What elements are needed for a successful reform?

1 Innovation of social productivity

2 Whether production relations (that is, specific measures of reform) adapt to the new productivity

3 Leaders’ decision-making

An example:

The restructuring of Shijiazhuang Fertilizer Group is a very successful example of state-owned enterprise reform. The key lies in finding a good partner. What’s good about being a partner? As a large-scale key state-owned enterprise in the country, Jinmei Group has an advanced management model. In recent years, the group has begun to focus on the development of "non-coal industries". It happens to have very good complementary advantages with the downstream coal enterprise - Fertilizer Group, and can ** *To build a highly relevant industrial chain. This is the basis for cooperation between the two parties and a key factor for its success. Reform and Development Trajectory

Find the right partners, complement each other's advantages, and achieve mutual benefit and win-win. Government policy support, smooth restructuring, rapid development of enterprises, introduction of new ideas, introduction of talents, fundamental changes in concepts, innovative management mechanisms, people-oriented, ensuring Be stronger and bigger

Find the right partners to break out of business difficulties

In September 2004, Shijiazhuang Fertilizer Group and Shanxi Jincheng Coal Mining Group jointly established Shijiazhuang Jinshi Fertilizer Co., Ltd. . After the establishment of the new company, the company turned losses into profits that year. As of the end of February this year, it had achieved sales revenue of 270 million yuan, profits of 6.89 million yuan, and taxes paid of 9.74 million yuan. The restructuring brought the company back to life and embarked on the path of rapid development.

Shijiazhuang Fertilizer Group was formerly known as Shijiazhuang Fertilizer Factory. It was founded in 1957. It was once a key chemical enterprise affiliated to the ministry and the province. In 2004, the corporate management authority was delegated to our city. After more than 40 years of development, the company has achieved brilliant results and developed into a large state-owned enterprise. However, with the development of the market economy, especially in recent years, Shijiazhuang Fertilizer Group has been affected by factors such as coal resources, funds, systems, and management. Its production and operations have been in trouble, and its losses have increased day by day. By the end of 2003, the company had lost more than 80 million yuan. , with hundreds of millions of yuan in debt and one month's wages owed to workers, which has caused people's hearts to wander, morale to be low, and the company to be on the verge of bankruptcy.

Under this situation, the company began to seek a way out through reorganization and restructuring. In November 2003, it participated in the joint venture cooperation negotiation meeting held by Shanxi Jinmei Mining Group. The group is one of the country's 520 key state-owned enterprises and an important production base for high-quality anthracite coal in the country. The company's total assets are 17.7 billion yuan. It has strong strength and high credibility. In recent years, the group has formulated plans to extend the industrial chain and diversify operations. Development strategy, committed to seeking strategic partners for downstream coal enterprises. High-quality anthracite is an important production raw material for fertilizer companies. Cooperation between the two parties can complement each other's advantages. An intention to cooperate was reached at the meeting. After an inspection and evaluation of the Shijiazhuang Fertilizer Group, the Jinmei Group believes that although the Fertilizer Group has suffered a lot of losses, it has a large scale, a reasonable product structure, and a high-quality workforce. At the same time, it has good location advantages, developed transportation, and easy cooperation. A win-win situation.

In 2004, with the strong support and coordination of the Municipal Party Committee and the Municipal Government, the two parties began negotiations on joint venture cooperation and enterprise restructuring. After many negotiations, an agreement was signed on August 9, and on August 16, Jinmei Group moved in. The company was placed under trusteeship and Shijiazhuang Jinshi Fertilizer Co., Ltd. was officially registered and established on September 6. The company's registered capital is 160 million yuan. Among them, Jinmei Group invested 90 million yuan in cash, accounting for 56.25%; the Fertilizer Group contributed 40 million yuan in assets, accounting for 25%; the labor union of the Chemical Fertilizer Group contributed 30 million yuan, accounting for 18.75%. At the same time, the new company acquired 240 million yuan of assets and an equal amount of debt from the Fertilizer Group. The restructuring of the Fertilizer Group has brought development funds and new management concepts to the enterprise, which has brought great changes to the enterprise. The daily output of synthetic ammonia has soared from 297 tons before the restructuring to the current 624 tons, creating a record in the history of the enterprise. Best level. Their approach provides many useful inspirations for the reform and development of large state-owned enterprises in our city.

