this is the extract from an article, originally written in chinese, here I give credit to who(m) wrote this. this is the english version, translated with google translator
How to respond actively during the crisis? 8 suggestions for improving the management thinking ability of all employees
The following article is from HR empowerment workshop Author Zhang Xiaofeng
- Text / Zhang Xiaofeng , Vice President of Huaxia Cornerstone , Founder of HR Empowerment Workshop
- Source : HR Empowerment Workshop (ID: HR-empowerment)
- Huaxia Cornerstone e Insight has been authorized, the article only represents the author's own views
Looking back , the prediction of the epidemic in February was still too optimistic. At that time, it was thought that under the strong control of the government, the epidemic could be quickly controlled. Once the demand pause button was replayed, it would immediately produce a retaliatory rebound, so there was some optimism about the economic situation throughout the year.
In March, the situation changed drastically. The significant effects and valuable time windows brought by the successful experience of strong domestic control failed to effectively alleviate the spread of the global epidemic. Many countries have become "in the epidemic", US stocks have taken the lead in various countries' stock markets, and numerous countries have "closed their doors". The global industrial chain has been affected. The United States has lost more than 10 million people in two weeks . CICC predicts that China ’s annual GDP growth will decrease To 2.6%, the global economic recession is a foregone conclusion .
The focus of everyone's attention is from when the country will resume full production and production to how to be alone in the global economic recession .
A friend asked me how to survive and survive in such a situation. I said that the big brothers have given a lot of advice. To sum up, it is nothing more than :
Full-person marketing, hot pursuit of customers, and alliances between different industries; dead cost, improved efficiency, adjusted capital structure, attracted investment; business partnership, crisis culture, good at asking for help .
However, I think the best defense is offensive. Faced with an extreme environment that has not been encountered in a hundred years, we must face the problem squarely, face the difficulties, strengthen our confidence, and overcome the difficulties. After clearly judging the environment in which the enterprise is located, it is necessary to have the courage to face difficulties and the confidence to overcome the difficulties. It is necessary to believe that even the cold winter of the Cretaceous period will not affect the reproduction of many species. So the life-saving survival guide, although valuable, is far better than calming down, reorganizing the team, blowing the horn, and breaking through. Turn the crisis into an opportunity and usher in a new life .
Combining some of my own experience, I will give you eight suggestions for transition breakthroughs, I hope it can help .
01
The main business is to do fine, special and strong
The essence of strategy is not war, but strategy. The most valuable resources of an enterprise should be placed in the areas where it is most likely to generate value, focus on generating pressure, and pressure to form a breakthrough potential, and use " Van Fleet Ammunition Amount" to tear open a hole and win a hill. This is why Huawei insists on carrying out saturation attacks on the main channel, why Tencent keeps adding to the social field, and why Ali keeps pouring resources into the e-commerce field. The main business is the "1" in the front, and the main business is not stable. If there is more "0" in the back, it can't stand the scrutiny and toss . The "1" falls and everything goes to zero .
But many companies, just like suffering from ADHD, always want to find a " second curve" to drive companies to a new level. Looking at this industry is promising, looking at that industry is very impulsive. With hundreds of millions of scales, I want to expand the entire industry scenario. Ten billions of revenues want to extend the industrial chain and build an industrial ecology. In the end, resources were invested, and the activity was very lively, but it had no effect, and I had to re-find a new "second curve". After so many rounds, the main business of the enterprise was tossing enough.
Therefore, in the crisis period, if you want to survive, want to break through, and want to transform, you should focus on the main business and dedicate yourself to it, give priority to investing talents and resources in the main business, and give priority to thinking about where the main business is improved and upgraded Give priority to finding value for customers from the main business. Do a good job in the main business, insist on value as the king, clarify customers and their core needs, create value for customers, and allow customers to enjoy better quality and best cost-effective services.
You know, and then the external environment is not good, as long as the industry is still, in terms of overall customer demand is still there, only the main industry to do the fine, do not be replaced, become the industry product leader & technology , only the " winter " Cotton coat ", truly face all kinds of crises and remain calm and unhurried .
