be a brave manager

Editor's note:

As we wrap up this cover story, Virgin Group leader Branson, renowned for his courage, is in Hong Kong on his selection of his successor. hit. The way is very special. The 16 people who stood out from the 50,000 applicants had to accept a series of dangerous challenges, such as walking from one hot air balloon in the sky to another hot air balloon through a single-plank bridge, and spending a night alone in the wilderness infested by African wild animals. Only if you have the courage to pass every test can you become the successor of Virgin's business empire. Perhaps this example is extreme, but it is undeniable that courage is a prerequisite for becoming a business leader.

This is especially true in China's complex, volatile and highly competitive market environment. The so-called narrow road meets the brave wins. The courage of the leader even determines the success or failure of the enterprise at certain critical moments. Liu Mingming in this article is a manager of a multinational company, leading the company to surpass all competitors in the domestic market in 6 years. Luo Hong, featured in the next article, is a self-made entrepreneur who is now China's most successful cake and mooncake maker. The common trait that helps them achieve success is their extraordinary "courage quotient". They dare to stand up to their own opinions in the voice of doubt, dare to point out the direction in an uncertain market, and dare to face their own shortcomings and achieve their goals through authorization.

Liu Mingming, a five-year-old girl, is the child king in the compound of the Central Committee of the Communist Youth League in Beijing. She is often chased by kindergarten aunts to her home to complain to her father. She took a group of children to climb trees to steal apples that had just ripened in the garden, and to fight for her friends who had been bullied by classmates from outside the class.

Time flies, nearly half a century has passed, Liu Mingming, President and Chief Representative of Voith Paper China, was sitting in her office in Shanghai and recalled his childhood: "I have been timid since I was young, and I have a strong personality. Especially like a boy."

In fact, Liu Mingming is still a female president who impresses with her "boldness" today: she dares to go head-to-head with her immediate boss for a big project with hundreds of millions of dollars, and she persuades everyone to persuade. The hesitant group headquarters repositioned the Chinese market, and even initially obtained the status of "chief representative" is quite legendary. "They wanted me to be their deputy at first, and I said, I'll talk to the board myself."

Now, Liu Mingming is the only one of 59 senior managers in the world at Voith Group, one of Europe's largest family-owned businesses. A woman and a native Chinese. Since becoming the chief representative of the paper technology business in China in 1998, she has increased the annual sales of less than 500,000 euros to 420 million euros in fiscal year 2004 in six years; 51.5% share, more than all competitors.

Advance and retreat are equally important

To understand Liu Mingming's "gut", we must start with several choices and abandonments in her personal career.

"I am most willing to do things that I have never done before. Once everything goes well, I feel that there is no place to release my energy, and I especially want to find a new starting point."

The first to resign from a well-paid state agency, Going to Stone Group to do software is an anomaly in the eyes of colleagues. Liu soon discovered that his personality was very suitable for sales, and he was promoted to three levels in the sales department in the following two and a half years. "In the 1980s, my annual income was calculated in 10,000 yuan." At this time, 39-year-old Liu Mingming made her first eye-popping resignation. She decided to quit her job and study business management in Germany. "Look at How the outside world does things".

"At the beginning, there was no language foundation at all, and some people sneered at me. I was quite old, and I dared to speak such a poor German." Liu Mingming didn't care about these eyes. After a few months, her German was more than sarcasm. Younger classmates are much more fluent. "I do things boldly because I have few worries. I don't think there is any need to pay attention to the details."

Four years later, Liu Mingming, who completed his bachelor's degree, returned to China and unexpectedly chose a joint venture in Yunnan that was on the verge of bankruptcy. , apply for general manager. "There are more than 1,000 employees who produce cigarette paper, and I have never had any contact with me before. Even my husband said that you are too daring!" Because she had no industry background, she was initially assigned to be in charge of personnel, recalling that at the time Liu laughed at himself: "They think that a returnee with long hair and shawls will leave if he stays here for two days." Liu Mingming has a thorough analysis. "That company is really broken and poor, but the technology is provided by the German side, and the Chinese side has the background of Hongta Group. The cigarettes in Yunnan are the best in the country. If you think about the prospects of the cigarette paper market, you will definitely be able to do it well. And there are very few talents in remote areas. When I look at the quality of those people at that time, I have this confidence that they are stronger than them." After waiting patiently for half a year, Liu Mingming was approved to be in charge of market sales as general manager, and in the second year, he made this cigarette company. The paper company turned losses into profits, and the profit level has doubled year by year since then, ranking third among the top ten enterprises in Yunnan Province.

