Yu Minhong: New Oriental Must Completely Bid Farewell To The Era Of Personal Heroism.

Confusion, anomie, subversion, reconstruction...

In the past 13 years, in the dream and legend, the New Oriental has "grass-roots growth" with its unique extensive discipline.

Eventually forced to "overseas", with the most stringent capital controls self redemption, full cash, to achieve new life.

Mr Yu Minhong faces many suspicions about "the first share of overseas listing of private education enterprises". Can the return to the origin of the company be based on the present and deliberate the future?

Source: China business newspaper, Yu Minhong, chairman and President of the New Oriental Education Technology Group, Wu Yue, Zhang Yuli, Yu Minhong, male, Han nationality, born in 1962 in Jiangyin, Jiangsu.

Graduated from the Department of western languages at Peking University, founded the New Oriental School in 1993, and founded the New Oriental Education Technology Group in 2003.

He is the chairman and President of the New Oriental Education Technology Group, the Central Committee of the League of nationalities, the deputy director of the Central Committee of education of the Central Committee of the League of nationalities, the Standing Committee of the National Youth Federation, and vice president of the China Youth Entrepreneurs Association.

In September 7, 2006, New Oriental was successfully listed on the New York stock exchange, creating a new model for the development of private education in China. Yu Minhong has become the richest teacher in China.

The report shows that the net revenue of New Oriental in the first quarter of fiscal year 2007 (June 1, 2006 to August 31st) was 429 million 300 thousand yuan, up 31.4% over the same period last year, and net profit was 165 million 100 thousand yuan, up 100.8% over the same period last year.

At present, New Oriental occupies more than 60% of the country's overseas English training market.

They don't need to come to me for a fight. They are "fights". The capital myth of "China concept" is born in a moment. After the New Oriental listing, the media scrambled your about 1000000000 Yuan status, and your instinctive reaction was "New Oriental did not disband".

In the 2000 to 2004 before the listing, New Oriental was once caught in a sharp dispute of interest. It was full of fierce and even cruel "internal struggle" and "internal friction". You have been struggling to find the balance of interests and human feelings, suffering and contradictions.

The difficulty of internal circulation in interest distribution has puzzled the New Oriental for many years. Is overseas listing the only way to resolve the "New Orient"?

Yu Minhong: why do we have to go public?

Frankly speaking, I was a little confused.

Over the years, after experiencing so many trials and hardships, the executives of New Oriental think that the problem of internal circulation must be solved by external force. Listing is definitely the best external force.

Because even frequent airborne senior talents will inevitably enter the "inner circle" of the middle.

In the year of 2003~2004, the core business of New Oriental has been developing at an annual rate of 50%, and the speed in the past has been faster than that. Therefore, the management of New Oriental does not keep up with the development of business.

The problems and contradictions of New Oriental are always going round and round, and they are constantly being solved, but there is no significant progress.

The "inner circle" problem of interest distribution has hindered the further development of New Oriental, or hindered the improvement and improvement of New Oriental's self management mentality.

When the New Oriental did not understand the shareholding system and capital at all, it took stock reform.

For example, one day a shareholder wants to leave New Oriental, hoping to sell shares, but the problem is that no one buys.

They wanted me to buy it, but I did not give them to them at the beginning. How can I buy them at such a high price?

Besides, I don't have that much money.

And the unification of valuation will create huge internal contradictions.

Even if there are internal rules and regulations, it is easy to generate emotional disputes because of the "internal cycle".

In New Oriental, it is easy for backbone members to go over rules and talk about feelings.

After listing, the external rules are stronger and more powerful than the internal rules.

They could never do that again.

The overseas listing of the company has given way to the New Oriental equity pfer and the more perfect rules of the game.

Although we have to face the pressure of foreign investors in the future, if we are able to put energy into business instead of internal friction and emotional disputes, we can not doubt that listing is right.

In the past, I was in a state of balance between interests and human feelings, exhausted and embarrassed.

Now they don't need to fight for me.

New Oriental has gone through a great circle and has returned to a good starting point.

Actually, I am very resistant to listing.

I don't want to put myself under too much pressure. Now I am under great pressure to pay for others' mistakes.

Sometimes I fantasize that the New Oriental will be small enough to make my own, so that the problem of "internal circulation" will be gone.

Unfortunately, it is impossible for New Oriental to go back, so that we can take one step, learn one step, look at it and push forward.

Host: after the listing of New Oriental, some overseas media seem to deliberate on the copyright dispute between New Oriental and ETS 5 years ago. That is the lesson and cost of New Oriental's "young frivolous".

After the overseas listing, New Oriental's every move is doomed to be concerned. Listing will make the dream of New Oriental more and more expansive. The suspicion and worry of the outside world still lie in whether the New Oriental holding $more than 100 million will automatically fall into the vicious circle of rapid expansion and management anomie and unable to extricate itself from it.

Competitors are also envious of the surging wealth brought by the New Oriental listing, while they are secretly expecting more strategic mistakes in New Oriental.

Yu Minhong: capital market will only look at you now, for that dispute, when the legal and procedural problems have been resolved, it will not become a problem.

In the American concept, litigation is very common.

If we are not vigilant, there is bound to be a potential crisis of collapse.

But at the beginning of the listing, I told the investors clearly that the New Oriental fund-raising needs only one thing: integrating the foreign language teaching and training market in China.

First we will do it in the industries we are familiar with, and then expand to other educational markets, and further acquire high-quality educational resources.

New Oriental can be proficient in education, even if it can not be expressed in words, the heart can feel it.

