In this complex environment, how to adapt to the environment? How to survive tenaciously and grow against the trend? How to find opportunities in danger? Need innovation, need entrepreneurial spirit.
When many companies are deploying new businesses, new tracks or launching new growth engines (second growth curve) , the results are not good, or they have been unable to open new situations, delaying “fighting opportunities.” Although there are many reasons, most of the reasons are the lack of entrepreneurial talents.
The internal transformation and transformation of enterprises, even including the development of platform capabilities, requires the use of entrepreneurship, innovation, and talents with entrepreneurial spirit to be competent.
Now many companies are beginning to attach importance to the building of cadres, even at any cost. It is good to attach importance to the building of cadres, but more attention should be paid to talents with entrepreneurial spirit. One of the main reasons why many companies are not big is that only the boss has the entrepreneurial spirit from the beginning to the end, and failed to cultivate a group of talents with entrepreneurial spirit (commonly known as the quasi-entrepreneur team) . Entrepreneurship is precious to most companies, and talents with entrepreneurial spirit are extremely scarce.
This is indeed an era that calls for entrepreneurship, and each enterprise must be able to nurture entrepreneurship on its own.
In fact, in an era of sudden change, all kinds of organizations need entrepreneurial spirit. This is a very realistic proposition. Entrepreneurship not only exists in commercial organizations, it can exist in different types of organizations.
However, this article attempts to systematically explain how to nurture entrepreneurship in an enterprise from the perspective of the enterprise.
What is entrepreneurship
It is not easy to give a precise definition of entrepreneurship. Because different cultures have quite different understandings of entrepreneurship, it is difficult to have a unified definition. Entrepreneurship is essentially a practice. With the development of practice, people’s understanding of entrepreneurship is also a deepening process. Let’s start with which manifestations are entrepreneurial spirit, and see if we can sum up which ones are entrepreneurial spirit.
For example, in the Chinese hot pot industry, it is said that there was hot pot in ancient times. People seem to be accustomed to it. Three people can rent a storefront, a few tables, a few pots, and a little liquidity. Although the owner of this hot pot restaurant has taken certain risks, it cannot be said to be entrepreneurial.
Haidilao’s Zhang Yong is different. Starting from a small street shop, he has opened 1,298 stores worldwide, of which 1,205 stores are located in mainland China and 93 are located outside of mainland China, including Hong Kong, Macao and Taiwan regions, Singapore, 14 countries and regions including Vietnam, Malaysia, the United Kingdom, and the United States (data from Haidilao’s 2020 annual report) .
Zhang Yong has made a small hot pot restaurant familiar to everyone into a large global enterprise. There is nothing novel about his hot pot restaurant itself, everything seems to exist, but Zhang Yong introduced a “technology” to Haidilao, and this “technology” is management. The success of Haidilao Company undoubtedly embodies the entrepreneurial spirit, and Zhang Yong himself is very entrepreneurial. Haidilao creates value, improves resource output, and creates a global hot pot market and customer base. There are still many things that are commonplace in society. If you introduce management, you can achieve a great cause, but you need entrepreneurship.
To give another example, Lei Jun founded the Xiaomi company, which is undoubtedly very entrepreneurial. Apple’s iPhone truly pioneered the smartphone industry, but because of its high-end positioning and high price, only some people can afford it. At that time, there was a huge blank market in the smartphone market. Xiaomi entered the market from the low-end, providing cost-effective smartphones to fill the gap in the market. In other words, Xiaomi has created a mid-to-low-end market and also a mid-to-low-end user group.
Ren Zhengfei and Huawei have transformed from the “three nos” of “no capital, no technology, and no talents” into a world-class outstanding enterprise. The history of Huawei’s growth is an “entrepreneurial history.”
Let’s look at it from another angle and see what is not entrepreneurial. For example, follow the steps, behave in a proper manner, and dare not step beyond the “thunder pool”; “as many rice dumplings as there are”; whenever the first thought is “cannot make mistakes”, no one cares about the results; always accustomed to only “watch” When it comes to the side where things cannot be done, they rarely think about problems from the perspective of how things are done… etc. As mentioned above, they are not entrepreneurial.
