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Second, the ultimate management is the ultimate harm

Refined management is definitely a hot word in the corporate world. On the contrary, the results of companies implementing refined management are mostly “cold.”

Some people use business as a planComputers are expected to use instructions and numbers to achieve full control of the enterprise. The typical representative is the “Blue Blood Top Ten” of the United States.

After the end of World War II, ten elites from the U.S. Wartime Army Air Force initiated a management reform characterized by regulation and control at Ford Motor Company to get rid of the original empirical management model. Reappearing the glory of Ford. These ten elites also won the title of “Ten Blue Blood”. But the success is also the failure, and the failure is also the failure. This absolute rationalism eventually stifled the innovation and vitality of the enterprise, and brought Ford back to decline.

The story of “Ten Blue Blood” shows that when absolute logic and numbers control everything, people have actually become slaves to logic and numbers, and it is difficult for companies to evoke the original intention and imagination to integrate products with the beauty of human nature. Up.

1. The god of management must move towards the god of business

With the arrival of the big data era, what is especially worthy of our vigilance is that big data cannot replace human motivation, imagination, creativity and decision-making. At best, it can only provide us with more accurate and iterative decision-making analysis.

In 2014, Huawei awarded the “Ten Blue Blood” awards to employees who have made outstanding contributions to the management system in the company’s history. The “Ten Blue Blood” is the highest award of Huawei, but after the award, Ren Zhengfei solemnly warned everyone: “Don’t understand the “Ten Blue Blood” one-sidedly. We must avoid managers’ self-respect, self-inflation, and management. The god of business must move towards the god of management. The value of the god of management is to be customer-centric, and the purpose of management is to produce more food.”

The business philosophy mentioned by Ren Zhengfei is also the basic principle that Huawei has adhered to for many years. Take Ren Zhengfei himself. Although he is very old, as long as there are important customers, he will personally drive to pick up customers, showing that he values ​​the customers. However, once, when Morgan Stanley’s chief economist Steve Roach led a luxury investment team to visit Huawei, Ren Zhengfei did not personally greet it, but sent the executive vice president in charge of research and development to receive it. This disappointed Steve Roach, but Ren Zhengfei later said: “He is not our customer, why should I see him? He came with an investment team, but what does it have to do with me? I sell equipment. Yes, of course only people who buy equipment!”

From the perspective of management thinking, those who come to invest in companies are the “God of Wealth”, and they should be treated well; but from the perspective of management thinking,Only the customers are the “food and clothing parents” of the enterprise, and only when the customers are well managed can the enterprise be managed well. Therefore, although Ren Zhengfei advocates the “Blue Blood Ten Elites”, he is more aware that the “Blue Blood Ten Elites” excessive pursuit of enterprise group scale and excessive cost control are not conducive to the development of the enterprise. Therefore, Huawei regards all customer-centric business strategies and core values ​​as the unshakable banner of the company.

The “Ten Blue Blood” has become a cloud of history, but the story of the “Ten Blue Blood” is still happening today. For example, some companies spare no effort in arranging staff to write and maintain job descriptions every year. The documents formed can be described as numerous. But when asked what value these documents bring to the company, everyone is often silent, because many people are numb to having jobs every day. Instead of getting results every day.

Modern enterprises face a dynamic and ever-changing external business environment. New situations and new problems appear every day. The internal environment of the organization must be dynamic and keep pace with the times. Some people sit in the office and “program” for granted to guide the work of others, and you can imagine how valuable the content is! The operation of an enterprise is similar to playing football. The coordination and replenishment between positions are the same as the coordination and replenishment between players. If a paper manual can effectively guide the operation of the team, then the football game is too lack of excitement, suspense and imagination.

Moreover, no matter how clear the job description is, there will be a lot of blind spots and gray areas between the positions in actual operation. The job description may also encourage some people’s self-centered thinking, and even reduce some people to the reason of unclear interface A talisman to shirk responsibility.

Therefore, instead of working hard to write and maintain job descriptions, companies should establish a community of interests or business community mechanism that can stimulate initiative, and make general arrangements for their core responsibilities so that team members can Through organizational learning in specific business practices, we can keep up with the times to find suitable operating rules for them. In the daily work, consciously form a work culture of moderate cross-border, complementary position, active responsibility and non-shirking.

