best management practices (1)

In December 2010, "CEConline" selected the top ten best management practices in China in 2010, and companies such as Haidilao and Baidu were on the list, causing widespread influence in the industry. Paying attention to the growth and expansion of Chinese enterprises and providing managers with management experience that can be used for reference has become the purpose of this magazine's selection of best management practices. This year, we will launch management practice cases with great influence and widely recognized by the industry one after another as usual, analyze the success or failure of representative enterprises, and conduct an inventory at the end of the year, and select the most concerned "Top Ten Management Practices in China in 2011". We sincerely invite your participation, you can go to the CEConlines website (http://www.ceconline.com/bp/) to participate in the nomination and voting. The list of recommended best management practices in this issue includes humane employee management, improving supply chain efficiency, de-familiarization, and innovative imitation.

1. Humanized employee management

Enterprise management is ultimately the management of people. In addition to material benefits, many employees' needs for work are more about self-worth identification or career planning needs. For managers, it is no longer as simple as a "hand" on the employment assembly line. What they should consider is how to build an equal and democratic platform, cultivate and shape the company's own "unique" loyal employees, and become a core competition that cannot be replicated by competitors. source of power. Western management scholars put forward the concept of "employee is also God", and its core value is to build a new relationship between enterprises and employees through humanized management. Under this concept, employees are responsible for the enterprise and the enterprise serves the employees.

Representative enterprise: Desheng Mansion

Desheng Mansion advocates the values of being practical, conscientious, and responsible for work, not advocating opportunism, cutting corners, that is, taking shortcuts. Employees can withdraw their living expenses in advance every month; they can be reimbursed at any time without the signature of the leader; they also have the opportunity to travel abroad every year; even the company will provide pensions for "lifetime employees"; For those employees who have dreams and want to go out and start a business, Desheng not only accepts their applications for 1-3 years of long vacations, but also retains public positions and length of service, and can even provide them with travel expenses to new places and units. If the employee wants to return to Desheng within 3 years, the company can also provide corresponding positions.

Desheng has also creatively established a hearing system in order to reflect fairness and justice throughout the company. When there is a conflict between employees for work and the relationship cannot be coordinated, either party has the right to apply for a hearing.

Desheng Mansion has a harmonious and harmonious relationship between employees and between employees and the company. Since the establishment of the company 19 years ago, as many as 60% of the employees have worked in the company for more than 10 years.

Editor's comment: Different types of companies determine different groups of employees. For construction workers with simple educational backgrounds, Desheng Yanglou has done something that a knowledge-based company cannot do in employee management: that is, for employees. Trust and respect. At the same time, the hearing system also cultivates employees' awareness of equality and democracy. In such a tolerant but responsible enterprise, employees are naturally satisfied and happy. This is a means to enhance the competitiveness of enterprises that no technology and equipment can replace. Humanized management does not stop in words or rules and regulations, but must be integrated into the blood of corporate culture and the concept of managers.

2. De-Familyization

Family operation occupies a large proportion in enterprise management. First, it is due to the experience of starting a business together, and secondly, it is the concept of "people can use it with confidence" or "fertilizer water does not flow to outsiders' fields". . However, with the requirements of modernization and internationalization of Chinese private enterprises, the disadvantages brought by family-run business gradually emerged, with conservative thinking and weak professionalism. Some "airborne" professional managers are either lingering on the periphery of decision-making, or are constrained, their enthusiasm and initiative are restricted, and they will also affect the development of enterprises. Therefore, the "movement" of de-familialization requires not only the courage and mind of entrepreneurs, but also a strategic vision.

Representative enterprise: Tianzheng Group

As one of the largest enterprises in China's industrial electrical appliance industry, in order to solve the phenomenon of low enthusiasm of corporate executives, Gao Tianle, chairman of Tianzheng Group, decided to let many family members including his father Members left the company successively, separated ownership and management rights, and opened equity to key managers. At the same time, give managers sufficient authority, and gradually cultivate and establish the prestige of the person in charge of the subsidiary. Through a series of measures, Tianzheng has built a platform for employees and enterprises to start a business together, so that professional managers can really let go of their work, thus stimulating the development vitality of the enterprise.

