Mr Yu's contention for new Oriental shares: wife threatens not to go to bed

More recent speeches, last month at Harvard, this month, the new Oriental 20 anniversary, and made a speech for their own, the theme is called "adhere to the ideal of power", two days ago, another keynote speech called "in the transformation of the society to change themselves, to survive." Today I am speaking from the film "China partner". On the story line of the film, Mr Yu is actually taking the story of the new Oriental, a rural child examination three years University, entered the Yanjing University, finally found a gang of friends in the university, got tuberculosis, after graduating from university to stay in school as a teacher, and leadership do not deal with, and finally be the leader of the punishment, they run a school called a new dream. And with several college students, and finally dry, because of the piracy of U.S. intellectual property rights, lawsuits, the lawsuit in the United States listed. This complete story is the new Oriental story, but also my personal story. But there are some things that are different, because the movie has to be a story, so it has to be a variety of stories. For example, some characters in the middle of the personality is not the same, such as Cheng Dongqing from the essence of personality is not like me. After the film was filmed, many people said that a very timid person can also do things. Because the film into the East Green this role is played very timid. In fact, I'm not a coward? I'm a coward in some ways, like I'm a special coward in front of my wife. However, I am not timid in some ways, I am very decisive when doing things. If it's that bad, it's not easy to do things, a loser in the movie makes a career and works with two friends. The other two friends here, is my real partner, a named Xu Xiaoping, a Wang Qiang, in the film called Mengxiaojun and Mr Wang, their personality and their reality is not very consistent. For example, Xu Xiaoping is a less-than-ideal person in the real world, but in the movie, it becomes a person who has the idea that he is the one who wrote the script. How can a partnership be successful?—— the elements of a successful partnership I derive a concept from this film that is the concept of partnership. How can we be successful together? In reality, I and Xu Xiaoping, Wang Qiang, college students Partnership is quite successful, indeed in the development of some conflicts. Because doing things can not be everything you do alone, must have partners, but I summed up a few elements. First, when all things are done, it's best to start with a person first, even if you do one months first, such as to do one thing, set up a company, do one thing, you first do one months, two months, do the longer the better, which laid the foundation for the establishment of the company. If a company has several partnerships, it can also be understood in partnership with these friends, brothers, or very powerful characters. For me, if it is me and these friends to venture together, the end will be a problem, the reason is very simple, because in college, Xu Xiaoping is my university culture Minister, Wang Qiang is my monitor, they always think from talent to vision, to their abilityThe force is far above me. And then why did I turn into a head? In fact, unlike in the movies, the three of us are working together. The reality is that I've been working on my own for five years. I was 1991 from Peking University, dry to 1993 set up new Oriental, 1995 to find these friends abroad, that time I know, if I want to do it again, must have a bunch of capable people and I work together. I also measured, through my five years of efforts, in China entrepreneurial ability than my college friends, but these friends in some aspects, including their English proficiency, the Western culture must be better than me, so this is a good combination. Even after they came back, they called me "turtle." Because they felt that I lacked their various temperament after many years abroad, but they finally had to take the lead, first of all because I was the only founder of the school. Secondly, they also found that in the middle of the reality, such as dealing with the government and the local deal with the time, they are completely powerless, but I this "turtle" climb very freely, this is the combination of different abilities. If the future of entrepreneurship, the best way is really to do some time, and then pull the friends around, if you want to do together, there is a prerequisite, the prerequisite is that you have in these people's mind has laid a very good position. New Oriental entrepreneurial crowd, in addition to these university students, but also my high school students, why these middle school students in the new Oriental and I venture together, to today or my executive vice president, one is the chief manager of logistics, why can I cooperate so well? Everybody's out there. I and my high school students every day and night. In fact, when I was in middle school, I was the monitor of our class. So, has been strictly laid their small to large, to me is the monitor of such a psychological state. And I was a high school monitor as a very successful, they always think I have a top leadership skills, so you will find my middle school students and my college students to my idea is completely opposite. My high school classmates think I have super leadership skills, and none of my universities think I have leadership skills. So far, Wang Qiang, Xu Xiaoping never think I have leadership skills, they will say you are lucky, plus our help, so successful. I personally think I have leadership skills, or new Oriental 30,000 people how to lead? But where is the foundation? I was behind them when I was in college, and I served them, and in college for five years I was drinking tea for them, and suddenly in turn turned into their leader, They are psychologically and physically impossible to accept. Therefore, the partnership can be combined, but must have a person to control the situation, so that