Strategic failure management imbalance accelerated start team runaway

Why Shanda lost the "starting point" management strategy failure, management imbalance, and then encounter the digital publishing industry restless spring, accelerated the departure of the starting team "as the elderly father stroked the children of difficult things, almost every night, I will let our people to introduce me who is still, as if only this, I can rest quietly."　　"March 14, Shanda Literature Co., Ltd. CEO Hou wrote an open letter in literary tones to describe his past week's status. At the beginning of the March, the Chinese net of the beginning of Shanda literature (hereinafter called "the beginning") 27 middle-level editors abruptly resigned with family reasons. March 6, Hou Qiang in the internal mail to all staff said that the Board has approved their request, they will take over the starting point of work.　　Subsequently, the online burst of the Royal literary staff to express their inner sadness of the post, the event quickly in the Internet circle fermentation. March 15, Hou in the "financial" reporter interview is still not calm, "some people said I was too literati gas businessmen, and some people said I am too businessman gas not enough literati, I said both of these criticisms are right." "Hou said," as a grand literary CEO, in fact, my duty is to grasp the balance between the literati and businessmen, not only to take care of the interests of the company, but also to take care of the interests of writers. "There is news that the starting income occupies about 40% of the total income of the grand literature." Hou denied it.　　The external monitoring data is that the starting point is China's largest online literature website, 2010 its income has reached the Chinese network literature market nearly half share.　　A number of grand insiders to the "financial" reporter revealed that the beginning of the team and management Grand Group of differences has a long time, this separation is a concentrated expression of contradictions, but also reflects the grand founder Chen in strategy and management have caused controversy. Many people believe that the future of the Internet will be a platform-oriented enterprise confrontation, in order to expand the platform extension, companies will increase the acquisition of small entrepreneurial teams, how to manage and maintain their passion is the primary issue.　　The starting point is this column. News from investment banks and Shanda insiders said Shanda last year had chosen to reopen the US IPO this April. Hou not confirm this, but said: "Still in the silent period, I can not speak." "The listing of Shanda literature has been quite uneven since the first application to the NYSE in MAY 2011."　　The unrest will add to the uncertainty of the IPO. Unwilling to resign from the founder of the other role of the founders Wu Wenhui seems to have missed the storm. Wu's microblog notes that it is on vacation. Caijing Reporter sent an interview request through Sina Weibo letters. 3 minutes later, Wu replied, "Thank you for the support of such an old reader." I'm sorry for not leaving yet.　　Wu did not actually run away. Wu Wenhui graduated from Beijing University Computer department. In the eyes of many people who have worked with him, Wu is a literary youth in technical talents, and he loves martial arts novels in his early years. Entirely with their own preferences, Wu and a few like-minded young people set up a "fantasy Literature Association" is the starting point for the future. They open creativelyExtension of the network novel 0.02 yuan-0.05 yuan/thousand words paid reading mode. The website implements the VIP member system, the content first half part is free, the second half part charges. The website is divided with the author 55.　　This model has been used by various literary websites so far. However, shortly after the introduction of the VIP system, the starting point began to fall into the bottleneck of development, commercialization of the process requires strong sales channels to do support and build more ancillary services, which forced the starting point to find funds, Wu Wenhui face two options: investment funds to intervene or be acquired. October 2004, the starting point was a grand group of 20 million yuan purchase.　　Chen hope that the starting point for Shanda in the independent research and development of online games to provide rich content support, and then create a literature and online game with a new model. 2008, Chen to the literary content has a greater ambition, then set up Shanda Literature Co., Ltd., and from Sina to learn literature from Hou as CEO, Wu Wenhui as grand President of Literature, the beginning of the general manager. Shanda insiders told Caijing reporter, Chen Tianqiao appointment hou, is largely out of the Wu Wenhui to carry out their own lack of will, and the beginning of the team can control the expansion of the grand literary ability of doubt.　　