The "luxury" turn of the new Oriental

Ong Yunque's elite English, which he took over in May 2007, cannot but be said to be a "mess". Elite English is one of the sub brands of the New Oriental Group.　　Although there were 4 youth training centers and 3 adult training centres in New Oriental, none of them made money.　　The elite English, which began operation in 2002, was originally a product of the new Oriental into the high-end English training market, until 2005, the elite English was stripped out to become an independent brand. Yu Hong Yi admits, "New Oriental in the past this piece does not very good, the other past did not regard it as the focus, so there is no basis." "But with the family rich and consumption upgrades, high-end English training market space is more and more wide, it is likely to become new oriental growth." On the other hand, as Mr Yu said, "After the new Oriental listing, with such economic strength, there is room and patience to do something new."　　"Change Body" matrix type: Ong Yunque, who once served as Mr Yu's assistant, volunteered for the elite English in 2007.　　The first step is to remedy the case and change the overall structure of the Organization.　　The original elite English, in the headquarters level with teaching, sales, service, marketing, administrative operations and other functions, and each functional department of the head of a training center for the general manager. At the same time, in each subdivision area, responsible for the functions of each center, but also in charge of the overall operation of a central. This vertical management model, the advantage is to save costs, relatively easy to unity, communication costs are relatively low.　　But the shortcomings are also obvious, cross management and responsibility system, on the one hand, difficult to confirm the incentive measures, so that the enthusiasm of the leaders is not high, and on the other hand did not achieve the "surgery industry has specialized" resource allocation effect.　　The reform of Ong Yunque, in the "longitudinal line", inserted a "horizontal lines" to form a matrix management.　　The original functional department head is staying at Headquarters, is for the director, each center to set up a separate team, directly responsible for the operation of the center, including the center of the general manager and teaching, sales, service and other functions of the supervisor. And the incentives are very different. In the original management mode, even the central person in charge is only the form of the function, to adopt a high wage incentive mode. Now each center is separately accounted for, the business performance outstanding can obtain the big bonus, each center's impetus is stimulated.　　And the heads of the centres would consider themselves commander-in-chief of the region, and they would often plough deep into the area.　　In fact, the speed of expansion, but also make this change has "inadvertently inserted willow shade" the beauty.　　Two years, with the elite English Training Center, from 7 to 17, and from Beijing to Chongqing, Changsha, Chengdu and other regions, the original way of management in the appointment of people must be stretched, and now the Matrix management, is basically to meet the needs of expansion. Of course, the level of increase in management difficulties and costs, will increase, but in Ong Yunque view, "The key is to form the benefits of this method is more than the disadvantages, such asIt can be (accepted) that the fruit can quickly form a return.　　"The change has worked very quickly, and in the second year of Ong Yunque's takeover, the elite English has swung into a profit," he said.　　In the 2009, The Matrix Management, in the new Oriental Group also began to try to implement. Contrary to elite English, the original management model of the new Oriental is "horizontal" and less "vertical line". In the new Oriental, there are many branches, the branch is an independent income-generating department, a president of the whole, the headquarters is macro management, but one of the products, such as IELTS, at Headquarters does not have a management.　　And as the stalls become more and more, the moderate centralization of headquarters, it is necessary.　　Looking for a new location: Out of "student gas" to solve the organizational structure of the problem, Ong Yunque need to give themselves a positioning. Because of that time, the high-end English training market, has been a formidable enemy.　　The high-end English-language training market, which occupies about 1/3 of the entire English-language training market and is favored by highly-paid people with high price and good environment, has been firmly occupied by international brands such as Wall Street English and EF education.　　On the other hand, although backed by the new Oriental Mountain, but "student gas", "Test gas" very strong new Oriental, but not necessarily to the senior white-collar or rich family of young people to shape a high-end English training impression.　　Mr Yu Ong Yunque's initiative, as the "0 basis" on the operation, and "not urgent" attitude, so that Mr Yu has no business requirements for elite English, the only requirement is not to sacrifice the new Oriental cultural atmosphere, the sacrifice of the new Oriental Education quality as a prerequisite. "In the end, is the core competitiveness of elite English differentiated?"　　"It was Ong Yunque's first thought and the most important management issue," he said. In the completion of the opponent's analysis, he has his own definition: "and the path of the competitor to choose different, they have to do marketing, some do fashion, some do the circle, we are to do a mentor, is required to guarantee the teaching effect and the enjoyment of the teaching process."　　"And this is in line with Mr Yu's only request." Of course, Ong Yunque's definition of "the enjoyment of the teaching process" has now been questioned by no one. The biggest criterion for recruiting teachers in new Oriental is "effect" and "Laughing Fruit". If you take a potato or youku, you can find a lot of new oriental teachers ' jokes. As Ong Yunque said: "If we choose teachers together, our opponents may choose professors, we will pick rock stars." We are asking whether he can mobilize the classroom atmosphere on the basis of the English customs.　　And the control of teaching quality is partly embodied in the allocation of resources. In Ong Yunque's view, many high-end English-language training institutions have spent most of their money on marketing and course consultants, while the elite English is in teaching research and development and teacher training.　　In the 2008, the market promotion cost of elite English accounted for less than 7% of the total income, which is not a high proportion in the training service sector. The cautious market promotion makes the expansion of elite English not fast. But the number that makes Ong Yunque more happy is the 2008 mouthStele Marketing (Friend Introduction, or registration, etc.) income has been able to account for about 30% of total income. The total net revenue for the new Oriental fiscal year 2009 (as at May 31, 2009) was 292 million U.S. dollars, up 45.6% from 201 million U.S. dollars in the same period last year, according to the latest earnings released July 21. The elite English 2008-year revenue also grew by 100%.　　Today, the elite English teachers have 290 people, the existing adult students are 8000 people, the number of youth training has reached 66,000.　　But this does not mean that the backward person has been thoroughly "grab position" success.　　Because of high-end English training requirements of the lot rent, environment, hardware, learning software, teacher treatment, such as high investment, elite English is still meager profit state, than the industry's average profit rate is low, this is certainly a listed company is not so willing to see.　　But Ong Yunque has the same "not urgent" attitude, slow work out of small jobs, the first practice of internal strength, "and other market share up, we consider profits." However, from the new less than half a year big customer business department, has talked about more than 40 single enterprise group training situation to see, this backward person's ambition is not small.