Yan Jiehe: The Key To The Innovation Of Profit Mode Is Differentiation.

On December 23, 2007 -25, the first CEO summit in 2007, hosted by China Times and Tianxing Jian International Education Group, was held in Beijing. Sina Finance and exclusive live broadcast of this conference. The following is a wonderful speech by Yan Jiehe, chairman of the former Pacific Construction Group.
Yan Jiehe: I really don't know what to tell me. It can be related to businesses. I just saw that I would like to express my views on the theme of today's annual meeting.
The reinvention of enterprise competitiveness, my feeling, the reinvention of the competitiveness of enterprises may be the first feeling that the era of industrial competition has arrived. Any enterprise, especially China, from shortage to excess today, who owns the dominant industry will have the future. This is not negotiable, so women are afraid of marrying the wrong man, and men are afraid of entering the wrong line, even if you are a genius, the industry you are doing is wrong.
The Pacific Construction of first-class talents has created 5% profits. Second rate talents have created 10% profits. Three of the talented people have created 85% profits. In 01-04, a number of state-owned enterprises have been reorganized. They are all traditional industries. If these industries are not the best people to push up, it can not be done. There is no way for enterprises to do so. He has created 5% profits.
Second rate talents are better in the capital market, but we will never be a capital player, to do business; three streams of talents are infrastructure, municipal, transportation, water conservancy, ports, wharves, subway, tunnels, and urban viaducts, all of which are three streams of talents. The graduates who have just graduated from universities have created 85% profits, because the degree of marketization of this industry is relatively low. There are several Chinese qualification enterprises in China's private enterprises, different from building houses. Our competitors are not only state-owned or state-owned, but the cost of internal friction of state-owned enterprises is higher than ours, and the appropriate cost of corruption is all graduated. A real entrepreneur should not be a mere spectator. The real entrepreneur should be a fan of spectators. Last year, I opened three press conferences and challenged the media, including all the people who searched and searched everywhere. Later, because there were hundreds of millions of gaps, there was a lawsuit. This is the first time in my life when I was a defendant, although I was the second defendant and the third defendant, my assets incidental rate had never been over 15%, so when the shopping mall blocked a door for us, it opened a window for us. This is the peak road, the big tree attracting the wind, but it is also very good. The truly first-class people must die without dying. The top five hundred in the world are dead many times. This is called a narrow escape from death. So why is it so big a storm in 06 years that the media commented on China's ten biggest maniac and put Taiwan's Li Aopai sixth in the first place. Later, they didn't tell me. I said they would not be mad if you didn't tell me.
What we understand is that harmonious understanding helps maintain social stability. Harmony on the spot promotes social progress. Only the harmonious countries on the surface can have hope. But without harmony, who will advance the progress of society? Who has promoted the progress of society without the prosperity of some people? If our party and the state do not reform and open up, there will be no original sin. If all of us are not enough to eat or wear, there will be no original sin. In fact, it is less than thirty years after reform and opening up in China. How can we use the standards of our own entrepreneurs to demand entrepreneurs from the mainland? This is simply unfair.
Including our earliest Zhejiang Wenzhou, China's economy has today, is not the same year's fake and shoddy ah, without these fake and shoddy, how can it ascend to the present elegance, it's better than nothing. Do you see that Wenzhou's goods are not getting better and better now? Wenzhou people are becoming more and more honest now. Anyone has such a process, so that Henry Fok, who is respected by the Chinese people, is not smuggling arms in those days. No one said he was the original sin. How can the shoes of Wenzhou people fail? In view of this, we mainland people can not understand the mainland people, so we say that the environment of Chinese entrepreneurs is very poor in mainland China. We understand that because thousands of years of feudal world, the industry, commerce and industry, business has no place at last, so I appeal to the community to understand as soon as possible.
So when it comes to this point, including understanding of harmony, the third harmony is deep harmony. When faced with contradictions, we need to compromise. There is no compromise between the harmonious society today. The compromise is noble. We talked with Long Yongtu a few days ago. He is the master of negotiation. What is the art of negotiation? In fact, it is two words, compromise. When we are far away, how do we get closer and closer? It is not compromise. This is not a muddle headed compromise. It must be a clear compromise and a concession on a clear basis.
Therefore, the redefinition of the competitiveness of enterprises is my understanding of the industry's reengineering. We should reflect on your industry's lack of competitiveness. If your traditional industry can stretch the industrial chain, let it have upstream and downstream, and move up as much as possible, it will be easy to swim down, but the road will be narrower and the market discourse power will become weaker.
For example, some people produce aluminum mines, then bauxite and then aluminum products, and the profit of producing aluminum mines is high, followed by bauxite. The aluminum mine is controlled by the state, so the more upstream profits are, the wider. The profit will be narrower and narrower.
The industry decides the future. People are born well, enterprises are good industries, and what are better and better than others? The difference between them is that the industry is different, so let me consult our business consultant. First, you tell me what you are doing, and I will give you 75 points. Then your charisma, team strength, management level and business ability will add up to 25 points. What else is it vague about this? I have too much experience, because I have done two hundred enterprises from one enterprise, one industry to twenty industries, and I am not strong enough in China. I bought 70 bankrupt state-owned enterprises and 70 industries that I have failed. The industry is good, even if your brother is five, the same blood, the same background, the same money, but different industries must be. It's too good to do, and the profit margin is too big. So we do business is done by real guns, and enterprises are not made out, but made.
