Gaocheng: A long-winning gene for a high-growth enterprise

After the first to the leading way "high growth" is the past 10 years the theme of Chinese enterprises.　　Many high-growth enterprises, in the enterprise assets, income and other attributes outstanding performance, in the management, system, talent, innovation, social responsibility, values, technology, brand and other soft power but encountered bottlenecks, facing the growth of the trouble. Rapid growth of enterprises, because of the growth of the existing management system and operating system, will cause more contradictions and conflicts, into growth trap: "No growth, death, high-speed growth to find death."　　"Growth is a growing business, so growth is exciting and worrying. How can high growth enterprises achieve rapid, sustained and steady development?　　What kind of genes must a high growth enterprise have to go far and steady? High-growth enterprises ' long-win gene development strategy and scientific process, promote the continuous growth of enterprises there is information that the United States on average every year to register 500,000 companies, but less than 1 per thousand of enterprises can rise to medium-sized enterprises, or called stable enterprises. Of the 1000 companies, 999 are retreating on this horizontal line, 95% of which are bound to go bankrupt within three years, and the rest will stay in the ranks of the small bosses forever. China's first private enterprise Development Report, published July 1, 2005, said: "20 years, China's new birth every year nearly 150,000, and the annual extinction of enterprises also have a hundred thousand of." 60% of private companies went bust in 5 years and 85% of businesses died within 10 years.　　The average life expectancy of Chinese private enterprises is only 2.9 years. Needless to admit, there are many enterprises from the beginning of the bad options, management is not, destined to develop. Here we do not talk about such enterprises, but that those options are good, the beginning of management and development is also good business. These are indeed booming for a while enterprises, why will the overnight collapse?! such as the Tang Brothers DeLong, Chujun and the giant group, Asia, red sorghum, shengxing Supermarket, home world and so on. The main reasons, there are four: first, the rapid expansion of institutions, management can not penetrate to the end; the second is that the financial excessive expansion of financial control, the third is the weakness of human nature, not to think ahead; Four is the enthusiasm for success, into the hyper state, despise everything, leading to failure.　　Not only that, in the past when the obvious opportunities abound, many enterprises have formed only know the offense, do not know defense, only stare at the immediate goal, ignoring the long-term strategy, only intuitive work, not heavy system thinking, highlighting the individual "wise", indifference to the high level of team value, re-imitation but for the local market innovation shortage of short board and soft rib. However, the environment that Chinese enterprises are facing today has been and is undergoing great changes: the degree of market openness is increasing, the characteristics of global integration are becoming more and more fierce, the market opportunities are becoming more and more intense; China's labor and other business costs are getting higher;The level of knowledge and management is becoming more and more difficult, and Chinese enterprises are getting more and more pressure to bear social responsibility. Chinese companies are also accelerating changes to adapt to the external environment: they are evolving from small-scale production operations to large-scale production operations; evolving from offering low-end, single products and services to offering high school low-range products and services; is evolving from a copycat to a creator.　　is evolving from a focus on local operations and competition to global business and competition; is evolving from a self-centered to a customer-centric approach, evolving from a rigid operating and organizational model to an adaptable, flexible organizational model that is evolving from a focus on production to a balance between production operations and capital operations. In this context, how can Chinese enterprises achieve sustained high growth? Indeed, for a single enterprise, growth is a unique case, with a lot of contingency, so each growth enterprise has its own wonderful growth story; but as a whole, growth companies almost all have the same success factors, almost all follow the same or similar growth trajectory. Analyzing the "Long win tree" of many high growth enterprises at home and abroad, we can find that the following characteristics are very important: strong sense of social responsibility and development of strategic crisis consciousness and ability to deal with the crisis innovative consciousness and ability continuous entrepreneurial spirit and cohesive enterprise culture adapt to the management of enterprise development Organizational preparedness for dynamic adjustment of operational capability long win gene one: strong sense of social responsibility and development strategy of advancing with the times many short-lived high growth enterprises prefer to start from intuition rather than rely on deep and systematic strategic thinking when making decisions. Intuition is important, especially when the obvious opportunities abound, and this intuitive process of information processing and decision making can indeed bring speed and efficiency.　　