Billions of enterprises have made organizational changes in six dimensions

Summary: The study of the organizational structure adjustment of China's leading enterprises the conclusion in the face of potential cross-border attackers, hundreds of billions of companies choose to subvert themselves, to form their own blue army, hatch, and cultivate subversive business, so that they and traditional business

The restructuring of China's leading enterprises: organizational structure

Research conclusions

In the face of potential cross-border attackers, hundreds of billions of companies have chosen to subvert their own

To form their own blue army, hatch, and nurture subversive business,

To compete and integrate with traditional businesses

In a highly competitive and uncertain environment,

Organizational structure with stronger perceptual ability and better adaptability

Can guide the generation of enterprise strategy

After adjustment, hundreds of billions of companies are forming a back-end big platform,

Front-end small team, the middle layer weakened dumbbell-shaped organizational structure

Hundreds of billions of troubles

"Mobile internet era, a business seemingly unbreakable, in fact, there is a big crisis, a little grasp of this trend, the accumulation of things before may be ashes." "Ma in the three-hour speech, the point of the eye, said the leading companies in the heart of the general anxiety."

Scale, once a can rely on the moat, can easily be most eyeing the opponents out of the city, therefore, the pursuit of enterprise scale has been the main goal of many Chinese enterprises, from 1 billion to tens of billions, 2004 Haier became the first revenue more than billions of Chinese home appliance companies, 2013, a higher degree of marketization, There are dozens of Chinese companies with a revenue breakthrough (see chart 2). But today, the sense of security that comes with the sheer scale of the Chinese companies that have just toiled through the billions has been greatly diluted.

The application of new technologies such as mobile Internet has brought great impact on the original industrial form, industry integration, industrial boundaries increasingly blurred, we see, commercial real estate big Guy Wanda into the cultural field, Tencent became the telecom oligarch unexpected main competitor, Alibaba, Suning broke into the internet finance ...

Table 1 subversive business and traditional business

Industry convergence and Cross-border competition for the hundreds of billions of leading companies, means that opponents are uncertain, threats everywhere, perhaps unknown when a foreign subversive suddenly broke in, with the help of new technologies, revolutionary business models and products to subvert the existing pattern, rewrite the rules of the game.

In the era of the technological revolution, the Cross-border people to subvert the case of large companies emerge. In a 2012-year Sina survey, nearly 70% of survey participants believed that Cross-border products would be more competitive than traditional products. At the same time, the customer has changed from the end of the product value chain to the starting point of the value chain, the source of production, design and research. This requires hundreds of billions of enterprises to become more open, more flexible, and consumer stickers tighter, so as to quickly respond to the market, a strong response to the sudden emergence of the challenger, make timely strategic adjustment and value chain transformation.

However, hundreds of billions of enterprises are often suffering from large enterprises disease: bloated, bureaucratic, slow decision-making, the Department of Internal Friction, the cultural prevalence of the hero.

A domestic scholar once felt that "the scale expansion process of Chinese enterprises is actually a process away from the market". In a pyramid-shaped organization, too many layers, like layers of onions, surround leaders in the middle of the organization. The organization's core and consumers are miles apart, corporate policymakers are pale in their perceptions of consumers, and the front-line employees who really touch the consumer have no say.

Peng Jianfeng, chairman of Huaxia Cornerstone, commented: "Just like people get fat, nerves may start not sensitive, hands and feet are not so smart." ”

In fact, many companies have been aware of the lag in the evolution of organizational structure long before they stepped into the hundreds of billions of hurdles. Some enterprises, such as Huawei, have begun to take customer as the center of organizational change, try to take the customer as the starting point, through the process reengineering to comb the whole organization structure. But the enterprise is still in the high-speed growth period, no time for forward-looking organizational structure change. CLS Consulting President Bai Wan that: "For them, the organizational structure is basically dragged away by business, (whether or not) organization structure above the redundant fingers, (as long as) can plug all the loopholes, basically is normal." ”

The problem is easy to cover up when the growth is high, but the company is on a scale of billions, and the growth slows down after the base increases.

