“All major decisions in Ali’s history have nothing to do with money and values.”
Editor’s note: This article is from WeChat public account “ Human Resource Sharing Sink ” (ID: hrgogogo), author HRGO.
Ali updated the new value system three months ago, and the old and new values were changed once (as shown below).
“All major decisions in Ali’s history have nothing to do with money and values.” This is Jack Ma’s definition of Ali’s values status.
From the past “Dugu Nine Swords” and “Six-pulsed Divine Sword” to the current “New Six-pulsed Divine Sword”, they are all looking for a group of fellow travelers who share similar beliefs.
Then the question is, how can we evaluate this new set of values?
Alibaba’s “New Six-pulse Excalibur” assessment method:
Let’s first look at the evaluation method of the old “Six-veined Excalibur”, taking the two dimensions of customer first and embrace change as examples:
Each quarter’s five-point KPI evaluation is based on 1-5 points on employee performance. When evaluating values, the main criteria are the fit with company values, the positive impact on their team, and Cooperation with other teams.
Evaluates 1-5 points based on the actual performance of employees.
But after this change, the form of assessment will be changed to:
1. Compare the behavior description of each value
2, 1 point for compliance, 0 point for non-compliance, no 0.5 point
3. “Serious life, happy work” is advocated, no assessments
4, 5 core values, each 4 behavior descriptions, totaling 20 behavioral assessment total scores
Alibaba’s upgraded values, each detailed and clear “behavior description” for self-evaluation and other evaluations. The form is as follows:
The specific form of Ali’s assessment:
Assessment content: 50% each for performance and values
Frequency of assessment: quarterly assessment mainly
Department sorting: 2-7-1 sorting
Personal sorting: 3-6-1 sorting
Assessment tool: KPI led
Elimination criteria: two consecutive quarters, becoming the last 10%
Promotion criteria: KPI reached 3.75 in the previous year (see below for score definition)
Basic annual salary: 14-16 months, more good teams
Determining the goals: The company leaders determine the big goals, and the goals are generally very high. For example, the goal is 1 billion yuan, the completion of 600 million is basically up to the standard, the completion of 800 million is in line with expectations, and the completion of 1 billion is beyond expectations
Tracking target: After KPI, it is divided into 4 quarters, each quarter is divided into months, weeks, and some departments arrive at day. There is a weekly meeting every week, and a weekly report every week. Everyone will have a look at the completion of their goals. If you have not completed it, you need to make your own remediation plan.
Evaluation format: Three-to-one assessment. For example, you are a manager, the superior is the director, and the director’s superior is the vice president. When the director is evaluating the manager, the vice president must participate, and the human resources of the corresponding department must be added, so as to prevent “one word”
Result reward: according to the completion of the goal: if the standard is basically met, the basic bonus and red envelope are few or no; if it meets expectations, there will be bonus and red envelope, and the top 20% of the team will have a chance to riseSalary increase; if it exceeds expectations, bonuses and red envelopes will be large, the department will also beat the gongs and drums, year-end awards will increase, and the top 20% of people in the department will definitely be promoted and increased.
How tightly Ali is currently grasping on values:
Ma Yun once issued instructions to the HR department: We must strictly control recruitment, recruit outstanding talents, and attract those who “like Ali”. The so-called “people with the same taste as Ali” are those who agree with Ali’s values.
In the past, there was a salesperson who could generate more than 20 million sales for the company in a year. But because of false information on the customer records visited, it is a violation of integrity. Although the client deliberately came over to explain and intercede with him, the person was fired.
Values seem to be deceptive, but they tell employees what the company’s bottom line is, and what are the rules for what we do internally. It is like the function of traffic lights and zebra crossings, regulating you to the left or right in the process, ensuring that you are not biased, but giving you some flexibility, which is the biggest feature of Ali’s performance assessment.
If there is a consensus on values, consensus must be adhered to, and there must be constraints if you want to abide by it. This is Ali’s overall assessment guidance.
The specific application of values:
In Ali, the way of evaluating values: self-assessment and other assessments. Adopts three levels of standards:
A file: Transcendence has an impact on the team and integration with the organization is widely praised. Belonging to the benchmark
File B: The performance of words and deeds meets the requirements of Alibaba’s values, and the overall is a qualified Ali.
C file: lack of basic quality and requirements, break through the bottom line of value, improve or leave according to different levels
The two consecutive assessment cycles are in the C range, and they will definitely be eliminated.
Each department will pay special attention when evaluating values: pay attention to the details of daily work, those small acts, and the basis for all assessments must be time, place, event, and comment. Rather than pat the head to determine whether the person’s values are qualified.
↑ Alibaba Value Evaluation Model
Ali performance assessment rating:
Ali said that Ali is abandoning KPIs and enabling OKR. Most of Ali’s departments still use KPIs, and very few R & D departments are trying to use OKR, and they are just trying.But OKR has been criticized a lot during its current use.
As long as you look at Ali’s evaluation of values, you know that OKR wants to be popular in Ali. At present, it is simply not feasible.
