Successful Experience Of Leaders Who Help Enterprises Tide Over Difficulties
When the company continues to develop at a high speed, there may be sudden setbacks and stagnation of performance.
This kind of twists and turns often result from some new factors: the decline in market demand, the lack of product information, the rapid development of the company, the loss of a business opportunity, and most of the cases may be inefficient.
Because of the above factors, the company can not maintain profitable growth for at least two years in a long time.
It was suddenly because most business leaders did not foresee it, and the performance was often very strong before that.
The reversal of company performance may come very suddenly, such as CISCO systems.
Cisco Systems
In
Two thousand
Year to
Two thousand and one
What happened in winter.
It may also gradually emerge, just like General Electric.
GE
In the last century
Seventy
End of the decade and
Eighty
Age, and
IBM
The whole company in the last century.
Eighty
Experienced in the past.
Although many company leaders may refuse to acknowledge their existence, the sudden alarm bell is not hard to hear.
First, sales are stagnant or declining.
Soon, the management of the company began to cut costs.
Customers and employees lack confidence in the company.
If it is a listed company, its share price will begin to slide.
When the leadership discovers that the company is in adversity, it should take an iron hand.
The execution strategy of iron fist is divided into three parts: leadership, governance and key capabilities.
This does not mean that these measures can help enterprises tide over the difficulties. This article is just to provide you with successful experience of helping the enterprises to tide over difficulties.
Leadership ability
There seems to be no need to define leadership because there are many aspects of leadership.
However, there are two important aspects for the execution of iron fist: adjusting strategy and fostering management concept.
They help the leadership to deal with the following questions: do we provide better products or services to our competitors than our competitors?
What are the main reasons for deciding our strategic trade-offs?
Have we invested the right resources in the right field to win the market?
Strategic adjustment.
The first thing for management to do is to adjust strategy.
This means rearranging the business plan, evaluating the resource allocation of these plans, and determining the direction of the company.
Leaders who successfully break through adversity have a deep understanding of business and know what factors affect future performance.
They understand the ins and outs of the company's value creation, define operational efficiency improvement and business growth priorities, and focus on business revenue growth rather than cost control.
An important step in management strategy adjustment is to rearrange the business plan (see attached column "business plan portfolio management").
This will help the management to be more flexible, quick and action oriented.
They can analyze each plan in detail and make corresponding adjustments to the environmental changes.
An important quality of a good leader is his analytical ability and fact based principles.
Management should not have personal emotions when adjusting strategies.
The most important thing for those leaders who are not performing well is to accurately analyze what can create value for the company and discover the real factors that affect the market.
John, the president of CISCO company, is a case in which business leaders adjust their strategy after the company has been frustrated.
Chambers (
John Chambers
The practice is worth mentioning.
When he took office, the company was developing at a high speed.
But in the early days of Chambers's appointment, because of the rapid development of all aspects of the company, the efficiency of CISCO was not high enough.
Two thousand and one
Business reversed at the beginning of this year.
Chambers knew that the company had to adjust its strategy: focus on operational performance, return to fundamentals, take more effective measures to control business and sell poorly performing businesses.
To this end, he put forward six new focal points in his plan: slowing down the number of employees and increasing the rate of unnecessary expenses, making use of resources for major business growth opportunities, focusing on profit contribution (rather than sales), improving productivity through network technology, ensuring that every employee focuses on business improvement in his own field, while maintaining breakthroughs in CISCO.
Breakaway
The focus of strategy.
In the end, Chambers reorganized the whole company.
Previously, business departments were classified according to customer type.
After reorganization, all departments are classified according to the type of technology.
Instead of encouraging sales growth, companies focus on profitability.
The company is no longer recruiting new employees, but ensuring the productivity of all employees.
Cultivate business philosophy.
The second step is to cultivate business philosophy.
This is a set of guidelines that help business leaders convey ideas that are crucial to the operation of a company and institutionalize them.
Business philosophy comes from the highest level of the company, with obvious personal characteristics, usually consistent with the company leaders' ideas.
People often say that first-class enterprises need first-class culture.
However, the characteristics of corporate culture are often vague, generality is too strong, can not be used as a guideline for employees.
For example, an important component of some corporate culture is putting customers first.
But what should employees do?
In contrast, business philosophy is very specific and involves everyday problems.
GE's predecessor
CEO
Jack.
Welch (
Jack Welch
Put forward the "first and second strategies", each employee understands what this means: an enterprise must be the first or second place in the market, otherwise it will leave the market.
When Welch suggested that the company should be "without borders", GE employees began to rule out barriers to information exchange and normal operation.
If leaders really understand the value of cultivating business philosophy, they must adhere to the following principles in conveying these ideas:
Straightforward: clear and honest communication of tasks and expectations of employees.
