How to plan corporate strategic performance?

How to formulate the company's business goals for this year? How to decompose the company's overall goals into performance goals for each employee? How to get employees to take the initiative to take on work tasks? These are the questions that many entrepreneurs face when setting strategic goals for company development. In this increasingly competitive era, the effectiveness of strategic management is increasingly important.

To this end, "CEConline", which takes "excellent management practice and achieve enterprise elites" as its mission, invited many entrepreneurs to participate in the "CEConline Wisdom Salon" in mid-March 2014 to work with management experts. Explore the topic of "from strategy formulation to performance target decomposition". On this issue, Mr. Wu Yuguang took a real case as an analysis sample, and introduced how he designed and decomposed the strategy and performance of this enterprise that was caught in a "confused period" of development.

Case Introduction:

Company A is an export-oriented optoelectronic enterprise integrating R&D, production and sales. Its products are mainly LED display and LED lighting, and its sales capability is relatively leading in the industry.

The company's sales performance has grown rapidly, with an average annual growth rate of more than 50% for five consecutive years. The company started with a capital of 100,000 yuan, and has grown to more than 300 personnel, including 5 senior executives above the director, 60 sales personnel, 5 procurement personnel, 5 R&D personnel, 20 administrative and financial logistics personnel, and production personnel. More than 200 personnel. Last year, the annual sales exceeded 100 million yuan, and the net profit reached about 15%.

The company has always attached great importance to the sales business. The salary incentive system for sales staff has always followed the "low base salary + high commission" model. The income gap of sales staff is large due to different abilities.

Now, the company's executives are meeting to discuss the company's overall strategic goals for the new year. The boss proposed that at least 250 million should be made in 2014, and the ideal goal is 300 million, and the domestic market share should be increased to 50 million yuan.

At this time, the sales director stood up and said that this is an impossible task, because:

1. The market competition is homogeneous, and everyone is fighting a price war;

2. The current international market volatility is relatively high Large;

3. Some sales staff have few orders and low income, low efficiency in individual combat, capable people are busy, and those who do not have orders are too idle;

4. Product development capabilities are not strong, and customers have many new requirements cannot be satisfied.

5. Product quality is unstable, and sometimes delivery is not timely.

Then, the production manager also stood up and said, I also think this goal is difficult to achieve, because:

1. The high turnover of skilled workers in the factory leads to unstable production quality;

2. Large single Come, workers often have to work overtime, and everyone has many complaints;

3. The purchasing department often delays supply, materials are not in time, and the quality of raw materials is questionable.

Seeing that the ball was kicked to him, the purchasing director quickly defended and said, "There is nothing we can do. The funds for procurement are often not available in time. Our existing suppliers are small, and every time a large order comes, they want goods In a hurry, only a few suppliers can supply at the same time, and occasional raw material quality problems are inevitable. It is still necessary to develop some new products with large profit margins."

The R&D director immediately added: "The company has been in technical The investment in research and development is seriously insufficient. With only 4-5 guns, we have to work overtime to deal with existing customers. We are so busy that we still have time and energy to develop new products. Besides, the treatment of our research and development personnel is not good. High, technical talents with strong development ability cannot be retained."

After listening to everyone's words, the director of human resources kept pouring bitterness: "Our company actually has a lot of staff, but we lack an effective set of technical school assessment management. It is impossible to measure whether you are good or bad in the system. Although our human resources department has been urging you several bosses to give departmental assessment targets, you always say that you are busy and do not pay, which makes me a punching bag for the boss. Alas!"

Now, ask each group to start a role-based discussion and list your group's solutions on a large sheet of paper:

1.How should Company A's strategic goals for 2014 be formulated?

2. In order to achieve this goal, what should the company boss, sales department, R&D department, purchasing department, production department, and human resources department do?

Wu Yuguang: This is a real case, just slightly modified. The growth rate of this company is very high. At that time, it only had 100,000 yuan. All three people were in sales, and the other person's position was not very high. He was probably a sales manager, but you can see that this is basically rising. A few years to 80 million, to 100 million in 2008. But after 2008, the situation became very bad. To make money is to make money, but the boss is exhausted. Either go to the crematorium or go to the hospital, to this extent. In fact, this company had this awareness very early, knew that there was a problem, and wanted to find someone to help me, so he himself did not know the true face of Lushan. This company does not have any strategy, it is completely order-oriented, and relies more on passive tools, such as Global Sources, which is a very important tool. Global Sources has helped many small and medium-sized enterprises to develop. This is what I know, the other is Alibaba, and then there are Participate in the exhibition, and then make the order when it comes, very cheap price. I think everyone has the experience that Chinese companies must be in a state of change. As long as it is a customer, it is a customer when the door is opened. Large orders and small orders are treated the same, and the target customers are not clear. As for the marketing strategy, it turned out that the director was a furniture seller. The only advantage was that he was from Hong Kong, and his English was very good. He knew nothing about products, but he did it. Everyone knows that English is very important to foreign trade, but it is terrible when it comes to sales management. As you all know, there is a line that says "individual combat efficiency is very poor", and that's the case. They can't talk about performance management. Some people recruited from their hometowns, and many students from secondary school came here, and some are salesmen. They are very weak in this link and weak in research and development. The after-sales service system is basically not done. Basically, after a product is sold, a group of customers will fall. Everyone can imagine. And the organizational structure is also unreasonable, because the boss can't control it when it reaches 100 million, and it is divided into several divisions, and the key functional people are already lacking, and then a lot of structures are divided to do it.

