL EFFICIENCY

In recent years, China has reached a “new normal” in terms of its economic growth. Since its peak ten years ago, the country’s GDP has continuously dropped from 14 percent to under seven percent. Now, companies have to adapt to this new business environment and restructure themselves in order to stay competitive in such a fast-changing market. Therefore, increasing efficiency is the most central aspect in this context as it refers to the balance between input and output; thus, the accomplishment of business goals with a minimum expenditure of time and effort.

In this edition of German Chamber Ticker, we will further analyze how to improve workspaces, particularly through co-working spaces, and how to make the most out of your resources. Furthermore, proven experts in their fields will illustrate different aspects of Lean Management and Industry 4.0, as well as provide a guideline to reorganize an organization. We hope that you enjoy reading!

Yours sincerely,

Bettina Schoen-Behanzin

 

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Cover Story 1 - Breaking the Cycle

Leading Next Generation Organizations

It might seem that disruptive technologies and ongoing large-scale societal developments are putting us at the edge of a new economic world order. Still one would argue that certain economic developments are as predictable as the seasons:

1. (Initial) Dynamic and Growth: Phases of initial dynamics, investment, high levels of innovation and "letting it happen" are followed by

2. Consolidation: Phases of efficiency programs, broad-scale structural optimization and tightened control with those in turn followed by

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Cover Story 2 - Making the Most of Your Resources

Organizational Efficiency within a Shared Service Center Environment

by STEPHANIE RINKEL

In today’s world, companies strive for efficiency and effectiveness to accomplish its goal. An efficient organization implements its plans using the smallest possible expenditure of resources to generate high margins of profit.

When talking about production oriented business that produces tangible goods, the measure of efficiency connects to mathematical relationships between inputs and outputs; when the asset of an organization is the human capital, this relationship is not so clear and consequently the ability to accurately measure efficiency in a simple relationship between...More

Cover Story 3 - Engaging Hearts

Raising Efficiency in the Human Economy

by CAROLIN HAN and VIVIEN YANG

It’s Tuesday morning and the first thing on Jane’s agenda is a meeting with a new customer. Being aware of this meeting’s importance, Jane put a great deal of effort into the preparation and is looking forward to presenting her ideas to the customer. After a successful meeting, Jane continues to work on a new sales proposal. Being fully immersed in her task, time flies and it is soon time for lunch. She is just about to leave her desk for her break, when an e-mail comes in – a customer complains about a payment issue gone wrong. Wishing to solve this problem immediately, she pops in to the accounting department and calls the customer back to tell him... More

Cover Story 4 - A Space for All

How Co-working Can Help Improve a Company's Organizational Efficiency

by NICK WITHYCOMBE

The almost homographic terms organizational effectiveness and organizational efficiency can differ greatly. Organizational effectiveness simply measures whether the goal was achieved, while organizational efficiency heeds to budget, economy of usage and balances input with output. While the terms are supposed to be different, in the case of HR and of having an office, they are one and the same; the goal of the effectiveness is to be as efficient as possible with available resources. When efficiency is the word, co-working is the answer for ...More

Cover Story 5 - Increase Productivity Step-by-Step

How Industrie 4.0 Can Streamline Output

by XIAOLONG HU

Companies on the Path to Industrie 4.0

The future of manufacturing has been summarized by the term “Industrie 4.0” for quite some time now: by means of networked manufacturing, workpieces and manufacturing equipment can communicate with each other making it possible to manufacture individual products under the same conditions as mass production. Core requirements for implementing this vision are continuous IT and a high level of automation. 

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Cover Story 6 - Why, Where, What

Designing Tomorrow‘s Organization Needs Clear Answers Today

by AXEL KUHLMANN

In today‘s VUCA (Volatility, Uncertainty, Complexity, Ambiguity) world, many organizations feel the pressure to change and overcome traditional structures. Their wish: An organization which works well with all existing and new challenges, the known, and the unknown. Many times, a couple of aspects are underestimated. This can be dangerous; so it is important to talk about fundamental questions one should put into consideration before starting.

Is the Organization Ready?

Is the organization clear where it is today, where it wants to go, and how the future organization will work? 

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Features 1 - Know Your Rights

China Introduces New General Rules of Civil Law

by DR. ULRIKE GLUECK and MICHAEL MUNZINGER

On 15th March 2017, the National People's Congress of the People's Republic of China (“PRC”) adopted the long-anticipated PRC General Rules of Civil Law ( 中华人民共和国民法总则) (“GRCL”) which will enter into effect on 1st October 2017. The GRCL will be the first part of a codified PRC civil code which is planned to be finalized by 2020. Similar as codified civil codes of other jurisdictions (e.g. the German Civil Code, BGB), the GRCL contain general legal provisions which apply also for the additional upcoming parts of the future PRC civil code, i.e. chapters regarding contract law, property law, torts law, matrimonial and family law as well as the law of succession.

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Features 2 - Stop Heartache Before It Starts

Three Easy Processes to Prevent Labor Law Risks in Foreign Companies

 by JOHNSON CAO

Labor law in China is complex and younger Chinese employees are more outspoken towards their employers than their older counterparts. These factors together bring many challenges for employers. This is one of the main reasons the number of labor dispute cases have increased over the last decade.

Complex situations require sophisticated professionals. However, HR in China is still in its early stage and the main issue is that many HR professionals make mistakes in handling disagreements arising between employer and employees.

This problem can be easily handled by optimizing daily HR management processes. More

Features 3 - Understanding EPT

How to Prepare for China’s Upcoming Environmental Protection Tax

by ALEXANDER PRAUTZSCH and SARAH OEMMELEN

On 25th December 2016, the 25th session of the Standing Committee of the 12th National People’s Congress has formally approved the Environmental Protection Tax Law of the People’s Republic of China (“EPT law”). This law has been published as Presidential Order No. 61 and will come to effect on 1st January 2018.

For the last 30 years, the pollutant discharge fee (“PDF”) was the system to reduce emission of pollutants and protect environment. The PDF has the status of a local levy and the application of PDF highly depends on the respective location of a company while it may have less relevance for companies up to now. 

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In the Spotlight - The World is Changing Fast – and China is its Frontrunner

Interview with Mr. Dirk von Wahl, President and CEO of TÜV SÜD Greater China

by JENS HILDEBRANDT and MELANIE LINDSTAEDT

Mr. Dirk von Wahl has been the President and CEO of TÜV SÜD Greater China since January 2009. He holds a Master’s degree in Economic Engineering from Technische Universität Darmstadt, Germany and started his career at ABB Group in 1991, where he served in managerial positions in both Germany and China. By 1998, he became the president of ABB LV Installation Materials Co. Ltd., Beijing. In 2002, Mr. von Wahl was appointed the president of Volvo CE (China) Co., Ltd., Shanghai. Under his management, the unit grew from a representative office to a formal company. During his tenure, Mr. von Wahl also managed the construction project of ...More

More than Business - Technology Troubles

Overcoming the Challenge of E-Waste in China

by GREEN INITIATIVES

Managing Waste Electrical and Electronic Equipment (WEEE), also known as e-waste, is a growing challenge in China. An increase in China’s domestic consumption of electrical and electronic goods, large imports of e-waste from the West, and the informal treatment of e-waste has created significant obstacles for the Chinese to overcome in order to effectively reduce and treat e-waste.

China’s dramatic domestic development in the last century has created both positive and negative results. Positive results include improved standards of living, better welfare, and increased international exposure.More

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