Wu Yuguang: Strategy and performance, what do companies lack?

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 gave a wonderful speech at the salon. The following is the content of his speech:

Wu Yuguang: First, let's understand what "strategy" is. We are all in business. We may not calm down and think about this matter many times, but this is a major issue related to the survival of the enterprise. Who am I, where do I want to go, how do I go, and these problems need to be solved. Who am I? First of all, I need to know what resources, strengths and weaknesses you have. Where am I, you have to know your position in the industry. Originally, the position in the industry is very weak, and it is difficult to take a low-end play. How do I get to? Many bosses are not clear when they set their goals, and in many cases, the boss pats his head. In addition to the goal, there is another point about why we achieve this goal. So answer these questions clearly.

Simply summarized, strategy should answer questions about direction, goals, and actions. Just now you talked about measures, including sales and procurement. Here you can see where the goal comes from. The goal comes from the strategy, not the head. Everyone needs to analyze where you are, how the industry is growing, how is the competition, and how is it compared to last year. On this basis, the determination of the boss should also be considered, which cannot be ignored. If you look at the middle-level personnel, as in the case, this goal is impossible to achieve, but the boss's ambition and perspective are different. Therefore, many bosses often come up with ideas that are beyond the norm at this time, but in fact they are often realized.

This passage can also be shared with you. This is the saying of Sun Tzu's "Conspiracy to Attack" in the Art of War. "Those who know what can fight or can't fight win, and those who know how to use the few win." We just mentioned that we need to increase personnel, increase personnel, and increase equipment. Absolute loss for two years. Put yourself in the shoes of yourself and use your resources where they are most effective. "Whoever has the same desire from top to bottom wins", management by objectives is the most difficult, why is everyone discussing it? Everyone feels that this is my participation, and I have to work hard. In many companies, the boss will let you do the job after the boss has set the goal, but if you fail to do anything in the process, what should you do? By June and July, everyone felt that it could not be completed, and the morale of the whole was low, which was broken. "Those who are not afraid of fear will win, and those who will be able and the ruler will not win will win." As an emperor, don't always put down tokens all day long, so you can't win the battle. Many companies divide power, but resources are not divided, so they cannot win. "These five things are the way to know victory. That's why it is said: Know yourself, know your enemy, and you won't be imperiled in a hundred battles." This all makes sense.

At the strategic level, what bosses, entrepreneurs, and the board of directors want and what companies want to become, not just to complete 250 million this year, but also to pursue higher. At the second level, how to play each business, for example, we have two different businesses, R&D and manufacturing have different play styles, and the five teams have different play styles. The manager does it, the business is five different outcomes. Everyone has shared it. If necessary, you can take these five answers home and spread them to see if there are five different endings. More importantly, we have to find the right answer. There is no optimal answer, but there must be the most suitable one at that stage.

I have been consulting for more than ten years, and I have also held different positions in the enterprise, and have also managed large and small enterprises. I think a lot of management complexity is caused by the lack of a clear strategy. If the boss is not clear, you will find that you are all working overtime, but the efficiency is very low. Why? Or the strategic thinking is unclear, and clarifying the strategy will help us reduce management.

What is performance? Don't blame yourself, there are not many companies that do well, not to mention small companies, but also large companies, and even larger companies have unsatisfactory results. There are many reasons for this. Performance still needs to be done, because the company still has to make a profit in the end, not charitable, and finally rely on income, profit, market driving force, and cash flow to ensure the survival of the company. Recently, an article has been circulating on WeChat, "Business is the greatest interest". Only by doing a good job in the enterprise can we make the greatest contribution to the society.

Performance is what every enterprise must pursue, but I understand it as "the degree to which performance goals are achieved", and finally is the management of a process or the evaluation of results. What is the company missing? I personally feel that small businesses lack methods and large enterprises lack systems. Why do small businesses lack ways? The growth process of a small business is very similar to that of the company in the case. This company is sales-oriented. All three bosses are from sales background, and there is no concept of R&D at all. Therefore, the analysis of the fifth group is in place. where. Because they are all based on personal business skills, and they have developed rapidly, especially in the first ten years, so talents and management can't keep up, so he has no way to follow. Going further down, if there is no reform, it will go to a dead end just like an enterprise.

Large enterprises lack systems, and several aspects of enterprise operation are linked together. Therefore, large enterprises lack systems unless they have strong leaders. Large enterprises that do well must be strong, and their heads must be awake. . Many bosses are showing the prestige of the boss, but it is not clear how to do it.