2. Allow coarse-grained accounting between different business units

Some companies are keen to implement on-to-order delivery internally. The reason is that on-to-order delivery can manage the workload and results of employees according to business particles, calculate business costs, transmit operating pressure, and improve operating efficiency. Is this really true? In fact, companies rarely have successful cases in this regard.

What is logically correct may not be businessly correct. For example, how do you determine the price of each dispatch? Price justIt is business, and pricing cannot be bypassed to pass on operating pressure. Business particles cannot be standard and designed in advance, so pricing is definitely a frequent and complicated task, and a lot of management costs will inevitably be incurred.

Why is it difficult for a small workshop to grow bigger, but a company can grow bigger? The root cause is that small workshops involve pricing in everything, leading to high internal transaction costs; companies can use performance culture and other methods to replace the price mechanism, greatly reducing internal transaction costs, making company operations smoother and teamwork easier. It can be said that the delivery by order has brought the company back to the workshop era, and maximized the tools. It is impossible to achieve the business objectives of the company at the practical level.

With a little analysis, we can find major flaws in the delivery to order.

First, it will have an impact on organizational goals. Order-to-order delivery will inevitably make the delivery subject no longer care about the organization’s goals, and will shift their attention to the execution of orders one by one. As for whether the dispatch of orders really promotes business operations, it will no longer be important in their opinion.

Secondly, it will have an impact on the customer experience. Under the same conditions, the delivery entity will give priority to responding to orders rather than customer needs, which will lead to poor customer experience and ultimately weaken the company’s ability to create customers.

Finally, it will have an impact on the company’s development. The delivery entity generally screens and distributes orders according to the principle of maximizing personal benefits. Things that are beneficial to the company but not helpful to personal gains in reality may be less interested in in the future.

In short, companies can allow coarse-grained accounting between different business units, but they must never use daily business activities as the accounting unit of measurement. In the fierce market competition, companies must dynamically perceive changes in the market and customer needs, and the front line of business is the most sensitive nerve ending and execution unit of the company. If management eventually eliminates the front line of business sensitivity, it will definitely cause catastrophic for the company as a result of.

3. The process is only responsible for the business results

Too much strengthening of process control is also a chronic disease of some companies.

There is a company with 6 functional centers. Every year, the company prepares annual key tasks for each business department, accumulating more than 400 items, and all of them are included in the business department assessment. The head of the business department has a headache for this: Pay attention, these key tasks are actually not the focus of their work; don’t pay attention, the functional center is like the “Avalokitesvara of Thousand Hands”, and it is annoying to check and supervise frequently. However, the company president believes that the company manages the process well, and the result is a matter of course. This generalAlthough Cai used the metaphor of “it will happen when it happens,” he misunderstood the meaning of “it will happen when it happens.” The sign of “consequence” is “water comes”, it is the result rather than the process.

This is true for repairing canals, and even more so for operating businesses. The goal of the enterprise is to realize the value exchange between the enterprise and the customer. Without results, how can the enterprise and the customer exchange it? How do employees and companies exchange? It can be seen that all process elements only provide the possibility for value creation, and only results have the premise of exchange.

Therefore, one of the core tasks of an enterprise is to determine the value proposition and performance goals of each business unit, and drive each business unit to exhaust various process means to ensure that the results are achieved. The target represents the manager’s commitment to the business results, and the process represents how the manager fulfills the promise; the target is relatively stable and the process is relatively dynamic; the target needs to be assessed and the process needs to be corrected. As long as the goal is in line with expectations and the process does not deviate significantly, the enterprise should boldly grant managers flexibility in process management.

Huawei has always asked for increased corporate efficiency, but this does not mean that employees can work hard. In Huawei’s view, if companies pay too much attention to process management and control, managers will focus on the action itself and ignore the results and goals of value creation. However, there is actually no direct relationship between the results of hard work and value creation and goals.

For example, some employees have a positive attitude and seem to work hard. Should they be part of the evaluation? In other words, should some employees who work hard for the benefit of the company be better than employees who work hard for the personal benefit?

Some companies may do this, but in Huawei, whether it is employees or managers, their work process, performance at work, etc. are not one of the key factors in the evaluation. Only when the goal is achieved and the performance result Is the most effective. As for how to operate the process, it is up to the manager to decide. Therefore, at Huawei, cognition is not a key element of a position, the key depends on the contributions of the managers.