The advantages of both parties complement each other to achieve mutual benefit and win-win

For state-owned enterprises, especially large-scale enterprises, choosing a good partner is the key to successful restructuring. The successful restructuring of the Fertilizer Group proves this. During the restructuring process of the Fertilizer Group, investment companies, financing companies and private enterprises were actively involved. However, employees had many concerns about the involvement of private enterprises, worried about their own placement, and were afraid that they would "draw blood" and be detrimental to the development of the enterprise.

Corporate leaders also realize that corporate development funds are not the only factor. Especially for the fertilizer industry, coal is the lifeblood of corporate production. Since 1998, the main reason for the Fertilizer Group's losses has been the increase in coal prices and tight supply, which has made the company difficult. Cooperating with Shanxi Jincheng Coal Group can fundamentally solve coal problems, reduce costs and reduce market impact. The two parties belong to the upstream and downstream relationships in the same industrial chain and can complement each other's advantages. This is the basis for the success of the cooperation between the two parties. In the process of enterprise restructuring, special attention is paid to employee resettlement. The Fertilizer Group regards the proper placement of employees as the primary condition for cooperation between the two parties. In this regard, the Jinmei Group expressed its full understanding and proposed a plan for employees to follow the assets. The newly established Jinshi Fertilizer Company received 2,600 employees based on asset standards, and all middle-level and above-level cadres of the original company were hired, which relieved the worries of the company's cadres and employees. The company's restructuring plan successfully passed the vote of the Workers' Congress, which was the first step for the company to achieve a smooth restructuring. important factors. Large state-owned enterprises have large assets and heavy corporate debts, so diversifying investment entities is the main way to restructure enterprises. Compared with methods such as employee buyout and managers holding large shares, joint ventures and cooperation between enterprises, capital increase and share expansion can better avoid the loss of state-owned assets, reduce conflicts between cadres and masses within the enterprise, achieve smooth restructuring, and make the enterprise bigger. Be stronger. Through capital investment, Shanxi Jincheng Co., Ltd. not only alleviated the company's lack of funds, but also improved the company's equity structure, revitalized state-owned assets, eliminated system and mechanism shortcomings, and greatly stimulated the potential production capacity of state-owned enterprises.

Government policies support the smooth and rapid restructuring of enterprises

The Fertilizer Group and Jinshi Coal Group cooperated to establish Jinshi Fertilizer Company. It only took more than 9 months to successfully complete it in such a short period of time. The biggest feeling of the two companies during the enterprise restructuring was that they benefited from the strong support of the municipal party committee and the municipal government. First, attach great importance to guiding enterprises to scientifically formulate restructuring plans. When the Fertilizer Group was transferred from the provincial to the municipal government, the company's production and operation situation was very severe and faced with the suspension of production. It was urgent to seek development through restructuring. In this regard, the municipal party committee and the municipal government attach great importance to the major issues of enterprise restructuring, and actively help enterprises find ways and ideas, research and formulate restructuring plans. In a relatively short period of time, a restructuring plan was established to divest and put the company's non-performing assets and part of its debts on the books, to be borne by the Fertilizer Group, to invest the main production equipment in the form of assets, and to establish a new company with the Shanxi Coal Group. The enterprise restructuring has entered a period of substantial operation. The second is to go deep into the enterprise and participate in the whole process of restructuring. The restructuring of state-owned enterprises directly involves the adjustment of state-owned assets, with strict procedures and complex content. In order to speed up the pace of restructuring of the Fertilizer Group, relevant leaders of the Municipal State-owned Assets Supervision and Administration Commission and comrades in the department actively cooperated, visited the front line, and directly participated in the entire process of enterprise restructuring. On the basis of strict supervision and implementation of restructuring procedures, special cases will be dealt with and approvals will be accelerated. This kind of support and help left a deep impression on enterprises, especially Jinmei Group. The third is to seize the opportunity and fully provide policy preferences. The reform of state-owned enterprises is a very policy-oriented task, and some policies have a certain time limit. Due to the tight grasp and rapid progress of the corporate restructuring of the Fertilizer Group, all relevant preferential policies were enjoyed within the validity period of the policy, and the first batch of factories and schools were divested.

