Shanxi State-owned Enterprises "Six Fixed" Reform Series-Fixed Institutions: How to Optimize the Organizational Structure Construction of State-owned Enterprises

Tian Zhong Hua Pu Zu Xue Mei: Shanxi State-owned Enterprise "Six Fixed" Reform Series-Fixed Organization: How to Optimize the Organizational Structure Construction of State-owned Enterprises

Author: Zu Xuemei, senior project manager of Zhongtian Huapu

First of all, sort out the policy of "fixed institutions"

1. Provincial enterprises: It is required to implement the management of "small headquarters" and "large department system", standardize the names of headquarters institutions of provincial enterprises, and strictly control the number and personnel of group institutions. It is necessary to implement standardized and flat management, promote enterprise management standardization, implement benchmarking, promote enterprise slimming and fitness, reduce management levels, and comprehensively improve the overall quality of enterprises. By the end of 2020, the number of provincial group headquarters will be reduced by about 35%, and the number of internal institutions will be reduced by about 50%.

2. Municipal and district-owned enterprises: implement "flat, small organs, big grass roots" management, establish service centers, and implement centralized management of administration, finance, manpower and procurement. Combined with the functional category, asset scale, total number of personnel, management scope, management level and development history of the enterprise, the upper limit of the number of internal institutions of the enterprise is comprehensively determined and the number of internal institutions is strictly controlled. The number of institutions should be inclined to those that directly produce economic benefits. The internal organization of an enterprise no longer uses administrative names such as "department" and "business department", but is generally called "office", "department" and "center". By the end of 2020, the number of internal institutions of municipal and district-owned enterprises will be reduced by 35%, among which, if the number of internal institutions exceeds 10, it will be reduced by 50%.

3. The reform requirements issued by a provincial enterprise group in Shanxi to grass-roots units: streamline and set up institutions efficiently, reasonably set up internal institutions in combination with the strategic planning, business structure and management and control mode of the group, reduce the overlap of departments and functions, implement "small institutions and large departments" management and implement flat management. According to the requirements of modern enterprise governance, the administrative color has been diluted. Cancel the second-level internal mechanism, and the mechanism setting is inclined to safety production and cost control.

Judging from the above-mentioned policies at all levels, the grass-roots units affiliated to enterprises and enterprise groups in Shanxi Province have the same ideas, synchronized actions and a high degree of unity of understanding, which has comprehensively promoted the efficient implementation of institutional reform.

Second, how to "determine" this "institution"?

"Fixed organization" is actually to optimize the organization of the enterprise, so that the organization has the ability to be streamlined, efficient and flexible. As we all know, organization is a system of division of labor and cooperation adopted by enterprises in order to achieve organizational strategic goals. It is also the dynamic structure of on-the-job, responsibility and power of enterprise organizations and the skeleton of enterprise system. Whether its setting is reasonable or not directly affects the efficiency and benefit of enterprises.

When it comes to the organization of state-owned enterprises, many people have the impression that "the organization is bloated, the responsibilities overlap, the powers and responsibilities are out of line, and the efficiency is low". The primary task of the "six-fixed" reform in Shanxi Province is to start with "fixed institutions". As can be seen from the policy requirements, the keynote of this fixed institution is "slimming and keeping fit". So how can enterprises streamline and set up institutions efficiently? What are the specific ideas and operation methods?

1. Premise basis of "fixed organization"

In the past management consulting practice, the streamlining and optimization of institutions should first focus on the development strategy and industrial layout of groups and molecular companies, and make a comprehensive organizational diagnosis from the aspects of management level, management scope and function setting. Only by fully clarifying the problems, determining the management responsibilities and responsibilities between headquarters and molecular companies, and combining with policy requirements, can we systematically carry out organizational optimization and achieve ideal expectations.

In the process of organizational optimization, we should consider the relationship between the whole and the local, long-term and short-term, internal and external, ensure the systematicness, integrity and synergy of organizational setup, realize the coordinated development among business segments, and maximize the overall value of the group. Group headquarters should strengthen macro-control, do a good job in top-down organizational structure planning and design, make overall plans to promote, and ensure the establishment of standardized institutions in various business sectors.

At the same time, we should also pay attention to whether the stability of the organization is excessive or stable. Stabilizing the current business and production management activities and establishing an organization with certain stability can smoothly transition from the old organization to the new organization, smoothly transfer the post adjustment of personnel to the new department and post, and smoothly divert people who are not suitable for the original post.

