The Spiral Return of Wu Changjiang

Wu Changjiang is known as the godfather of China's lighting industry. In just 13 years, he led NVC employees to develop a small company with a registered capital of one million into a leader in China's lighting industry. The "Reform of NVC Business Model" led by him has been written into the successful cases of well-known business schools. But he is not omnipotent. During the thirteen years of enterprise development, he has twice had disputes with major shareholders on the business ideas of the enterprise.

In 2005, Wu Changjiang had a conflict with the two founding partners at the time due to business philosophy. The partners believed that the company's earnings could not be fully invested in the future development of the company, while Wu Changjiang believed that it was necessary to build NVC brand funds. All investment is required, and there will be conflicts between the two sides due to the dealer's business model. The contradictory result was that Wu Changjiang paid each of them 80 million yuan in equity transfer fees, and the two founding partners left the company.

In May 2012, NVC suddenly announced that Wu Changjiang resigned from all positions in the company due to personal reasons. At the same time, the board of directors announced that Yan Yan, chief partner of SAIF Asia Fund, would be the chairman. In July, Wu Changjiang said on Weibo that he was "forced to leave." At the same time, Yan Yan revealed to the media that Wu Changjiang was involved in the investigation, there were related transactions, and he ignored the resolutions of the board of directors. But neither side produced actual evidence to confirm or deny these allegations, and the matter immediately became the focus of public attention, and the dispute between the two sides escalated again and again. NVC dealers stopped orders, suppliers stopped supplying, and employees went on strike, demanding Wu Changjiang return.

The decline in NVC's performance brought the quarrelsome three-way shareholders together. In 2011, NVC's sales revenue reached 590 million US dollars, gross profit was 150 million US dollars, and its performance increased by 25% year-on-year. In the first half of 2012, NVC's net profit fell by 80%. On September 4, NVC issued an announcement to appoint Wu Changjiang as the head of the company's interim operation committee to manage the company's daily operations. The move marks Wu Changjiang's return to management, and the dispute that lasted in April has come to an end.

"NVC is forged by our hard work and sweat. We regard it as our own child and relative. Even if it is terminally ill, we will not give it up and do everything possible to save it. Even if there is only a one in ten thousand chance, we will I also look forward to a miracle." Wu Changjiang's responsibility to the company has made the three-party shareholders who once fought a war of words reach a consensus on the future development of the company. It is also because of this responsibility that he once again unites suppliers, employees and distributors under the umbrella of the NVC brand.

Learn to use communication to dance with capital

Yihaodian, the founder of Yihaodian, believes that investors and entrepreneurs are partners and equal relationships, either win-win or lose. To achieve a win-win situation, we must understand each other, respect each other, know each other's goals and reasonably meet each other's needs. When disagreements arise, they should be resolved with a positive attitude and an inclusive mind. Therefore, communication has become extremely important. It must be transparent and put the words on the table instead of guesswork, behind-the-scenes criticism and accusations. Never underestimate the importance of communication, prefer to over-communicate rather than under-communicate, to ensure that both parties have a consistent understanding of the enterprise development process.

Wu Changjiang agrees with these two points. He said: "The partnership between founders and investors is similar to that of a husband and wife. There are couples who have had many fights and still get old together, and there are also couples who have been divorced after several fights. The key to the long-term cooperation relationship depends on both parties. Whether a consensus can be reached."

In the NVC turmoil, the problem lies in the communication between major shareholders. Wu Changjiang believed that the previous misunderstanding was that he did not fully communicate with the major shareholders. At that time, the board of directors authorized Wu Changjiang to relocate a sales company to Chongqing, and gave an authorization of 200 million yuan. However, after Wu Changjiang communicated with the local government, the government proposed to Investing more than one billion yuan and suggesting that the establishment of a headquarters building can also be considered an investment. The construction of the headquarters building requires the approval of the board of directors. Wu Changjiang said, "If you say I'm wrong, I'm wrong because I made my own claims and found a third party with the government (investing in the construction of a headquarters building in Chongqing). However, in this operation, I did not overstep my authority. It violates the resolution of the board of directors, and at the same time satisfies the government's conditions for attracting investment."

Wu Changjiang opened his heart, "As entrepreneurs, we are motivated and passionate, and all we see are opportunities. As investors, They look at problems from a financial point of view, and what they see are risks. So we have some differences in decision-making. Especially after one person succeeds, the new decision is rejected, which is very uncomfortable and uncomfortable. This is the experience and lessons I have summed up.”

Yan Yan, founding managing partner of NVC’s largest shareholder, SAIF Fund, said: “Old Wu said this is true and universal. Most of the Private entrepreneurs are the ones who succeed, and they are only successful in the small circle of the year before they can become big. It is normal for entrepreneurs and investors to have different opinions on many issues. When this happens, communicate more in advance."

Wu Changjiang, who returned after the turmoil, said that the frequency of communication with the board of directors is now high. In the past, there were only two communications in a year, but now there are important things to communicate at any time.