Self-confidence Theory Respect Practice —— Sharing Professor Chen Chunhua's Speech

? Confidence in theory and respect for practice

? -Professor Chen Chunhua's speech sharing.

Understanding and Summary of Professor Chen Chunhua in the Past 30 Years;

Seven Principles of Leadership, Growth Ability, Special Quality and Management

Introduction: Why can five of the more than 3,000 enterprises continue to lead? After nearly 30 years of continuous follow-up research, Professor Chen Chunhua found that they have four key factors, four important abilities and five qualities to keep ahead. Facing the fundamental problem of this uncertain era-how to understand change, Professor Chen put forward management holism and seven principles. This paper is based on Professor Chen Chunhua's speech at the 20 18 (1st) China Global Forum on Management Model of Renmin University of China on June 30th.

Dear colleagues and teachers, hello! When I received the invitation of this forum, I was actually very uneasy. Because I chose a special way in management research-starting from practice. I choose this method because I want to find the nearest entrance to the enterprise and study whether China enterprises can grow into world-class enterprises. This is also my 1994 initial intention to enter the management field.

The theme of today's global forum on management mode in China-"40 years of enterprise management in China" has prompted me to return to a research plan with a particularly long time span set by 1994, that is, to conduct a 30-year follow-up study, and then find out the sustainable development law of China enterprises in three phases in ten years. I decided on this research plan because I realized a certain fact: from Britain in the 1920s to America in the 1960s, the historical process of their prosperity was the result of extensive independent innovation. So I have always believed that independent innovation is the core of promoting sustainable progress and prosperity. If we can't find something that belongs to China's management, we can't maintain sustained prosperity just by introducing, learning, digesting and absorbing it. Here I would like to report my own little research process to you.

The leading enterprise is in China.

I think our understanding of local innovation must be rooted in reality, in grass-roots enterprises and in the practice of each enterprise. This is probably my basic logic and path, so I started my own research from this angle.

At that time, I really wanted to look for excellent enterprises in China, but I kept combining with the literature and found that according to our eight dimensions of evaluating an excellent enterprise (including innovation, growth, environmental matching, value chain, products and technology, governance structure, globalization ability and leadership), I couldn't find a corresponding enterprise at that time. If I can't find it, I will be very depressed, so is this research impossible? I can't accept this possibility, so I'll think about it from another angle. In fact, all industries have leading enterprises. So I changed the starting point of research and began to study the leading enterprises in China, which I called "industry pioneer".

I did this research from such an angle. According to the figures published by 1984 to 1992, candidate enterprises are selected from 3000 enterprises. During the ten years from 1992 to 2002, the industry pioneers to be studied were screened out in the process of continuous follow-up research. Pioneer enterprises in the industry are a model of institutionalized management and modern management in China. They have a far-reaching impact on their peers and the economic development of China. My selection criteria are:

Institutions respected and recognized by peers;

Pay attention to organizational perfection and management improvement;

It plays an indispensable role in the economic development of China.

The development of enterprise scale is very obvious;

Self-operated products and brands (or services);

In China's social economy, it is dynamic and eye-catching;

The enterprise continued to grow for more than 15 years, during which it developed into an independent company;

Annual sales exceed 20 billion RMB;

Industry is in a non-state monopoly.

According to this standard, five candidate enterprises, Baosteel, Haier, Lenovo, TCL and Huawei, are selected to study their development trajectory in this decade. I identified these enterprises in 1992, and the real research began at that time. In this process, I also referred to leading international enterprises, including General Electric, Hewlett-Packard, Sony, Nokia and IBM. In particular, the benchmarking of IBM was studied. The overall report of the first ten-year study was formed in 2002, but it was officially released in 2004. From 2002 to 2004, I re-verified my research results.

From takeoff to pilotage:

Four key factors to realize industry pioneer

What are the reasons why these enterprises can stay ahead for ten years? This is really different from many foreign companies. I come to the conclusion that there are four key factors that affect them to become leading enterprises. First, there is a very good leader in the internal motivation of the enterprise; The second is the original enterprise management method, which is called China concept and western standard; Third, their advantage is that although the brand is not strong enough, the external driving force of the enterprise is sales and channel-driven; Fourth, the development strategy of an enterprise can form the same interest subject.

1. Internal motivation: leaders are industry heroes and business leaders.

What are the biggest characteristics of the leaders of these pioneers? They run enterprises based on the "mission of long-term development of enterprises". They are industry heroes first, and then business leaders. Whether it is Zhang Ruimin of Haier, Ren of Huawei, Li Dongsheng of Baosteel, TCL or Liu Chuanzhi of Lenovo, they all have the same characteristics. I used a word to describe it-hero. When communicating with western scholars, they opposed the use of this word. However, in China in 1980s and 1990s, without the heroic mind and spirit, entrepreneurs could not push their enterprises to the leading position.

