Four reflections on Chinese start-up Enterprises

Intermediary transaction SEO diagnosis Taobao guest Cloud host technology Hall

America's lighthouse has suddenly dimmed, making it a helpless for Chinese listed corporate executives. Now what we have to do is not to face the collapse of a big American company and be amazed by the big mouth, and we have to rethink the way we've traveled and the way we're going

"Corruption has penetrated into rock-solid American companies, and the system itself is riddled with flaws, and the transparent and honest free-market system on which the US relies is now porous ..." Businessweek concluded that the devil had run out of the bottle. And the world can do is, looking at the SEC and other market regulators, in vain holding the faucet to one after another by the financial scandal charred "800-pound ape"

"I think the most pitiful is the American corporate system of the world's admirers, especially the studious China, more than 20 years of reform and opening-up, tens of thousands of times a year to learn from the law." Now, when we ' earth ' is made, and finally formed a great situation of American MBA, Americans should tell us that the ' scriptures ' may be wrong, read more and will go insane, like Enron to turn people into monsters. "I'm sure I can convince people about corporate governance, but psychologically it's hard for me to convince myself," said the head of a management consulting firm. ”

"Discard its dross, take its essence", we should be honest, "the division of the Long" thing, can not be as before swallowed. The next task is to know how Chinese companies should go.

Rethinking one: CEO a freak?

--Tom Burns, Swedish economic sociologist

The CEO is a historical product of American corporate spirit and hides all the secrets of America's economic boom and bust since the 80.

The performance of the operating level of the triumphant success of the business thinking gradually self-willed, and finally with the economic downturn and complete failure, the mainstream of corporate governance in the community to return to the power of the board of Directors to repair the damaged fence. The most lethal of these battles is that every shift in power will cause many companies to be crippled and even destroy the entire company. The rise and fall of Wang's computer in America is the best footnote.

When American companies dismantle the Power "seesaw" between investors and operators, they actually destroy the symbiotic balance of mutual supervision and mutual restraint. Above all, this does not negate the validity of the old rules of the game. The CEO's arrogance, like "mad cow disease", swept through the American corporate system during the recession.

Handan, CEO of Tang costume

CEO of this kind of corporate governance structure model in the middle of the 80 began to practice in the United States, the Chinese "apprentice" in the state-owned enterprise reform also introduced a little bit of its thinking, this is called "director." In order to promote efficiency, the Director and party secretary of the Power of one, give a person full operation. It can not be denied that it has a great vitality of the enterprise, and has been a comprehensive response of China's collective and private enterprises.

The same problem has occurred, our "prospective CEOs" have absolutely mastered the board, so that corporate governance into a "president governance" or "leader governance." The main shareholder is the chairman of the board, the Chairman can point to all the activities of the company, whether the directors, independent directors or the Board of Supervisors, can only be in the status of the side of the flag.

"Such governance structures may be more problematic in countries such as China, where the corporate base is 稚弱." American companies now, in any case, the social oversight mechanisms that have been built up over the centuries still exist. And China doesn't. In particular, China's board of directors, without a power limit, will abuse power with a slight oversight. Tom Burns, a Swedish economic sociologist who is visiting China, thinks the new model of corporate governance in the United States is too advanced and too costly.

"It is very simple that the Chairman of the Board is to maintain the value of shareholder equity and not be lost, and the general manager is pursuing the company growing." In the process of management, there will inevitably be contradictions in the treatment of market risk. "Sien Management consulting company General Manager Jiang Ruxiang very much agree Tom Burns to the Chinese listed company's judgment, the usual division of power between the board and the business is a good way to spread the risk," but one, especially in a market where corporate governance is lacking, the Chairman's authority is either not an omission or an abuse. ”

Jiang Ruxiang that this mentality is very common in China's listed companies: "Many state-owned enterprises listed companies chairman of the Board of Directors to assume the responsibility of the Chairman of the risk, but also assume the responsibility of general manager risk, often choose not to avoid market risk, to ensure that their interests are not damaged." He argues that another common phenomenon is even worse, the abuse of Chairman's power. such as Yin Guang Xia, Lantian and large shareholder hollowed out listed companies, and so on, almost without exception to the chairman of the abuse of power control.

"Therefore, Chinese companies must understand their weaknesses and learn not to fly before they walk." Tom Burns warns, you must believe that the company has its own life laws, the balance of corporate governance power is the foundation and essence of the company's development. He suggested that China's listed companies first learn and establish a decentralized structure of corporate governance, that is, the highest level of corporate power to have supervision, restrictions, we have to understand the scope of responsibility and the scope of power, "whether the CEO, Chairman and general manager, Arrogate is not very fun." ”

Tom Burns that only the most basic work can be done to talk about other. He said that he had a naughty posture, the Chinese kungfu enthusiasts smile, Chinese corporate governance has learned too much should not learn the "fist show legs."

Reflection II: How to view the charismatic leader?

--Collins, professor, Stanford University, USA

The greatest business leader in the world today is Welch. Welch grew up inside GM, a product of General Electric. In any case, the organization has the ability to attract, retain, develop, nurture and select Mr Welch as a leader, and GE has thrived before Mr Welch, and is likely to continue to thrive after Welch.