This article is not an academic paper, so I will not review the literature on entrepreneurship. But from the above examples and the characteristics of thinking and behavior that do not have entrepreneurial spirit, we can see some “clues” of entrepreneurship.
Let’s analyze it from the perspective of the enterprise first. In essence, an enterprise is a wealth creator. By entrusting social resources to the enterprise, it is actually to make “the worthless things become valuable” and to increase wealth. This is the company’s biggest social responsibility.
If you consider it only from the physical level, the conversion efficiency of anything will not exceed 100%, so the most important thing for an enterprise is to go beyond the “physical level” and enter the “spiritual level”. This “spiritual level” is actually brain power, wisdom, and entrepreneurial spirit. Therefore, entrepreneurship must be expressed as “creation or value-added”. Specifically, creating a customer group or market (from the demand side) or increasing output (from the supply side) must bring about change. According to Drucker’s point of view, entrepreneurship must be accompanied by innovation to bring about changes in values.
In the early days, Huawei had an internal description of “entrepreneurship”-in the face of opportunities, regardless of the resources at hand, working hard. Entrepreneurship can be seen as “breaking through constraints.” As long as it is “big ambitious” or “big heart”, resources are not enough at any time, but to succeed, it must rely on entrepreneurial spirit to break through the “realistic constraints.” Entrepreneurship is how to achieve “great aspirations” in the context of “financing”.
The connotation of entrepreneurship is to break through the constraints of reality, to innovate and create through spirit (wisdom) , thereby bringing about changes and changing values (understanding of things) ; and seeing changes as opportunities and embracing changes.
Looking for opportunities
As the saying goes, the situation is bigger than people. Only by taking advantage of the trend can a company or a person achieve great achievements. Challenge an era or trend. If you are too far ahead, you will often become a “martyr” and at most play a “warning” role for future generations. If you cling to the past, you often become “reactionary”, and occasionally “a small wave appears” in the long river of history.
The development and growth of any enterprise must be based on seizing opportunities and taking advantage of the trend. Large markets can produce large enterprises, the so-called “big water and big fish.”
We reject opportunism, but we cannot eliminate opportunities. What is opportunism? Whatever you make money, do what you do, go with the flow. What is an opportunity? Where is the room for business growth. Since it is an opportunity, it means making a choice, focusing on the opportunity, and maximizing the opportunity. The development of an enterprise is first driven by opportunity, and then build capabilities within the window of opportunity (the ability to efficiently organize the elements that create value in the industry) . Through capabilities, you can grasp greater opportunities and create more opportunities to form opportunities and capabilities. Alternately move forward.
At one stage, an enterprise mainly uses opportunities to drive its own development, but builds capabilities in the development process, and at another stage relies on continuously improved capabilities to promote the development of the enterprise, forming a positive development trend. Only relying on opportunities to lead, without corresponding capacity building, enterprises cannot develop to a large scale. Because as the scale increases, corporate risks also increase, and without capacity building, it is actually difficult for companies to seize greater opportunities.
In practice, we have found that many companies devote more energy and resources to problems and are always led by problems. As everyone knows, the problem generally does not bring opportunities, the solution of the problem is only to return to normal. A company must develop the habit of focusing on opportunities.
The author found that in regular business analysis meetings, many companies paid special attention to those who did not complete their performance indicators, deeply analyzed the reasons for their failure to meet the standards, and found the next solution. This is of course very important, but ignoring those unexpected indicators, a certain product or a certain area has a particularly good performance, unexpectedly, and even the company’s decision-makers have not even thought about it.
Often unexpected places reveal exactly where the opportunities lie. These unexpected places are often not included in the plan. Anyway, the indicators have reached the standard, and they will be passed by at the meeting. This is a very problematic approach. Every business decision-maker must pay more attention to unexpected places, whether they are unexpectedly good or unexpectedly bad, and these surprises do not matter whether they are related to returning to a friend.