2. Several common operating methods of "fixed mechanism"

① Simplify the organization by optimizing the functional orientation of the headquarters: enterprise groups can optimize and adjust the organization according to the functional orientation of the headquarters and the changes in management and control methods. For example, if the enterprise regards the strategic management function as the primary function of the group headquarters. Then, the management and control mode of the enterprise will promote business classification management and control around strategic management and control. Under the premise of unified strategic direction, enterprises should increase the authorization to grass-roots units and conduct differentiated management and control according to the characteristics of different business types. At the same time, we will pay more attention to the support and services for grass-roots units and front-line businesses, and integrate and optimize the headquarters organization around the needs of business development.

In the typical case of the reform of central enterprises, China Unicom streamlined its headquarters structure and functions by optimizing its functional orientation. Through case analysis, we can know that when optimizing its headquarters, China Unicom first adjusted its functional orientation based on the concept of "three orientations" (all for customers, all for the front line and all for the market). The group headquarters is responsible for strategic management, intensive operation and support response, creating an organizational structure of "small management, large operation and strong coordination" and establishing an inverted triangle service support system for customers, markets and service lines.

Secondly, do a good job in business segmentation and classification control, and distinguish between basic business and innovative business. For example, the management level of basic services (4G services, fixed-line broadband, etc.). ) compression, strictly control the number of management departments and personnel. On the basis of perfecting the reciprocal mechanism of responsibilities and rights, we should actively authorize, promote peripheral integration, sink resources into the integrated grid, give small CEO the right to use human rights, assess and allocate resources after the reform of "small contracting", strengthen service support to the front line, and make the interests of management departments and business front lines consistent. Deepen the marketization of innovative businesses (smart home, Internet of Things, financial payment, etc.). ), to set up subsidiaries, business divisions and other different forms to carry out innovative business, implement de-administrative operation, market-oriented settlement, and match the corresponding incentive and restraint and evaluation exit mechanism, constantly enliven the mechanism and stimulate vitality.

After the transformation of the group's functional orientation and management mode, China Unicom strengthened resource sharing and capability reuse, and adjusted its headquarters according to the idea of grass-roots integration and upper-level intensification. In terms of market lines, strengthen the overall planning system of large markets, and the marketing department will coordinate the relevant management departments at the front end of the market to form a customer-oriented service synergy; In terms of support lines, intensive operations are carried out in the fields of operation and maintenance, construction, IT support and material procurement to improve production efficiency; In terms of functional lines, there are general departments, human resources departments, finance departments, audit departments, legal departments, party-mass departments, discipline inspection departments, trade unions and other departments. In addition, the management department is separated from the production unit (such as electronic channel center and financial enjoyment center). ) mainly engaged in sales or production and operation functions and can quantitatively evaluate and clearly calculate.

(2) Streamline the organization by establishing * * * service center: * * service is a new organizational form and management mode under the background of economic globalization, which is suitable for relatively large group companies or multinational companies. Under normal circumstances, collectivized and internationalized enterprises are large in scale and wide in business, and the group headquarters and molecular companies are relatively independent, which is easy to form information islands. At the same time, there are also problems such as inefficient utilization of comprehensive resources and weak management and control of the group. The * * * preferential service is an operation mode that integrates the same and repeated functions of all subsidiaries and business units scattered within the group, establishes a special operation department, and provides unified, professional and standardized high-quality, efficient and low-cost services to all subsidiaries, business units or departments. In order to achieve economies of scale, synergy and cost savings, IT has gradually expanded from the initial financial field to business fields such as human resources, procurement, IT, customer service, legal affairs and research and development.

For example, ZTE, the largest communication equipment company in China, is the first enterprise to establish an enterprise financial service center in the financial field. Through the establishment of Caixiang, the finance department of the member units under the Group was abolished, and the functions of daily reimbursement, auditing, accounting and report preparation of the member units were stripped and concentrated in the Caixiang service center, and the corresponding financial positions of the molecular company were also abolished. In the organizational design of the financial enjoyment center, ZTE demonstrated a centralized design concept: gathering financial human resources scattered around the country and dispatching them in a unified way; The restriction of one member company and one financial institution in the original financial organization framework was broken, and an integrated financial basic service team was established, reducing the number of institutions and personnel in the business process.

