Chapter 30 Section 2 My Mistakes and Lessons Learned

I'm a famous loser in China. I am here today, summing up the mistakes and lessons learned in the past, hoping to help everyone.If you fully summarize the giants' mistakes in the past, there may be many, more than 100, I just want to talk about a few. When a company really gets into trouble, it is seldom because of poor management, and it is rarely because of operational problems. The biggest loss to the company is that it does what it should not do, and it should not invest in investment. This kind of investment is the biggest mistakes, which we have personally experienced in the past.As an investment, the enterprise should conduct a lot of demonstrations. If foreign enterprises invest, it should only be a few percent of the total investment, otherwise it will cause the enterprise to be in a state of poor capital turnover.

Combining the lessons of the past, we have concluded that if we reinvest, we must follow several principles. First, the investment must be a sunrise industry, and if it is not, the investment will not be made. Second, it depends on whether you are familiar with this industry. If you are familiar with it, you will do it, and if you are not familiar with it, you will not do it. Third, whether your cadre team is qualified or not. In the new investment, whether the greatest strengths of your enterprise personnel can be maximized. If they can be utilized, they will do it, and if they cannot be utilized, they will not do it.

Fourth, if you find that something is wrong, you should act decisively and not do it. If you last until the end, your funds will be exhausted as a result. The above is my first lesson, which is about investment. This problem is particularly prominent because of the poor liquidity. In the past, the capital structure of giants was either office buildings, giant buildings, or some debts. This capital structure could not flow. Once a problem occurred, the ability to "disease resistance" was particularly weak. . For example, the equity of a listed company, or even the sovereignty of a listed financial company is particularly good with this capital, and the company will not be what it used to be.

There is also the receivables of the giant's capital structure in the past, which is the creditor's rights.Our giant has commercial debts. When the giant is not stopped, this part is an asset; once the giant is in shock, the resources become zero, so there are some problems in the operation of resources. We have summed up the lessons of the past and when re-establishing, try to shrink as much as possible.At present we have no debts outside. Last year we did it for more than ten months, and we didn’t have any debts. It may be that we have wrestled too hard in the past. Management involves many aspects.

The first one is that responsibilities and rights must be matched. In the past, we often said in meetings, and the "Giant" also raised it, but they all stopped at slogans.I think that the responsibilities of a cadre, his power, and his obligation must be coordinated, and none of them will work. We used to have this kind of situation, those who have power have no responsibility, and those who have responsibility have no power and no interest. The manager of our branch had a lot of power at the beginning, but later felt that there was a problem, and the power was very limited.For example, if I invite someone to dinner tonight, I have to send a fax to the headquarters for approval. To some extent, the relationship with the company is not going well, and there are still problems in management.

The second is the issue of loans, which is a very important issue.Now in China, there is a certain credit crisis between enterprises and the financial industry. If the payment for goods is not well managed, the problem of disorderly accounts is particularly serious, especially in the field of medicine and health care, where the rate of disorderly accounts is very high, accounting for 20% of sales. %~30%. There are some companies in foreign countries who do not owe much money, so we set our own discipline. I would rather have a small business, but the first day should be a virtuous circle, no credit, no debt to others, so that the company will not be in debt A large loophole appears and drags down an enterprise.

The third is management. In the past, management was all-encompassing without focus. If you look at our management system, it feels good.The management system is one foot thick, covering every aspect, such as financial management, marketing management, quality management, etc., more than a dozen volumes, and each volume has sub-volumes, including how to make statistical reports. It is very detailed, but When problems arise in management, you must focus on the main aspects of the conflict.We didn't pay attention to this problem at the time, not every aspect can be done well, in fact it can't be done.

Management needs to be rough in some places, mainly because of the matching of responsibilities and rights, and some finer points should not be managed. We did not do this in the past, which eventually led to the giant's management becoming a mere formality and making the enterprise ineffective. In the past, the corporate culture of giants was to be an oriental giant. That thing was useless. Corporate culture was the joy of management. In addition to normal management, there was still a bad atmosphere in the company. It should be supplemented and restrained, which is beneficial to the company’s development. develop.

Merely mentioning slogans is useless.In the past, the slogan was raised relatively loudly, but there was a lot of bad atmosphere when doing things. The first one is to say that you can't do it. Everyone reported the target at the meeting, and the report was very high. At the end of the month, it was generally less than 50% completed, and it will be the same next time.In addition, the promises made by the headquarters and the lower levels are often not fulfilled. The upper and lower levels cannot do what they say, so the new crisis cannot be solved by management, and this problem cannot be solved.So we say now, we will do it when we mention it, and we will work hard. At least the manager's report is actually larger than the plan compared with the end of the month.This is the problem exposed by corporate culture.

The second is that our cadres dare not take responsibility. When it comes to taking responsibility, you push me and I push you. As long as one thing is not done well, it takes a long time to find someone to take the responsibility every time.Don't take responsibility, it doesn't matter if you make a mistake next time.If a country is about to perish, and no one can be found every time there is a responsibility, then we also propose a solution. The third is that everyone has high demands on others and low demands on themselves, always staring at other people's departments. Chinese people have such a phenomenon, they often see clearly the contribution they have made, how they have made it through hardships, and they think it is very simple for others to do something, this phenomenon is common.This kind of objective phenomenon dismisses the credit of others, sees others' mistakes very seriously, and is able to forgive one's own mistakes.In this case, how to engage in corporate culture?Only when everyone is strict with themselves and lenient with others, strict with self-discipline and lenient with others, will this be beneficial to the development of the company.

The fourth is the problem of corporate culture, that is, I like to emphasize difficulties and hard work. I have no credit for this matter but hard work. For the Chinese, there is no difference between hard work and merit.Hard work does not accomplish anything, so companies should only recognize credit, not hard work, and focus on results.In the past, one thing was not completed. When our giant was at its lowest point, the implementation of this in 1997 and 1998 was effective, and the combat effectiveness was improved. The fifth is to spend a lot of money when it is good, and the waste is serious. Once a person has a lot of hands and feet, he will float. If a person is not struggling, his combat effectiveness is not enough.During the War of Liberation, the National Defense Headquarters of the Kuomintang had a beautiful building, but the Communist Party's house was on the top of the mountain.No matter how good an enterprise is, hard work must be emphasized. If this article is not emphasized, the combat effectiveness of this enterprise will be weakened.

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