However, when the business becomes increasingly complex, the competition intensifies, the information is numerous and disorderly, the obvious opportunity is diminishing, "intuitively, pats the head", or "stones" obviously cannot adapt the enterprise development the need. Link one: People without foresight, there must be worries domestic many enterprises since the founding of the day, by the founder of the impact is very large, the strategic direction of the enterprise is basically determined by the entrepreneur. The problem is that many founders, when they started the business, and did not seriously think about the future of the enterprise, mostly in order to survive only to stare at the recent gains, only to consider the immediate earnings, but not really from the height of the strategy to look at a business, many enterprises have not developed, the partners have gone their separate ways, and even a start.　　Market changes are swift and will be squeezed out sooner or later if they are not able to do so in the long run. Of course, when the enterprise is small, the goal is generally a hidden, hazy consciousness. Because you are still weak, lack of sufficient certainty to the fast-changing market. No matter what confidence you have, the goal is at best a lofty ambition for a start-up enterprise that cannot be quantified or defined. Even if you have such lofty goals, there is a lack of persuasion. IBM in the beginning AlsoDid not expect to become the IT industry blue giant. Lenovo Group "to carry the banner of national industry" is also in the future when there is sufficient strength, and now embarked on internationalization. Haier in the 80 in the middle of the famous brand strategy, the current Haier's strategic goal is from the early 90, Haier's internationalization to the current internationalization of Haier.　　It is these strategic goals that keep pace with the times that have contributed to the sustained growth of these enterprises. The sustainable growth enterprise needs a forward-looking development strategy and goal that conforms to the trend of the times.　　The research found that more than 90% of the continuous growth of enterprises have a clear and clear development strategy and scientific formulation process, so that enterprise development strategy can be achieved with the times, not only in time to indicate the direction of enterprise development, but also clear the Enterprise's action program, but also stimulate the enthusiasm and morale of the staff. These high growth enterprises show strong social responsibility and behavior for the enterprise to create a sustained high performance. Companies that exhibit this trait advocate and defend these social values both within and outside the enterprise, and sometimes persist in these actions even when short-term interests are impaired or offending peers. These excellent entrepreneurs believe that continued business success relies on moral and sense of responsibility. One CEO said: "You only have high ethical standards to be able to lay the cornerstone of success."　　Indeed, some studies have shown that corporate social responsibility and self-discipline behavior and good corporate performance has a highly positive correlation. Long win gene two: crisis consciousness and ability to deal with crisis consciousness is the medicine of enterprise's sustainable operation. Some people say that the enterprise crisis is an anomaly. Shih, the founder of the macro, doesn't think so. He believes that companies can run into crisis at any time. This is a normal state, not an exception state. Therefore, there must be preparedness to cope with the crisis.　　Of course, when a crisis can occur is unpredictable. Humans build houses for wind and rain, not good weather. Now that we know not to build a house until the storm hits, companies cannot wait for the crisis to develop their ability to deal with the crisis. Many companies regard crises as anomalies, lack of sense of crisis and preparedness, so that when crises come, they are helpless. At the same time, crises often bring new opportunities for development, and when you handle the crisis, it often brings you to a new level.　　Lenovo and the development of the macro process has fully validated this point. Successful leaders must first have a sense of crisis, and be good at creating crises, to enhance the vigilance of the Organization, enhance cohesion and centripetal force, avoid a serious crisis, helpless, without a fight. Bill。 In his book Embracing the future, Gates wrote: "The downfall can come to market leaders very quickly." Once you've lost the positive loop, it's too late to change it;　　"When the business is operating very smoothly, it is not easy for the operator to realize that the business is in crisis and to react immediately." In recent years, Microsoft has also deliberately hired managers who have served in companies facing failure. When faced with failure, you are forced toBecome more creative, dig deeper, think more, and be on the clock. Bill。 Gates wants someone with the experience around him.　　In his view, Microsoft will inevitably encounter setbacks in the future, and then hope that those able to strive for adversity in the face of the people, Microsoft to turn the tide. Link two: Crisis as a turning point in the TV series "Men Do not worry," there is such a play.　　