China Entrepreneur Research Institute recently for a number of Chi companies found that the face of the impact of industrial change, survival figure strong, hundreds of billions of enterprises are the courage to break wrist, to carry out a change in organizational structure.

The road of rebuilding

We found that hundreds of billions of enterprises in the following six dimensions of the organizational structure of the transformation:

One, pull down the pyramid: Organization center of gravity from down to reverse

In skating competitions, shorter often than tall, short, low center of gravity, not easy to fall. The huge body of hundreds of billions of enterprises only to reduce the organization's center of gravity, more grounded gas (market), in order to respond to market mutations.

Table 2 Impact of billions

Chi company hierarchy, feedback and execution chain long pyramid structure, decision-making center of gravity, Bai Wan that: "A few people drive the majority, but a few do not understand the front-line market." ”

Today, the fragmentation and personalization of customer demand has reached unprecedented levels, and large enterprises that are unable to perceive market changes and lack the ability to respond quickly will be eliminated. Timely perception, insight into the delicate needs of the market, rapid action, it must be in the organizational structure of the center of gravity down, the right, responsibility, profit to the first line, so that the engine to drive the growth of enterprises from the leader and headquarters into various departments, and even each employee.

The Chinese Entrepreneur Research Institute found that the organizational structure of billions of companies sinks usually:

1 to give greater powers to regional institutions. Because regional institutions are closest to the market, they are often the most resilient places to grow.

Before the scale of 2010, Vanke identified the "strategic headquarters, professional areas, the implementation of a first line" of the new three-tier control model, the past headquarters responsible for the design, engineering, sales and other professional management functions gradually decentralized to the regional center. In the 2012, Vanke also decentralized part of its investment decision-making authority to the region, strengthening the regional investment decision-making capacity, thus more rapid land bidding. In this process, but also for Vanke to 300 billion goals to lay an organizational foundation. As President Yu Liang said: "Regional manifestation is to build a larger growth framework in the organizational structure." "And around 2009, Huawei has also begun to devolve decision-making power and responsibility from overseas regions to the heads of overseas jurisdictions." "This is where the command post is heard," Ren said.

2 eliminate the middle level, shorten the market feedback chain and execution chain. Strengthen the organization execution ability, prevent the decision information to decay in the layer release. Some hundreds of billions of enterprises began to reduce the compression intermediate. 2010, the United States sales revenue broke billions of dollars, and then because of unfavourable market conditions, growth slowed. 2011, the founder of the United States He Jian "from the scale of growth to effective growth" of the transition and upgrade direction, to enhance the market response speed and the overall group synergy. 2012, the United States Group will be refrigeration group, Japan Electric Group, electromechanical group, such as the two-class industrial group cancellation, the headquarters directly facing various business units.

Su Ning in the 2013 organizational change, push flat, the original "large area-subsidiary-Operation Department" three management system will be reduced to "large area-urban terminal" two-level administration, and expand the number of regional and urban terminals, enhance the regionalization of operational and localization services capabilities.

With these adjustments, some of the hundreds of billions of companies have gradually emerged headquarters and the first line are very strong, intermediate links are gradually degraded dumbbell-shaped structure.

3 The original organization further split up, scattered. Let the sluggish large companies break down into small, responsive units, each becoming an engine of growth. such as Huaxia Cornerstone Consulting Group Business Vice President Chen Ming Analysis, "Why fast train?" Because it has a motor underneath every car. ”

