At the core of organizational change, there are three points.
Editor’s note: This article is from WeChat public account “Note Man” (ID: Notesman), the author appreciates Xiaoxia.
Content Source: On October 18, 2019, the “Digital Economy Era: Reinventing Organizational Power – Cum Cloud Class Upgrade Release” forum hosted by Taobao University Cloud Classroom, < Strong>Cui Yesong, general manager of Yalu Operation Co., Ltd. gave a wonderful sharing entitled “From Traditional Organization to New Organization – Yalu Digital Empowerment New Organization Practice”.
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How do traditional companies achieve the Red Sea breakout?
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What is the core of organizational refactoring?
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How does the company empower employees?
The topic I shared with you today is from the traditional organization to the new organization – the practice of Yalu digital operations. My sharing revolves around three keywords: breakout, refactoring, endogenous.
Our Yalu is a long-established clothing company. Founded in 1972 and headquartered in Suzhou, it is one of the earliest representatives of township and village enterprises. It is also a typical representative of the township and village enterprises in the South Jiangsu model.
As the market develops, we must constantly change, and change will bring about organizational restructuring and even reorganization. The core of organizational change, in addition to organizational restructuring, may be the adjustment of business models and production supply chains. The so-called endogenous, the core is human development and training.
First, break through
Why do the first keyword break out? Because the market is changing very fast, especially in the past 5-10 years. Specifically in these three aspects:
1. Supplier changes
The cost of raw materials for suppliers is rising, especially as environmental protection policies are becoming more stringent and the prices of excipients are rising. However, the price of clothing retail did not rise, but fell. Moreover, suppliers are increasingly concentrated, bringing homogenization of products.
2. Changes in competitors
Our main business is to do retail, and there are also some e-commerce. Retail is a mode of chain monopoly, mainly based on offline stores.
The retail competition of offline stores has been red sea and ecological. It is not a competition between a company and a company. It is a competition between a group of organizations and a group of organizations.
E-commerce has grown rapidly in recent years, with more than 300 billion transactions in the “Double Eleven” last year. New retail has become a norm. In the supply chain, the industry is generally concerned about flexible supply chains.
3. Customer changes
In the past five years, the proportion of clothing consumption has dropped by about 2%, and there are five major trends in new consumption. Customers need comfortable, easy-to-wear and relatively affordable products.
This is a big challenge for us. Moreover, consumers, especially the new middle class, have very high quality requirements, and they also require moderate prices, and more prominent is the price/performance ratio.
At the same time, intruders are highly competitive, and many regional brands are hitting traditional clothing companies.
As the market changes, the traditional model is no longer adaptable. As an old brand, Yalu has already solidified its brand image, and it has been difficult to change with the breakthrough of traditional organizational strength. At the same time, we have a lot of room for improvement in our internal management capabilities and organizational performance.
Second, refactoring
The core of refactoring is organizational change, the first element is organizational upgrades. There is a complementary relationship between personal, organizational, and corporate capabilities within the organization.
In 2014, Jiangsu Yalu Brand Operation Co., Ltd. was established, carrying the heavy responsibility of the transformation and upgrading of the group company. From its inception to the present, we have nearly 700 stores spread across the country.
The transformation of Yalu includes four aspects: from traditional organization to digital organization, from heavy assets (previously doing clothing, more investment is fixed assets, plant, land, equipment, etc.) to light assets (brand operation) The transformation has shifted from the former wholesale agent to the current retail operation, from a single product to a four-season product, and both men and women have it.
Characteristics of digital organization include:
First, from the perspective of driving force, the previous organization may be driven by instructions, and the new organization is driven by digital.
Second, from the perspective of structure,The previous organization relied on a pyramidal organizational structure, and now it is more flat and networked.
Thirdly, from the perspective of production methods, the original organizational production methods are more centralized and scaled. Nowadays, due to changes in consumption levels and changes in consumption channels, the characteristics of individualization and regionalization are becoming more and more obvious.