There are three points to measure the characteristics of heroic leaders: leading industry strategy, creating new markets and making careful decisions. This is first manifested in his persistence in the industry and his leadership spirit, rather than just considering the enterprise itself. Secondly, within the enterprise, he should not only develop himself, but also others. When a leader can develop himself and others, when he has a national sense of mission and responsibility and can work hard for the progress of the industry, he can bring the enterprise to the leading position in the industry. In the process of investigation, I deeply studied the whole household appliance industry in China, and found that some of the earliest household appliance enterprises were actually very powerful, but why were they eliminated one after another? Is not enough contribution to the industry, only concerned about their own development.

2. Management methods: China concept and western standards.

Leading enterprises have found their own management mode. Recognizing this, President Xu and I worked together to launch the selection activity of China Management Model Outstanding Award, which has been going on for ten years. After that, we set up a 50-person forum on China management model, where 25 entrepreneurs and 25 management scholars had a direct dialogue. The reason for this is to find China's own management mode.

The management mode of these five enterprises, I used a word called "China concept, western standard", and its key lies in the combination of yin and yang and unlimited operation. In fact, the benefits and reasons of the combination of these two management methods are no longer the innovative results of our research. Many enterprises, including those in the west for a century, have successively implemented and advocated such management methods. They are very familiar with China people's ideology, behavior habits and cultural habits, and they strictly abide by western standards, that is, the rigid process management system. They combine the two very well. Many domestic enterprises are not doing well. When asked why, they all say that the western way can't be used. Foreign companies can't do well in coming to China, just say that this is caused by China's national conditions. Whenever I hear such reasons in enterprise research, take these leading enterprises for example, because they have found their own management methods based on national conditions and respect western management science.

The management practice of leading enterprises has solved some difficult problems in the introduction of theory. China's management philosophy focuses on people and grades; This kind of management is biased towards the role of people and the realization of people's value, and less towards institutional effects and regulatory management. Western management focuses on standardized management, system management and rule management, that is, in management, it pays special attention to establishing rules and regulations, strictly following rules and pursuing institutional benefits, so as to achieve orderly and effective management.

Leading enterprises try to find a balance between China and the West. For example, western management theory places great emphasis on people-oriented, but leading enterprises obviously find that people in China are not professional enough, so they change "people-oriented" to "execution-oriented". In terms of human resources, the division of functions was emphasized in the early stage, but it led to the uncoordinated departments and the formation of departmental walls, which led to the leading enterprises turning to "process" in practice. Under the background of China's emphasis on "harmony between people", we pay attention to the management rules of these leading enterprises. These "laws" highlight the application of the management mode of "empathy method" in the expression and implementation of enterprises, and Huawei's basic law naturally becomes the focus of our exploration.

3. External forces: channel-driven

How can leading enterprises find their own way of growth in the case of insufficient brand power? Based on their own practice and driven by channels, they solved this problem. Because of studying them, I have written many books on marketing, so many people think that I do marketing research. When I was with these enterprises, I found that they were really seeking truth from facts and found their own way to solve the marketing problem-channel drive, not brand drive. I said at that time that the brand building of China enterprises is a kind of ability, not a dream. Building a brand can't just shout slogans, we must determine this ability, that is, start from the sales side first.

4. Development strategy: Like-minded.

Leading enterprises will be interested in strategy. The formation of the same stakeholders plays a particularly important role in the strategic development of enterprises, including the * * * sharing relationship of two interests:

[If! Support list] [endif] Benefit sharing in the value chain based on the enterprise's own value chain: this includes the upstream enterprises and internal employees, shareholders, suppliers, downstream customers and so on.

[If! Support List] [Endif] Benefits outside the value chain: including sharing benefits with the government and support from society; It also includes alliances with competitors or other interests.

The closer the interests of members with the same interests, the more likely the cooperation will be successful. Every enterprise, in the same environment, the closer it is to other ways it likes to be treated, the greater the realization of the interests of the same subject may be. In practice, leading enterprises are very concerned about cooperation with the government and stakeholders. They will establish a good stakeholder, including employees and upstream and downstream suppliers.

To create or recreate:

Four abilities of industrial pioneers for sustainable development

The above four key elements make the enterprise in a leading position, but they are not enough. They lead because they have gained the internal strength of their own management, but what is the reason for their continuous lead? I continued to study deeply and found that they formed four real abilities: the ability of corporate culture, the ability of core competitiveness, the ability of quick response and the ability of long-term mission.

