The unprecedented growth rate of Chinese enterprises is the pride of the country. However, economic laws reveal that these growth cannot be guaranteed and realized without sustained competitive advantage. In China, we have seen some failed enterprises. The number of these failed companies is enough to arouse our vigilance, and many are on the verge of bankruptcy. If the management is willing to introduce modern management methods and processes, many failures can not only be avoided, but the company still has the opportunity to achieve higher development. Mr. Zhang Landing, Vice President of Siya Investment, introduced this to reporters.
"The most attractive part of Siya is that they can implement all the plans and plans. Our company has been developed to this day and has a history of ten years. While entering a new stage of rapid development, a new'change' is needed. Siya is the promoter, helping us to move towards a standardized, systematic and modern company." Saiya Investment once helped the general manager of a technology company commented.
"In addition to capital, what else does the company need, and what else can we bring to the company?" This is the sprout of Mr. Zhang Landing's establishment of the asset operation management business. The asset operation management model has precedents in Japan and Europe, and the development is mature. The Mitsui Consortium, which has a sophisticated layout in various industrial chains, is called the "industry organizer" and has important members such as Toyota, Toshiba, Panasonic, Sanyo, and NEC. Mitsui Consortium invests and shares in companies everywhere. As early as 100 years ago, Toyota was a small factory manufacturing textile machinery. The Mitsui Consortium brought Toyota to Europe and the United States to learn about automobile manufacturing technology and open the door to Toyota. Nowadays, such as the Mitsui Consortium’s asset operation and management model also appears in China, and Siya is the pathfinder and innovator of this new model.
Sia Investment is an innovative equity investment company dedicated to corporate asset operation management and a professional organization that turns losses into profits. It has excellent asset operation and management capabilities. It is also an early professional organization engaged in turnaround business in China. In the overall process of asset operation and management, Siya takes partners as the carrier, and provides innovative, personalized, butler-style customized smart services based on the concept of creating long-term value for partners, tailored to partners Customize the overall solution and organize the implementation to ensure that partners obtain long-term stable income and significant competitive advantages, and share the high capital gains and development opportunities brought by the booming economy. Currently, Siya Investment has successfully provided asset operation and management services for many companies.
Mr. Zhang Landing told reporters, what challenges will high-growth companies face? Below we provide five common reasons:
First of all, the expansion decision made by the company’s managers is based on impulse, not on the company’s resources and capabilities, external market and economic analysis. In many cases, the strategy of business expansion stems from the personal ambition of the business owner rather than the true understanding of the company’s resources and capabilities. The result is that the company attempts to manufacture products or services and sell them to the market without the necessary development strategy guidance, which often leads to The company is in danger. In the past, it was this entrepreneurial intuition that made the company what it is today, but it is no longer sufficient to guarantee the company’s future growth and the environment changes so drastically, unless there is a corresponding assessment of the market, the company’s capabilities and its resources and capabilities. .
Another reason for the failure is the reflection of the reasons mentioned above: the company borrowed a lot for expansion, and repayment of the loan used a lot of the company's working capital. In addition, fast-growing companies usually face financial management problems. A large amount of arrears has changed from overdue unpaid to bad debts. There is no reason not to establish a more modern credit analysis method and use it to evaluate potential customers to avoid a credit crisis.
The third reason for the failure of high-growth companies is that the growth of operating expenses is out of control. Business trips, entertainment, increase in personnel, new real estate, luxury cars, mobile phones, all of which are easy to find justifications, but when you add up each item, you will find that the total profit loss ratio of the company's business (P /L) accounts for a significant proportion. It is necessary to manage operating expenses reasonably and establish a clear set of rules and regulations to monitor it. When growth enters a rapid phase, a related problem is that bureaucracy has become routine.
The fourth reason for the failure of high-growth companies is the lack of ability to listen to customers and make rapid improvements. Shipment and fulfillment of orders often lag behind sales, which keeps customer satisfaction down. The problems caused by the mismatch between business sales capabilities and the company's comprehensive capabilities must be resolved in time. If it is delayed, it is very likely to cause disruptive destruction to the company. It is necessary to establish a supporting management and control system to improve the corresponding capabilities. This requires the company to have a strong "realization" ability to be able to say and do it.