Alibaba focuses on its ecosystem strategy and organizes the division of the Organization to gain control of the ever-expanding ecological chain. 2008, Alibaba Group proposed "big Taobao strategy", its industrial mission is defined as the entire e-commerce industry, water, electricity, coal-type infrastructure providers, for this purpose, spin-off of the original Consumer-to-consumer business Taobao (taobao.com), platform-type enterprise of E-commerce service provider Day Cat Mall (tmall.com And one-stop shopping search engine one Amoy net. In 2013, Alibaba also proposed to do the entire Chinese business ecosystem service provider, split the company into 7 business groups, 25 business units, each department guarding the ecological system of the arteries and commanding heights (see table 3). "It is also a chance for us to give the market and give our competitors more opportunities to challenge us," Mr Ma said. ”

Tencent in 2012 to the business system to the Enterprise group system, the existing business is divided into enterprise Development Business Group (CDG), interactive Entertainment Group (IEG), mobile internet business Group (MIG), Network Media Business Group (OMG), social network business Group (SNG).

With billions of enterprise organization center of gravity sinking, back-end platform, the front-end small team network-like organizational structure began to appear. In such an organizational structure, by the market-oriented front-line departments or personnel composed of a number of flexible, sharp, innovative small team, they cooperate with each other, as a node and then sticky synthesis network, behind the enterprise's large resource platform for backing. The whole organization operation takes the market demand as the traction force, forms the market to call the line, the line calls the rear linkage effect.

In this networked organizational structure, the front-line employees and teams of the market, began to have the power and ability to organize resource scheduling, they detect market opportunities through their perception of customer needs, and then mobilize rear resources such as headquarters and functions to meet frontline requirements, while headquarters and all backend departments become resource support platforms, The ammunition pool ahead. Based on the successful experience of Huawei's overseas markets in North Africa in 2009, to enhance Huawei's ability to capture market opportunities, and to cut off the bureaucracy of Huawei through market traction, Ren put forward: "Let the gleam call fire" organization model, pointing out that "our further reform is that the skills of the front-end organization will become omnipotent, Grass-roots combat units within the scope of authorization, have the right to call the fire directly. The rear becomes the system support force and must provide timely and effective support and service, as well as analysis and monitoring. ”

The frontier breakout team discovers the operator's needs and market opportunities after biting the big client; then, the Marines behind them, rip open the hole-complete each solution; Then, the back of the heavy-loading brigade on the basis of tearing open, issued artillery fire-sent financial experts, and the rear coordination, signed the contract. The Joint Chiefs of Staff play a major role in providing support and directing the front-line combat teams. In addition, all the rear functional departments and management departments as Arsenal-resource platform.

At the end of 2004, Haier Group sales revenue for the first year more than 100 billion yuan, since the home appliance market unfavourable environment, growth decline. Haier began to transition from product to solution, in which, the customer personalized demand for the grasp of the key, how to activate employees to achieve this goal? Haier Group in 2009, the implementation of the independent management system, Haier 80,000 enterprises into more than 2000 independent operators, including the first line of the independent management body, around the functional work of the autonomous operators and so on. Independent management Body is a small team in the market goals, they are in accordance with order gathering, each business, everyone has its own income statement, so that people single oneness. and headquarters for these autonomous operators to build a system platform and resource platform.

II. Headquarters transformation-from Management Center to service platform

"Tube too dead, no vigor, too loose, the risk is too large, too much friction." "Peng Jianfeng that this is the paradox of big business control. In the management of subordinate branches, hundreds of billions of enterprises have been weighing the power between authority and centralization.

However, with the development of information technology, the control platform is becoming more and more perfect, and billions of enterprises have gradually won more optional space in authorization. Relying on information technology to bring the flow of control means, Haier, Vanke, Ping An, Huawei and other enterprises to establish a customer-front, covering the enterprise finance, audit, sales, procurement process management system. The whole process is like a high-speed road, pushing all departments to the direction of the norm, the department of aggressive and illegal behavior can be quickly corrected.

Table 3 organization structure of Alibaba Group after split

The size of the headquarters is streamlined. From 2009 to 2010, Vanke's headquarters were reduced from 280 to 180. 2010 Unicom Group Headquarters to reduce the function of two-fifths, two level of executive staff streamlined 19%.