So the industry is the core competitiveness, and nothing is more important than the industry. What background, talent, team, operation ability and management level are all 25 of the industry, and 75 is the industry's decision.
So the key to the innovation of the profit mode is the differentiation. I think this is the introduction of Xiangshan Hua Tuo's arrow organizing committee, where is the profit margin for me to do, how much money can I earn? Why do I need to do this? I do this differently from others. Others are training for training. Besides education or training, this profit margin is very thin. I lose money. It's not important. We set up a Chinese Huayang and set up a Hua Tuo. China's Huayang is controlled by the state, and finally developed to 20 thousand private enterprises. Huayang wants to find shareholders, find money, find talents, find projects, including the allocation of various resources. In addition, China's enterprises are nothing more than training, planning, consulting, managing and dealing with problems. The greater the profit, the less business and problem solving 1 billion 300 million people do not have such enterprises, then I will do it. There are more than 20 ways to deal with the problem. I can earn 5 billion in one year and 5 billion in net profit. I do it alone. I am very successful in dealing with the crisis. I make 5 billion. These enterprises are very grateful. 非常經(jīng)營就是特殊的定單，對我很有幫助，但是我的企業(yè)拿不下來，對我非常重要，但是我不是人家的對手，談判談不過人家，一個特別的場合我想?yún)⒓樱俏业恼勁泻鹆坎桓撸C合實(shí)力不夠，綜合社會資源配置不夠，那找香山華佗論箭組委會，做好了我們看怎么分成，你拿六我拿四行不行，風(fēng)險都是我承擔(dān)，都是我出錢，危機(jī)處理現(xiàn)在有的是經(jīng)濟(jì)危機(jī)，有的是刑事危機(jī)，牽扯到金融詐騙問題了，但是大家知道中國的國情，中國是市場經(jīng)濟(jì)，計(jì)劃權(quán)力，你縱然違法了，有的構(gòu)成犯罪，有的不構(gòu)成犯罪，你縱然違法了，你能夠把損失減少到最小程度，把敏感的問題處理到最小的程度，完全可以免于訴訟，有的房地產(chǎn)老板，他十幾個億，建筑奧體的房子，要求全部拆掉，人家投資了15個億，現(xiàn)在政府賠五個億，而房地產(chǎn)開發(fā)商沒有名氣沒有地位，政府就賠你五個億 How can we do it? If it is a very famous enterprise, the government will consider it, and it will be related to the social impact. The media will not control the big government, because our country's public opinion is only relative, the market economy, the planned power, and the media are not completely free. Like these questions, the one billion governments only give five hundred million, the allocation of our market resources, and reorganize the enterprise. If I buy it, I will negotiate with the government on behalf of this enterprise. The original five hundred million will take 1 billion now and increase the value of seven hundred million. Then let's see how to divide it. Even if we take sixty of forty, then it will take more. The country is still blank, and no one has done it. This is called differentiation.
Therefore, the key to the profit model is differentiation. The most important thing in front is industry.
Ba Tai, in fact, I am growing up in adversity, so I am an appreciative education for children and subordinates. I am not very good at managing a specific enterprise. I am too good to be a small accountant, because I earn too much money. I have been a head of 21 years, and my subordinates' wages may be the highest. Even if the workers in Shanghai are the highest wages for workers, I am going to pay more than five thousand yuan for the children who pour tea into the water. So the Pacific Ocean, including I now do Huayang, Hua Tuo is a negotiating economy, and 75% of them are on the negotiating table, so the dialysis of middle level crisis is to strengthen management. Then dialysis middle crisis, let me myself, I can not, because I do not understand this family, say my mouth. When I run this enterprise and manage this enterprise, I will easily have a middle level crisis, so I know my weakness. I only run enterprises not to manage enterprises, and I do business management. If I manage, I make a lot of money and lose a lot in management.
I will not do anything, I will pay for it everywhere, because I always feel that gold is everywhere, and money is not a problem. I think this is the way of thinking. Therefore, the biggest problem for me in doing business is that it is too loose and too loose for my subordinates, which is not happy under my hands, most of the squid has been fired in the Pacific Ocean, and no one has said the Pacific Ocean.
Including my reorganization of the acquisition of so many state-owned enterprises, never petition, no letter from the people, or because we make money is too easy, so we are very honest, so 06 years if such a big storm of the government will come out, you can not retreat, but such a big storm we did not die the next one, so I remind you that the middle crisis is to manage.
Management of my feeling is the same, there is no fixed mode of management. The best management of high level people is to manage less. Bad people should not only manage but also manage them in the end, and there is no fixed mode of management. We Chinese type enterprises, what is the modern management of Chinese enterprises, I can use a word, there is no fixed management mode, this is the most authoritative modern management. Therefore, the fixed mode of books is actually not done by enterprises. They are nonsense, or right nonsense. He has not done any business, and there are so many models. Modern enterprise management is not fixed management mode, because of the size of the enterprise, the quality of the enterprise depends on the quality of the employees, because of the urban environment, there is no fixed management mode.
Enterprises must believe in themselves, others good things to learn, but only reference, can not die hard, must make a system according to their own situation, I will publish my shallow view, because I