The founder of Huawei, Ren Zhengfei, says compromise is a practical and adaptable law of the jungle.
"The wise ones in the jungle of humanity are ready to accept or seek compromise when necessary," says Ren.
"One survives on reason rather than on impulse, after all. Compromise is an agreement reached under a certain circumstance. It is not always the best solution, perhaps, but it is the best option before the real best option appears. It has a lot of benefits.”
Considering that Huawei has grown to be a global company that has pioneered the development of technology that is shaping our societies, Ren’s wise words are worth paying attention to.
Tian Tao, David De Cremer and Wu Chunbo, the authors of Huawei: Leadership, Culture, and Connectivity, write that Ren said compromise does not mean giving up principles or making unconditional concessions.
“A wise compromise is a fair exchange. To achieve our most important goals, we can compromise on minor goals," they quote Ren as saying. "Such a compromise is not a matter of violating our bottom line, but making concessions to gain an advantage, and to achieve our goals by means of fair exchange.”
In contemplating the precarious state of the South African Post Office, I find myself recalling the wisdom of Ren, which emphasises the importance of compromise and fair exchange.
The Post Office is in a bind. This vital state-owned entity, already teetering on the edge of collapse, has been further crippled by internal malpractices, resulting in dismissals, arrests, and allegations of fraud and theft.
It has outstanding liabilities of R9.5bn and numerous post offices around the country have closed; transformation involving compromise is imperative.
Selling the Post Office is not an option in the eyes of the current administration. A compromise that ensures a fair exchange for the public, who essentially serve as shareholders of the Post Office, has to be found.
This compromise should be rooted in the creation of value for the Post Office, especially in the face of the e-commerce revolution, which is about to step up a gear with the arrival in South Africa of global giant Amazon.
Should the east wind prevail over the west wind? Or should the west wind prevail over the east wind?
— Ren Zhengfei
The Post Office’s extensive network of warehouses and distribution centres, dispersed across all nine provinces, represents a valuable asset. The company has three enormous warehouses and 417 distribution centres.
Instead of allowing these facilities to languish unused or sink into disrepair, we should harness their potential to serve as hubs and foster the growth of e-commerce, extending its reach to remote corners such as Clanwilliam in the Western Cape.
Decisive action is needed to safeguard this crucial infrastructure from exploitation by corrupt individuals within the Post Office.
The recently outlined "Post Office Corporate Plan 2023/24-2025/26" envisages the establishment of a warehouse network involving employee-owned companies, SMMEs and other service firms, potentially including international clearing and forwarding bonded warehouses.
However, given the current state of the Post Office, such a move could risk further deterioration due to internal malfeasance.
A viable solution could involve a compromise - that is, placing these warehouses and distribution centres under private concession. This would mean granting rights to reputable entities such as Amazon and Takealot, as well as major retailers such as Shoprite, Pick n Pay, Woolworths and Spar.
This concession model would allow the Post Office to earn royalty fees, ensuring a sustainable revenue stream.
In smaller towns, the Post Office could lease its distribution centres to courier companies collaborating the e-commerce giants.
However, for this transformative vision to materialise, the government must be ready to compromise.
The department of communications & digital technologies led by minister Mondli Gungubele says it has grand plans to make the Post Office an e-commerce aggregator.
Previous initiatives, such as the endeavour to establish Postbank as a state bank, have been marred by bureaucratic hurdles, leaving the field open for new entrants such as TymeBank, Discovery Bank and Bank Zero.
Referring to a traditional Chinese saying, Huawei’s Ren asks: “Should the east wind prevail over the west wind? Or should the west wind prevail over the east wind? Why can’t winds from all directions sing together in harmony?”
It is my fervent hope that minister Gungubele heeds this call for a compromise and fair exchange, which will ensure that South Africa’s e-commerce industry flourishes and at the same time save the Post Office infrastructure from ruin.
Lourie is the founder and editor of TechFinancials
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