But that does not mean that headquarters is useless. Headquarters energy is being extracted from direct management and placed on the platform of Building systems, which can lead to a strong synergy of the entire enterprise. As Huawei's senior management advisor, Wu Chunbo, said: "If the common enterprise is graphite, through a strong system platform, can change the arrangement of its carbon elements, so that the organization into diamond." "The headquarters of hundreds of billions of enterprises pay more attention to promote the sharing of knowledge and experience of various business departments, to create a unified resource platform, system platform and strategy and financing platform, etc., for the operational departments of frontline operations, they became arsenal, logistics, lighting equipment." 2012 Vanke Group began to do "strategic headquarters", such as innovation research and development, category analysis, such as forward-looking research and financing and other major financial arrangements. The United States headquarters gradually become a knowledge-sharing platform, human resources support platform, the system to build a platform. At present, the United States is the headquarters of marketing, brand and other aspects, to build a beautiful, a system, a standard, to unify the various business departments, forming a resultant force.

Break the wall of the Department: from Division to Synergy

"To tear down the inner wall. "A traditional organization, every department has to pursue its own interests maximization, so there are often problems," Zhang said of the organization's internal changes. ”

Hundreds of billions of enterprises with the organizational structure of the pyramid, division between departments, barriers deepen, organizational vitality in the loss of internal friction. Alibaba Group chief of Staff Zeng frankly, in the last year or two many people called him "pull off the frame." "My original very important work is coordination, two BU (business unit) fighting, I came to judge who is wrong, often be scolded by both sides have to coordinate." ”

To this end, hundreds of billions of enterprises are sparing no effort to break the internal barriers to promote the various departments of horizontal collaboration.

Alibaba consists of 7 business clusters of the President of the Strategic Decision-making Committee, the various groups of cooperation between the management and coordination. Alibaba also implements the round hillock system, the cadre maintains the horizontal movement, thus lets the cadre's perspective be able to surpass the department boundary. An important task of Huawei's cross-regional organization, which was set up in 2013, is to break down regional and departmental barriers through selection and movement of cadres in various regions. In Haier's autonomous mode of operation, through the traction of the first-line autonomous management body, to achieve the spontaneous cooperation of various autonomous operators. "The traditional enterprise is to rely on the leadership to coordinate, coordination to the end, may be a compromise, now we become an autonomous management body, no longer is the leader to decide, but by the user to decide." "Zhang said.

The rise of the shared platform has played an important role in breaking the boundaries of the sector. Through the sharing platform, hundreds of billions of enterprises through the various departments of the customer or user data, so as to achieve a customer base of the various business units of collaboration. Alibaba, founded in 2013, shared business Division, data Platform Division and Information Platform Division, focused on user data and information sharing in various departments. Another example in the peace of the organizational structure, the establishment of a dedicated platform for sharing, including the ping ' an technology, ping ' an data technology and other subsidiaries, to achieve customer resources and information sharing and so on.

Iv. Reshaping enterprise boundaries--from closure to openness

"Businesses must be open, and sticking to their borders is isolating themselves." "Huaxia Cornerstone Consulting Group Business Vice President Chen said. This is particularly true of billions of enterprises. In the era of Cross-border competition, competition has been from the point to point of the Enterprise competition, the transition to the group of the ecological System competition. As Zhang, chief executive of Haier Group, said, "losers build a walled garden, and winners build a public place." ”

To go to the open, we must through the adjustment of organizational structure, open the boundaries of enterprises, and really put these external stakeholders into the center of Enterprise Ecology, thus forming a more powerful ecological competitive advantage. 2008, Haier Group created the "1+1+n" organization model, "outside 1" is outside the expert, "inside 1" is the original internal cadre, "N" is the staff team, the group hires the international famous consulting company's member to serve as the group, the Department, each part assistant, for Haier Internationalization serves as a think-tank. Zhang has said that this is because "1" may be limited by the ability, or because too closed to do the job at hand. In Alibaba, 2013 Ma Yun United offline retailer, logistics, and so on, the establishment of rookie network technology companies, trying to build a strong logistics base for their ecosystems, so as to effectively resist the Beijing-east and other competitors.