The author often encounters such cases in the process of serving customers. Once, the author participated in a first quarter business analysis meeting of a listed company. At the meeting, the marketing department made a performance analysis. It was mentioned that the performance of a certain friend in a certain area in the first quarter increased by 7 times year-on-year. The author immediately stopped the marketing department. The person in charge reported and immediately asked the person in charge: What is the reason? Do you know the specific situation of this market and friends? The person in charge is not clear about the specific situation. The author suggested that the marketing department immediately investigate this unexpected place after the meeting. As expected, it was discovered that the market gameplay has undergone a very big change and the opportunity has quietly arrived. This company adjusted its marketing strategy in time, focused on opportunities, and re-allocated resources. The final result was good. Otherwise, the consequences will be disastrous.
Companies with entrepreneurial spirit must pay attention to opportunities. Resources and high-quality talents must lean toward opportunities, and must focus on opportunities, allocate resources for opportunities, and allocate sufficient resources to maximize opportunities. When thinking about business issues, the first consideration is where are the opportunities? Where is the room for growth? According to the size and distribution of opportunities, how do companies allocate resources?
For example, when market opportunities are forming and big opportunities have not yet come, the requirements for resource allocation at this time are focused on quality rather than quantity. At this time, the company needs to be equipped with a team with entrepreneurial spirit, the core is quality, not quantity. When the market is in an explosive period, it is necessary to recruit people on a large scale, or to form a large-scale team to attack the city and capture the fighters to the maximum extent.
The practices of some outstanding companies are also worth learning. Every time a business analysis meeting, two reports are issued, one opportunity analysis report and one problem analysis report. Some companies hold an innovation conference every year to talk about opportunities and innovation. This innovation is not only technology and product innovation, but more importantly, market and management innovation. Some companies have dedicated research teams for industries, customers, and business partners. Where are the opportunities for analysis? How to lay out production capacity and product lines? What rhythm is the layout? How to guarantee resources?
In addition, the decision-makers of enterprises must have such a way of thinking, good at discovering the “opportunities” contained in “danger”, and good at turning “bad things” into “good things.” In this regard, Huawei is a master. When Cisco sued Huawei at all costs, Huawei hired a team of first-class American lawyers to fight against Cisco. It was through this lawsuit that the whole world knew about the Huawei brand.
As Clausewitz said in “On War”: Facing the unpredictability in war, a good commander must have two elements:
First, even in the darkest moments, they have the insight that can spot a gleam of light;
Second, dare to follow this glimmer of light.
This is an entrepreneurial spirit.
Fight for the future, learn to give up
Gains and losses are gains and losses, and there are gains and losses. The managers, resources, funds, time, etc. of any enterprise are limited. If you want to develop the enterprise, you must make some choices. This truth seems to be too simple, but it has been repeatedly ignored in practice. Especially for small and medium-sized enterprises, they must learn to do “subtraction” first. In fact, the development of large enterprises has to make choices, and choices outweigh hard work.
Why do you have to give up first in enterprise development? The essence of giving up is to release resources, especially high-quality human resources and managers.
Any product and service has a life cycle. The practice of some excellent companies is to do a “perspective and physical examination” of their products/services every year, combining industry, market, customers, friends, etc., to determine what stage their products/services are in? What needs to be given up? Which ones need to increase investment? Which optimize the quality of input resources (especially the quality of human resources) and so on. For those products that need to be abandoned, if they cannot be abandoned immediately, there needs to be a plan-how to “retire” and stop losses in time?
For example, a certain customer is a chain hotel, and there is a rule in their investment called the “timely withdrawal principle”. If a certain newly opened hotel does not improve after a certain period of time (in this time period, and The landlord is talking about a relatively low trial rent. If the trial rent period is exceeded, the rent can be increased appropriately, and the operating risks should be controlled as much as possible.) It is necessary to organize a “retreat” in time.
