SBU business introduction

SBU Introduction
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SBU Concept
SBU is a strategic business unit.
The so-called "SBU" means "every employee is a company ". because there must be both a large enterprise scale and a rapid response from a small enterprise, the aircraft carriers of large enterprises must be transformed into countless independent combat subjects that can be split, rather than "independent from each other ", instead, we need to turn every employee into a "strategic institution", provide a "one-stop service" to the outside, and provide a "one-vote-to-the-end" internal process.
A Large Appliance Group pushes each employee to the market to realize the market-oriented operation of each employee, namely the SBU operation and management model. SBU is a market relationship within an enterprise and directly participates in market competition and operation as a market entity. the essence of SBU is to convert external markets into internal markets. The relationship between internal employees is no longer just the relationship between management and managed, instead, the market operation results of each employee are presented in a quantified cash table through internal quantitative indicators. the SBU Profit and Loss system is centered on performance appraisal and requires correct quantification of the marginal contribution of each employee. The basic idea is to use the SBU profit and loss statement to divide the company's market objectives into individual market targets for each employee, each employee converts the individual market target into an individual market order, and finally shows the market reward through the individual market effect.
Elements of SBU
Clear goals;
Platforms and resources provided by enterprises;
Workflow;
Distribution relationship: the income of each person is linked to the results, and the results of each person serve the results of the enterprise.
SBU promotion
From top to bottom, SBU is divided into s level (strategic level), B level (middle level), u level (unit level), and gradually implemented
Powerful execution
Comprehensive information system support
Establish a model pilot program, and then fully promote it.
SBU features
A complete SBU should have three features:
(1) relatively independent from other business departments, but also different from general functional departments;
(2) It has its own competitors in the market;
(3) It has a responsible manager in charge of its strategy and profit decisions.
Operation Practice of SBU Profit and Loss system in a Large Appliance Group
Specifically, the SBU Profit and Loss system of a Large Appliance Group includes four aspects.
(1) mother card
According to the relationship between the company and its employees, a large household electrical appliance group puts forward the concept of "mother card", that is, the entire company is a mother card, and each employee of the company is a child card, the business indicators of each parent card consist of the Business Indicators of several sub-cards, which are divided into the Cost Sub-parent card and the gross profit sub-parent card. the essence of the parent card is "company-person-company", which breaks down the company's business budget into individuals. The effect of each person's work is the company's business result.
Each employee of a large home appliance group has a cost budget indicator (by year and month) and maps each expense item to a person in a two-dimensional table, included in the enterprise fee information system. the sub-Master Card System can set the annual and monthly budgets of each department and each person in the system. at the end of the year, the owner shall report the expense budget for the next financial year (the sum of each person's annual budget cannot exceed the company's annual budget, import the billing card system to the HR department. when a fee is actually written off, it is directly linked to the sub-card of each person based on the principle of writing off to the person to form a personal expense account (the Sub-Master Card of the fee is shown in the following table ).
Develop a gross-margin sub-Master card using the system platform based on the concept of cost sub-Master card. use the ERP system to collect the revenue and cost of various businesses to the profit center. the data source of the personal daughter-in-memory card is formed through the expense Daughter-in-memory card system and ERP system.
The child Master Card requires the support of a powerful information platform, especially the cost. The child Master Card requires a large amount of cost sharing platforms and integrated systems, A Large Appliance Group has nearly 10 expense modules to support the cost of the parent card, such as; expense approval form, expense statement, expense budget statement, these expense reports are interconnected in system programs and controlled through database background operations.
(2) SBU profit and loss statement
1. Income Statement of the main business process.
The main business process refers to the personnel who directly create profits. For example, if the purchasing manager provides materials to the production department to generate revenue, the sales manager can sell the products to generate an income that can be directly measured. the income of these personnel is measured in currency, and their business results can be directly quantified. the sum of each person's Book income is the company's (department) income. The SBU profit and loss statement of this type is calculated by the accounting system for personal gross profit, and the billing card system for personal expenses. The formula is as follows:
(1) SBU gross profit = sales quantity × (sales price-purchase price)
(2) SBU fee = (individual sub-cards)
(3) SBU profit = SBU gross profit-person fee
(4) SBU salary = basic salary + SBU profit x Commission Coefficient
Example: Product Manager SBU profit and loss statement, market manager SBU profit and loss statement
2. process profit and loss statement is supported.