Table 4 Factors affecting organizational structure

By building an open system, hundreds of billions of enterprises can quickly surpass their own industry limitations, summon up a large amount of cooperative businesses, to the Cross-border competitors formed a reverse flank.

2013, Minsheng Bank United 7 shareholders to form the Minsheng Bank Electronic Commerce Co., Ltd., the company seeks to small and medium-sized enterprises and individuals to provide a sound information platform, service platform, matchmaking platform, market platform, such as comprehensive electrical and financial services, trying to network enterprises launched the Internet financial offensive to carry out a strong sniper.

But like Renda, chairman of Wang Jipeng, said, breaking the boundaries of the enterprise and building a more open organizational structure requires an extremely inclusive corporate culture. And the domestic billions of enterprises often formed their own very distinctive corporate culture, in a sense, this will also form with the external resources and talent compatibility barriers, how to make their own culture more inclusive, they are a challenge.

Value chain Reengineering--from division to integration

Hundreds of billions of road, some enterprises in order to more effectively control the risk, and realize the scale effect, has a number of business units of the research and development, production, sales and other value chain links, by the superior departments or separate functional departments unified control. For example, Haier in 1998-1999, the establishment of the business flow, logistics and capital flow and overseas Promotion Department four headquarters, respectively, the division of Sales, logistics, financial settlement and import and export business. At the same time, all supporting business resources such as research and development, human resources, technology quality management, information management, equipment management and other departments from each division, to become an independent operation of the service company.

But at present, facing the intense cross-border competition, with more fragmented and dynamic customer demand, the value chain of each product and service department needs to become a whole, and adjust according to the market situation in time. To this end, a number of billions of enterprises began to focus on the management of the value chain "return", so that market-oriented business units really have the right to each node of the discourse.

Haier in the 2007 organizational change, sales and other responsibilities to the newly formed three groups. Its white electricity, black electricity, digital and personal products, such as three sub-group began to have from research and development, supply to production, sales of the complete function. The United States in 2011, it will be empty ice washing three business departments of marketing each corresponding to the original air-conditioning division, Refrigerator Division, washing Machine Division, for independent, professional operation.

In the IT industry, there are also a number of hundreds of billions of enterprises in this organizational structure adjustment, such as Baidu in the 2013 organizational change, the previous division in the two departments of the search business development and sales operations, focused on a department-search business groups. And Lenovo in this year's organizational change, starting with the functional organizational structure, adjusted for the two big groups of Lenovo business and think business, consumer business and two value chains for enterprise business, according to different logic, Yang explained, "to win in the consumer business/transaction business, it depends on speed and efficiency." The enterprise/relational business relies on the best quality and customization services. ”

Vi. internal Blue Army-from incubation to competition to integration

Even as QQ has more than 600 million active users per month, there is still the possibility of subversion. If we do not fight ourselves, we may not be able to stop at the moment, which embodies the deep sense of crisis. In the era of Cross-border competition, the integration of various industries in the new business model, technology and innovation emerge. Traditional giants are likely to be subverted by innovators from the periphery without any sense of awareness.

Huawei calls for fire organization mode

Do you wait for this to happen? Hundreds of billions of enterprise organizational changes, bold innovation, is the establishment of the internal blue Army. "Let your left hand chop off your right hand", "Beat Yourself". Huawei, Ping An, Tencent, Suning, have started to hatch and nurture their "enemies", that is, those representing new industrial trends, may impact, or even eliminate the existing business subversive business (see table 1). As Ma said: "How can you give yourself a lot of preparation, even if you open a different department, to do something that may have a conflict with the current business, you might as well try, because you do not, your opponents will do." ”

For the subversive business in the enterprise system in different stages (incubation, cultivation and integration), they used different organizational design.