Not unexpected: be consistent; do not hide important questions.
Speak with facts: it should provide the basis for making strategic choices, including data.
Keep your promise: be consistent in words and deeds, otherwise you will lose trust.
Welch conveyed his intention with concisely and concisely: let general electric become
"
The most competitive company in the world
".
Then he gave employees a set of guidelines for decision-making, and he acted decisively.
And the most important thing is that he knows how to subordinate his organization to his leadership.
Governance capability
Governance here refers to corporate governance rather than corporate governance.
It involves how to make decisions and how to make teams obey management.
The leadership should answer these questions: do we have strict resource allocation and capital utilization processes?
Do we adopt appropriate performance indicators to assess appropriate behaviors?
Are we implementing a strict performance management mechanism?
There are three important components of operational Governance: responsibility to people, performance management system and discipline.
Responsibility is to people.
In order to reverse business predicament, enterprise leaders must implement a strong responsibility mechanism.
Leaders need to know not only what jobs are allocated, but also ensure that their senior executives are responsible for effective and accurate implementation of the assigned tasks.
The most important thing is that they must make achievements.
To enable employees to shoulder responsibilities, teamwork spirit is indispensable: in the implementation of enterprise strategy, management and staff must work together.
The spirit of collaboration is to enable employees at the decision-making level and outside the decision-making level to know the operation and purpose of the company at any time.
Performance management system.
The best way to realize responsibility to people is to implement a sound performance evaluation system.
Appropriate performance measurement system helps employees understand the key points of work, how they are measured and how they affect the performance of the entire company.
Excellent business leaders develop incentive mechanisms to ensure that employees strive to make contributions to the company.
Unfortunately, most companies' performance appraisal is based on the work of the employees themselves, not the extent to which the work affects the company's strategy.
In this way, employees have no influence on the company's financial performance.
Discipline.
Discipline is also important, apart from responsibility and performance management.
Discipline mainly means that employees know what work must be done and ensure that the work is done without fail.
Jim Collins, author of "excellence to excellence".
Jim Collins
The study found that there is no magic secret to ensure the success of an enterprise.
Corinth has found that successful companies do not need reputable presidents, latest technology, or even excellent business strategies.
What businesses need most is a culture, the culture of finding and promoting employees with rigorous thinking and firm action.
These employees can accomplish their work quickly and effectively, rather than bureaucracy and procrastination.
Gerstner (
Lou Gerstner
In
One thousand nine hundred and ninety-three
Year catcher
IBM
The company has well embodied this emphasis on discipline.
At the beginning of his term, the board asked him to focus on a short-term goal: save.
IBM.
Gerstner realized
IBM
The problem faced by many years is not the quality of products, but the ineffective implementation of management.
Gerstner believed that the company must carry out the plan firmly and consistently.
All departments of the company must accept his way of management from beginning to end.
Gerstner set an example, not talking about work outside office hours.
He often visits the field to know his customers, and learns to grasp the main problems.
He insisted on self discipline and hoped that such information would also be pmitted to all employees.
In order to make
IBM
Gerstner felt that a sense of crisis should be conveyed to the employees in carrying out the plan correctly.
He thought
IBM
The employees have too long, too much research and too many meetings.
Gerstner often says that quick action may be better than insight.
The quick action is not the reckless, but the promotion of the project.
"
Today's business is over today.
"
A sense of urgency.
He knows that if meeting time can be shortened, management can make decisions more quickly and market more quickly.
IBM
It will move in the right direction.
The product launch date is several days ahead of schedule, in order to catch up with competitors.
Some employees told him not to do that because
IBM
New products are always released on the first and third Tuesday of each month.
Guess what Gerstner did?
He insisted on advancing the date.
If he doesn't like it
IBM
A part of culture changes it.
Key capability
The key capability is the ability of management to take concrete measures to break through the difficult position. It takes action as the core.
This is the key skill and capability that business leaders must possess.
Do you have these abilities?
You can try to answer the following questions: Organizational
DNA
Does it include cost and productivity improvement?
DNA
It is the organizational characteristics that adapt to the enterprise's own characteristics and strategic needs. It is generally composed of four aspects: enterprise structure, decision-making power distribution, information pmission and driving force.
Two thousand and four
year
Seven
How to help small and medium-sized enterprises grow up?
Are you good at finding and eliminating poor performing businesses?
Which business functions need to be retained and which ones need to be abandoned?
Key competencies include productivity management, talent management and focus on corporate restructuring pactions.
Productivity management.
This includes cost management, working capital management and adoption of technology to increase productivity.
Those who successfully break through the dilemma are treated differently in cost management.
These companies will never cut costs in an excessive way, and more importantly, they will never cut costs in an all-round way.
They are mainly concerned about the continuous improvement of the cost of goods sold and working capital.