For another example, Haier Group, which has developed into a global company, has established a global service management model. In terms of organizational setup, it broke the organizational structure of the original business division system, implemented business process reengineering with the internal "market chain" as the link, made strategic adjustments to the organizational structure, and separated all the financial, procurement and sales businesses originally belonging to each business division into independent business flow promotion department, logistics promotion department and capital promotion department. Separate the functional management departments such as human resource development, technical quality management, information management and equipment management from the business headquarters, and set up an independent service company. The integrated process is equivalent to transforming some similar enterprise activities of the original business department into service centers enjoyed by * * *. For example, after the establishment of the logistics promotion headquarters, the functions of purchasing, raw material warehousing and distribution, and finished product warehousing and distribution that were originally scattered in various product divisions were unified and integrated, and an independent professional logistics company was established. All products, spare parts and packaging raw materials of the Group are purchased by one purchasing department, and a highly centralized global unified procurement is implemented through a unified procurement platform, which realizes the slimming of the organization, cost saving and high enjoyment of procurement resources.

③ Consolidate tasks with similar functions or high job correlation and streamline the organization: The most direct way to streamline the organization is to reduce the operating cost of the organization, but it is necessary to comprehensively sort out the workflow of business and management lines and consolidate tasks with similar functions and high job correlation, thus streamlining the organization. For example, in the process of organizational optimization, China Petroleum combed and integrated the same and similar functions and responsibilities scattered in different departments, which reduced the overlapping of departmental responsibilities, strengthened work coordination and improved the operational efficiency of the organization. Specific measures: merge the quality and standards management department with the safety, environmental protection and energy conservation department, and set up the quality, safety and environmental protection department to form a centralized, unified, coordinated and controllable quality, measurement, safety, environmental protection and energy conservation management system; Incorporate the standardization function into the science and technology management department to promote the effective transformation of scientific and technological achievements; Cancel the equipment manufacturing branch and merge its equipment management function into the material procurement management department; Optimize the supervision resources, establish and improve the joint supervision mechanism, and straighten out the decentralized development strategy research and soft science research functions.

(4) Streamline the organizational structure through the organizational setting mode of "one institution, multiple brands": for example, auditing, legal affairs, discipline inspection and supervision are co-located. Co-location is not only the common practice of state-owned enterprises at present, but also integrates the supervision power of enterprises. Prevention in advance, control in the process and accountability after the event are the common principles of internal audit, legal affairs and discipline inspection and supervision, but the emphasis is different, and the ideal supervision effect cannot be achieved by exercising the functions alone. If they are effectively integrated and centralized, they can be more conducive to strengthening enterprise supervision and control, promoting the improvement of management means and management effectiveness, and streamlining the organization.

Of course, there are many ways to streamline the organization, and enterprises will also combine operations in the process of optimization, but it is important to conduct in-depth analysis and adapt to the actual situation of enterprises. From the perspective of organizational design and change, streamlining the organization is the means and organizational efficiency is the purpose. Streamlining is for high efficiency, and high efficiency also needs streamlining; Streamlining must obey and serve efficient organization and operation, and must conform to the principle of streamlining institutions. Therefore, enterprises participating in the "six-fixed" reform should correctly understand the relationship between streamlining and high efficiency in the process of "fixing institutions", streamline and set up efficient institutions according to the actual situation of enterprises, put an end to streamlining for the sake of streamlining and avoid simple merger and combination without analysis, which will not only undermine the efficiency and effect of organizational operation, but also cause frequent changes in organizations and waste of resources.

Author: Zu Zhongtian Huapu Senior Project Manager. 4 years of consulting experience in enterprise management, more than 5 years of practical experience in enterprise management in well-known enterprises such as CR Vanguard, solid theoretical foundation, consulting management experience in many large state-owned enterprises in China, and good at whole module management of human resources. Typical clients and projects that have served include but are not limited to: State Grid Anhui Electric Power Company (consulting project of team incentive and restraint mechanism construction based on "points system" assessment), Beijing Xinhangcheng Holding Co., Ltd. (consulting project of human resources planning), Guangxi Investment Group Fiona Fang Electric Power Co., Ltd. (strategy, management, organization and salary performance management project), Wuhan Changqing sunshine kindergarten (optimization project of organization, process and performance management), State Grid Henan Economic Research Institute (research project of competency model construction and team ability improvement planning), Shandong Jinqiao Group (comprehensive management improvement project), Hunan Yongzhou Public Transport Group (enterprise culture construction project), Xianyang Gemstone Steel Pipe and Rope Co., Ltd. (strategic landing index system construction project), Taishan Electric Power Co., Ltd. (consulting project of organizational structure, salary and performance system design management), etc.