the partnership mechanism to drive forward. If there is no one in control of the situation, just start may say, once everyone makes money, who pay more power, who pay less will have problems. Partners together, it's easy to appear inconsistent with modern enterprise management norms, everyone to each otherRob is face, not rob how to do things. When we are partners, we usually think of the simpler, we three together, one person take 33% of the shares, together into 100%, we get rich together. A year later, you will find that some people do more work, some people do less work, this time how to do? You must have a mechanism at this time, and a set of evaluation mechanisms is needed to show how those partners and other people outside the partnership can confirm their performance. New Oriental just started the so-called partnership, in fact, is fixing, I just put the new oriental into several plates, such as Wang Qiang do spoken English, Xu Xiaoping to make a national consultation, I will do the exam. Finally, I took my money, he took his money, are in the new Oriental dry, this is a very loose partnership. To turn a loose partnership system into a very strict joint-stock structure is to work together, and finally there is a problem. First, who is the total number of shares? This thing to the last new Oriental in order to account for the number of shares of the problem, everyone really took a lot of effort, because in addition to Wang Qiang and Xu Xiaoping There are many other important people. Finally we divided the original shareholders, we divided 11 people, but these 11 people take the number of shares, is a big problem. We are in accordance with the past in the field of contributions to the contribution of the distribution, but in the end who contributed, who contributed to the small? It really took a lot of effort, of course, the final distribution is over, because everyone has something to push forward. At that time, our partnership structure was a non development structure, and when new business came into being, it would not fit in. For example, we have a family in Beijing, but in Shanghai, Guangzhou to develop, Shanghai and Guangzhou who, book publishing company who, distance education company who, I said all count me, they do not do, all count them, I do not, this is why the loose partnership system into a real share of the reasons. After the real share system is over, there are many problems. First of all, after the share of the stock, after the end who should do the problem. New Oriental people are more sensitive, then appeared such a problem, in the end who is the first vice president. Because people think I am the first president is no problem, because I am the founder of the school, but who is the first vice president, who as the second vice president of the play for half a day. Xu Xiaoping said why I should be the second vice president, Wang Qiang said why let me be the second vice president, why should you be led by you? So there is this structural problem. Partners together, it is easy to appear inconsistent with the management of modern enterprise norms, we rob each other is face, rather than rob how to do things. It took about 4 years to solve all these problems. Of course, the final result is good, we become a real joint-stock company. The first revelation: 10% of the generation of shares, attracting the second generation of new Oriental managers "in the shares, I was divided into 55%." I was more simpleton, more generous to take out 10% as my behalf of holding shares, why? Because I know the new Oriental must have a postCome on, there's a new manager coming in, and this is for the new shares. "I realized at the time that if these people were to play inside, they would end up doing it, because there was a closed door between the partners, and the other talented people were excluded, all the benefits were taken up, and other talented people came in without interest," he said. So I was more intelligent at the time of the split, because they gave me a 55% stake and I was worth it, and when it came to the split, I had to correct the episode of the split in the film. In the film into the east Green a person, not for the new dream to do what things, completely in two of friends to do, and finally in the office since the words of the shares, to himself 51%, the other one is 25%, 24%, so the shares will be divided. If such an occasion were to appear in a movie, the partnership would fall apart the same day, because the amount of the shares was based on the contribution of the person, rather than the person who said it himself, unless the boss was 100% shares of his own. In fact, the new Oriental in the shares before the 100% are my own, when the shares, the new Oriental net worth of 100 million yuan, because this 100 million yuan is my input, they really did not vote. If you share the shares with them, give me the money anyway. For example you take 10%, give me 10 million, very normal, this is the original stock price. But these small shareholders banded together to tell me, "Mr Yu, we want to have the money, if you do not give us the shares, we will go, and then we can only send, the shares sent." Frankly speaking, I am a personal profit in the new Oriental to promote development, the other people's profits every penny taken back, now the goal is to expand the partnership, to be listed, if the original one year can take back 2 million, now profits a year can only take 500,000 back. When people suddenly find that income is reduced, they feel that life has not gone on, so that the profits also continue to point, the company also want to develop, that take what development, there is no development, so to the profit in the company, we have a strong dissatisfaction, because we feel that the money to separate away. Then there is the contradiction of profit distribution, to the end they think, the new Oriental fight for two or three years, as if the stakes are also quite worthless, I said you feel worthless, you can give the shares back to me, they said not yet, you want to take the shares