There is a concept of “sunk cost” in economics. Those payments that occurred in the past and we cannot recover or change are called “sunk costs” in economics. These contributions, including but not limited to time, money, energy, feelings, etc., no matter what actions we take in the future, will not have any impact on the sunk costs, and no loss can be recovered. And our unwillingness to pay and make mistakes in the past has allowed us to continue to irrationally put new resources into sunk costs, which is the most “troublesome”.
How to operate it in practice? Some excellent companies do this: When reviewing a product line or project, they have to ask themselves a very important question-if this product or project is to be put on hold and cannot be launched now? If your answer is negative, then you will start to “stop the loss in time”.
But some people will say that perseverance is victory. This is chicken soup for the soul. If it is truly nutritious, there must be a prerequisite-before the general market trend has arrived, you have to find a way to “get it down.” At this time, your persistence is often meaningful, and the key to this is the rhythm of time. Those who are successful persisters are lucky, because the length of time they boil is more appropriate. If you boil it for too long, everyone will “run out” and it will be difficult to stick to it.
For example, Jack Ma founded Alibaba in 1999, and it succeeded because Alibaba has survived until dawn (the market has started) . If Jack Ma were to start Alibaba earlier, he might not be able to persevere.
Zhang Shuxin founded Yinghaiwei Company in 1994, but he did not stick to it. The time factor should not be underestimated. The start of any industry is a systematic project, which requires a variety of industrial factors to match. It will not work without a certain amount of time to accumulate. Among them, technological progress, cost factors, supply chain matching, people’s concept changes, policy factors, etc. It takes time to change space. Of course, we do not deny the excellence of the winners themselves. Those who have not persisted are actually admirable.
A reporter asked what are the characteristics of Ren Zhengfei himself? Ren Zhengfei replied that he is a future-oriented optimist.
Facing the future, we must fight for the future. Once a company survives, it needs to allocate resources across time and space, that is, to fight for the future. Especially investment needs to invest for the future. Regard change as an opportunity and actively embrace change. Many companies emphasize the importance of change in their core values and embrace change. For example, Samsung, Alibaba and other companies have highlighted changes in their corporate culture.
The investment of many companies revolves around the “behind the butt” of others, taking over things that others don’t want, and turning themselves into a “receiver”. These are not a good investment concept, unless the opportunities are huge.
Some corporate decision-makers are more “persistent” and insist on “getting up wherever they fall”, always clinging to the past, fighting for their “reputation” and “unwilling” to fight for themselves. With the passage of time, the original “unwillingness” has become meaningless in the current time period. The “outflow” is gone, and there are not many industry opportunities.
The transformation of Microsoft Corporation can be regarded as a classic. When it missed the trend of smartphones, many people were not optimistic about the “bureaucratic” Microsoft Corporation. However, after Narad took office, he actively laid out the future and made efforts in cloud computing, etc., and once again “refreshed.” Microsoft has now become one of the few companies in the world with a market value of more than one trillion US dollars.
The author finds that the practices of some excellent companies are worth learning. They regularly review new product lines or more important projects, compare their original assumptions and wishes with the actual situation, and test the extent to which these assumptions are in line with reality. Which assumptions have been verified? What is not in line with reality? What are the circumstances that were not considered at the beginning? Comparing the gap between the original desire and the actual effect, what are the opportunities identified? where is the problem? What’s the next step?
To give an example, the author served a company and they recorded some major decision-making discussions in more detail. What is this decision about? What is the basis for the decision? What is the purpose? At the same time, make a detailed record of each of the core team’s speeches, and even make a video, and use these materials as a reference for future review.
For example, the company wants to invest in a project. The actual question to be discussed is, why do you want to vote? What is the purpose of investment? This involves investment ideas and wishes. Record each person’s speech, after a period of time, look back, verify the difference between reality and the original assumptions and wishes, identify the opportunities and problems, and take action based on this. This company has taken it a step further. They have established a reward system based on this kind of review: if anyone’s vision and judgment are in line with reality, then they will be affirmed and rewarded.
