Interpretation of the "kingdom" of business management

If the last century were to be divided into two parts, then the first fifty years were dominated by war, and the second fifty years were dominated by the Cold War, but the main theme undoubtedly pointed to "economy". It was also during the next fifty years of economic development that the term "enterprise", an imported term, quickly became popular in Asia, until it was well known by passersby. You may not know the current political situation, but you must know which company's TVs and refrigerators are easy to use, and whether the OFFICE office software provided by Microsoft is convenient for entering information, and these are the technical products of the company's long-term development.

In fact, different from the confrontation in the earlier war model, the economy is a more protracted war without gunpowder smoke. In this battlefield, the criteria for winning and losing are no longer land occupation and division of regional forces, but In economic development, which company provides products that can bring greater value and better services to human society.

As a result, "enterprise", as the most core element in the entire economic development chain, how to operate and develop has also risen to the height of global competition strategy. Facing this trend, Chinese enterprises that have lagged behind Western enterprises for nearly a hundred years have developed How to catch up has become a difficult and unavoidable task. Although the enterprise has been operating for decades, the Chinese entrepreneur group is gradually maturing, and the defects of the Western business model are gradually becoming more prominent: corporate greed, chasing profit, like to publicize, and excessive risk; while Eastern companies are suspicious, reserved, independent | judgment, personal superiority is too strong, and so on. Globalization has become an irreversible trend, but the current business methods of Eastern and Western companies are still full of drawbacks and cannot be sustainable. In view of this background, Shi Zhenrong, the founder of Macro, and Chen Mingzhe, a Chinese scholar who is a professor at the Darden School of Business at the University of Virginia and will become the president of the International Management Society, conceived a theoretical system with the core concept of "kingdom", hoping to strengthen Chinese enterprises. Manage the international voice, establish the oriental enterprise spirit and image, so as to get due respect from the west; and further integrate the east and west, and pursue the corporate style and ideal realm with global thinking mode and adaptability.

So, what exactly is "kingdom"? According to Confucianism, the essence of "kingdom" is to convince people by virtue, and it is about achieving the realm of inner sage and outer king through self-cultivation from the inside out. Explains the difference between domineering and "kingdom". The theory of "kingdom" in business management should carry profound Chinese cultural accumulation, and contain rich national essence and humanistic ideals.

What is the "kingdom" really implemented in the development of modern enterprises? First of all, since the value of an enterprise's existence is to create value for the society, then to practice the "kingdom", as an entrepreneur, the first thing to consider is "what value can I create for the common people in the world?" Many people now require enterprises to fulfill their social responsibilities , In the "kingdom" system, this requirement is moved to the motivation stage at the beginning of entrepreneurship.

At the same time, the "kingdom" should always be with the spirit of enterprise. Entrepreneurial spirit is a group to achieve a specific task, with limited resources (human, financial, material, time, etc.), the use of effective organization and management, continuous innovation, improvement and other efforts to challenge the difficult process - so the "kingdom" principle will permeate the entire process.

Because "kingdom" is a concrete manifestation of cultural spirit, strategic thinking and executive ability, they are interlinked and coherent in the implementation process. More specifically, in Shi Zhenrong's words, "to care for the common people in the world" and "maintaining the "kingdom" is to protect the multi-party interests of corporate stakeholders, from maximizing the value of stockholders in the past, to changing the interests of stakeholders. The value of (stakeholders) is maximized.” And all parties as corporate stakeholders: customers, shareholders, employees, elite teams, banks, suppliers, distributors, and even the entire society and external nature are all included.

Looking at its system, the horizontal process of "kingdom" can be divided into the choice of stakeholders , the creation of benefit value, the sharing of benefit value, and the balance of benefit value. After all synergies, a balanced community of interests will be constructed, and each subject involved in the creation of enterprise value will be regarded as the object of value sharing. A win-win situation for interests.

From the perspective of practical operation, as a utilitarian organization enterprise, the pursuit of profit is its instinct. Whether it is the upstream and downstream of the horizontal enterprise industrial chain, or the vertical enterprise governance model, the conflict of interests of all parties is always changing dynamically. And the win-win situation is just a beautiful yearning in a static situation. The core difficulty of the "kingdom" theory lies in the balance of interests and values, and to maintain sustainable development at a high speed, the pursuit of dynamic balance will be a continuous challenge.

How to maintain dynamic balance? The current response to the "kingdom" system is: from a business perspective, distributed management, trust and authorization, altruism (altruism is the best self-interest), multi-win, not leaving one hand, cultivating talents, inducing potential, and passing on talents instead of descendants. From a cultural point of view, human nature is inherently good, Western management combines Chinese souls, seeks the similarity between different cultures in the wave of internationalization, is domineering but not coercive, attaches great importance to unity, and convinces people with morality - bit by bit, Shi Zhenrong is up to 40 years of business experience.

The ultimate goal of the "kingdom" of enterprise management is to integrate the essence of Chinese and Western management. But the designers of the grand blueprint also saw that it would take 30 or 50 years of long-distance running to transform from the current non-mainstream to the future mainstream. What Shi Zhenrong wants to do is "the predecessors paved the way, the later generations took over the baton, and if one generation fails, there will be two generations and three generations. After decades, the corporate culture inheritance of inner saints and outer kings will be formed, which will eventually achieve great aspirations" - "Wang Dao Legacy" , which is called this.

There are many highlights in Shi Zhenrong's interview, and we sincerely invite you to participate in the whole process. For the full interview, click here.