1. Corporate culture

Leading enterprises have found their own cultural road, which comes from the management style respected and implemented by enterprise management and enterprises. This is the fundamental motivation for me to spend a long time studying corporate culture. Knowing this, we can know where the problems of Chinese enterprises lie. For example, I went to many enterprises for research, and they said that our culture is boss culture, which means that the enterprise has not yet gone through the stage of entrepreneurship. An enterprise still uses the boss to represent the corporate culture, which must be in the initial stage.

Corporate culture is the core soul of an enterprise, and it is also the essential feature of an enterprise. It is based on the team performance produced by the management mode respected and implemented by entrepreneurs. Its three origin factors are social, economic and cultural development (qualitative), top managers themselves (positioning) and management methods implemented by management (quantitative). Excellent corporate culture must be a transition from initial stage to rules, from rules to performance, from performance to innovation, and finally there is a long-term orientation. Can be expressed as:

Personnel system-humanistic management-humanistic management mode-enterprise management mode-core values-enterprise culture

If the boss of an enterprise doesn't obey the rules, there will be no cultural construction, because the boss often violates the rules and destroys the culture. The surveyed company asked me how I think a boss is a good boss. It's actually quite simple. See if he wears work clothes when he asks employees to wear work clothes. If not, it proves that the culture of this enterprise is problematic.

Therefore, the core of corporate culture formation is recognition and enjoyment. A culture without identity has no value, and the key to identity is the participation and enjoyment of employees, customers and society. We believe that corporate culture management is the highest realm of management, and all materials and achievements appear under the guidance, promotion, infiltration and edification of culture.

2. Core competitiveness

Core competitiveness comes from the management mode that enterprises admire and the value that customers need, and it is a kind of integration force. It is the collective knowledge in the enterprise organization.

Learning), the core competitiveness of enterprises has three basic characteristics: it provides the potential to enter diversified markets; Should make a key contribution to the value that customers value in the final product; It should be the ability that competitors cannot imitate.

How do enterprises build their core competitiveness? In other words, enterprises should form a joint force between internal management mode and market strategy, so as to materialize it into products or services that realize the value needed by customers and win the market. This is a very important ability of enterprises.

3. Quick response

The ability to respond quickly comes from the combination of channel drive and interests. Successful rapid response means that enterprises can accurately grasp the value required by customers through cooperation with interests, and meet the market demand and the service level required by customers at low cost and high speed.

How can enterprises form a rapid response between the enjoyment of the whole value chain and the needs of the market and customers? Driven by the competition based on customer demand, enterprises may have three kinds of reactions: quick decision in the first battle, business promotion, establishing partners, and breaking through enterprise reorganization to form strategic alliances. The source of the reaction is the cooperation of enterprise interests.

4. Vision and mission

The long-term mission comes from interests and heroic leaders. Those companies that can continue to succeed ensure a stable "business reason" in their long-term mission. Despite their business strategies and practical activities, they always adapt to the ever-changing external world. We compare the "long-term mission" of an enterprise under the joint action of various factors in a certain period of time to a lighthouse guiding the action and strength of the enterprise, which is an important factor guiding the correct direction in the process of enterprise development.

This motivation to maintain and ensure the realization of the ultimate vision of enterprises in the process of continuous development is the reason why some companies become elite enterprises. They can transform themselves in time, give future generations a clear direction and maintain excellent long-term benefits.

In our view, the business purpose is the basis of drawing the long-term mission of an enterprise, which defines the enduring characteristics of an organization-this characteristic is the symbol of organizational stability, which transcends the life cycle of products or markets, technological breakthroughs, management fashion and enterprise leaders in a certain period.

This rare coordination ability between "maintenance" and "change" is closely related to the ability of enterprises to build long-term missions. Vision mission provides guidance for people in terms of what business content should be retained and how to develop future prospects, so that enterprises have a very strong and ambitious pursuit and make continuous progress.

After these four capabilities are successfully built, enterprises can gain a leading position. The above is the research conclusion of my first decade (1992-2002). In 2003, I went to an enterprise to verify this conclusion, and then published this book "The Road to Leadership" in 2004.

Lead, lead again:

Five qualities of enterprise's sustainable leadership

After my 30-year follow-up study entered the second decade, the biggest difference from the previous decade is that we have entered an uncertain era. From 2002 to 20 12, there were many challenges and changes in this era, which made us pay attention to many issues, such as:

How to understand the environment and market?

What is the real reason that affects the growth of enterprises?

How to understand the trend?

How to understand opportunities?

How to gain the ability to grow?