The fifth reason for the failure of high-growth companies is that the employees of the company do not grow with the growth of the business. Employees at all levels need education, support, training, encouragement, and appropriate rewards in return, so that they will continue to be loyal to the company and support its future development. With the continuous development of the company, when the company faces risks, they will take the most reasonable response to the company's risks. If you want one year of success, cultivate crops; if you want ten years of success, cultivate trees; if you want a hundred years of success, cultivate talents.
Asset Operation Management
"As a company, what we need is not only to be able to help us answer and consult questions, but also to help us execute. The advantage of Siya is that we can put everything to the ground, and teach our personnel how to do it in the process, and truly manage and operate The skills are handed over to us, which really helps us to establish the system and implement it. Siya has a very keen awareness and judgment on the development of the industry. This is also the reason why Siya moved us. We contacted many companies at the time, and finally chose Siya Asia." The general manager of a technology company in Shanghai told reporters.
The technology company is a high-tech engineering company specializing in providing high-purity fluid delivery system solutions and system integration for customers in high-tech fields such as solar energy, semiconductors, optoelectronics, liquid crystal panels, microelectronics and biopharmaceuticals. The end of 2010 was in a period of rapid development of photovoltaic and semiconductor industries. Due to the company's internal management problems, the company's market share continued to decline, from the initial 72% market share to 51%, and the company's "realization" ability could not keep up. Market requirements, internal management is relatively chaotic, and service and quality continue to decline. At this time, competitors' market share is growing rapidly. The company is facing a situation where customer satisfaction continues to decrease and orders cannot be completed.
How to realize the standardization of enterprises and improve the efficiency of their own enterprises in the fast-growing industry, maintain the original market share, improve the management skills and execution ability of personnel, and keep up with the pace of industry development is all high-growth enterprises are thinking The problem.
Before the contact with Siya, this technology company, like most similar companies, had an order-oriented profit model that made it more extensive in management. However, after working with Siya for eight months, the general manager of the technology company likened Siya’s team to coaches in management, operation and team path planning: "During the communication with Siya, I realize that although high-growth industries can drive the development of enterprises, for enterprises, they need to solve some internal problems in order to go further in the industry and develop better. Private enterprises start with brutal growth. Winning depends on who first embarks on the path of standardization and systemization."
Mr. Zhang Landing mentioned to reporters that the main purpose of asset operation management projects similar to this technology company is how to help companies achieve goals higher than the overall growth of the industry during the rapid growth of the industry. Such projects usually include four aspects:
Clarify the company strategy and matching organizational structure
Improve the company's management control system and straighten out the company's management
Complete transfer of knowledge and skills of personnel
The establishment of the operation and management team assists the general manager of the company to complete the smooth transfer and handover of management power, so that the general manager can have more time to engage in strategic work instead of immersing himself in the trivial work of daily management.
Mr. Zhang Landing mentioned to reporters that when contacting a high-growth company that needs to improve its operation and management capabilities, the first thing Siya has to do is to evaluate. We will send a team to this company to conduct due diligence. In addition to the traditional "Financial and Tax Due Diligence" and "Legal Due Diligence", we have added a more in-depth "Business Due Diligence" for companies, including our It is necessary to understand the industry situation in which the company is located, the company's strategy, the company's competitive strategy, the degree of establishment of the company's management control system, and the working status of the daily value chain. Through business due diligence, a detailed physical examination of the company’s ups and downs, including the company’s strategy, management, production, suppliers, sales, human resources, etc., was conducted, and a comprehensive analysis was conducted to make an objective view of the company. , The overall assessment, at the same time, can find out the various problems that exist in the enterprise.