Introducing outstanding entrepreneurs to promote rapid development of enterprises

If a restructured enterprise wants to develop well, the key is to have a good leader. After the establishment of the new company, Jinmei Group only sent five people: the company's chairman and general manager, two assistants and the finance and supply directors. After seven months of operation, the company has undergone tremendous changes, making all the company's cadres and workers convinced of the new business operator. The most common thing they said was "the key to revitalizing our company lies in the top leader." Wang Yi, chairman and general manager of Jinshi Fertilizer Company, is an outstanding manager sent by Jincheng Coal Group. He has won honorary titles such as one of the top ten outstanding youths in Jincheng City, a model worker, and an outstanding Communist Party member. He currently also serves as the manager of many companies. The director is a mature professional manager. What he said most often was "Build a business with heart" and "There are no companies that are not managed well, there are only companies that are not managed well." Wang Yi's home is in Jincheng. He came to Shishi to work alone and lived and ate in a factory. The inconveniences in life can be imagined. However, he overcame many difficulties and devoted himself to the enterprise. The employees have witnessed his dedication to the company. Since he took office, he has traveled to every corner of the factory and directly inquired about the situation from the employees. His understanding of the company is even clearer than that of veteran employees who have worked for decades. .

No matter how tired he is every day, he has to call the dispatch room at 12 o'clock in the evening to inquire about the production situation, and hold a production dispatch meeting on time at 7:30 every morning. He said that this has been a habit he has developed over the years. For the sake of safe production of the company, he took the initiative to quit smoking after many years. At the same time, he also has keen market forecasting ability. July and August are the off-season for urea sales in the industry, and the price is low. But last year, he broke the rules and raised the price of urea by 500 yuan per ton. As a result, the sales situation was much better than in previous years. This move not only brought huge profits to the company, but also impressed all employees of the company with his management skills.

Introducing new concepts to bring about fundamental changes in concepts

After the restructuring of state-owned enterprises is completed, what needs to be changed? Wang Yi believes that "ideas are the most critical, and thinking is more important than production." After decades of development, the Fertilizer Group has cultivated a high-quality workforce. But at the same time, under the conditions of the planned economy, the problem of "waiting, relying, and wanting" and insufficient enterprising spirit among employees of state-owned enterprises is also very prominent. In response to this problem, Jinshi Fertilizer Company has made great efforts to change the ideological concepts of employees. Wang Yi said: "After I arrived at the company, the thing I did most was to speak." At the same time, the company strengthened publicity efforts and repeatedly instilled development ideas into cadres and employees in the form of conferences, broadcasts, factory newspapers, bulletin boards, placards, etc. Awareness, crisis awareness, and benefit awareness, mobilize all employees in the factory to conduct an ideological review, discard backward ideas, and cultivate the concepts of market competition and survival of the fittest. In addition, cadres are also organized to inspect outstanding enterprises in Jiangsu, Shandong, Shanxi and other places to broaden their horizons and find gaps. After coming back, everyone said with deep emotion: "If you don't compare, you don't know. Compared with others, we are not ten years behind!", "State-owned enterprises are not in recession, but they are not living up to expectations." The sharp contrast and huge contrast deeply shocked all employees in the factory and greatly stimulated their work potential. Now, many employees take the initiative to work overtime and make suggestions for the development of the company, showing unprecedented enthusiasm and initiative. The enthusiasm of the entire factory is unprecedentedly high.