The most fundamental question is: how to understand change? When you can't understand the problem of change, there is no way to understand why today's enterprises adopt various business methods.

This process of continuous research is very challenging. During the ten years from 2002 to 2065438+02, the five companies I paid attention to performed well as a whole, but many companies that studied the control group, both domestic and foreign, were eliminated. For example, Nokia has fallen from the role model of the world's leading enterprises to the point of being acquired, and Dell has also withdrawn from the first camp from the industry pioneer. Some emerging enterprises began to appear, such as Alibaba, Tencent and Baidu. I deeply feel that the challenge and impact of environmental changes on enterprises is much greater than we thought.

When I was in these companies, I felt that the business school was still too stable. The so-called hiding in a small building is unified. In business school, you will feel that the world has not changed. We are used to using very old ideas, using the language we know, and thinking that some things are probably the same. But, in fact, everything is changing. This decade has had a great influence on me. Deeply felt the anxiety, problems and difficulties of enterprises. Among the five companies I studied, one actually fell into a trough and even lost money. It made me nervous, so I kept an eye on it, and then they came out. What is the reason?

On the basis of the above four key elements and growth ability, these five enterprises also have five qualities, namely: customer first, competitive learning, all-staff innovation, making failure valuable and self-driven. This enables them to stay ahead.

1. Haier: customer first, market oriented.

During this period, Haier made an all-round transformation for the Internet, which attracted great international attention and made it come out successfully in this decade. I once talked with Mr. Zhang Ruimin, and I was really touched, because the efforts of practitioners have exceeded the hardships of scholars. During this period, he worked hard to adjust this enterprise and transform a very large manufacturing enterprise into flexible management facing the Internet. Haier's "one person, one person" model has really affected management research and market on many levels. In sharp contrast to Haier, Nokia's transformation is very slow.

2. Huawei: sense of crisis

A leading enterprise must have a strong sense of crisis, and he must have the qualities of self-challenge and self-renewal. Huawei has given me great enlightenment in this respect. Huawei's cultural feature is self-criticism, so as to maintain the driving force of organization and culture, especially for top managers. This is an important factor to promote Huawei to build a global competitive advantage. Its self-criticism, self-renewal and self-effort surpass many enterprises. Now there are many scholars studying and forming a lot of data.

3.TCL: Make failure valuable

TCL suffered the biggest challenge and loss. Since 2004, TCL has been internationalized. In 2005, it encountered the biggest challenge in history. By 2006, TCL had fallen into a very low valley and began to lose money. I went to this enterprise in 2006 to discuss how to revive it. At that time, the means of TCL cultural transformation was "three transformations, two plants and one integration". Starting from the middle level, the elite was cultivated, and the internal "Eagle Rebirth" series of projects were launched in an all-round way, focusing on core business, enhancing core competitiveness and finally regaining a new life. Let failure become more valuable, because failure is a common thing in development. The key lies in being able to face up to failure and reflect and summarize it with calm analysis.

4. Lenovo: cooperation and learning

From 2002 to 20 12, Lenovo has a firm will to grow. With global vision, systematic thinking and international talents, we will integrate global markets and resources, cooperate with many international brands and conduct mergers and acquisitions. After internationalization is frustrated, take the initiative to quickly adjust the strategy and get back on track. Then keep learning, competing and growing.

5. Baosteel: All employees are innovative.

When I choose a company, I consider different dimensions such as ownership, listing and non-listing. Baosteel was selected as a state-owned enterprise. In the second decade, Baosteel changed its leadership, and I was worried about what would happen. As a result, I found something worthy of serious study: the leadership of state-owned enterprises has changed and the stability is still very good. Baosteel faces the crisis of steel industry and realizes sustainable development through transformation. Their all-round innovations, such as "worker economic and technological innovation group", "golden apple plan" and "blue-collar innovation", have further enhanced Baosteel's position among the world's top 500 enterprises.

These are the five most important qualities that these enterprises can keep ahead in the second decade of an uncertain era. Coincidentally, I met another very interesting invitation. One year before 20 14 decided to publish this book, I accepted the invitation of New Hope, and went back to the enterprise for trading again, leading this enterprise to realize the transformation in an uncertain era. It can be said that it is the first time for enterprises to directly test the theory. 20 14, the second edition of this book was released successfully.

Management holism and seven principles

In the process of this research, I have always hoped to reach an understanding with you-to be persuasive in theory and to guide practice in theory; We must respect practice and truly respect practice. My confidence in theory and respect for practice have given me great support and help, which is an important cognition after 25 years of such a long-span research. Theoretical research is of great value and significance. As long as we do it seriously, I have also put into practice twice, and I am still a teacher in role cognition.