Fourth, from the perspective of management model, it used to be people-centered, and now more about knowledge and data.
1.Digital drivers
Our company’s internal back-office management system, using nails, cloud classrooms, internal attendance and internal communication, meeting arrangements, mail delivery, are achieved through nailing, including live broadcast through nailing .
Process management and approval is achieved through OA (Office Automation).
The HR system is mainly for employee management, compensation management, salary settlement, and so on. The middle office includes ERP (Enterprise Resource Planning), CRM (Customer Relationship Management), PLM (Product Lifecycle Management), WMS (Warehouse Management System) system, etc., which is the basis of our digital driving.
2. Flattening the organization
To achieve rapid response, agile flattening is the first element. We have three systems – function, marketing and support, six business departments and small combat units to achieve rapid response.
The functional system, including the General Manager, Human Resources and Financial Management Department, is more to do background work. The marketing system is to bring soldiers to fight to make money. The support system includes a product R&D center, a resource management center and a warehousing and logistics center, which provide protection for the front snoring.
3. Personalization and regionalization
We have two solutions. One is the supply chain. The internal systems we use today are horizontally looking at order systems, supply chain systems, supply chain collaboration and smart manufacturing. Intelligent manufacturing we are still groping, and others have been realized.
Vertical product design system PLM, smart storage system WMS. In this way, the production time can be shortened as much as possible, and the customer’s demand can be quickly responded to, and the customer’s demand can be turned into a product in the shortest time.
Second is logistics.
Our stores are located throughout the country, and the need for warehousing logistics is very high. We currently have about 110,000 square meters of warehousing and logistics. Last year, we built a smart logistics. After the completion of the project, there will be about 300,000 square meters, which can support about 10 billion yuan of sales.
Three, endogenous
The ability of an organization depends on the improvement of team abilities, and the improvement of team abilities depends on each individual.
In turn, individual ability improvement supports the improvement of team ability, and the improvement of team ability supports the development of strategy and the improvement of overall performance. This is a cycle that complements each other.
Energy organization, we are divided into four steps. The first is knowledge extraction, the second is empowering employees, the third is enabling ecology, and finally the performance is improving.
1.Knowledge extraction
Energizing organizations or empowering employees, the core concept is knowledge management. The management of knowledge is to summarize the various experiences, lessons, failures of employees, and to help him to solidify, and finally let employees apply at work.
The principle we follow is from the masses and the masses.
Knowledge crowdfunding is to summarize a lot of excellent experience into courseware, one small module. The deep touch is to make this knowledge work for employees through cloud classroom or online and offline integration. He wants to help him solve problems when he wants to use it, and finally solve the problem.
The endogenous extraction of knowledge is mainly from the internal trainer. Enterprise schooling, school enterprise, this is an inevitable trend.
Many companies are now more and more like schools, and many schools are becoming more and more commercial. All of our courses are developed by in-house trainers to best match our current situation and needs.
There are no good or bad problems in the course. The core is that there is no effect. Only the requirements are the most useful. With good courses and good lecturers, you can have good talent incubation and training.
The endogenous lecturer hatches the endogenous curriculum, the endogenous curriculum has nurtured endogenous talents, and the endogenous talents have also stored endogenous lecturers. This is an inner loop.
On the other hand, endogenous lecturers can bring and teach endogenous talents, endogenous talents match endogenous courses, and endogenous courses have spawned in-depth lecturers. It is a two-way cycle. Only by putting this in place can the endogenous extraction of knowledge be realized.
2. empowering employees
Energizing organizations and empowering employees is actually a concept. The core of empowering organizations is empowering employees.
How to empower employees? The first is hierarchical grading training, the second is online and offline integration, the third is full-staff training, and finally the landing guarantee.
The core of hierarchical grading training is to teach students in accordance with their aptitude. Everyone has the abilities and qualities of everyone. It is definitely a problem to teach with a big unity. Many students taught in the school have to go back to the society because they have learned a lot of things that are universal and not targeted.