Editor's Comments: Is the company owned by individuals or families, or by employees? If the leader chooses the former, then the goal of becoming bigger and stronger will be difficult to achieve, because it is very likely that the boat will be overturned by fighting the fierce market competition by oneself; Ties closely with employees, and everyone picks up pulp to drive a big ship, and the ability of enterprises to resist risks and opportunities will also be greatly enhanced. Of course, what is important is that enterprises can establish a sound and standardized governance structure, and a system with clear rights and responsibilities can help optimize internal resources.

3. Innovation and imitation

The Ohio State University professor Shi Jiaan put forward the concept of innovation and imitation in his book "COPYCATS", pointing out that the combination of innovation and imitation is an important means for the survival and development of enterprises, and innovation and imitation should complement each other . For industry leaders, if the latecomers want to gain a foothold, it is a shortcut to start from imitation and then evolve into independent innovation. The giants in the business world, IBM, Wal-Mart, etc. have all experienced imitation. The important thing is how to move from imitation to independent innovation, own intellectual property rights, and grow from industry followers to powerful leaders.

Representative enterprise: Meizu

From the time Apple filed an intellectual property lawsuit, to the approval by the Ministry of Industry and Information Technology of Meizu M9 and the official listing qualification, Meizu has achieved independent innovation from the initial imitation of the appearance of the Apple Iphone to the new product. The market gap that Meizu has seized is that Iphone ignores the consumption habits of Chinese consumers: high prices discourage many people, and software systems that are not "people-friendly" enough. The capital that Meizu dares to challenge the industry leader lies in building a technical team with strong R&D strength, except for imitation. M9 uses Android2.2 operating system, built-in Google mailbox, maps, etc., and also comes with a "software center". The dozens of applications and games developed have become Apple's strong competitors from use to experience.

Editor's comment: Meizu has already driven the technological innovation activities of the company when it imitated in the early stage. After mastering the technical know-how of the imitated products, it improved product functions, appearance and performance, and finally realized independent innovation. Get out of the shadow of "copycat products".

4. Improve Supply Chain Efficiency

In the e-commerce industry, supply chain management is of strategic significance for cost reduction. This includes front-end and supplier relations, back-end warehousing, logistics and other links. Higher profit margins and improving supply chain efficiency have become the two major focuses of e-commerce companies, and they are also the key to success. Does improving the efficiency of the supply chain mean handling the back-end warehousing and logistics in the usual sense to achieve the goal? The answer is obviously not that simple.

Representative enterprise: Jingdong Mall

Founded in 2004, Jingdong Mall has maintained a compound growth rate of 340% from the start of 3C products to the establishment of a comprehensive e-commerce platform. Jingdong's low-price strategy not only attracts consumers, but also establishes a good reputation for itself. Jingdong Mall does not pursue the amount of gross profit, but puts more energy on improving the efficiency of the supply chain and improving the inventory and cash turnover rate.

In order to improve supply efficiency, JD.com has strengthened its internal processes and management. Through the self-developed ERP system, we can master the detailed information of each product, and decompose the whole process into 34 links. Each link may be composed of many more trivial details. In all processes, JD.com currently controls 60 of them. %. In addition, JD.com also has absolute control over warehousing, logistics and distribution. In August 2007, JD.com established its own distribution teams in Beijing, Shanghai and Guangzhou. After 2008, it increased its investment in supply chain capabilities: 70% of the new financing of 21 million US dollars was used to establish a holding logistics subsidiary. , buy new warehousing equipment, equip with handheld RF scanners and build its own distribution team.

Editor's comment: Amazon, which is regarded as an example by e-commerce, has spent more than 10 years building warehousing, logistics, enriching product lines, improving server and database architecture, and its total investment may exceed 2 billion US dollars. It is because of the inspection and profound understanding of the laws of the retail industry that JD.com is determined to work hard on supply chain management. From information-based order processing, to warehousing and distribution, JD.com is willing to spend money, which is of great significance for reducing operating costs. There are many objections in the industry about JD.com's self-built delivery team, but with the growing number of users, can relying solely on third-party express delivery services meet development needs? It is undeniable that this is a problem that has to be prevented. JD.com has mastered the main links of the supply chain, taking the initiative in pricing power and service, which is not the best choice.