Benjamin Franklin’s famous quote “time is money” summarize very well what I observe when exposed to places such as New York, Amsterdam or London. It was in those cities, among few others, that the monarchs, politicians and entrepreneurs of the last centuries “invented” capitalism. I am spending this weekend in London due to an MBA fair and a couple of meetings and again, as usual, I always get surprised to see how this quote is intrinsically present around these places.
Just a stupid example: do you remember when, during hotel check outs, you had to wait for somebody to verify what you consumed from the refrigerator in your room? Some hotels just ask you about it so they can avoid this “verification” cost. Well, in this Hilton I’m staying, they’re using an automatic refrigerator that counts the things you consume so nobody needs to verify any consumption or to ask you anything about it. The curious thing – for me – is that I always see something like this when I visit one of those places where “time is money”.
In most of the so called emerging markets and even in some developed markets this is not the case yet. Things are changing fast, but usually, still, time is definitely something else than money. Just ask a Brazilian during carnival or a Spaniard or an Italian during summer. I remember the case of an American entrepreneur who moved to Bahia – in the Brazilian Northeast – during the 1960’s. Since salaries were so low and everything was so cheap, he had the idea to build a factory over there and export something I don’t remember now. According to his memories, he started paying little money to the employees but they didn’t perform well and couldn’t keep coming to work for more than two weeks. So, he started a productivity bonus, paying bonus to employees in the case they reached some objectives. It didn’t work either. He raised the bonuses and dropped objectives but employees still didn’t show up or were not committed to the work. So he gave up bonuses and simply raised the salary of everybody. Still, after few weeks or months people would get tired of the work and would abandon the job. The conclusion was that people didn’t really need money to live relatively well in the coast of Bahia at that time. They preferred to have their time to sleep, play cards or whatever without money than struggling to get a salary, whatever it was. I think you see what I mean: time was not money at all in Bahia back then. The funny thing is that I read this story while staying in a ryokan – little hotel – in Japan. Do you know why I found this book there? Because this guy decided to leave Brazil and go to Japan to start his business. He ended up being a successful entrepreneur in Japan and I was reading his memories.