The new life company in order to defeat the strong company in the market competition, uses the despicable method, the fabrication consumer letter, bribes the reporter to send a "strong oral liquid has the quality problem, to the bodily harm" the news report. Strong operators in product quality assurance of firm self-confidence, with a calm eye to deal with this crisis, and the crisis into a rare opportunity. They promptly invited a large number of news media to track down the incident, investigation of consumer letters, reflect the real situation, so that the vast number of consumers to speak forcefully, forcing the media to review and so on, to clarify the facts, expand the impact, improve the visibility, but effectively promote the sale; The new life company moved its stone and smashed its feet. Strong companies to defuse and use the crisis is the key is that they do not immediately to Entwine can not be immediately clear legal responsibility, but immediate from the front, timely to allow the vast number of consumers to speak, let the authority of quality testing agencies to speak; seize this rare opportunity to use public opinion and hype, gained the opportunity and effect of not having propaganda. This is a blessing in disguise.　　The crisis is not terrible, but also hide, the focus is to crisis as an opportunity. Long-win gene three: the consciousness and ability of constant innovation how to find "Blue sea" is a huge challenge for Chinese enterprises when the obvious opportunities are becoming less and more competitive and the profit level is declining. Finding the blue sea and swimming in the blue sea requires a lot of creative activity and behavior.　　These innovative activities can be the innovation of product service, the innovation of operating mode or the innovation of profit model. An enterprise can stand out and often have its own unique place. But the time has passed for a unique product to conquer the world. Constant innovation is the way to win long.　　After leveraging IBM's use of DOS to lay down the standard of PC operating system, Microsoft not only the introduction of new DOS version, but also the introduction of Windows 95, 98, 2000, XP and so on, Intel company can continue to launch new CPU, so that users continue to chase their footprints, but also achieved their continuous glory. It should be noted that innovation is to open up the market services, not technical developers to entertain themselves, narcissistic. Excessive innovation is not only a business without profit, but also harmful. Sony is the victim of an "engineer culture" of excessive innovation, and in the late 70 Japan JVC became the winner of the cycle in the VCR (Video recorder) system, and Sony became the loser of the technology.　　At present, Samsung in Korea to market demand-oriented, become a learning Sony and surpass Sony's constant innovators. Long-win gene four: include the constant entrepreneurial spiritThe cohesive enterprise culture enterprise's growth to go through six ridge: Technology Ridge-Marketing Ridge-Management Ridge-Idea Ridge-strategic Ridge-culture ridge.　　According to a UNESCO statistic, cultural factors account for 50% of the growth pattern, meaning that half of the economy is culture. Growth enterprises and large enterprises, the gap lies in management, rather than operating. The expanding size of the workforce and the business sector make management difficult.　　And the rapid expansion of enterprises caused by the temptation of opportunity, but also makes the enterprise has no time and energy to think about management issues, internal and external contradictions intertwined, to curb the good growth momentum, more enterprises into the trap of growth: no growth, such as death, high-speed growth to find death.　　Those successful out of the enterprise, the key element of its success is the corporate culture, that is, through a good corporate culture cohesion to stabilize the staff and cadres, through the corporate culture to make up for the loopholes in management, through corporate culture to the success of individual entrepreneurs to expand to the success of all staff. The employee's bosom is from the enterprise culture. For entrepreneurs, when they have tens of millions of assets, it is easy to create inertia: the first is to enjoy the wealth, the second is complacent. And this complacency not only a person will produce, many enterprises will be in a variety of different forms of complacency, which led to covet ease, regardless of fame and gain, arrogance, the spirit of struggle weakened, lost the momentum of the advance, also lost the spirit of innovation, lost the pioneering and enterprising. The enterprise loses the innovation power, also equals loses the impetus which continues to develop.　　Enterprises in the sea as a rowing against the tide. Enterprise development to a certain scale needs to have a systematic corporate culture, including can inspire people's vision and sacred mission, entrepreneurial spirit and values, this is the core source of enterprise centripetal force and cohesion, is to make the enterprise staff behavior and direction of uniform norms, but also motivate employees to keep the entrepreneurial spirit, continuous innovation, pioneering and enterprising power. Besides the need for a good leader and the right decision, the development of the enterprise needs popularity. Popularity is important to business. It is not easy for corporate leaders to get together, but the popularity is going to be very quick.　　　　And good corporate culture is a powerful weapon to gather popularity.　　Gates has also deliberately hired managers who have served in companies facing failure. Long win gene five: adapting to the management and operation ability of enterprise development enterprise culture is very important to the growth of enterprises, but ultimately can not replace management, because the main body of corporate culture is working people, it adjusts more of the production relations, and the main body of management is the work of people, it adjusts the productivity.　　