From 20 12 to 2022, what I want to do in the third decade is to continue to care about whether leading enterprises can always maintain the competitiveness of industry pioneers.

The environment has undergone fundamental changes. The challenges brought by digital survival and the changes brought by knowledge drive are unprecedented changes. The influencing factors of enterprise performance have shifted from internal to external, and innovation has become the fundamental requirement. The challenge we encounter is even greater, because the content of organizational performance has changed, the source of management efficiency has changed, the way of enterprise development has changed, and the most important thing is that consumers have changed.

Consumers are the most important factor affecting enterprise management, which is the biggest change and challenge in enterprise management and research today. Lenovo faces challenges. Some time ago, Mr. Liu Chuanzhi spread his views, which triggered a strong reaction from consumers. Huawei, Alibaba and Tencent are facing the challenge of achieving global leadership. Emerging enterprises such as Ant Financial, Xiaomi, Didi, mobike and Yu Rou Science and Technology have emerged in batches at a faster speed.

All this makes us have to do some basic research. From entering the field of management research to today, I think it is necessary to do some theoretical induction. These efforts made by local enterprises in China have given the management a good opportunity. Because we are standing at a special time today, various elements such as data, collaboration and intelligence collide together, which will reconstruct the structure of the business system. Internet technology makes China enterprises and world enterprises on the same starting line, and overtaking in corners is no longer a fact. China enterprises began to enter the world vision. In the market value ranking published by Bloomberg from 2065438 to April 2007, Tencent ranked ninth with $325.4 billion. We believe that there will be world-class enterprises in China, because China enterprises are beginning to change the world. Some China enterprises appear in the minds of end consumers with their own brands, and our theoretical circles have the opportunity to contribute their own theories.

According to the continuous follow-up study of five enterprises for more than 20 years, I decided to follow a research direction along the internal logic, that is, where does organizational efficiency come from?

In the evolution of management theory from "separation" to "combination", a very important question is, how can we obtain greater systematic effect? It used to be said that division of labor is to improve labor efficiency, decentralization is to improve organizational efficiency, and profit sharing is to improve people's efficiency, so scientific management principle, administrative organization theory and human resources theory came into being. The efficiency we need today comes not only from labor efficiency, organizational efficiency and human efficiency, but also from greater system efficiency. System efficiency affects the efficiency of the whole organization. My ambition is to contribute all the theories I have observed for more than 20 years. One of the current contributions is "management holism", which includes seven principles:

Principle 1: (belief) The belief of operators is to create customer value.

Principle 2: (Boundary) Where the customer organization goes, the boundary is there.

Principle 3: (Value) Cost is a part of the whole value and is essentially a value sacrifice.

Principle 4: (Management) People and organizations are integrated, and the core of management is to activate people.

Principle 5: Controlling uncertainty becomes the core of organizational management.

Principle 6: From individual value to collective wisdom.

Principle 7: (Efficiency) Efficiency comes from cooperation rather than division of labor, and organizational management changes from "division" to "combination"

In today's management, what needs to be answered is the overall problem, not the division of labor or internal problems, but external problems. Looking at these problems as a whole, we are not a concept of "division", but a concept of "combination".

I remember reading henry mintzberg's book The Manager Is Not an MBA, and a passage left a deep impression on me. He wrote in the book: "There is an old joke that the word MBA stands for management through analysis, but this is not a joke at all." I quite agree with mintzberg.

Taking the seven principles as a whole, what should be clear inside the organization is belief, boundary, value, management, organization, people and efficiency, so as to achieve the results to be achieved outside the organization. From the inside out, if we are willing to do it as a whole, we can actually get this result.

In the process of publicizing the China Management Model Outstanding Award with President Xu, I was asked if there is a China management model. My answer is that if the research object is China enterprises, there is a China management model, but when the management model is used by the world, there is no need to emphasize the word China. I hope we can work together to release some inherent laws in the management practice of China. Our colleagues who do theoretical research can contribute to the internal factors of China's enterprise progress and let more people know that the internal laws can be used. I hope this will help more enterprises, so I am also trying to do it slowly and then push more people to do it.

NPC, thank you for holding such a global forum to discuss China's management model. As Thomas Edison said: If everyone can really do what he can, the result will shock us. Thank you!

(Text finishing/editing? Zhang)

Self-confidence in theory, respect for practice, the 25th anniversary of the founding of Dongfulong, what supported the rapid development of Dongfulong for 25 years? What can continue to lead the progress of Dongfulong in the future? I think the theory is enlightening, predictive and summative!

Human resources department? Gao Wei

201Saturday, July 7th, 8