In the past, due to information asymmetry and imbalance between supply and demand, companies that falsified, sub-charged, and overcharged still had a place to survive. When the crisis came, they would only find out who are the " naked swimmers" and "Mr. Dong Guo", and who are " Make a tide. " The digital age is an era in which good coins drive out bad coins. If you do a good job in your main business, you will have a foundation for linking and sticking customers. With customers, there is value, and resources and confidence to continue to survive and develop.
What do you do for your main business? Good people, good products, good management, management of customers, talents, and management, to achieve " three good " and " three management ", the main business will be able to do better and stronger .
02
Breakthrough in the layout of advantages
Of course, the main business is to be refined, specialized, and strong. It is not to stand still or to be aggressive, but to lay a solid foundation, stabilize the rear, and provide protection and support for the expansion of new business models .
When the days are not comfortable, there is an impetus for evolution. Therefore, no matter whether the crisis has brought a blow to the enterprise, we should be painful and think about how to break through in an extreme environment .
To choose a breakthrough, we must lay out in advantageous areas . What is an advantageous area? There are certain customer resources, brand recognition, market resources, capital resources, technical resources, human resources and even management resources . Enterprises must get rid of the inertia of " second start-ups" purely relying on "starting from scratch". Entrepreneurship without resources and support will eventually be "giving up."
So, when the crisis period to break, or to choose their own areas of strength to the layout, the upstream and downstream along the industrial chain, to find possible breakthrough " hole" . For example, catering companies, who cannot dine during the epidemic, can cut into the family food supply chain from community buying. In the later stage of the epidemic, even if dine-in is open, a special family business department can be established to promote new business models such as community group purchases, clean vegetable services, and corporate group meals.
How to find a breakthrough point? There are two paths for reference. One is to find new technology application space along the technical path and develop new industries, markets and customers . As an early operator of integrated communications solutions for operators, Huawei has accumulated a large number of ICT solutions in the process of providing services to major operators, and these solutions also apply to other large group customers. Therefore, Huawei has extended its corporate network business from the carrier's business. When testing communication terminals for operators, the technical reserves of the self-provided machines also provided basic technology for Huawei's OEM mobile phones. When Huawei mobile phones were launched, the internal shipments were already millions of units. The accumulation of technology, coupled with the appropriate management team and market operation , " debut is the peak." Therefore, Huawei's "cloud -pipe- end" coordinated strategic move still has a common technical path in its underlying logic .
The second is to find new solutions based on customer needs. In the flywheel model of Alibaba, starting with e-commerce, facing the financial and financial needs of buyers and sellers, a financial solution led by Alipay was derived to promote the flow of goods. The fast-running and continued rookie logistics system of derivative flow & supply chain empowerment, and the double eleven sky flow, also allows Alibaba to have a good technical foundation and Alibaba Cloud platform with opportunities and value. Xiaomi, Tencent, and Toutiao today all continue to breed new formats and continue to make breakthroughs after having massive customer resources.
Our company wants to transform, break through, and start from an advantaged field. This is why the first point of the breakthrough in the transformation is to focus on the main business. If the first point cannot be achieved, the breakthrough in the transformation is tantamount to " one startup "It's hard, it's hard to go to the blue sky.
03
Continue to extend to the client side
"The purpose of business management is only a valid definition, which is to make customers (Drucker )". Therefore, the size of the company's existing value is how much value it can make for customers . The first goal of business is to satisfy customers. In the process of serving customers, growth and gains follow .
How to break through? In what direction? Focusing on the breakthrough of customers and customer needs, we will transform towards the direction of approaching customers indefinitely, and towards the direction of customers' unmet needs, and continue to extend to the customer side .
The US regiment has always admired " Infinite Warfare". What is the logic behind it? It is to provide customers with a "better life" and provide a full range of demand solutions around the customers' "clothing, food, housing, transportation, and play". Because the customers are stuck, Meituan has become a giant.
