I remember a time when word of mouth used to be this highly esoteric thing everybody feared and nobody could really describe.

Not any longer.

According to this new version of the “Did you know” video, social media is the connection between word of mouth and real money.

25% of search results for the World’s Top 20 largest brands are links to user-generated content. 34% of consumers trust peer recommendations, while only 14% trust advertising!

In the future we will no longer search for products and services…. they will find us through social media, similarly to what is already happening to news.

And if you still have doubts about the power of online word of mouth… check out this wisdom from the # 1 internet content creator in the world (China!).

The  WB expects the global economy to contract for the first time since WWII in 2009 and world trade is to decline to the lowest level in 80 years.

A trade dispute  has just exploded between Washington and Beijing following the imposition of tariffs on Chinese tires imported into the US.

China’s internet community has gone viral on the topic. And many in the West are thinking. “Isn’t this type of reaction a bit out of date? Given China’s economic power, if they want to sell tires in another country, they can just go ahead and buy a tire manufacturer there. The West has enough broke businesses.”

With the G20 summit opening tomorrow in Pittsburgh, people are wondering what kind of world the aftermath of the financial crisis is likely to produce in the years to come.

The tendency, as we have seen, is to go tribal.

Forbes  is heralding the end of Thomas Friedman’s  ”Flat World” and the beginning of a new “era of decreasing trade”.

I can’t help sensing a strong feeling of hysteria around the whole thing.

Yes, the world is changing. May be much faster than Friedman or anybody else had predicted. But the answer is not to find refuge in protectionism.

Times call for much more creative solutions. Let’s see what comes out of  tomorrow and Friday.

I had my first Twinterview the other day.

Angelo Fernando of Hoi Polloi interviewed me and Yang-May on Twitter about the book.

What an interesting experience…. You feel suspended in cyberspace. You know there are people out there following you… but all you can see are your interviewer’s Tweets.

The fact that you have to limit your answers to 140 characters is a great discipline. It helps to organise your thoughts.

I have been converted…. I believe Twinterviews are great training for podcast and video interviews. Think of a 140-character answer first and then elaborate on that.

The toughest question, as ever, was about the reasons that lead me to write the book: “Was there a book inside your head?”

In order to answer that, you need to put your life in perspective.

Luckily, I am reading a book that has helped me to do just that.

If you began your career in journalism, you have to read Oracle Bones by Peter Hessler.

It’s a wonderful example of how journalism and writing helps you to understand complex realities and relate to people in cultures so different from your own.

It was a sentence in the book that brought it all home to me. Hessler describes his years in Beijing like a “floating life in a floating city”.

When I lived in Prague in the early 1990s, I often had the feeling of floating…. Oracle Bones made me realise that I wasn’t  lost… Prague was floating towards a new future and was taking me along. While doing this, it was also writing my future book in my head.

Never underestimate the power of floating…

“China knocks the ego out of you.”

I love this quote by Christine Lu.

Her talk last week was very inspiring. Christine is not only the founder of The China Business Show. She is also involved in a number of exciting internet ventures in China.

Recently she took a group of venture capitalists and internet entrepreneurs from Silicon Valley to China to meet their local counterparts. She named the tour Geeks on a Plane.

Although she worked in Shanghai and has travelled many times to China, Christine  doesn’t want to be called a “China expert”.

She believes that “the more you deal with China, the humbler you become”. She says that the longer you stay in China, the more you begin to recognise just how huge and diverse the country is.

Christine gets a charge out of those people who spend a couple of years in the country and call themselves China experts. She calls it the “Marco Polo complex”.

I can certainly relate to this phenomenon from my days in Eastern Europe. And something else Christine mentioned made me laugh and took me back to my first months in Prague. She said that she doesn’t do second-tier cities in China because she doesn’t “thrive by carrying around her own toilet paper”.

There was a time in the autumn of 1990, when shops in Prague were out of toilet paper. So… (and here I have a confession to make…) we would go to international hotels…and stock up on toilet paper!

Amazing …  how adventures seem to be about the smallest things!

I used to find index charts soothing.  

You might think I’m strange. But when I worked as a financial journalist, they would stimulate my thinking….

Like a mandala, I would look at them and they would give me a sense of clarity…. After a while, sentences would start flowing in my mind.

I haven’t found financial charts soothing lately.

But yesterday, I was glad to hear at a seminar that markets are showing signs of normalisation. Which doesn’t mean that the recession is over. But markets have at least stopped to be out of control and are experiencing some sort of stabilisation.

 However, analysts believe that the UK and Europe will not be able to attract significant investment for a while.  

The spotlight has moved to the East.

Most Asian countries already had their financial crisis in 1998.  It enabled them to clean house and left their banks with strong balance sheets. On top of this, they were able to create high levels of self-generating demand.

China and India are continuing to grow, and most importantly, their middle-classes are growing. International capital is being lured by the prospect of huge sales volumes.

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Communications  and marketing are right at the core of this trend.

With little growth to be expected in the West, many of the companies we are working for are increasingly looking at China and India.