In short, the future is full of uncertainties and changes. If there is no mechanism that “will be out, the ruler’s life will not be affected”, the initiative and creativity of managers will not be given full play. The general principle of process control is: the signal that triggers the control must be derived from the deviation of the real process, rather than the pre-set virtual process. If each business unit achieves business results and there are no principled issues in the process, it can be exempt from process control to a large extent; if the business results fail to meet expectations, it is necessary to conduct targeted process control.

As mentioned earlier, the reason why the market mechanism is more effective than the planning mechanism is that the planning mechanism emphasizes process management and control, but whether the virtual process set is effective remains to be further examined in practice.The market mechanism is just the opposite. It emphasizes results control and the process is open. This provides practitioners with a variety of path choices and increases the probability of success.

Why the process management reform of some enterprises is not effective? One of the important reasons is that some process designers focus on process standardization, and forget what the process is responsible for. For example, the sales process is responsible for the order, and the delivery process is responsible for the payment.

Many managers can’t answer questions like this. Regarding the process, we should understand it this way: a process is a business flow that focuses on specific business results and integrates management of resources and elements. If the business results of process alignment are blurred, the effectiveness of the process is naturally impossible to talk about.

3. Comprehensive budget management: the key to value management

What is the starting point for corporate value management? It’s the budget! It is easy for many companies to ignore this point and simply regard budget management as a routine financial activity. In Huawei’s budget concept, where the customer value is, the budget is where it is, and comprehensive budget management is used as a comprehensive management tool and an important starting point for operations.

Huawei’s comprehensive budget management includes planning, budgeting and accounting. It is a closed-loop system, that is, with the goal as the outline, the plan as the goal, flexible control, and evaluation through accounting, and closed-loop through incentives. Comprehensive budget management is the basis for all Huawei’s annual business activities and an important way to control the uncertainty of the external environment, reduce blindness and randomness in decision-making, and improve the company’s overall performance and management level. Through comprehensive budget management, companies can firmly grasp the direction and effectiveness of value creation, and earnestly implement their strategic demands.

1. The budget should be generated from the outside in

Many companies are actually not clear about the starting point of the budget. In other words, companies don’t know why they spend money at all, and they don’t know the relationship between input and output. Most companies make budgets based on administrative organizations. As a result, everyone is playing games with companies on budget issues and asking companies for money. Every administrative organization is trying to make BP bigger in order to obtain more resource authorization, and it is difficult for the company to argue with them. People take the initiative to take care of things, what’s wrong with making BP bigger? In fact, many companiesThe reason why BP can be bigger is that there are a large number of work gaps and work overlaps between administrative organizations and administrative organizations, so each administrative organization can create workloads under various banners and complicate simple tasks. This provides a high-sounding excuse for increasing resource allocation.

Budgeting according to the administrative organization actually confuses the difference and sequence of budget responsibilities and budget generation. First, the budget is generated first, and the budget responsibility is second. The budget should be customer-centric and generated from the outside in. Second, customer and customer value is the starting point for budget generation, and customer and customer value is defined by corporate strategy. Budget is the projection of customer value within the enterprise, and the relationship between budget and customer value is back-to-back.

Clarify the difference and order of the two, so that the company’s budget management can change from cost thinking to investment thinking and value thinking. If an administrative organization does not know the customer value, it will not get the budget; if the customer value is clearly stated, there is no game in the budget.

Ren Zhengfei has a very well-known management idea, which is “Let the people who can hear the guns call for fire”; At the same time, Huawei is also very clear about Ren Zhengfei’s other words. ,That is, “Whoever calls for artillery fire is responsible for the cost of artillery fire”. Financial control and responsible management in the process of corporate product sales are major problems for many companies, and Huawei is no exception.

Therefore, since 2003, Huawei has established a unified global financial organization. In 2007, Huawei implemented the reform project (IFS) to integrate financial services, aiming to provide more complete, accurate and accurate Valuable financial data to help Huawei continue to provide customers with higher-quality services and comprehensive problem-solving solutions.

Through a series of financial reforms, Huawei’s responsible management system has gradually matured, and various resources have been gradually allocated to the front line, and the unit responsible for profit will bear the expenses and costs incurred.

Then, who will call for fire? Of course it is the combat troops in front, not the leaders in the rear. In this way, the main responsibility of the financial organization is reversed. In terms of budget, Huawei has gradually used project and customer value as the basic accounting unit of the budget, because project and customer value are the foundation of business management. With the budget for the project and customer value, there is a command center and the right to command operations. The budget mechanism centered on project and customer value usually revolves around “plan-budget—Accounting—Evaluation” closed-loop management, to achieve the link between the responsibility center and the project budget.