back, to pay money. Later, we discussed how much money, our original net worth is 100 million, I still 100 million of the price of recovery, you every 1% of the shares back to me, I give you 1 million, 10% to you 10 million, cash transactions, you share the shares to me, I cash to you. For this matter, I also from friends around 3000, 40 million yuan. As a result, they will not give me the shares after they have set the price, they say, anyway, they have been priced, and when we finally give it to you, you are at least 1 million of the 1%, the shares will be held in hand. To the listing, now the new Oriental 1% worth 300 million yuan per share. At the time of the split, I was more simpleton, and I was dividedTo 55%, this is the result of the discussion, I am more generous to take out 10% as my holding shares, I took 45%, why take out 10%? Because I know the new Oriental must have Up-and, the new manager to come in, the shares are for the new shares left. This 10% left the equivalent of 10 million shares, the new Oriental listing in accordance with 100 million shares listed, this 10 million stocks finally came out later, it is really attracted to the second generation of new Oriental managers. The second revelation: a reasonable share-issuing mechanism, so that the more people who do more rights continue to increase "If we are partners together, we must have a mechanism, the first to come up with a good share of the shares, followed by the establishment of a job for the most people to add additional mechanism. "In the market, we divided 500,000 shares, 1 million shares, or even 100,000 shares can recruit very good managers, now the whole new Oriental management echelon, almost all of the 10 million recruit come in." Later we designed a set for the next listing of the management of the development of space, and then the listing is better to do, why? Every year there are options, I apply for options every year, to the competent people, who do more, sent to who, these people will continue to get the new Oriental equity. In fact, it is not so easy to set up an equity incentive mechanism in partnership or entrepreneurship. For example, there's a commercial violation in the movie, into the east Green do not want to go public, so he wanted to do not want to go on the market to pull some collaborators, he said since the words of 30% of the shares, to the partners around the company, which is illegal, shares can be issued, but must obtain the approval of all shareholders, no one, Even if you are only 80% of the stock can not issue shares, you must ask the small shareholders agree, because the issue is for all the interests of all good, why to issue shares, is because I issue shares to talented people, is to do a good job, definitely not to say do not want to go public. For more collaborators, it is totally against commercial principles, and there are some things in the film that are not very practical. In reality, the new Oriental did not issue shares before the IPO, because I reserved 10% just before the listing used up, after the listing opened the Open option mechanism, and no longer need me to go back to the internal issues of shares. Therefore, if we are together in partnership, we must have a mechanism to come up and share the shares, and then set up a mechanism for the most done people to issue additional. Then a few college students, they also partnership, I helped them design a set of additional mechanism, they have not had a fight today, because at the end of the year, according to Who do the work of the number of additional, such as one of the people who just began to occupy about 40% of the shares, now diluted to 20%, Because he took up 40% of his shares, he did nothing but pay for it. But the other people are doing, that each year will be additional, additional to the end, the original one accounted for 10% people, now has been added to 30%, because the whole company as CEO is he has been doing.The actual need for such a mechanism, can not be a partnership, can also let the people inside dry slowly in the company's rights continue to increase, so there is a relatively stable body. This is my second revelation. The third revelation: different stages of enterprise development, with different people. "If you start with Wang Qiang, Xu Xiaoping these people back from overseas, basically the company will die." "The third element must be to use different people at different stages of development," he said. For example, I am in the new Oriental so later can dry out, say really some, is not a start with Wang Qiang, Xu Xiaoping these people back from overseas, if they use their words, basically the company will die. Because I can not control them, and I can't afford to pay them, because they come back is a senior talent, you have to pay a lot of money, light to the shares do not, the family has to raise a wife, children. At the beginning of the time, I used the new Oriental family members, family members are very cheap, such as my brother-in-law, my wife's brother-in-law and so on. In this process, of course, there is no so-called modern structure, but very easy to use, your financial can be a mess, do not need to monitor your finances, every day to corrupt your money, anyway, corruption is also corruption in their own home. Work does not count time, because it is a family member. But if you keep doing it in a family like this, it's going to be a big problem. First, there is no way to tube, enterprises will introduce a lot of people outside, your family members are inside, the final result is that the family members are not enough level of education, management experience, and finally to meddle everywhere, the following people do not have a sense of dignity, you invite whether the professional manager or teachers will have no sense of dignity, so this is a process. Since 1995, I have been acutely aware that the family members in the new Oriental, will form a new oriental development obstacles. Based on this prerequisite, I went abroad to these college students, middle school students recruit back, they from