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Four Major Crimes Of Mediocre Enterprises

2008/11/6 10:55:00 22

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When winter comes, many enterprises are faced with various difficulties.

In the face of the global economic crisis, facing the cold winter, as an enterprise, there will be 3 choices: bad companies die out in complaining, ordinary companies work hard in adversity, and excellent companies grow and grow in the process of change.

If an enterprise can dig more profits than any other enterprise in the past cost, it can make more benefits to management -- then he will become an excellent enterprise.

After more than 20 years of hard work, China's economy has undergone tremendous changes, and private entrepreneurs have grasped the opportunities for development. With keen eyes, unique commercial olfaction and flexible business models, private entrepreneurs have been developing rapidly, so that private enterprises are playing an increasingly important role in the economic society.

However, behind the prosperity of the economy, behind the rapid development of private enterprises is the confusion of management and system, which seems to be a high wall that enterprises can not get across.

This is unacceptable to the dynamic private enterprises, because no matter from the macro perspective of social resource allocation or from the micro perspective of their own development, "mediocrity" has always been a synonym for failure.

In the upcoming book "performance sword", the four major crimes of mediocre enterprises are summed up.

1、戰略缺失之罪

A prominent problem of mediocre enterprises is the long-term development strategic planning and the lack of business objectives.

Because mediocre enterprises only focus on short-term interests, they neglect the strategic planning work which is of great significance for the long-term development of enterprises, resulting in a series of concurrent "diseases".

The blind diversified development of mediocre enterprises is one of the diseases with unclear strategic lines.

There are two main reasons for the diversification of enterprises: one is to seek rapid expansion from the perspective of enterprise development, and the other is to seek profitable areas and follow up quickly from the perspective of profitability.

The desire for diversification is good, but the key is that in the process of seeking diversification, enterprises do not make rational allocation and use of limited resources under the guidance of clear strategic planning. They can not effectively integrate the external environment and their own capabilities, overestimate their resources and capabilities, and ultimately lead to new business development, and lack of resources and capabilities to follow up.

In addition, today's booming economy provides more investment opportunities for enterprises in the process of growth. Enterprises, after primitive accumulation, have a certain financial foundation. Therefore, the impulse and desire to become bigger and stronger have led to attacks everywhere.

Under the temptation of many short-term investment interests, the mediocre enterprises decentralize the limited resources.

2、追逐短期利益之罪

Pursuing short-term interests is a natural continuation of the lack of long-term development planning.

In the view of mediocrity, the survival rule of an enterprise is "profit seeking". Building a century old shop is just a beautiful lie. The more important thing for an enterprise is to make money, make money and make money again.

Therefore, the mediocre enterprise can not help but pursue the short-term interests as the ultimate goal. Its performance is generally neglected by the enterprises on the basic construction of the long-term development of the enterprises, such as human resources construction, innovation development, system construction, marketing network construction, brand building, etc., but lacks long-term planning for the enterprise strategy, and shows a quick and quick profit mentality in operation and management.

This kind of behavior which the mediocre enterprise adopts to ignore future profits or damage future earnings will eventually lead to a bad grasp and lose the future.

As a matter of fact, all of these principles are clear. It is easy for everyone to understand. But in the actual operation practice, how many business leaders can face up to the immediate interests and frankly give up?

Maybe they had thought and struggled, but they chose the short-term interests at the end.

In mediocre enterprises, it is rare to really give up short-term interests and seek long-term benefits.

3, the crime of lack of incentives.

How to maximize the enthusiasm of employees of enterprises has become a "gateway" for mediocre enterprises to move forward to excellent enterprises.

We also mentioned in the other sections of the performance sword that the strategic planning and development goals have the natural connection with the three objectives of target management, performance management and employee motivation. Performance management is a very important part of strategic management. Enterprise strategy is a series of decisions and action plans about how to fulfill the mission and goal of a company or business unit.

Therefore, in the long run, successful implementation of strategic based performance management will be the watershed between excellent and mediocre enterprises.

It is precisely because of the lack of mediocrity's strategic objectives and the lack of a comprehensive set of more rational human resources management systems that guide, educate, use and retain. In particular, the lack of fair and equitable value assessment and performance management for talents contributes to the reduction of talent incentives to mediocrity.