This may have cast a shadow over the Wu Wenhui with the founder's DNA, and it has made its relationship with Hou subtle. Shanda literature into the Grand group's overall strategy, then to the site UGC content (netizens themselves submitted content) as the core, in the literature of the whole industry chain operation began to layout, has acquired 19 subsidiaries, including starting point, Banyan Tree, Xiaoxiang College, tea Tim Incense and other original literature website,　　There are also three offline book Planning Publishing company, combined with online content to form a digital mall-"The Cloud book city." As a professional manager, to manage so many acquisitions business, to create a unified brand, the burden of Hou is not easy.　　Once the success of Sina blog Hou is to do content, Shanda insiders to the "financial" reporter said, hou to the dissemination of network literature, and the combination of traditional literature and the promotion played an undeniable role, "he is the key point of time in the key position of the key person, but he did not understand the bottom of the network literature deep." "The five-year summary of the first to say that the management of the difficulty is not small." "Hou to Caijing reporter Frankly," You see, so many subsidiaries, each subsidiary has founders, there are a lot of professional managers, there are grassroots have so-called elite, there are southerners, the elderly have new airborne people, office location is also distributed in several different places, it is more complex than others imagined.　　"Close to the Grand people told Caijing," the various websites in the acquisition have retained a certain degree of autonomy, Hou in the work of many places are hampered, last year also revealed to the status quo dissatisfaction. Hou in an interview with Caijing, said that for its various websites, unless particularly important things, generally do not ask. But he is tough on some "principled" issues: "For example, wireless, we did not hesitate to collect all the copyright sales, I did not hesitate to receive the headquarters. New business is also not hesitate to accept. Because I want to take care of efficiency and brand building. These "no hesitation" is the place where Hou has been in the deepest contradiction with the starting team for five years. Let the website only be responsible for content production and writer contact, Shanda literature to read, copyright sales and offline business, equal to the beginning of the team isolated in the new profit growth point.　　As a founder, Wu Wenhui and others have difficulty in dominating the "cheese" they find. Shanda insiders to the "financial" reporter revealed that the beginning of the early sale to the grand, only left the shares, the original management has lost control of the company. "For the starting point of management, the beginning of the old people and the grand management has been fighting for nearly a decade." 2006 part of the beginning of the editorial team ran away, creating a 17K novel network is the result of the struggle between the two sides, that is the first wave.　　The person said. The second wave of disputes between the two sides surfaced when wireless reading began to show a lucrative effect. From 2011 onwards, the mobile phone, E-book, ipad and other mobile devices on the copyright, as well as film adaptation and other derivative rights of the sale of network literature as a new profit growth point.　　The novel "The Naked Marriage Time" the author Tang Xin is the Grand feminine literature website to add fragrant the signing author, she tells "the finance" reporter, the author's remuneration therefore rose, "almost turns over several times even more than 10 times times". According to the disclosure of the 2011 prospectus to the U.S. SEC, Shanda Literature received 53 million, 134.6 million and 339.3 million yuan in 2008, 2009 and 2010, with annual compound growth of 172.3%. Its net losses have been falling for years. 2012, the F1 documents submitted by Shanda Literature showed that the grand literature first quarter main income of 192 million yuan, compared with the same period 2011 growth of 38.2%, and for the first time to achieve net profit of more than 3 million yuan.　　This is not unrelated to wireless reading. "Shanda Group main business interests gradually reduced, Shanda literature gradually make money, and the biggest benefit is the beginning of the wireless."　　"One of the Internet people close to the grand literature told Caijing," the beginning of the old people think that their hard work has been a grand suck away. Grudges once broke out. Although Wu Wenhui had previously received media interviews, said that the grand to start of this single acquisition is its entrepreneurial more than 10 years of the most important thing, because it opened the starting point of the commercialization of the door. In a way, it was a grand takeover that made Wu realize the value of what he was doing. However, Wu later said: "Back in ten years, it was underestimated." "Competition for digital publication in the second half of 2012, the Royal literature insiders have heard the wind, Chen flyover to sell it to Baidu, the other side bid 400 million yuan.　　