Even if mergers and acquisitions, we also take a very leisurely attitude, and never blindly scale.

When I met, I had enough assurance to do it.

New Oriental tried to build more "image shops" through the use of fund-raising funds, but did not intend to enter private universities.

New Oriental has begun to look for specific targets, but it is certain that in the future, the main direction of New Orient is English training, and business training is still the main item.

We will never leave the main business of education, go to what restaurants and engage in hot real estate, so we believe that we will not make major mistakes in blind expansion.

For example, I always wanted to be a non-profit cultural Academy.

Chinese and western wall, invited Chinese and foreign celebrities on the tradition and the future, very cool things.

After all, listed companies need to make profits, so new Oriental will not be a comprehensive university.

As for the standardization of internal management, there is no need to worry too much.

The United States stipulates that a listed company will be delisted if it fails to meet its management standards for two years.

We have not encountered any fatal difficulties in our internal management. New Oriental has been very well placed before, but now it is only in line with higher standards.

Host: Although you have been confusing, how the New Oriental listing is widely sought after by capital, there are still analysts insisting that New Oriental is "cheap" overseas because of capital hunger and thirst.

Yu Minhong: New Oriental is not short of money. The bank loan to buy the building has been paid off with the money earned last year.

The $more than 100 million raised on the market has not been moved for 1 months.

There is no mental barrier to the doubts and guesses of the outside world.

After the Enron incident, the regulatory rules of the US capital market were severe enough to make people shudder.

Listing is not an essential change for New Oriental. I really don't have much reason to go public.

It is not that New Oriental is dying. With this large sum of dollars, the New Oriental has been revived.

I like New Oriental people to "challenge" for the sake of their interests. "From the development of New Oriental", we can see that high pay and high pay have always been an important way to attract talents, but many new Oriental teachers generally have a mentality of "short work and high salary".

For a long time, New Oriental has maintained a rather remarkable turnover rate. People are coming and going, bustling and bustling.

Why is it difficult for New Oriental to establish a sense of belonging?

Yu Minhong: New Oriental still encourages teachers and staff with high salaries.

Material life is the first condition. If we ignore this, we neglect human nature and neglect human nature.

I don't plan to change the situation of "short work and high salary" because it can give teachers a sense of crisis.

Of course, this mechanism will also produce many of your sequelae.

In New Orient, the scores that students give to teachers are directly linked to their salaries.

This is likely to lead to the highest grade teacher, not necessarily the most needed teacher in New Oriental.

How to balance?

Two harm comes from right.

Instead of letting the classroom become lethargic, students are running away, trying to keep the students in their best interests.

On this issue, we should not be too idealistic.

The turnover rate of New Oriental is 20%, not very high, of which 10% of us are voluntarily eliminated. It should be said that this rate of liquidity remains within the controllable range.

No one is going away, does it mean that enterprises have a sense of belonging?

It is very likely that there is a problem with human resources management.

I dare say: if anyone is really indispensable, if he leaves a significant influence on New Oriental, I will not let him go.

It is difficult for any enterprise to retain the required talents, because Chinese society is still in a period of rapid development and change. There is a lot of speculation. For an organization, it is often necessary to make an internal balance within a certain scope.

For example, a New Oriental employee has a salary of 8000 yuan, and an institution outside gives 15000 yuan, so you can not raise wages for employees.

Because of this, there will be a rise in the cost of human resources.

So, if this person is gone and the institution is not paralyzed, I would rather let him lose or let him break the balance of the existing pay system.

The sense of belonging is a kind of mutual expectation. If personal expectation exceeds the scope of company payment, it is a personal problem rather than a New Oriental problem. No company can guarantee and satisfy everyone's expectations.

I care about the sense of belonging of New Oriental. I also admit that New Oriental has not yet set up a mechanism to really retain talents.

This is the direction of efforts.

Host: when you returned to the presidents two years ago, you said, "up to 2007, you will also have a perfect corporate structure in New Oriental."

Today's New Oriental has a very professional CFO, but what is needed is highly professional CEO.

Yu Minhong: before I went on the market, I said that sentence. 2007, this deadline is invalid, because every word I say will affect the stock market. I must be accountable to investors.

So we must revise that sentence, but the main idea will not change. That is, as early as possible, we should never retire from where we should sit.

For example, the location of CEO should not be seated. It must be cultivated from the inside.

New Oriental has not yet been airborne executives, not because of corporate culture exclusion, but because we have not yet found in this field can really surpass our talents.

I can do this for some time in the position of chairman of the board.

But if my "retirement" will affect the stock market, I will not be able to retire. There is no way to deal with it. Zai Xian is responsible for life.

I was forced to live for others.

Host: Hu Min, former president of the New Oriental Education Technology Group, said, "the biggest problem facing new Oriental is professionalism."

Can the new president of New Oriental in the future harmoniously get along with a paranoid "old man" with professionalism?

Yu Minhong: few enterprises reform like New Oriental.

The professionalism of the management staff in New Oriental has been quite high, and the internal struggle in New Oriental has almost ended.

Now some disputes are whether we should get more wages next year. This is not a struggle, but a distribution of interests.

I like the people of new orient to challenge me for their interests, because his own value estimation may be wrong with my estimation of his value.

If we do not agree, we will break up.

Very simple, with the right allowance or even equity, the signature can go.

This is a rule.

With the reform being carried out, the modern and internationalized new Oriental needs more professional management talents. It needs unified concept, unified mode and unified management. With the modern management system such as the board of directors and the board of supervisors, it has made due restrictions on the original management power of each other. In the process, the first thing that is restricted by power is myself.