Some companies even regard the promotion of important personnel and extraordinary promotion as a major decision and establish a personnel review system. Why are they promoted? Everyone at the decision-making level should explain and record this. Afterwards (one year or two years) , the performance evaluation of these promoted persons will be carried out, and the comparison with the original promotion basis will be carried out to improve the company’s personnel decision-making level. If your recommendation cannot be verified, the original recommender is responsible.
Of course, such a review mechanism does require a lot of energy. It is not recommended for companies to adopt this method too much. They can only choose a few important decisions and invest “more” energy. This is a good way for the company to nurture entrepreneurship. worth it.
Organizational design is the key
The author has served some companies and found that the new business of these companies has not developed very well, delaying fighters in vain. One of the main reasons for this is that there is a problem with the organizational design.
Do not mix new businesses with relatively mature businesses in the organizational design. Because the status of new and old businesses is different, their management methods are different. For example, old business operations are relatively mature, and KPIs can generally be used for assessment. The new business is not mature and has not been finalized, and its assessment method can adopt the key event method, etc.
It is best to separate new business personnel from those in mature business, and it is best not to do both new business and old business alone. When a person is faced with different ways of doing things, the assessment methods should also be different, which is actually more complicated. Some companies try to use high commissions to attract a person to do new business, but they are not very successful. When a person is faced with two choices, his usual approach is to choose the way that is easier to do, and that is easier to perform.
One thing is also very important. The new business should be placed at a relatively high level in the organizational design. It should be directly under the control of the leader, or at least directly report to the senior management. The senior management should only take care of the new business. The trust relationship and rapid response required by the new business require a developmental process. After a relatively long period of time, it can take effect and contribute to performance. The new business has not been formed, nor can it be managed. There are many qualitative aspects, and naturally it cannot be included in the normal operation system. What the team undertaking the development of new business needs is the trust and support of the superior.
In addition, when the new business first started, it was relatively “weak and small”, and it was an “ugly duckling”. With some people “unintelligible”, it is inevitable that some people “talked about them”, saying that they “spend too much money” or treat them. Full of “questioning”. In fact, this is a kind of “pressure”. Without the top leader’s “strengthening”, the possibility of the “premature death” of the new business has greatly increased.
In the organizational design, generally speaking, if the business attribution level is relatively low, this means that the business is relatively mature, with a high degree of quantification, and mainly involves short-term benefits. The new business is precisely low in quantification and involves long-term interests. If the new business is placed in a relatively low-level department, and this department bears both short-term and long-term interest responsibilities, there is a high probability that events involving short-term interests will receive “too much attention”, and long-term interests. Always ignored or delayed. This has nothing to do with the manager’s character and overall outlook. It is caused by the interest structure.
Quick response is also important for new business growth. If a high-level executive manages both short-term and long-term interests, then the executive always has no time to listen to reports on new business, resulting in many decisions not being made in a timely manner, and “delaying” the growth of new business. Many new businesses are not growing smoothly. One of the main reasons is that new businesses need to involve a lot of coordination at the beginning. Many resources are not in the new business department and cannot form a self-closed loop. This situation leads to very slow decision-making and is not conducive to the growth of new businesses.
There is a scenario that is often overlooked. R&D personnel develop new products. Since mass production has not been formed, or too new products are not yet supported by suppliers, this leads to slower purchasing decisions for new products. Supplier purchases related to product development, small-scale trials, and pilot-scale trials must have a “green channel” and be managed separately, otherwise the procurement decisions will be very slow in accordance with mature management methods.
The position and level of the new business in the organizational structure can have a great impact on the growth of the new business. More experienced experts can judge how well the enterprise is innovating and whether it has entrepreneurial spirit by looking at the organization of a company. An enterprise must be relatively clear in its organizational structure, see which are mature businesses and which are innovative businesses, and can basically judge whether innovative businesses can be achieved.
The design of the organizational structure is too subdivided, resulting in fewer comprehensive posts, and it is not conducive to the creation of comprehensive talents; the design of posts is too detailed and too small, which is not conducive to the growth of talents. Many companies have very sophisticated organizational structures and processes, but cannot produce comprehensive talents. These talents are likely to be talents with entrepreneurial spirit in the future. This point will also be expressed later in the article.