One of the first tasks they will have to master is reaching out to audiences and engaging with consumers in these markets.

I’ve always believed that passions make people bond beyond cultural and ideological barriers.

The story I tell in our book  about my encounter with a Kazakh immigration officer only a few years after the end of the Cold War is an example.

Last weekend, I found another one.

I was reading an article  in The New York Times about the anniversary of Isaac Stern’s  trip to China.

The famous violinist toured the country in 1979 giving concerts. People travelled miles by train to see him perform. This happened at a crucial time. China was emerging from a long period of isolation from the rest of the world.

Stern  is credited not only with spreading the love for classical music but also with enabling cultural exchanges between the West and a country everybody had learned to fear.

You have to watch the video  about Stern teaching young Ho Hongying to play the violin. It contains one of the best lessons in cross-cultural communications I have ever come across.

Without knowing a word of Mandarin, Stern manages to tap into Hongying’s passion for music and, instantly, her performance improves.

What would be the equivalent of this in corporate communication?

Tired of talking about Facebook?

How about China’s QQ? It is the largest social networking site (SNS) in the world with twice as many users as Facebook and one billion US$ revenue in 2008.

While everybody in the West is trying to figure out how to make real money with social media, Chinese SNS have developed models that don’t rely on advertising. QQ makes most of its money by selling virtual stuff like avatars and virtual pets.

Great social media solutions are coming out of emerging economies.

I went to a talk yesterday by Sam Fleming of Shanghai-based CIC who has developed a system to track and measure online conversations about products and brands.
The Chinese spend twice as much time online as they spend watching TV. Last year, TV coverage of the milk scandal was banned, while online information about the crisis continued to be available.

Fleming’s first piece of advice to foreign companies that want to use the web to penetrate the Chinese market is “learn to listen”.

There are already examples of brands that have done so.

Instead of hiring an international celebrity like Madonna for the launch of their Moto Q phone, Motorola used Tuzki, a Hello-Kittyish character created by a graphic arts student. Tuzki is a massively popular avatar which appears in many online conversations.

This is what netizens-inspired marketing is all about. There are certainly lessons for corporate communicators in it.

Our spirit cannot travel as fast as our body. That’s how someone explained jet lag to me.

I just got back from San Francisco and my spirit is all over the place. Although I have been desperately trying to tie it to the cup of Ghirardelli coffee on my desk,  my mind keeps replaying many of the conversations I heard last week in California.

One bit keeps coming back again and again.

Sir Ken Robinson, the innovation expert, was talking at IABC’s conference about the ability of human beings to learn foreign languages.

His take is pretty much that if you don’t learn a foreign language at an early age, your chance to be able to do it in your 20s is slim.

What a sad and elitist view…

And this coming from an otherwise inspiring speaker.

If Sir Ken is right, this would mean that only those children who have the fortune to travel or live abroad or grow up in a multicultural household, will be able to speak other languages and function in a multicultural setting.

Luckily, this is not how the world of tomorrow is likely to turn out.

China will soon become the number one English speaking country in the world. I believe not all the Chinese who are studying English today have learned it from their parents or by travelling abroad.

The ability to develop a passion for communicating with other cultures and learning foreign languages is not a prerogative of the more fortunate and has never been.

Take the example of Billy Wilder who grew up in Austria-Hungary speaking German, had to escape first to France and then to America in the 1930s, learned French and English in his 20s and went on to write the screenplay of what is considered an icon of American film making.

Thank God for “Some Like It Hot”!  

I am intrigued by the concept of fusion leadership.

I heard Jagdish Sheth speak at my livery last night. He is the author of the much publicised Chindia Rising.

Jag believes that what the world is currently experiencing is not a clash but rather a fusion of civilisations.

Asia is becoming Westernised and the West is being strongly influenced by Asia (there are 6 million practicing Buddhists in the US today…).

All this is having an impact on international management practices. The result is fusion leadership, a mixture of Western and Asian styles. What Jag calls “a balance of orchestration and improvisation.”

He uses weddings as an example.

“A Christian wedding is orchestrated, while an Indian wedding is all about improvisation.”

When Jag’s grandniece got married in India four years ago, the priest got a phone call on his cell during the ceremony. Jag was horrified to see him take the call while nobody in the audience seemed to be upset. “You have forgotten India“, a relative teased him.

Budgeting in the West is sacrosanct. However corporate leaders will have to learn to combine strategic planning with flexibility, if they want to succeed in a globalised market place.

Jag believes that leadership is all “about shaping the expectations of others”. This is what the leader of the future will need to have in order to succeed:

1. Passion
2. Empathy
3. Competence

I was thrilled to see empathy high on the list. Finally! Let the post-modern era begin!

“You speak five languages, you must be hungry…”

Our guest Xiuwei made dumplings for me this weekend.

Coming from a family that was never quite sure about the exact location of the kitchen in the house, I am always extremely grateful when my friends cook for me.

Xiuwei’s remark got me thinking…. while I was chewing my dumplings.

Is it true that if you speak different languages you get hungrier than other people? Have you ever noticed that?