In addition, in the budget generation process centered on project and customer value, companies must also consider various clues and opportunities that match the customer’s investment, so that budget generation comes from projects and customers, and then Then extend to all departments within the enterprise. To this end, Ren Zhengfei also particularly emphasized: “We have to type out every number, and definitely not make it. We must focus on analyzing the market and focusing on customers.”

By generating budgets in this way, Huawei’s overall budget management framework has gradually become clear, and financial operations are also playing an increasingly important role in the business process.

2. The primary budget and the secondary budget solve different problems separately

Knowing is easy and doing is difficult, how to do it is the key. The logic of budget generation should be divided into primary budget and secondary budget. The primary budget is the opportunity point and target budget, which solves the problem of how to allocate resources around the opportunity point and goal; the secondary budget is the resource allocation budget, which solves the problem of how efficient the resource allocation of various administrative organizations is.

Huawei’s first-level budget follows the logic of natural business flow, that is, from customer value to market units, product units, and other business units. This generation method follows the logic of the value chain and does not follow the logic of an organization. Will change and change, which guarantees the direction and effectiveness of the budget from the main process, and the macro structure of the budget is stable. Huawei’s specific approach is: First, take customers and customer value as the starting point for budget generation. Money can only come from customers, not self-entertainment.

Secondly, when budgeting for the market, products, and various business units, we must make it clear from the point of opportunity to the order. Everyone should make a point. If there is a quarrel, it is to find opportunities and quantify goals more around customers, not Compete for resources.

Thirdly, the market, products, and business units must have unified thinking on their business goals. The business goal is to meet customer needs and create value for customers, and profit is only the result of business. Huawei’s second-level budget adopts a method of splitting meals and flexible management and control, which not only ensures the realization of opportunity points and goals, but also ensures efficient resource allocation. Huawei’s specific approach is:

First, the resources of each administrative organization must be effectively matched with the objectives, the objectives must be traction, the allocation of resources must be reasonable and realistic, and the execution control must be flexible.

Second, the output can be set at 100%, the traction target must be achieved or even exceeded, but the resources must be matched at 90% to ensure the stable operation.

Thirdly, if you see the possibility of 100% completion during execution, you must boldly add resources. If you see that 90% is not achieved, you must control the resource allocation.

Fourth, the implementation of operational responsibilities, that is, the plan and budget will ultimately be implemented in various administrative organizations, and carried by organizational performance and incentives, to achieve closed-loop management.

In addition, Huawei believes that meeting the company’s strategic investment in the medium and long-term development will cost the current money, and the current money must come from the current operating profit.

3. Do a good job in front-end “throat lock” management

“Resources should be used to find goals, find opportunities, and turn opportunities into results.” Many people don’t understand Huawei’s simple sentence because it is from It is not straightforward enough to speak positively. We have all seen the scene of a lion chasing its prey on the African grasslands. The first action of a lion catching up with its prey is to lock its throat. The neck is one of the softest parts of an animal’s body, and it is also where the fate lies. Only when the throat is successfully locked can there be a feast for the lions. This is the real meaning behind the above sentence.

The so-called goal and opportunity management is actually a lock-in. Huawei’s joint innovation with customers is to lock the throat deeply, that is, you can’t let the “prey” neck stretch out and then lock it, because the customer has already defined the needs, and it is very troublesome to change it. Once the front end locks the throat successfully, a lot of useless work can be done less in the whole process and save a lot of cost. This is the mystery of the lock. Of course, people with cost thinking can’t think of this.

Huawei’s experience and practices in resource matching goals and opportunities have 4 points.

First, in areas where the customer share is high but the growth is slowing down, Huawei regards it as a “granary” and “Taurus” business, and resources should be allocated to value customers, value countries and mainstream products first, and continue to maintain scale advantages , To maximize growth at a certain level of profitability.

Second, Huawei regards areas with high customer share and high growth as its future “granary” and current “star” business. Huawei does not engage in egalitarianism in resource allocation. Instead, it concentrates its superior resources on strategic growth points, continuously expands its advantages, establishes a brand in the high-end field, and builds a scale in the low-end field.

Thirdly, in areas with low customer share and high growth, Huawei has some non-main channel businesses. This resource occupation must be implemented in business objectives and closed-loop management assessment. This does not mean that it is not the main channel to not do it, but do not expect the company to invest a lot of money in this field. If this field