During the epidemic, what I was most impressed by the actions of many catering companies was not the " crying poor" Xibei and Haidilao, nor the old chicken that broke the petition and occupied the "moral opportunity", but the cloud and sea food that transformed silently. When Hema Xiansheng first proposed the concept of shared employees, Yunhai Cuisine was listed. Unavailable for dine-in, Yunhai Cuisine launched net food services and community group purchases. By building its own private domain traffic, it strengthened take-out services and expanded the list of services such as food ingredients, net food, semi-finished products, braised products, and convenience foods. , From the customer's restaurant to the customer's kitchen, where the customer's needs are, the solution of Yunhai Cuisine is.
You may think, how much sales can community group purchases bring? Let me give an example. During the epidemic, a single store, a community group purchase, the average number of customers is 200 , and the unit price of a customer is between 150-250 yuan . Community group purchase orders not only bring direct cash flow to Yunhai Cuisine, but also increase the number of potential customers through a series of customer fission, these are loyal users of takeaway and dine-in.
It is believed that the way of Yunhai Cuisine's self-help transformation during the epidemic not only relieved its own operating pressure, but also brought about a breakthrough and transformation of a new business model .
Crisis is both a crisis and an opportunity. The key is whether you have discovered and seized the opportunity. Where are the opportunities? Go to the client side and look there .
04
Put the best team on the breakthrough point
When we continue to think on the client side and find a point worthy of layout breakthrough, what is the first step? Some people say that investing money first, soldiers and horses do not move the grain and grass first, what if the market has no money? Some people say that the products and services must be planned first, and then the products and services can promote the market. In fact, the first step is to find someone first and find the right person. The breakthrough is half the battle.
In 2011, Xiaomi was born, ushered in the first prosperous era of domestic mobile phones, and China Cool Union, which relied on operators, was losing ground. At that time, Huawei terminals were reluctant to take over, and the three presidents could not recover Terminal decline. Yu Chengdong, the President of Strategy and Marketing , volunteered to take the initiative . At the beginning of 2012 , Yu Chengdong resolutely cut off the models of OEM phones and non-smart phones. Although paving the way for the new generation of Huawei mobile phones, the number of shipments was reduced by 30 million units. Unsuccessful, mid-to-high-end mobile phones P1 and D1 cannot be sold, and there is no market at the low-end . In 2012, Yu Chengdong faced the risk of class, and even a " reverse movement " occurred internally . Faced with this kind of doubt, Ren Zhengfei's final words "do not support Yu Chengdong's work Does not support me ".
In order to block other people's remarks, Yu Chengdong shouted in front of the media a series of surprising slogans such as " Huawei mobile phone will become the world's leading mobile phone terminal manufacturer within three years", "Sales target will triple three times a year". The name "Yu Dazui" was opened at once, but a few years later, the current "Yu Dazui" became "Yu Chengzheng" because the bragging of cattle was realized.
The success of Huawei's mobile phones is inseparable from Yu Chengdong. This is the value and strength of business talents. What are business talents? It is good at taking advantage of existing resources, integrating internal and external resources, and constantly realizing the excessive return of resources and the continuous appreciation of assets. Their focus is always on the market, on customers, and on stakeholders who can obtain value-added.
A business man can turn 1 into 11, then 111, give them a market, he can turn into an order, give them a chance, they can turn into a career. If enterprises want to make breakthroughs and transformations successfully, they must choose a good leader. The leader must have full insight and keen instincts in the industry and the market, dare to break through, dare to face up to difficulties, dare to face challenges, and be tenacious and do not stop until the goal is achieved .
It is a pity that many companies are often unaware of this problem when they make breakthroughs in transformation. Instead of investing in the best quality teams, they instead put the people who are overworked and inactive in the enterprise on the top of the breakthrough. The results can be imagined.
Therefore, once the company has made a clear direction and made the decision to make a breakthrough in transformation, it is necessary to place the best talents and the best team in the new business field. Rely on talent to win the future .