In her fourth year, she once again chose to leave. "After all, the main business is tobacco, not papermaking. The company made good profits, and neither China and Germany were willing to invest any more. At that time, I felt that there was too little room for development and I felt a sense of crisis." In Liu Mingming's view, it was just comfortable and comfortable "Being an official" in service is not one's own personality.

Among the choices and abandonments over and over again, the middle-aged Liu Mingming interprets "courage" to the fullest and pushes himself to the upward path of his career. If it is said that she has a clear mind and knows "how to grasp the most important general direction", Liu Mingming has the courage to "advance"; then she does not worry about gains and losses and "doesn't worry too much", so she dares to "retreat". These two equally important courages were also confirmed one by one after she entered the Voith Group.

Not as a deputy

Voith, which produces paper machines, was originally Liu Mingming's equipment supplier when he was in Yunnan. Once, Liu went to Voith's German headquarters to inspect the introduction of equipment, which became an opportunity for her to change careers again.

Paper Technology is the largest division of the Voith Group, and it is said that one out of every three sheets of paper in the world is produced on Voith paper machines. At present, the per capita annual consumption of paper products in the world is 55 kilograms, while in China, this figure is only 37 kilograms, which is far lower than 200 kilograms in Europe and 300 kilograms in the United States. It is predicted that by 2010, with the development of China's economy, the annual demand for paper will increase by nearly 30 million tons, which is self-evident for the demand for large-scale papermaking equipment.

It was the attraction of business growth that led Voith to consider looking for a local talent with a deep understanding of the Chinese paper market in 1998. "They wanted to send a German to be the chief representative in China at that time, and they wanted me to be his deputy. I didn't accept it. I said that I could be the leader." Liu Mingming remembered the situation vividly at that time.

Liu Mingming's interest in and confidence in Voith was not impulsive. Before making every major decision, it is Liu Mingming's specialty to grasp the overall situation of various environmental factors, and it is also an important support behind her "courage".

This time was no exception. "If an enterprise wants to be large-scale, it must have a good market and good products. It is difficult to lack either one. First of all, I see that although Voith is not the largest in this industry, its technological leadership of products is its advantage. The biggest advantage; in addition, the Chinese paper-making market is about to start at this stage." Liu Mingming said, "This is Voith's opportunity, and I think it's worth fighting for it."

"I don't want to be a deputy. , I don't care about the name, but I think it is also good for Voith." Liu explained that the first generation at that time was a technical background, did not know the Chinese market very well, and did not understand Chinese at all. "If you give him a deputy, there must be a problem with communication efficiency. When I finish reporting, the market opportunity may pass." And let a "airborne soldier" without a doctorate be the first generation, but Voith has never had any experience. precedent.

"The president can't decide, let me wait for the decision of the board of directors. I just said, I will talk about it myself, which is more direct." Liu Mingming talked for a total of two hours at the board of directors, sharing his analysis of the Chinese market with Voith The opportunities come one by one. "Finally, I asked them, are they interested in a doctoral degree in four years, or in the ability to turn a bankrupt company into profit in four years?" In this way, in September 1998, Liu Mingming officially took office in Beijing, and entered the A whole new industry for me.

Saying "No" to the Boss

After Liu Mingming took office, Voith Paper Technology's sales in the Chinese market made a beautiful upward curve. But the process is not as smooth as this curve seems.

In the beginning, the function of the China office was only sales. Liu Mingming's chief representative was more like the sales director of the Chinese market. All technical resources were mastered by the headquarters, and the final decision on each project was also held by the headquarters. And like almost all German companies, Voith Group's business style emphasizes stability, is conservative, and has a very strict risk assessment system. Liu Mingming said that facing customers and the market is not difficult. In many cases, persuading the headquarters has become the most difficult task in project negotiation.