talent to ability, have covered my family members. So, my family members will have to retreat to one side. I belong to a typical see potential, I put the family members do not go, when my mother was in New Oriental, my wife said to go to suicide to me to see, I drove the wife's brother-in-law to go, the wife said six months do not sleep with you, I think this is very troublesome. But in the end, I have to let them go, and if they don't go, new Oriental can't take the next step. Finally I let my classmate come over, the first step is to clean up the family members. By the strength of these college and middle school students, my family members were cleared out of the new Oriental. Of course the clean-up process is painful, but I know that there is no development now, so it has to be cleaned up. Of course the price is also very heavy, but at that time I can afford to pay this price, because many are the peasant brothers, give them a 100,000, 200,000, 300,000, and give some stock, they go. This is a process. If the first use of Wang Qiang, Xu Xiaoping, this school can not do it, I used my peasant relatives and brothers to help me to do the school, and then gave them a good placement, let them go, and then slowly build a modern structure with the students. Therefore, the new Oriental now has no family members, as long as there is a blood relationship three management cadres above the found even cadres together expelled. There has to be a transformation to do your own thing according to the different stages of development. Another big transformation of the new Oriental: to break up large companies, independent innovation mechanism. "In the face of what the times, what the requirements, what to make changes, I think this is the entrepreneurial blood should have in the middle of something." "Now the new Oriental is also constantly transforming, from family-style to partner, to China's domestic AG, to International AG, to international listed companies." Now the new Oriental began to adjust the structure, if a large company to do, the efficiency is very low, can not cope with the changes and innovation outside, so now the new east and scattered, is the independent innovation company mechanism. All new projects are left to do, New Oriental Holdings, the remaining innovative people to give you shares, and then go out to do. The future of the new Oriental can control 50 and education-related companies, but these companies are not new Oriental 100% owned, and now 7 billion of the income is new Oriental 100% owned companies and schools. The future may come to 10 billion. Of these 10 billion, 3 billion of them I want to be from innovation companies, and the new Oriental only occupies a holding stake in it, such as 50%, or even more than 40% are possible. Now you have to do it again, and if you don't do it efficiently, the company is dead. In the face of what era, what requirements, what changes to make, I think this is the entrepreneurial blood should have something in the middle. Advice to entrepreneurs: Anyone who only stares at money to do business does not do much, you have to stare at your love to do it. "I hope my position is that this is one of the most serious educators in China," he said. That's what I'm positioning myself for. So I'm not leaving education. "Do anything to remember that no matter what you do entrepreneurship, do not make money to do things for this thing itself, because any person who only stare at the money to do business is not done, you have to stare at your love to do, do this matter meaningful, you love it, then you do. I insist on doing new Oriental, is because I like students, I see students on the excitement, I have a great opportunity to do real estate, can make a lot of money, but I gave up the idea of doing real estate. Because I'm positioning my life. I do not want to, on the day of my death, people said that this is a China's largest real estate business, I hope my position is that this is China's most serious educator. That's what I'm positioning myself for. So I'm not leaving education. Love to do, you can make meaningful things. If you say that a person to start a business, with a positive attitude, any difficulties and setbacks can be resolved, not the company will die, to do again, as long as people do not die on it, anyway naked to come. Second, the investment capital is more, in order to avoid you die too miserable, as far as possible with other people's money to start a business, such as people like us toInvestment, we such people have investment funds, lost also lost, so we can still live, this requires good new ideas and new projects, not just you carry a pocket, you carry a pocket of money to you. But in short, don't be afraid of failure. If you have problems, think about it. The difficulty is how to form, such as your communication skills problem, or the ability to lead the team, or the ability to concentrate resources, or open the market, in a certain way you feel defective, you have to see if you can not overcome, if not, Can you find someone like this to help you do things. It would be completely impossible for me to put the new Oriental belt on the market. I wanted to go to the United States on the new Oriental, I have to find a top U.S. listing experts, a top salary, so we went to the United States to interview 4 people, 4 people who sleep with me one night, are male, no other meaning. Why? I watch these people's thoughts, talk to them, talk for No limit, talk for 10 hours, and talk about what kind of person they are. So I talked to a person, looks very difficult to see, but the person is very clever, looks difficult to see what degree? The Board of directors has a woman, said this person is resolute cannot come, if come, I will resign, I did not think women to men's looks so concerned about. But then I insisted, this guy's Chinese name is Xie Dong, now 8 years, or the new Oriental CFO, when came to promise me 1.5, then 1.5 later found in the world to find my boss is really not easy, so constantly threatened me to go, but he is not go. It's still my CFO.