Strict management, people-oriented, big changes in corporate appearance

After years of development, state-owned enterprises have sound organizational structures and complete rules and regulations. What is lacking is clear responsibilities and implementation of systems. The key to Jinshi Company being able to bring the company back to life in a short period of time and put it on the track of rapid development is to truly implement the good systems of state-owned enterprises. After the new company was established, it was stipulated that a production scheduling meeting should be held on time at 7:30 every day. Those who were late would be fined 50 yuan, and those who were late would be fined 100 yuan. A middle-level cadre went out to purchase steel due to an urgent need for the company and did not attend the meeting. He did not take it seriously at the time and was fined 100 yuan afterwards. Wang Yi told him: "The reason is very simple. Although you work for the factory, you can't violate the system." Similar incidents happened several times, but in the end everyone was convinced because people who have experienced corporate downturns know the system well. It is the life of the enterprise. After several months of strict management, the entire factory has felt the changes that strict discipline has brought to the enterprise, and is deeply aware of the importance of discipline. "Safe production relies on discipline, system implementation relies on discipline, and management standards rely on discipline" has been deeply rooted in the hearts of the people. , turned into actions that cadres and workers consciously abide by.

People-oriented is the corporate management concept that Jinshi Company has vigorously advocated since its establishment, and it has been implemented into every detail of corporate management and implemented in every employee and every position, thus stimulating the great enthusiasm of employees. potential energy. Wang Yi said: "Being people-oriented, in the final analysis, means respecting people, allowing employees to have income and social status, and always putting employees first." Not long after the establishment of Jinshi Company, it repaid the wages it owed its employees in the past. We have applied for medical insurance for all employees, and also launched activities to celebrate collective birthdays for employees. At the end of 2004, the average salary of employees increased from 814 yuan to 1,171 yuan. We invested 12 million yuan to renovate factory roads, replace the heating in workshops and office buildings, and renovate all toilets. We also plan to invest 30 million yuan this year to build a 10,000-square-meter employee leisure center to create a beautiful, clean, and comfortable environment for employees. A comfortable environment for work and leisure. In the short time since the company was established, many employees, including retired employees, have received spiritual and material care from the company's leaders during major holidays, weddings, funerals, illness and death. The real people-oriented approach and meticulous caring have inspired every employee's enthusiasm and creativity, and their mental outlook has taken on a new look. It has become a common practice to be dedicated to their work and regard the factory as their home. The whole factory has high morale and an unprecedented enthusiasm for work.

Focus on the long-term development of the enterprise to ensure that the enterprise becomes stronger, bigger and more sustainable

Through the cooperation between the Fertilizer Group and the Jinmei Group, they have close contact with the rapid development of large state-owned enterprises in other places. Develop a trend of becoming stronger and bigger. As a large-scale key state-owned enterprise in the country, Jinmei Group has a unique competitive advantage in the anthracite raw coal market and an 80-year mining life. It is not just satisfied with coal production. Focusing on the survival and development of enterprises, focusing on the strengthening and expansion of enterprises, the strategic development idea of ??"integration of coal, gas, electricity and chemicals" has been determined, taking the initiative to build a highly relevant industrial chain with downstream coal enterprises. Promote industrial optimization and upgrading and value transformation and appreciation, and enhance the ability of enterprises to resist risks. Taking advantage of the development advantages of Jinmei Group, Jinshi Fertilizer Company has entered a rapid development track. In 2005, it plans to invest 106 million yuan in technological transformation and expansion of production scale, striving to achieve a total annual ammonia production capacity of 300,000 tons in two years. , the company's annual profits are hundreds of millions of yuan.

In summary, the methods are as follows:

1. Seeking strategic investors - retreating the country and advancing the people

2. Maintaining the stability of the enterprise - doing a good job in employee resettlement

3. Raising restructuring costs - seeking policy support

< p>Hope these are helpful to you!