The direct source of enterprise value is efficiency, management can integrate the resources and elements of enterprises, the effective mechanism of sustainable development, to provide the driving force for the growth of enterprises. Different sizes require different management styles and competencies, and managing 100 people is not the same as managing 1000 people. The development to a certain scale must carry on the specialized enterprise management. Solid foundation management is the cornerstone of enterprise forward. The plane must take off with a solid and wideRunway.　　For the enterprise, basic management is such a runway. Link three: Financial soundness is the cornerstone of sound financial management is the core embodiment of enterprise management and operating ability, is the fundamental of long-term development and operation of enterprises. Different industries and products and positioning of different forms of operation, can be called business model (Business models). According to the different business models, we can develop the correct financial operation mode. Financial structure is inseparable with business model, and the financial structure changes with the change of business model. Company funds have the length of the difference, the operator should be able to distinguish the nature and use of funds.　　Otherwise, short-term funds used as long-term investment, undermining the soundness of financial, endless. Long win Gene VI: Organizational Preparedness for dynamic adaptation studies have found that most Chinese business leaders think their biggest challenge is talent shortages. In other words, the ultra-high-speed development of Chinese enterprises are facing a shortage of talent and organizational ability of the disconnect.　　At the same time, the lag and disconnection of talent and organization construction will certainly restrict the sustainable and rapid growth of enterprises. Organizational preparedness is embodied in value-oriented, emphasizing the organizational power of human resource management, which is an essential management activity for the organization to obtain the innovation ability and execution ability continuously. The explosion of new technologies, new areas and demands lead to a limited flow of human resources too fast, the previous extensive, emphasis on results-oriented post-style human resources management, the organization in the new environment of the risk and cost surge, there are brain drain, can not focus, problems, excessive internal friction, such as management failure phenomenon.　　Strengthen the organizational preparedness, can anticipate and dissolve the management risk, the stable execution ability, but also can make the organization quickly adapts the environment, stands out. The idea of "dynamic adaptation" of enterprise organization, is modular, but also have their own interface of the organization mechanism, so the allocation of resources and capabilities, information dynamic symmetry, value dynamic symmetry, dynamic symmetry, such enterprises must be responsive agile, organizational flexibility, cultural openness, human activation, thus maximizing the value of resources,　　An organization that promotes the ability of value creation. Enclosure: Gambling on the market, the expansion of the world to accelerate the crisis in China's local retail giants, Du Xia and his home world is alternative.　　While other retail giants are racing, Du Xia put forward a "cluster strategy", with North China and northwest as the main positions, in Tianjin, Xi ' An and other northern second-tier cities, adhere to the prudent development strategy. Founder of the World at the beginning of the Du Xia clear to avoid a first-tier city, "desperately to open the store behind the need for strong financial support, and we will not be in this market side to lose money while playing, it is a dangerous strategy for us, we are still primary school students."　　"The home world insists on" make way, Occupy hatchback ", and from the beginning adhere to the" cluster Strategy ", in a relatively short period of time concentrated in the north of the Yangtze River two or three-line city development, and quickly entered the city to obtain absolute advantage. The world's "region for the King" policy allows it to win the survival space and development opportunities in a specific time period. During the nine years between 1997 and 2005, home world stores average annual growth rate of 60.71%, while the same period of sales growth of 60.97%, profit growth of up to 93.81%. In 2004, Du Xia first disclosed the listing plan to the outside world. In order to match the listing plan, the home world launched a large-scale expansion. According to statistics, nearly 30 stores in north China, nearly half are open 2005 years later. The lack of capital investment and talent caused the quality of the shop to decline. Du Xia also invited a large number of top foreign aid and expensive, but as the backbone of the middle management cadres are still scarce, especially the competent shop length, so that in the North China region, the number of profitable stores in the world is far less than the number of loss shops.　　Not only that, the clash of cultural conflict, mentality conflict and management idea brought by top foreign aid is also great. Because of the rapid expansion, expansion is not supported by the accumulation of profits, but by the growing debt to support, financial runaway inevitable. Such expansion is prone to a cash-flow crisis. The home world is fulfilling this.　　The late expansion of the home world mainly depends on the price of suppliers and bank loans. The world's supermarkets originally expected the listing plan has not yet been achieved, financial advance overdraft finally full burst. The tight capital chain not only causes the home world to be in trouble, the long-term massive arrears payment also causes many suppliers to become "the pond fish which has been affected". Nevermore, is. This post was edited by the author in 2008-9-4 9:30:59!