Rebirth 1980: The Rise of a Powerful Country The first thousand one hundred and seventy-seven chapters of the basic rules of North Industries Group (3)
The first thousand one hundred and seventy-seven chapters of the basic rules of North Industries Group (3)
Rule 8: Pursue a prudent and conservative financial policy.
Caution is the mother of success. Although Liu Lang is full of confidence, the market situation is changing. He knows the development of the world in the next twenty years, but what about the future? Liu Lang does not dare to say that he can grasp the future development situation, so he wants to hire
Professional financial management institutions manage it, which Norinco has already started.
What really needs to be implemented is the distribution of equity. The current equity of Norinco is 90% owned by Liu Lang and 10% owned by Wang Zhendong. Moreover, the company will not be listed in the future and will never enter the capital market.
Therefore, Norinco Group is strictly speaking a private enterprise of Liu Lang and Wang's family, but this will affect the enthusiasm of employees, so Liu Lang will gradually allocate equity to employees in the future. The regulations specifically indicate that Liu Lang's equity will be from now on.
Ninety percent of the equity will be gradually distributed to employees until 50%, which means that employees will own up to 40% of the equity. Everyone knows what this means, and at the same time, the company's annual profits will not be
Only to those who hold equity.
Liu Lang stipulated that a quarter of the profits should be used for dividends every year, a quarter should be used for employee rewards, a quarter should be used for technological research and development, and a quarter should be reserved as public reserves.
In short, Norinco Group has two major principles when making financial decisions, namely maximum security and independence. Independence means placing management rights and control rights within the company and not allowing outsiders, let alone the capital market, to get involved.
Rule 9: Face conflicts squarely to resolve crises and contradictions.
Conflicts include two aspects. One is the conflict between employees. After all, wherever there are people, there are conflicts. No matter how good the company is, employees cannot be as close as brothers. Even if they are brothers, they will not always be close.
Liu Lang's idea is that everyone should discuss and argue rationally based on the matter. This will not only not harm the cooperative atmosphere at work, but also promote communication and improve work performance.
If you encounter a quarrel between employees or even a quarrel between a subordinate and a superior, the senior management must pay attention to it and clarify the problem. First of all, the quarrel must not be a personal attack. If so, they will be severely punished.
If there is a conflict between them when looking at a problem, then sit down and explain the matter clearly, so that the matter can be spread out. After the quarrel, sit down together and have a drink, and all the conflicts will be resolved naturally.
Of course, this needs to be restricted by a system. A complete set of corporate governance mechanisms must be formulated to clearly stipulate the rights, obligations and responsibilities among corporate shareholders, managers and supervisory boards, and to set rules and methods for the implementation of various decisions to improve
The decision-making ability of enterprises creates the greatest management value.
In this way, many conflicts can be alleviated or eliminated, allowing enterprises to focus their time and energy on the business level.
These are the basic rules of the Norinco Group formulated by Liu Lang. There are nine rules in total:
Basic rule one: Focus on the long term, and the future is our goal.
Basic rule two: Lead the market with innovation.
Basic rule three: Focus on professional market segments.
Basic rule four: Carry out diversified operations based on core competencies.
Basic Rule Five: Maintain long-term and close relationships with customers.
Basic Rule 6: Win-win cooperation with peers.
Basic Rule 7: Attract and retain truly talented employees.
Basic Rule 8: Pursue a prudent and conservative financial policy.
Basic Rule 9: Face conflicts squarely to resolve crises and contradictions.
The nine basic rules will guide Norinco Group forward.
Of course, there is a general outline at the end.
The purpose of the basic rules is agile management, allowing the upper, middle and lower levels to conduct the most convenient cooperation and interactive communication, while establishing a highly autonomous and decentralized self-organizing team, a healthy fault tolerance and trial and error culture, and other aspects.
The core concept of agile management is that enterprises must adapt to changes quickly, flexibly, and proactively.
To achieve the most convenient cooperation and interactive communication, it is necessary to weaken or even break the department-oriented thinking of the traditional industrial era, enhance the cohesion and trust within the enterprise, and enable knowledge and experience to be shared by more employees.
In this way, the enterprise's value creation process will be decomposed into multiple teams and groups that are clear at a glance, flexible and flexible. These teams and groups can self-organize and take responsibility, increasing the flexibility of enterprise value creation and the enthusiasm of front-line teams.
Of course, self-management does not mean that there is no need for top-down management at all, but requires employees to be solely responsible, self-motivated, and self-rewarded and punished. On the premise of ensuring that risks are controllable, decentralized self-management can provide the basis for innovation.
Provide good space and soil.
These nine basic rules are the result of Liu Lang's experience in thinking for nearly a year, and are a theory that combines the essence of many modern management systems. Even the business management of Western developed countries is not as incisive as these nine rules.
Of course, we all understand the principles, but it is difficult to put them into practice. It can be said that each of these nine basic laws must have strong execution power to practice, so it will not take a day to truly integrate these nine basic laws into the flesh and blood of Norinco Group.
What happened in two days may take a year or even several years, but Liu Lang believes that it will succeed, and it must succeed, because this is the only way for Norinco to go global.
Liu Lang has strong confidence. The source of the confidence is that Wang Zhendong's management team has strong execution ability. They are originally a group of soldiers. They are extremely loyal to Wang Zhendong and Liu Lang and will go through fire and water at the given order. Of course,
, these people are not perfect. They are all half-way through how to manage a company, and have shortcomings in their profession. Liu Lang's next step is to hire professional managers to join them, so that professionalism and execution can be combined.
The above is not the most important reason. Liu Langcai is the equivalent of the "Emperor" in the North Industrial Group. This emperor does not mean the supreme power, but the prestige that no one can match. Everyone
Everyone has an almost crazy belief in him that his words are "imperial edict" and the will of "God", and no one will question his words.
Therefore, everyone will accept these nine basic rules. As for how to implement them, we must continue to explore at work.
The "Basic Rules of Norinco!" were posted, and everyone's opinions must be solicited before formal implementation. Everyone can discuss it, and everyone can put forward their own suggestions. After modification, it will be officially implemented in one month.
This is the basic rule of Norinco. Of course, it will not just stay on paper. Next, Norinco will also make organizational adjustments.
Norinco Group needs to re-divide various departments into management teams and technical teams. The management team is headed by CEO Wang Zhendong and is divided into several departments such as publicity, logistics, sales, finance, legal affairs and discipline.
The technical team is temporarily led directly by Liu Lang and has only two departments: production and R&D. The production department is composed of two projects: Du Song and He Tao.