Of course, in addition to the structure, it also involves evaluation and motivation, and the appointment of people. The content of these aspects will be explained in the following article.
Evaluation and incentives
Let’s talk about the influence of evaluation and incentives on entrepreneurship.
The logic behind the design of most corporate incentive mechanisms is performance-oriented, and higher performance means higher rewards. New business or innovative projects generally need to be “silent” for several years, and some even need to “sit on the bench for ten years.” A very realistic question at this time: how to calculate the salary of the team that assumes the responsibility of innovation? They have almost no performance contribution in a few years, so how much salary should they pay? It is necessary to attract a group of outstanding personnel to engage in innovative work, but also to let them devote themselves to innovation.
The approach of excellent companies is to first ensure that the salary of those who undertake innovation work reaches an average level, and then adopt a “retrospective system.” If this innovative project achieves market benefits, then the innovation team needs to share market benefits for a certain period of time. Once the innovation project comes out, the innovation project team can form an independent army and start specialized operations. This is also an incentive in itself. Of course, there are some people who are better at specializing in innovation projects, and these people can also choose to do innovation full-time.
Many companies prefer to use per capita efficiency, commissions, etc. to evaluate, which will lead to reluctance to recruit more people, because more people are recruited, which affects the target. Companies must recruit more people when the market is coming or when their growth rate is relatively fast, otherwise when the opportunity comes, they will be unable to grasp the opportunity because there are no people, and the internal mechanism will be weakened because the talents are too “tight”. .
In order to report “beautiful”, listed companies are pursuing higher net profit margins. In actual operation, these companies tend to save money and reduce costs. And the cost of investment is related to the future, too frugal will cause insufficient future development potential of the enterprise. Especially when the economy is in a down cycle, many companies often abolish R&D personnel or cut off some temporarily profitable product lines. When the economy reverses, when those products are sold, they often have no licenses.
Western multinational companies follow the “Wall Street System” , and executive compensation is related to market value and return on net assets, which will further promote this practice. It is said that every economic crisis is an opportunity for Huawei. They often set up recruitment companies in the cafes downstairs of competitors. I want the people you abolish. When the economy is booming, products that are not profitable start to grow. When selling, Huawei can often step on the rhythm. Competitors abolished people and divested assets for the data in the report. This time, the gap was widened. According to statistics, in times of economic crisis, family businesses often perform better than businesses run by professional managers, which is also the reason.
Enterprises must always pay attention to the parts related to future development. For example, talent investment requires individual assessment. For innovative business, you should choose a management method that suits the characteristics of innovation: a mature business is like an old hen laying eggs. You evaluate the egg production of the old hen; but if it is hatching, you cannot use egg production to evaluate the hatching old hen .
Generally, a team that can do innovation and entrepreneurship is a person who has proven the ability of a company and is deeply trusted by the boss. Therefore, there is such a saying in management that new people doing new business are “gambling”, ten gambles and nine loses. Many companies like to hire people from outside to help you start a business or become a CEO. This kind of company basically has problems. Operational talents must have worked with your company for at least 5 to 7 years, otherwise cultural integration is a big problem, and trust with the boss is also a problem.
Generally, when a business is in the 0-1 stage, the key to team members is quality rather than quantity, and the leader must have entrepreneurial spirit. How can talents with entrepreneurial spirit be excavated and identified in the enterprise? This is a relatively difficult problem in corporate management practice, and most companies cannot solve it well.
The author observes some famous entrepreneurs up close, they are very experienced in talent identification and mining. One thing in common is that they all agree that people with outstanding advantages often have outstanding shortcomings; how to use the strengths of people, how to let the shortcomings play a role. They believe that the most important feature of the “good children” managed by the system is that they have no shortcomings, but the advantages are not obvious, and they are relatively average. Most of the energy of top leaders is on those who are in conflict with the system, or those who are always “killed” by the system. These “marginal people” often have “big fish”, and sometimes they don’t even know that they are a “big fish”.