After all, Mr Welch is not the first great CEO in General Electric history, and probably not the last. In fact, we found that, based on the rate of return for the different CEOs of General Electric, Mr Welch ranked 5th in 7 different times, not the top figure in GE's history. Mr Welch's role is not unimportant, but Mr Welch's role is only a small part of GE's entire history.

"Zhang" type of trap

In China, the sense of loneliness of a chairman or business leader is proportional to its social influence, not because he stood on the cusp of the pyramid gu Nobody, but because he seems to always be the kind of "unprecedented, after No" individualism hero, whether in the success of the halo of Zhang, Nirunfeng, Hongwei, Liu's brother ... Or have tasted the taste of failure Hu Zhipeo, Shi Yuzhu, jiang ... The rise and fall of their honor and disgrace is almost the rise and fall of enterprise. Edgar H. Schein, a professor at MIT Sloan School of Management, summed up the phenomenon as: "A person's life cycle is copied into the life cycle of an enterprise and falls into the trap of charismatic leaders." ”

Professor Chen Chunhua, deputy dean of the School of Business Administration, South China University of Technology, has been observing Zhang and his Haier for years: "The core problem of corporate governance is to solve the relationship between power and responsibility, which is to put the right people in the right place." On this issue I am most worried about Haier, because no one dares to judge whether there is a suitable person to take Zhang class now. At present, the power and responsibility are all on his own. ”

"We talk about management, that is, the right and proper allocation of responsibilities, in order to do a good job." I'm not saying Zhang, but he's a good entrepreneur, but the problem is that one's energy is always limited. Chen Chunhua stressed that the person who came to this position should think more about how to LDTX team, promote change, set the direction, this should be his 3 work, he should not be the chief operating officer again, should not give others talk about how logistics should do.

"A business to rely on a team," the water Margin "there are 108 heroes," Journey to the Road "is not a monk tang. "Chen Chunhua believes that Haier's current team is not very clear," it may be, but it gives the impression that Zhang like a lone hero.

Compared to Changhong in this issue has let everyone see the trap of the terrible. 1999, Nirunfeng retired rivers and lakes, Changhong business development followed by a succession, successor Liang Weibong and Zhao Unable to control the situation, internal and internal NI years of training under the heir Zhao also forced to flee. Finally, Nirunfeng the more than 60-year-old again. There are insiders on this sigh: "This brand value of up to 26 billion of large enterprises is not always go out ' nirunfeng ' three words?"

"The most tragic thing about Chinese corporate governance is this," said Jiang Ruxiang, general manager of Sien management consultancy, "that all products, services and great ideas, no matter how advanced, will eventually become obsolete." Likewise, all leaders, no matter how charismatic and brilliant, will end up dead. "But a company with Self-renewal capabilities is not going to go away, as long as the company has the power to organize and surpass any leader, and over the past decade or so, after ten generations, it will not decay," Jiang Ruxiang said. ”

Chinese companies have done too much in this trap, and if the elite companies or leaders of the market are not able to get out of the trap of flowers, cheers and personal glory, the end of the dragon, Sanaka and Zhuhai Giants in Shenyang is only a matter of time.

Reflection three: Profit maximization is right?

--HP founder David Puck

Many people mistakenly believe that the company exists only for the purpose of making money, which is the real reason for the existence of a company. In discussing this we will inevitably come to a conclusion: a group of people together, as we call the organization of the company exist, is to be able to work together to do what one can not do, to contribute to society.

This noun sounds ordinary, but it is a fundamental factor. You can see people everywhere (throughout the business world) who are only interested in money ... Yes, profits are the basis of what we do, and the measure of our contribution is also a means to support the growth of the company, but it has not always been the focus. In fact, the point is to win. And Victory is judged by the eyes of the customer. Profit is not the right goal and purpose of the business, but the means to complete all the right goals and objectives.

Beyond profit

The best companies in China are talking about profits, and the motto "the company's aim is to make money" shines like a lighthouse in China. 1995, Haier decided to enter the health care products market, investment in the establishment of Haier pharmaceutical industry. At that time, Shenyang Dragon, three plants, the sun god and other enterprises health products, the myth of the windfall, Haier pharmaceutical industry for the call for Sub-health, trying to include all to adapt to the crowd. But after spending a lot of money, survival is still difficult, always struggling at the margin of loss. In 1997, Haier decided to make a big profit in the market of electric fans, in the advertising campaign launched Haier "Natural wind" fan. It turned out to be the biggest Waterloo the Haier has encountered, and the current market has not seen the Haier fan.

"As a company ready to enter the world's top 500, it may be a big trap to be overly profitable," he said. "For years of corporate research, Wei, a professor at Tsinghua University, knows the temperament of Chinese companies," I find that this is a common common problem for Chinese companies. A few years ago are very good companies, why is the problem? Because the profit maximization goal and the enterprise reality situation conflict is too big, the result neglected to own enterprise rational goal pursue, for instance survives, win, the sustainable development and so on Enterprise core goal. ”

Webmaster Query Tool http://tool.admin5.com