In 2000, there was a project of "arguing with the boss three times", which left a deep impression on Liu Mingming. "Beginning in Beijing, the market has not been fully opened. As a result, the country launched a technology-trade integration project at the time. It was to let multinational companies transfer part of the technology and then contract the project for you." This was quite popular at the time. The project cooperation method of "exchanging technology for market" encountered strong opposition from Liu Mingming's immediate boss.

"Several contracts proposed by the state are for imported paper-making equipment, hoping to exchange for 10 technologies. Several of our competitors agreed, but Voith refused, and all the colleagues I went to talk with said I disagree. My boss even said, are you working for the Chinese government or for Voith?" Liu Mingming said that he is very aware of the protection of core technologies by German companies, especially family-owned companies, and they are more cautious. "He thinks I'm disloyal to the business, but I won't give up because he thinks so."

The next day, Liu Mingming personally flew to the Heidenheim headquarters to negotiate with the CEO, once again showing that he is good at grasping the overall situation with a clear mind. "I said that you just settled the case like this. I can't accept it. At least let me explain my thoughts clearly, and then everyone will decide." She analyzed that the headquarters have no more than two concerns. First, they are worried about the loss of core technology: cultivating Chinese companies into In the future, my own competitors will raise tigers. Second, they are worried about the integrity of the Chinese government: after the technology is transferred, can the contract be obtained?

"Then I will dispel his doubts one by one." Liu Mingming drew an analogy: If Voith's technology is 100 meters high, the technology transfer that the Chinese government hopes to get is not the most cutting-edge, nor is it Voith now lives on, but only around 50 meters away. It may not be commonly used in Germany, but it is still very important for China. "In addition, I also did a good job in government public relations in advance. They are very confident in Voith, and the two sides have reached some consensus, so I said that if there is a risk, I am willing to take it."

Finally, the headquarters decided to follow Liu Mingming's advice. The idea made an attempt. The CEO and Liu Mingming returned to Beijing together, agreed to transfer three technologies, and received Voith's largest contract order in China's history, with a total value of 115 million US dollars.

"According to the usual point of view, I am overstepping the hierarchy. But I have not considered whether I will offend the boss, I am planning for the company's interests, not for someone. Not because you are my boss, I will give up such a big business, I have to fight until the end, this is my character, and it will never change." Liu Mingming said that after identifying the problem in advance, analyzing it thoroughly, and fully prepared in all aspects, we must dare to do it put in.

That is, to charge with courage based on strategy.

Turn uncertainty into certainty

"Under uncertainty, the decision made by leaders is to guide the uncertainty in a certain direction." This is Liu Mingming's many years of management practice, derived experience. As she continued to open up the market for Voith in China, she gained more trust from the headquarters: "After all, the headquarters does not understand the local market, so many strategic decisions need me to be responsible for myself." At the same time, this also requires her to be responsible for the When making judgments about market opportunities, there is a more comprehensive and cautious analysis.

The decision on whether to implement a "same platform" production line in China is one such decision.

In the paper machine industry, because the equipment is complex and the project amount is relatively large, customers usually divide the equipment of a paper machine into seven or eight modules and bid separately in order to obtain the lowest price. "The biggest problem with this solution is that it is ordered from different suppliers. The interfaces between each module are incompatible, and problems often occur after operation. Especially the suppliers will pass the buck to each other and delay the production time, so the actual investment Instead, the cost has increased." Liu Mingming said that Voith's most successful model in Europe is to provide customers with the entire production line and quality assurance, customize each module individually, and be responsible for solving all interfaces. This is the "same platform" concept.

"This model is also relatively avant-garde in the European paper industry, and not all customers can accept it. Because although the running quality is more guaranteed, the price is high." Liu Mingming recalled that in the past, Voith's market in the Chinese market was very popular. In the global strategy, it has always been in a relatively low-end position. The headquarters was very hesitant to implement the "same platform" in China. "My judgment is feasible, and it can even be used as the main strategy in China. However, the headquarters doubts the acceptance of the Chinese market, because the customer's understanding is still at a relatively low level. If the push is too high, can he accept it? At this time, we need courage to make this determination." Liu Mingming admitted that although each project can be worth hundreds of millions of euros and the benefits are considerable, the implementation of "the same platform", technology, services, markets and other supporting facilities A large amount of resources must be invested in the early stage, and the risk is also quite high.