Wu Wenhui and others feel too bad, planning to run away, and began to seek private investors. Wu Zeng and Baidu Mobile cloud division executives Mingyuan reached an oral agreement at the beginning of 2013, according to people close to Baidu's senior sources., agreed that Wu at the end of March or early April led the team to resign, one months later to take out the initial project, led by Baidu cast.　　Wu believes that Baidu, which has been plagued by piracy, really needs to develop the original content, and will no longer hesitate. Unexpectedly, February Wu Wenhui inadvertently leaked the news, had to plan ahead of the team run away, and their own sick retention. Shanda insiders say they are not fully prepared to push for a grand compromise or a complete break. All this broke out at the imminent IPO and soon got the approval of the grand top brass, implying that the contradictions had indeed reached an irreconcilable level.　　According to people familiar with the news, the beginning of the early founder of the shares after a grand stake in the subsequent dilution, even if the listing can not benefit greatly. But the sudden burst of news made Baidu investment strategy Department is very annoyed.　　According to the person familiar with the matter said, then Baidu internal opposition to Wu's project investment, so Baidu renamed: If there are other institutions willing to invest in Wu, Baidu will be with the vote. In the loss of Baidu 100% support, Wu Wenhui that is to find NetEase CEO Ding lei in Hangzhou. Baidu heard the news a little shaken, the next day Mingyuan sent an internal mail said, whether or with the vote, this is Baidu's only opportunity to enter the network literature. At the same time, rumors of Wu Wenhui and Tencent, Alibaba and other giants have contact.　　For a time the major Internet companies have become the potential investors and partners of Wu. A grand insider on the "financial" reporter analysis, Wu Wenhui look for the past few years online literature business model of clarity, there are genuine market and investment opportunities, as well as the growth of mobile reading.　　The internet bosses have been explaining to them that the spring of digital publishing is already in the womb. According to the China Press and Publication Research Institute published the 2011-2012 China Digital Publication Annual report, 2011 domestic Digital publication of the year's income of 137.788 billion yuan, compared to the previous year, an increase of 31%. Digital newspapers, electronic books and internet journals have maintained rapid growth, averaging more than 25% per cent.　　The industry believes that in the industrial life Cycle Index, digital publishing in China has entered a long-term from infancy. This means that the literary business of the site as long as the hands of the core of the author and team, there are original, there is original copyright, and the mobile end of copyright can bring huge profits. "The start line business grew more than 60% over the past year, and the line may only be 6% or 7%."　　"The above Shanda insiders believe that the internet giants such as Baidu and Tencent are rich in user resources and it is not a problem to get through all terminals." For the departure of the staff, perennial with the first-line authors to understand their needs.　　Creating a new platform in the content does not seem to be a problem, but a number of people in the industry said that if the founder of the team just do simple copy and paste fear difficult to become a major event. For Hou, the most urgent task is to stabilize the writer and build the management team. As Hou himself emphasized, the former Division of labor system so that he and the site of the first line of management has a distance, and can not be like the beginning of the managers and editors thatLike to mingle with the author. Since the departure of the incident, Hou Xiao Qiang sleepless, with all means to appease the signing of the author, in person to meet with them, communication, and allow better welfare treatment.　　At the same time, start to form a new management team.　　A number of online writers interviewed by Caijing reporters said literary sites are "iron camp", the development to today each has formed a specific type of literature and corresponding readership, such as the starting point is a fantasy, tea Tim Incense is a woman, generally speaking, mature authors will not easily transform the site. Tea Tim Incense Writer "With love to Drift" to the "financial" reporter said: "The author values the first is the site's traffic, revenue." The share of the site is essentially the same; second, whether the site intends to support new authors.　　"Caijing reporter learned that the current starting point of most of the contract writers did not leave." Weifeng, chief analyst at the investment Group, told Caijing reporter that it is difficult to say how much the beginning of the management left to the income, it takes about six months to see the clue.　　