For example, there are different levels of salespersons, store managers, large districts, etc. The training content of different levels is different. This is hierarchical and layered training.
For example, the sales executives are divided into primary, intermediate and advanced. The senior supervisor class is from the general manager or director of the operation center. The focus of the training is comprehensive ability, because he needs more leadership and management. The improvement of ability.
Online and offline integration, mainly relying on cloud classrooms, the core is four big blocks:post study, self-learning, assignment learning and live learning.
A lot of job learning is a matter of knowing and you need to use your spare time to study, such as job operation, role understanding, basic sales skills, and so on. This requires learning by yourself, and it will take 100% of the exams to pass.
Self-learning, more is to enhance the learning of the class, including preparation for promotion.
Assignment learning is mandatory, and statistics, notifications, and rewards are required for learning outcomes. For example, this week’s product week recommendation, including our product manual, internal standardization and so on.
The cloud classroom can realize the end-to-end pull-through from the product end to the sales end, enabling seamless communication of information, especially the four-year product knowledge manual is seamlessly transmitted to all stores.
We also have an end-to-end concept, because from the beginning of product development, to planning, to the final store to achieve sales, the cycle is very long, how to make the planned products in the store according to our plan to sell, it is very difficult and very difficult.
Live learning is based on a few single-point tasks that extract excellent experience.
There are some invisible knowledge that can’t be expressed in words. For example, every season new product is released, you can’t say it to everyone, only the actual feeling, live broadcast.
There are still some practical exercises. For example, when our ERP system is online, one or two sentences are unclear. We can only continue to show it to him.
Offline is a supplement to online training, includingThe annual store manager’s meeting, the newly promoted store manager’s competent training, the professional store manager’s training, the new employee training, the regional self-training, etc., are all realized online.
Online training is not limited by time and space. It can make full use of the fragmentation time of employees. Nowadays, the use rate of mobile phones by employees is very high, and the training content is placed on the mobile phone and employees are willing to accept it.
Offline training can help employees improve and advance. Ultimately achieve online and offline integration.
Our direction is to become a learning company and build a learning organization. The whole staff will arrange training plans throughout the year, which will be implemented at the end of the quarter.
To achieve empowerment, you need four guarantees. The first is strategic protection, the second is organizational security, the third is teacher security, and finally the landing guarantee.
Strategic assurance is the number one project, and the general manager must personally grasp it.
Organizational protection is mainly the establishment of human resources terminal training department. In the future, we want to establish Yalu Business School. There are internal trainers and external lecturer resources in the faculty.
The landing guarantee is mainly the mentoring system, 531 homework and exams.
The core of the mentoring system is to bring new ideas and teaching. There is a detailed system guarantee for the apprenticeship system. The master must formulate a detailed teaching plan. The company has a detailed assessment of the master. After the completion, it is necessary to evaluate the teaching effect to ensure the effectiveness of the training.
531 means that after each training, there are 531 action plans regardless of online and offline. Every training must be tested, as long as there is training, you must take the exam.
3.Energy Ecology
The core of our entire business is the Yalu eco-chain business model. The bottom layer is the partner system. On this platform, we must empower the franchisees to manage the retail management skills, empower the suppliers to respond quickly to the supply system, and promote the corporate culture of Yalu. .
In June of this year, we found that the decline in the real economy was very obvious. Through data analysis, we came to the conclusion that to maintain the current growth, we must increase the associated sales by more than 30%.
Around this goal, the entire training system starts with the business line, including summary of excellent experience, courseware discussion and formation, internal trainer determination, implementation of hierarchical training, regional training implementation, weekly notification. And rewards and punishments. After three months, we reached our goal.
Our original collocation rate is not high, only 1.5, and now it reaches 2.0, which is a real data. From January to June this year, our team sales still achieved a 15% increase, and profits have doubled.
Yalu is an old company, yaDeer operations is a new company. We started from 0 in 2014 and achieved more than 1.4 billion sales by the end of 2018. In the next three years, I hope to achieve the goal of 2,000 stores and 6 billion sales in 2022.