In order to convince the headquarters and himself, Liu Mingming made a detailed division of China's paper machine customer base. "Many people think that Chinese customers only look at the price, and the cheaper the better, but this is not always the case. There are now 3,300 paper mills in China, with different scales and capacities. The simplest example is that Mercedes-Benz cars are sold a little in China. There are also quite a few, so to believe that there are high-standard customers in any market, the key is to choose your own market position."

Although Liu does not deny that his courage to make decisions under uncertain circumstances often comes from women A manager's intuition and sensitivity, but she also understands the importance of rational data analysis. Liu Mingming drew a pie chart that was later famous at Voith: 20% are high-end customer group A, 50% mid-end customer group B, and 30% low-end customer group C. And it is marked that at each stage, the middle and low-end groups are likely to increase to a certain proportion to the higher end. Her analysis is that since 1999, the Chinese government has decided to invest 15 billion yuan in the technological upgrading of papermaking equipment for 20 projects. The part of the papermaking enterprises that imported all the equipment is the potential customer A of the "same platform".

"I told the headquarters that technology is Voith's biggest advantage, don't intentionally lower the standard, but maintain a high level. First open up the high-end market, occupy this part of the market, and then raise the middle and low-end customers. We must dare to take the initiative to develop new markets and be the market leader." Facts have proved that Liu Mingming's strategic choice is very correct. After the implementation of the "same platform" in 2001, the order was won that year. A few years later, some old customers who have followed the development of Voith have gradually increased their cooperation methods from the low-end single machine purchase to the high-end whole production line purchase.

Now "One Platform" is Voith Paper's most successful product module in the Chinese market, with a market share of 51.5% in the high-end paper machine market. At the same time, the annual sales in the Chinese market have also accounted for 25% of the total global sales. Liu Mingming once again proved his decision-making ability to be "daring and ignorant".

Let go when it's time to let go

In order to continue to expand business in China, like most multinational companies, the localization of production is an inevitable choice to reduce product prices and enhance competitiveness.

In order to cooperate with the business transformation, in 2002, "Voith Paper Technology China", an independent company headquartered in Shanghai, was established. Series function.

"This changes the business model. I used to be a representative office in Beijing, mainly to analyze where the market opportunities are, what projects can be done, and how to do it." Marketing was Liu Mingming's greatest specialty, and she was not in charge at that time. Technology and services are also not much involved.

"Transformation is a threshold for me." Liu Mingming said. Voith's corporate culture pays special attention to the technical background of leaders. Since she is not from a technical background, there have always been different voices within the company regarding her appointment. When she was the first generation, it was enough for her to perform well, but now she is going to be the president of China, and the role of the Chinese market in the global strategy has become more and more important. Many people think that she is not suitable.

"On the one hand, I think what they say makes sense, I really don't understand technology; on the other hand, the market is still my advantage. I originally hoped that the company would develop, and I would follow suit. If I don't seize this opportunity, then It's not my character." Liu Mingming clearly realized that fighting for this opportunity actually means taking more responsibility. If you are incompetent, it is not good for the company or yourself.

She offered to set up a senior management team. In addition to being responsible for the market, she also appointed a vice president for production, technology, and finance. In her opinion, teamwork leadership is the best way to help the company grow. "Everyone has strengths and weaknesses, and I dare to face my own shortcomings." In addition, she is also reflecting on her past leadership style, "to shift from management to leadership."

Starting from the joint venture in Yunnan, Liu Mingming is an "authoritative" leader who acts rather arbitrarily. Everything is ordered by himself, and his subordinates strictly implement it. But now she gradually realizes that for high-level knowledge-based talents, it is necessary to change the leadership style and give them more room to play. She once publicly blamed herself: "There are two good talents in the company that have not been retained, which has a lot to do with my original management style."

"Before, I always wanted to be at the forefront, and I was the best. Yes. Now I have to let more people who are better than me stand in the bright spot, and I have to step back, which is a challenge to my nature." Now, in addition to the four top management, Voith has nine The department manager worked hard on the front line, and she repositioned her role as a rear guide, "finding a balance between delegating power and controlling."

A leader like Liu Mingming is always used to living on the cusp of the storm. Under such a life attitude, there are too many stories about "advance"; in fact, when it comes to "retreat", it often takes more courage.

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