He believed that if the grand literature can take this opportunity to support some new writers, the turnover of the event on its income, flow and other indicators will not be too big impact. Chen Flyover has no intention to retain "mountain loop turn to see you, snow left horse line."　　"See the empty beginning of the Chinese network office, Hou borrow ancient poetry feeling." Starting the founder team out of the exposure, has been deep behind the scenes of Chen flyover first time sound is very hou, he said, "Hou generosity, leadership and communication." "We will fully support him to continue to be bigger and stronger." Hou is the CEO of Chen Tianqiao's hand-picked, which is quite thorough in implementing Chen's strategy and ideas.　　Hou once in a network program when talking about and Chen communication, he said: Do not feel that the completion of the work can not communicate, my principle is, every day to communicate with the boss once, whether it is a text, e-mail or telephone, even if only a word.　　Starting out of the incident, "Caijing" reporter learned that Chen has no intention to retain, so Hou will quickly approve resignation. Inside the Shanda group, the founder's departure and the absence of senior executives were fresh. Once in the video site to develop a good 酷6网, after the grand acquisition, but also the founder Shanyou and the management of the matter, and finally to shanyou termination.　　Today's cool 6 is not the same, has long lost the mainstream of the video market. Chen founded Grand Group to network gaming business started, once occupied the industry's first place, with Shanda Network and Shanda Games (nasdaq:game) two listed companies.　　But in recent years, Shanda is gradually shrinking. 2011 Grand Network from the Nasdaq after the city, formed a grand game, Shanda Literature, Shanda online as the main business framework. Last year, Chen the structure of its restructuring, will be a grand online split into cloud computing, advertising, pay three branches, and the existing literature, video, games three content platform to form three vertical structure.　　This structure is far from the original Disney dream of Chen Tianqiao. Grand Game 2012Annual operating income of 4.682 billion yuan, fell 11.4% year-on-year, net profit of 1.113 billion yuan, down 12% year-on-year. Market position is third. More importantly, in the online gaming industry ranked before the Enterprise, Tencent, NetEase, swim have established an effective platform for support, can continue to the game to import a large number of new users.　　And the grand game did not effectively build the platform. Weifeng to the "financial" reporter analysis, online games after more than 10 years of development, has reached the bottleneck, more and more users to mobile terminals.　　If Shanda or rely on the existing online games business, rely on a large base scale, a short period of time can be, the future is certainly problematic. Chen has expressed a reflection, and will look to the original retired of the grand literature. However, in the well-known it commentators, Yahoo China's former general manager Xie, Chen Tianqiao in the repetition of the game business errors. "Shanda started out as a surrogate game, and the company lacks innovative genes. He is more of a salesman, you let him do things, can not do thinking conversion. "Xie that, we all know the starting point and do not know the reason for the grand literature is this, the grand need is a comprehensive platform, we have to first comprehensive platform to use specific services, but the logic of the Chen flyover is a product first, then did a lot of acquisitions." He is a product of thinking, not an Internet thinker. After several twists and turns, Chen Tianqiao began to shrink. Last year, the Grand winger, Hao Fang and other Non-core game assets were sold. There have been rumors that Shanda literature could be sold. Many of the respondents to the "financial" reporter said that the public is not optimistic about the grand literature of the IPO road.　　While it has the concept of mobile interconnection, Wall Street investors who value sustainable growth and stable returns are not necessarily buying it. A senior Internet person close to a grand executive told Caijing reporter that Chen Tianqiao has experienced a serious health crisis in recent years, and the mentality and values have changed, in addition to rest, is to do some real estate personal investment in the country. "I feel like he's no longer a wolf, so now most of the time is half-recuperation," he said. To be honest, it's hard to be grand again. "There is no problem with the current profit model for Shanda literature, and there are plenty of opportunities for the wireless business," the person said. Overpass has some literary complex, he will not be easy to sell, unless there is a particularly suitable bid, do not forget that he is still a businessman. As for the listing, there are too many uncertainties. "Author: caijing reporter Kornhill Song"