05
Plan, don't play blind
Zhang Yiming founded Today's Toutiao Empire on " a napkin", what is behind it? It is his insight into information technology and media, and his penetrating power to the entire business logic, running on the right path from the beginning. Therefore , even if the external environment is uncertain, there must be planning, direction, goals, and milestones .
To make a decision and move forward, the strategic direction and goals are very important, but more important is to achieve the goals. How to achieve? It depends not on slogans and courage, but on methods and abilities. Therefore, after the enterprise determines the breakthrough point and team, the first thing is to formulate the corresponding work plan .
Huawei conducts strategic planning every year , and clarifies the annual business plan through the " five look and three fixes ." " Five Looks" mainly analyzes environment and value , looks at industries / trends, looks at markets / customers, looks at competitors, looks at themselves, looks at opportunities , and finds strategic opportunities through systematic scanning and inspection. "Three fixed" mainly do strategic goals and strategy formulation , set control points, set goals, set strategies . Determine the business design at the point of opportunity through "Five Looks", including customer selection and value positioning, profit model, business scope, strategic control points, and organizational support to form a systematic thinking. Then output and long-term strategic planning, 3-5 strategic direction-year financial forecast, customer and market strategies, solutions strategy, technology and platform strategy, quality strategy, cost strategy and delivery strategy .
With the overall planning in the early stage, everyone in each organization knows where they should be, aligning it up, down, left, and right to form a synergy .
If you think that the planning level is too high, start with the business plan , you can also clarify the business plan, including sales strategy, marketing and marketing strategy, supply chain strategy, channel strategy, cooperation and alliance strategy, capital strategy, brand strategy, cost Dimensions such as strategy, risk analysis, and personnel layout . If we are able to think clearly about the above dimensions when thinking about breakthroughs in business transformation, congratulations, it is not far from success.
Of course, to make a good plan, not only do the goals and plans of the new model, but also the resource allocation between the new and old businesses . The old business as a cash flow business is a stable foundation, and the new business as a growth business is an opportunity for development . If you pay too much attention to the old business, insufficient investment in new business resources, loud thunder and little rain, you will end up with nothing. If you pay too much attention to the new business, the old business will be sluggish, and the new and old business will lose the foundation of development, and in the end they will all lose. Therefore, in the transition period of crisis, breakthroughs must be made in the mismatch between new and old business resources and time and space . The old business needs the present, and the new business needs the future. During the development process, the old business will be gradually stabilized, and the new business will become stronger. From the single-head business model to the double-head business model, it has successfully broken through the transformation .
Of course, after the new and old business layout is reasonable, the new business must also grasp the path and rhythm . The quickest step is the pioneer, and the quickest step is the pioneer. In the context of LeTV's " ecological anti" perfect business model, it is because the path and rhythm of new energy vehicle investment have some passion, which led to the break of cash flow and finally lost all.
06
Innovation, continuous innovation
"No matter how many horse-drawn carriages are added in succession, a train cannot be built. Only when jumping from the carriage to the train can we achieve a ten-fold growth (Schumpeter )." Only by using technological innovation, management model innovation and business model innovation to find differentiated value and propose new value propositions can an enterprise achieve the expansion of the second curve.
The essence of innovation is a breakthrough, breaking through the old mindset and conventional commandments. The early stage of Huawei's innovation strategy is to follow, imitate, and follow the leading manufacturers to invest a lot of resources for product-level development; the middle stage is cooperation and improvement. In Huawei, innovation is not a closed behavior, but an initiative to accept the progress and challenges of global competitors. " Open innovation" In the later period, it is mainly independent and leading. Huawei has become an industry standard setter, research and development-led design, gain excess profits, and winners take all.
How to innovate? Comes from three dimensions, enough willingness, industry judgment, innovative thinking. In the context of the new era, any industry is worth doing again, because behind the value of innovation. When everyone thought that Tmall-JD.com was set, it killed a lot of Pinduoduo and successfully harvested a group of users who were pursuing cost-effectiveness. When everyone believes that WeChat ’s victory has been divided, during the epidemic, the spike has become a super app for 1 billion users. Every point of opportunity has the value of innovation. The key lies in whether we have the will, the will, and the wisdom .