A support process is a person who provides services and supports the main business process to create value. the establishment of their SBU income statement is difficult to apply the traditional accounting theory, and is a difficult point to establish the SBU income statement. on the surface, the support process is only expenditure, but also an indirect operation. they provide services to reflect their income and profit in the form of indirect operation. the following table shows the income statement of the support process personnel:
In the above table, the marketing department directly creates profit, but to achieve profit, cooperation between the comprehensive department, Finance Department, and other departments is required. therefore, we can estimate the income of the support process in the entire business process based on a certain proportion. The proportion is evaluated based on the actual situation of each company. This requires the agreement between the two parties to determine based on the principle of marketization, otherwise, the marketing department can find a more appropriate comprehensive department, Finance Department. this forces the support process to improve work efficiency and service quality, thus promoting the competitiveness of the entire company.
Example: Model manager SBU Income Statement
(3) Resource passbook
A large household appliance group regards employees' work as a debt operation, and combines employees' operating income with consumed resources to form a quantitative autonomous operation. by borrowing the concept of a bank passbook, a large household electrical appliance group adopted the method of "Writing off by person" to show its business results in the resource passbook. if the balance of a resource passbook is positive, it proves that its operation is effective and can be paid. Otherwise, it indicates that its operation is a loss, cannot be paid (in order to ensure the feasibility of this debt business model, if there is a negative balance in the resource passbook, only the basic compensation will be issued as the borrowing salary, if the following month's operation is a positive savings, the upfront losses will be offset ).
Example: SBU resource passbook
(4) MMC
MMC (micro company) is a virtual company that combines one or more people to form a micro-Company. It can be an employee's "company ", it can also be a "company" of multiple employees ". it is virtual within the group, not the legal entity in the Company Law, but can be used as an accounting entity to calculate its business results.
MMC is mainly used for business operations that require team cooperation. for example, the cold-rolled steel plate procurement and color steel plate procurement businesses are separated at the beginning, there are negotiation, purchase, customs clearance, quality control, database management, distribution and other links, but the supplier is one, and the business process is connected before and after. as the procurement business grows, separate operations will inevitably result in low efficiency and waste of resources. A Large Appliance Group has formed a small team of partners through the establishment of steel plate purchasing MMC and the merger of all steel plate purchasing personnel (procurement managers and service personnel) for independent operation and independent accounting, at your own profit and loss, it not only integrates internal resources of the enterprise, but also gives full play to the advantages of "small margin board" which is easy to turn around and collaborative operation, so that the operation of MMC is closer to the market and more flexible.
Effects of the SBU profit/loss System
(1) innovative ideas
The SBU Profit and Loss system inspires employees' self-management consciousness, from management personnel to grass-roots employees, from passive execution of orders to creation of valuable orders, everyone in a large household appliance group has transformed the "Employee thinking" that originally worked for wages into "boss thinking" of self-management ".
For example, the raw material purchase manager only needs to make orders in place regardless of inventory. Its main task indicator is to reduce the price. after the SBU Profit and Loss system is implemented, the raw material purchase manager should not only care about price reduction, distribution, but also inventory and expenses, because the expenses related to his business are all dependent on his own SBU income statement. the loss of inventory price due to material expiration occurs, and the profits on the SBU profit and loss statement are reduced accordingly. As imported materials enter the port, the purchasing manager must keep an eye on the goods, because one day later, the port fee will be more than one day. After the materials are pulled into the warehouse, the purchase manager has to send them out. One day later, the warehouse fee will be paid for another day, this is all paid by the Purchase Manager. through this mechanism, the procurement manager is promoted to turn the pressure into the driving force of operation to maximize profits.