The reporter asked immediately, asset operation management is mainly through the establishment of a management control system to improve the company's internal, why spend a lot of time during due diligence to understand the industry in which the company is located? Mr. Zhang Landing replied: "According to our company’s research on corporate profitability model, it can be clearly stated that 50% of the reasons why companies can make money are from the industry, 30% from the socio-economic environment, and only 20% from the company itself. The model explains why coal bosses can make money. The reason why we spend a lot of time researching the industry during due diligence. The first is that we analyze and predict the market size and development status of the industry in which the company is located. , The average profit of the industry, the development cycle of the industry, and the upstream and downstream conditions are closely related to the development of the company. The second is that by studying the industry situation, we can quickly learn and integrate into the industry, and will visit Some experts and technicians related to this industry ask them for advice and learning; the third is that by understanding the situation of the industry, we can understand the future development trend of the industry in a timely manner, and help enterprises to adjust and respond to strategies as soon as possible. After the situation of the industry, we asked our team members to have a more comprehensive understanding of the industry than those who have worked in this industry for many years. After the due diligence, we clearly knew the industry of this high-growth company How did it evolve and how the industry was subdivided? When talking to a very senior professional in the industry, and hearing us explain the origin and development of this industry, I asked: "How many are you in this industry? Years? ", our team replied: "It's only 10 days." The other party exclaimed in amazement: "What kind of team do you really know about this industry in such a short period of time."
After the introduction of the business due diligence, our team will issue a "360-degree evaluation report of the company" based on the situation of the due diligence, just like a personal physical examination report, which details the company’s top to bottom Various status quo and problems, even if there is a fire extinguisher in a workshop. Then, according to the "Sia Asia 360-degree Enterprise Evaluation Report", a set of "Management Control System Improvement Plan" is tailored for the company. To help the company establish a management control system and achieve high growth, seven problems must be solved:
Strategic planning and goals
Functional strategy and goals
Management and control system establishment and optimization
The problem of internal control
The problem of team integration
Value chain related issues
Human resources related issues
The Siya team conducted a detailed analysis and elaboration on the above issues, judged whether the company's overall direction is deviated, then revised the company's corporate strategy, and clearly formulated the company's competitive strategy, starting from the company itself, and focusing on the entire industry Enhance the competitiveness of enterprises and become the "third eye" in the development of enterprises. Mr. Zhang Landing introduced to reporters that these problems are not single, but an inseparable part of the enterprise value chain. All problems are not single, and cannot be treated in the traditional way. Ways, such as: finding that the engineering department is slow in construction and urging the engineering department to solve the problem. Although it will get better in a short time, if the problems of construction staff recruitment, skill training, and standardized construction are not resolved, the problem of slower construction after a brief period of tension is still It will be exposed again, and the problem will be more serious at that time.
The traditional turnaround project is a very mature project for Siya. The company is already in the worst case, and all adjustments will be beneficial to the company; but high-growth companies are completely different, just like in the 100-meter sprint How to perform surgery on athletes without affecting the business, and at the same time solve the problems of the company, is the difficulty faced by the Siya team. Therefore, the main difficulties of this project are:
The workload is huge but the time is short. There is a lot of coordination, discussion and confirmation in the project;
Only the high degree of cooperation of the enterprise can effectively mobilize various resources of the enterprise;
Depending on the company's history and special requirements, there are many customized solutions and methods in the project;
The project is easy to cause dissatisfaction among managers and employees, because the company itself is at the peak of business and the staff is busy. Adjusting and increasing the workload during this time period are very unwilling to accept the management and employees;
The project is a kind of change for the enterprise. The change has changed people's traditional habits, and it is easy to cause conflicts with the management staff in the process;
The project not only needs to treat the body thoroughly like people drinking Chinese medicine, but also needs to take western medicine, which will have immediate effect.
"Standardized management originated from large-scale social production. The larger the scale of the enterprise, the finer the division of labor, and the closer the collaboration relationship, the more stringent responsibilities, codes of conduct, and work standards are needed, otherwise the coordination of group behavior cannot be guaranteed. And the realization of common goals. As a high-growth enterprise, the biggest problem for an enterprise is how to effectively match resources and capabilities. This matching often has certain problems, and the growth of the enterprise is lower than the average growth of the industry. Therefore, it is necessary to continuously improve the enterprise With its own competitive advantages and qualification elements, it will expand its market share in the industry. In the absence of many basic functions of the company, we classify this type of company as a'functional restoration project'." Mr. Zhang Landing said.
Strategic planning and organizational structure
The management of this technology company did not formulate a clear strategic plan. The strategy only stayed at the stage of "calculating in the heart", and it changed when it changed. In the process of implementing specific work items, managers and grassroots employees perform and complete tasks in full accordance with their own understanding. The company's vision, strategic planning, and goals are basically in a vacuum, and there is no unified course of action for the company. In response to this situation, the Siya team