When the subversive business is still hidden under the water, hundreds of billions of enterprises using the model of internal incubation, in the organizational structure, set up a corresponding body, and to establish a protection mechanism, in general, these departments do not have a clear profit assessment. For example, peace in 2011 to establish a safe financial technology, specializing in the incubation of some innovative internet financial model, ping An financial technology independent of other peace business companies.

In his recent speech, Ren encouraged the wireless sector to set up a blue army to explore ways to challenge Huawei's existing business model and technical route. As for the Blues ' role in Huawei, Ren said, "We have to break our strengths and create new strengths." We do not take the initiative to break their own advantages, others will come to break sooner or later. ”

Hatching subversive business, some of the billions of enterprises in the organizational design of the use of PK mechanism, so that the horse race between different departments, who run fast, with whom. Ma told Tencent Micro-letter incubation process: "We were the introduction of micro-letter, mobile phone QQ department against, he also has a team has been doing a similar product." Two teams are doing it. ”

Some hundreds of billions of companies are trying to make their own subversive business and the traditional business of the race, in the organizational structure, they will deliberately relax the subversion of the shackles of growth. These subversive business is often independent, and business leaders are often directly responsible for the company's leader. "When entering a new field, especially when the business is different from other businesses, the best way is to give him a separate soil," said Shing, managing director of talent and reward business in China. 2010, Suning sales reached 2 billion, the second year independent of the company, with independent procurement rights. In Tencent, the Guangzhou Institute of Micro-trust is independent of Tencent's business units, ensuring the viability of the micro-letter is not tied to other business sector performance indicators.

When the business of the subversive becomes more and more, the new business model and organization ability of the organization will be formed by merging it with the traditional business model. 2012 began, by the impact of the electricity business, Suning line store revenue plummeted. And at this time, Suning easy to purchase has wings plump, sales income reached 18.3 billion yuan. In this case, at the end of 2012 to 2013, Su Ning began the road of cloud business change, put forward "Su Ning to ' shop + Dealer + Retail service Provider ' transformation", its core is to cloud technology as the foundation, the integration Suning foreground backstage, the fusion Suning line on-line, the service entire industry, the service entire guest group. On this basis, Suning began to change the organizational structure, through the new and old business part of the value chain to share, to promote online and offline integration, in this round of change, to suning Tesco as the core of the online business unit into the group's E-commerce operating headquarters, And by the Ministry of Commodity business to unify the E-commerce business headquarters and offline chain platform procurement and the provision of goods. In this way, we can better achieve the line and line of the same price, forming a resultant force.

Conclusion

Summing up the group of billions of companies this round of organizational change, we found that Chinese enterprises in the past is usually the organizational structure is always chasing strategy run, first determine the enterprise strategy, and then adjust the organizational structure accordingly.

But this applies to the previously relatively stable competitive environment, today, can add a way of thinking. With the explosive application of new technology and the Prairie of Cross-border competition, the enterprise competition environment begins to be full of uncertainty, the enterprise cannot determine the next wave and the next trend of industry. The strategy makers at this time, like people mountaineering, may encounter unpredictable fog frost, hail, or steep mountain road, can not see the direction of the forward. The uncertainty of the strategy is more and more strong, the change is more and more frequent, the enterprise makes the strategy unprecedented increase. This needs to be installed on the organization to explore the corporate strategy of radar, by perceptive, adaptable organizations to guide the formation of enterprise strategy.

To this end, they have set up exploration and incubation of innovative teams and departments to perceive the new industry trends, or through the broad ecosystem of the Organization Division of labor system, fully reach out to explore new opportunities in various fields, so as to find the most appropriate strategic path for enterprises. Hundreds of billions of companies began to follow the strategy from the structure, to the structural guidance of the profound changes in the strategy.