The core of the formulation of Ali KPI: the company’s interests, departmental interests, and employees’ interests are three in one. The performance scoring standards are divided into six levels, which are:
3 points: disqualified
3.25 points: Need to improve
3.5 points: as expected
3.75 points: some exceed expectations
4 points: consistently exceed expectations
5 points: outstanding
The overall proportion is 361:
-
3 points-3.25 points account for 10%
-
3.5% is 60%
-
3.75-5 accounts for 30%
At present, only about 10% of employees can get 4 points in performance evaluation. It is difficult to get 4 points. It means not only 12 points of effort, but also something to come and solve important problems. In Alibaba, you can get 5 points at a time and you can play for a lifetime.
The basic logic of Ali performance compensation:
1. Pay for the result (award), applaud the effort (excitation)
2. Appreciate valuable failures and reward efforts to persist in achieving results
3 or 3 people do 5 people’s work and get 4 people’s salary
4. Processing capital is a new and higher requirement for your position.
5. For those positions without salary adjustment, we must first improve its role and value
In Ali, the logic of wages, bonuses, red envelopes, and equity is very clear: Wages are the cost of the company’s employee time; bonuses must be paid when employees exceed the company’s expectations, not everyone. Red envelopes are issued only if the company has one or more particularly encouraging things. Once the red envelope is issued, everyone has it, and it varies in size. Equity is an investment in personal potential. If he has five years later, he will give equity, of course, when the position is graded, it will be pulled up.
We have drawn a table, everyone feels:
Ali’s specific salary:
Collection of Alibaba positionsThe salary level and the number of shares under the level system, please refer to the following table for details:
Over time, Alibaba has shown opposite trends in salary and stocks. The salary has increased significantly, while the number of shares granted has decreased significantly.
About 7 years ago, an Ali P7 employee could get 2400-3200 shares, and now the number of shares granted at the P7 level is 800-1200 shares. It also takes 2 years to complete the work and can be completed in 4 years.
The specific reason is that Ali’s stock is getting more and more valuable.
Ali’s requirements for human resources
Alibaba is the Chinese company with the highest market value at present, with a market value of more than 450 billion U.S. dollars, and at one time more than 500 billion U.S. dollars, it also gave birth to Ant Financial, the world’s highest-priced unlisted company.
Therefore, Ali also has very high requirements on human resources. The most important thing is that you have solid and comprehensive human resources management skills. They are responsible for establishing guidance, optimizing mechanisms and processes, promoting continuous management improvement, and inspiring. Responsibility for organizational vitality.
In Ali, HR understands business is very important, but the premise of understanding business is still to understand professional. If an HR does not understand professional, it will die faster. In addition, if HR is accustomed to working on the extension line, accustomed to working with the original management experience, lacking the consciousness of actively breaking the boundaries of responsibility, without the determination to grasp the end, it will be quickly eliminated.
As a result, assessments will always change with changes in business and strategy. No one assessment is static.
3 points-3.25 points account for 10%
3.5% is 60%
3.75-5 accounts for 30%
At present, only about 10% of employees can get 4 points in performance evaluation. It is difficult to get 4 points. It means not only 12 points of effort, but also something to come and solve important problems. In Alibaba, you can get 5 points at a time and you can play for a lifetime.
The basic logic of Ali performance compensation:
1. Pay for the result (award), applaud the effort (excitation)
2. Appreciate valuable failures and reward efforts to persist in achieving results
3 or 3 people do 5 people’s work and get 4 people’s salary
4. Processing capital is a new and higher requirement for your position.
5. For those positions without salary adjustment, we must first improve its role and value
In Ali, the logic of wages, bonuses, red envelopes, and equity is very clear: Wages are the cost of the company’s employee time; bonuses must be paid when employees exceed the company’s expectations, not everyone. Red envelopes are issued only if the company has one or more particularly encouraging things. Once the red envelope is issued, everyone has it, and it varies in size. Equity is an investment in personal potential. If he has five years later, he will give equity, of course, when the position is graded, it will be pulled up.
We have drawn a table, everyone feels:
Ali’s specific salary:
Collection of Alibaba positionsThe salary level and the number of shares under the level system, please refer to the following table for details:
Over time, Alibaba has shown opposite trends in salary and stocks. The salary has increased significantly, while the number of shares granted has decreased significantly.
About 7 years ago, an Ali P7 employee could get 2400-3200 shares, and now the number of shares granted at the P7 level is 800-1200 shares. It also takes 2 years to complete the work and can be completed in 4 years.
The specific reason is that Ali’s stock is getting more and more valuable.
Ali’s requirements for human resources
Alibaba is the Chinese company with the highest market value at present, with a market value of more than 450 billion U.S. dollars, and at one time more than 500 billion U.S. dollars, it also gave birth to Ant Financial, the world’s highest-priced unlisted company.
Therefore, Ali also has very high requirements on human resources. The most important thing is that you have solid and comprehensive human resources management skills. They are responsible for establishing guidance, optimizing mechanisms and processes, promoting continuous management improvement, and inspiring. Responsibility for organizational vitality.
In Ali, HR understands business is very important, but the premise of understanding business is still to understand professional. If an HR does not understand professional, it will die faster. In addition, if HR is accustomed to working on the extension line, accustomed to working with the original management experience, lacking the consciousness of actively breaking the boundaries of responsibility, without the determination to grasp the end, it will be quickly eliminated.
As a result, assessments will always change with changes in business and strategy. No one assessment is static.