(2) Promoting Value-added innovation for employees
The SBU Profit and Loss system enables service personnel to take active services through the internal market chain, convert the passive execution of orders into acquiring orders, and add value to orders. for example, a large Appliance Group has a Warehouse clerk who is mainly responsible for loading and unloading materials and keeping materials. before the SBU Profit and Loss system is implemented, the goal of his work is to keep the accounts, items, and cards consistent. after implementing the self-managed SBU system, he not only managed the accounts, things, cards, but also actively sought new profit sources. through the warehouse management work, he found that the company's export packing box wound plastic packaging cost is 250 yuan/volume, and the use of warehouse wound plastic packaging cost is 150 yuan/volume. this not only reduces the cost for the customer, but also increases the service order, takes the customer's packing box in another warehouse to wrap the plastic package to their own warehouse for processing, to achieve their own, win-win for enterprises and customers ".
(3) reducing business risks
Both SBU and MMC can fully utilize the shared resources of the entire enterprise, such as market information, fund information, and talent information. in this way, the entire group can reduce the search cost for each independent unit (SBU. because each SBU is an internal market relationship formed by a relatively stable and familiar relationship, each order of the group can easily find a suitable producer internally, and according to the SBU income statement can be timely, accurately reflects the business status of each link and each SBU on the current day. if a problem occurs at any stage, the problem can be solved in a timely and effective manner, reducing the operation risk.
(4) Innovation in traditional financial accounting
The traditional profit and loss statement is one of the most common accounting statements, reflecting the business results of accounting entities. Compared with the traditional profit and loss statement, the SBU Profit and Loss system achieves the following innovations.
1. From the end of the month to the end of the day, accounting is more refined. for example, after the SBU Profit and Loss system is implemented, the inventory of current assets still exists in the form of raw materials yesterday. Today it becomes an account receivable and may be converted into bank deposits tomorrow, the day after tomorrow has even become short-term investment. the rapid change of accounting objects in the short term naturally leads to finer accounting.
2. Breakthroughs in Responsible Accounting. at present, the definition of cost center in liability accounting is "cost center is the responsibility center for cost or cost, which does not form income or profit ". in essence, this accounting theory splits the cost-center income and profits. in fact, any unit or organization is the producer of business activities. If there is production, there will be income, but how can this income be measured in currency. similarly, if you have an income, you will have a profit (loss ). in the SBU Profit and Loss system, the cost center in the traditional sense of finance and manpower is regarded as a profit center for independent operation and self-financing, each person in the finance and HR departments has their own service income and profit (and these two indicators are used as the responsibility assessment ). although there is no tangible currency settlement, there is a virtual settlement relationship objectively and settlement information can be metered.
3. It is helpful to establish a scientific assessment incentive mechanism. the SBU Profit and Loss system quantifies the performance of each employee, and directly links the business effect with the reward. The standard is transparent and the assessment is made public. each SBU can query its operating effect and salary in real time through the shared information system. this not only inspires employees to operate independently, but also facilitates the establishment of a scientific assessment model. this assessment mechanism, based on the operating effect, fully reflects the unity of labor, quality, labor, and efficiency, reducing the agency problem caused by information asymmetry between enterprises and employees is conducive to restraining employees' moral hazard.
(5) Managers become operators
At the early stage of a large household appliance group's business, it advocated "everyone is responsible for everything". Now, a large household appliance group has promoted this idea to "everyone is responsible for business and everything is innovative ". the essence is to promote the SBU Profit and Loss system to promote the original functional management to independent operation, and turn managers into operators. the improvement of concepts and roles inspires employees' initiative, and then gives full play to their creativity, realizing the harmonious unity of personal value and enterprise value development.
Complete instance
Overseas Product Manager SBU:
SBU summary table
Product Manager SBU table
Product Manager SBU order Profit and Loss Query
SBU assessment passbook account summary
Personal Resource passbook list
Concept and implementation of SBU System in Production Line
Concept and implementation of SBU System in Production Line
Overview of SBU system of a Large Appliance Group
For example, the market Minister aims at price, profit, and market share.
For example, to achieve the goal, the market Minister needs the support from finance, human resources, and other departments.
For example, the Procurement manager's process requires a procurement plan, selecting a supplier, contract, acceptance, payment, etc.