This is their actual financial situation (see PPT). That year, they lost 240,000 yuan, and they have a lot of money in their accounts. The accounts receivable control has always been better, because the boss is a more cautious style. The financial accounts are not very good. The boss said what to do with this amount of money, and small businesses dare not take out loans and rely entirely on their own funds.

So at this time we helped him to do some measures:

The first step is to clarify the strategy. His strategy at that time was unclear and swaying. He didn't know whether the domestic market or the foreign market was the main one, and he didn't know whether to increase investment in the lighting market. Through discussion and communication, we told him to clarify the main business. A very important strategy for small and medium-sized enterprises is to focus. The current ability of diversification cannot be controlled. It is necessary to focus, innovate overseas sales models, and combine local resources and services. Improve the combat capability of overseas teams, increase the research and development of product planning, and provide more competitive products and solutions. Then stick to the profit orientation. You can't simply assess the income of the salesperson. The salesperson dumps at a low price, and then he takes a commission, so that he loses money even if he does not make a profit. This is not the case, the more you contribute, the better we can improve. There is also a foundation to be consolidated. I heard a group discussion just now, whether it is sales or research and development. Do you think an enterprise can do which one is the main and which is the supplement? It is difficult, so I am afraid that at a certain point in time, it will be taken into account. This is the first step, and we all need to unify our thoughts.

The second step is to adjust the structure. This is his original structure (see PPT). He has established several centers and two major business divisions. The management is very complicated. There are five or six directors. Later, it was further reduced and returned to the simplest structure, emphasizing the commanding efficiency of functions.

The third step is to adjust the salary. It used to be the same as doing more and less, but now it's different. The manager of each department has made such an explanation, letting him know how much money is spent doing well and how much money is not doing well.

The fourth step is to set goals. This goal has both the company's goal and the department's index, and different positions are different, and 30% are flexible, because the situation was not clear at the time, leaving some subjective evaluations. The indicators of the department should be combined with the work of the department.

The fifth step is to change the strategy. Many people want to do well, but don't know how. Think about it carefully, does it exist in our company? Many times he wants to do it but doesn't know how to do it, so don't suspect that employees are lazy. You don't always talk about prices, you talk to customers about prices, and there will always be someone lower than your price. Also, don't talk about components all the time, talk about performance indicators. It is also necessary to change to end customers, whose products are mainly sold by major customers. There is also a shift from talking about products and solutions. Just now, many groups mentioned this issue, which is very good. It is very different from the original. People who can do it get a lot, and people who can't do it get very little.

The sixth step is to make a plan. Turn these actions into actions, like this table (see PPT), each action is measurable and iconic, so that it can be operated.

The seventh step is to strengthen the system, grasp the two ends, fix the middle, and get through the five lines. The solid middle is the on-site management, opening up five lines. First, product line; second, quality line; third, production and sales line; fourth, service line; fifth management line. These five lines, as the whole internal management method, turned out to be functional and horizontal.

The eighth and final step is to evaluate advanced. Finally, there must be a fair evaluation.

As a result of practice, this enterprise will exceed 1 billion yuan by 2010, with a profit of nearly 58 million yuan. It successfully passed the meeting in June 2012 and is about to enter the capital market.

I summed it up and called it "Jiuyang Zhenjing" (see PPT). Think about the problems here, starting from a strategic point of view, taking performance as the fundamental purpose, and having a good corporate culture to catalyze, you need organizations, leaders and control systems in the middle.

The so-called "Jiuyang Zhenjing" is: clarifying the strategy, adjusting the structure, setting up the team, formulating the plan, making the budget, confirming the power and responsibility, controlling the risk, evaluating the advanced, and dividing the bonus. All of these links are required. The strategy should be clear, the structure should be adjusted, the team should be well established, and it is also very important to confirm the authority and responsibility. You should not only give responsibilities but not rights.

On this basis, a system of strategic management is formed, and everyone can do it at a certain scale. There are another six steps: strategic management, comprehensive budget, management report, internal audit, performance evaluation and manager evaluation system. This is the Jiuyang Zhenjing with the Six Meridian Divine Sword. In terms of management reports, we talked about risk control earlier. These are things that the boss needs to check every day. A company of our size cannot afford to lose, and any problems in any link are fatal. Internal audit is when someone inside sees whether we are doing well or not. Huawei has an internal audit, and there is a mechanism for self-improvement and improvement. It does not mean that it will remain unchanged from year to year. There is also performance evaluation. In the end, everyone hopes for a reasonable mechanism, and finally it falls to the manager's evaluation, the reward for the reward, the penalty for the penalty, and the expulsion for the expulsion.

Thank you for listening.