What are the innovative ways? There are three main types, technological innovation, management model innovation, and business model innovation. Technological innovation never seeks everything, but it starts from a small place. We work hard at the point near the market demand and gradually move towards independent innovation. Management model innovation , focusing on vitality, is conducive to stimulating the vitality of the management model, are innovations. Platform-based organizations, self-employed entities, employee shareholding, and partner mechanisms are innovations; recognition incentives, value evaluation, honor incentives, and gamification incentives are also innovations; corporate restructuring, process reengineering, lean production, and Six Sigma are innovations; One management model is innovation; Xiaogang Village, the reform of tax sharing system is also innovation. Management is an endless flag, and model innovation must be persistent and change as needed. Business model innovation should focus on changes in customer needs and changes in industry trends, do value integration, meet unmet needs, and propose new value propositions.
As the driving force behind the growth of an enterprise, innovation is a factor that cannot be ignored when our needs break through transformation . Innovation is the driving force for finding new opportunities, the driving force for getting rid of the development curve, and the driving force for breaking through the ceiling.
Without innovation, even if there are no external crises, enterprise development can only decline in the west; with innovation, enterprises have opportunities and dreams .
07
Execution
God is going to die for me, and I am not going to die. No matter how perfect the thinking is, no matter how good the opportunities are, and if there are plenty of resources, there is no execution power and no value. Therefore, the execution power is the root of the real implementation of the transformation breakthrough.
How to improve execution? First of all, let the employees really participate in the decision-making process. From the seminars of senior executives to the seminars of departments and teams, all participants should understand the direction of the breakthrough of transformation? What kind of responsibilities do they need to assume? What kind of goal is achieved? What kind of resources are needed?
At the same time, the goal should be transparent, open, and aligned up and down to form a psychological contract and incentive value of the goal . Employees have a willingness to execute .
Improve the effectiveness of execution, rely on a detailed work plan. From the work dimension to the work content, expected goals, control points, improvement measures, work plans, responsible persons, evaluation standards, and organizational support. Only when the employees really want to understand, can they do things, and the execution can have results.
Of course, to follow up, you can establish a dual 1-3-1 mechanism , "1": meet on Monday, deploy the overall work tasks and implementation plan , "3": Tuesday to Thursday, implementation ; "1": meet on Friday, Review the work completion status of the week and put forward new requirements. You can also adopt the double "1-3-1" working method, 10 minutes every morning , the department or project staff meeting, once again clarify the respective tasks of the day, 30 minutes every day for routine communication, to ensure that multiple parties need to coordinate and interact It can be promoted in a timely and effective manner , with a summary review of 10 minutes every night , reporting on the progress of the day, submitting the work results, and proposing the work requirements for tomorrow, so as to achieve "every day is clear, the day is clear and the day is high " .
What should I do if I meet someone who is not willing to break through and transform? Seeing the truth in times of crisis, such employees and managers, don't forget, just forget it .
Believe that the aura is valuable, the main business is strong, the resources are abundant, the main function is the war, the soldiers are strong and the morale is like a rainbow, I would like to ask, in this scenario, what career cannot be accomplished ?
08
A belief in victory
To have the belief of winning, so many of them are transformation and breakthrough tactics. How can we solve it? The question of how to win. But do you want to win, dare you win? More important than the previous tactics .
Clausewitz mentioned in "Theory of War" that "the commander must reignite the fire of faith and hope of all members with his own inner fire and spiritual fire in order to win." Lin Biao is known as a " general who always wins. " The first sentence to sum up the victory is "there are thousands of tactics, and the first one is willing to fight ."
Therefore, the conviction of winning is the biggest source of power for transformation and breakthrough during the crisis period. As long as you want to make breakthroughs, as long as you are willing to make breakthroughs, I believe that you can always find a way and method .
Finally, I wish all of you friends' companies to get out of the crisis as soon as possible, make breakthroughs in transformation, usher in a turning point, and bring new opportunities to life .
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