Some outstanding entrepreneurs pay much attention to the “stabs” or “unusual” people in their companies. As long as these people have no problems with their behavior, they do not need to be uniform in their behavior. The diversity of team members is conducive to innovation. , Is conducive to the gestation of entrepreneurial spirit. When a company is critical, it is often those who “stab the head” or “do not take the usual path” to save the company.
Talents with true entrepreneurial spirit often have “contradictory personality”, a complex complex of contradictions, with both a “iron and blood” side and a “tenderness” side, but the applicable scenarios are different. This kind of person can be free Switching, there is no sense of “violation”. If a person is too “clear” to see the bottom at a glance, it may appear to be insufficient. A morally “cleanliness” person or a “pure” person is not suitable for being a leader. The top leader must understand “compromise”, understand “grey”, unite all those who can be united, and he himself is a “grey” person.
Another point is very important. The general talents follow the “Zig” type, while the outstanding talents usually follow the “Rocket” type. After the “Zigzag” type talents come to work step by step, the “edges” are smoothed and become “stable”. “Rocket” talents go through an exceptional promotion system. Some excellent companies have a system of “extraordinary promotion”.
Talent selection system is adopted. The talents are done, selected, and left. The training of talents should start at a relatively low level and at a relatively young age. When he was trained at a relatively low level and a young age, he dared to do daring, even if he failed, there would be no problem, and the impact on the company would be relatively small. Sometimes the age of the talent has a greater influence on his struggle. Young people dare to move forward, are motivated, and work hard. Older people are almost lack of passion, “look forward to the future” and “hesitate” more.
The creation of an internal talent mechanism is also very important, a “healthy competition mechanism”-if you do not do well, someone will always “replace” you immediately. This is the most well-known “mechanism” of Midea Group. It is no wonder that Midea Group is a place rich in entrepreneurial talents among Chinese enterprises. The cadres of the Midea Group were spun off. It is one of the most successful companies in China that implement the division system. This structure has greatly exercised the overall quality and overall view of Midea managers.
Contradiction and “paradox”
At the start-up stage, companies need “heroism”, relying on one or two capable people to lead their “little partners” forward and survive first. As the scale increases, companies need to develop system capabilities and build organizational capabilities. Organizational ability, in essence, does not depend on the ability of people. Anyone can do it. In theory, everyone can be replaced, but it has little effect on the development of the company. Of course this is the ideal state. From relying on heroes to relying on “mortals”, this is an organized process. However, after the organization has reached a certain stage of development, it must take the initiative to break this point and call for heroism.
From relying on heroism to not relying on heroism, to calling for heroism, to quote Marx’s philosophical terminology, this is a “spiral upward” process. Without heroism, no one can afford new business or expansion, which is extremely detrimental to the development of the organization.
This is a “paradox” in management. Companies with very complete processes, refined management, and high levels of information technology are not prone to entrepreneurship. New businesses never develop. When the environment changes, they do not Adaptation may be the first to be defeated by the times.
In the cultural construction of enterprises, cultural unification cannot be emphasized either. The corporate culture also has the term “strategic reserve”, especially in a period of change. A truly adaptable culture is “harmony without difference.” Enterprises must tolerate some “marginal culture”, the bottom-line thinking that enterprises need, mainstream culture and “marginal culture” coexist, and the “marginal culture” may save the “enterprise” when it is critical.
This is an era of change, this is a “turbulent” era, the entire era must call for entrepreneurial spirit, all kinds of organizations need entrepreneurial talents, and enterprises need entrepreneurial talents even more. An excellent enterprise must always be able to nurture a “strong” “entrepreneurship”, and must enable the “entrepreneurship” within the enterprise to continue.
The summary of the above points is hoped to give some enlightenment to friends in the business practice circle, and hope that more companies can nurture “entrepreneurship”, adapt to external changes, and always become companies of the same era.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/excellent-companies-have-a-group-of-bad-kids/
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