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    Zhang Ruimin: Metamorphosis Of Haier After Stall

    2010/6/17 17:04:00 124

    Entrepreneurship

    Indeed, although there is no solution to property ownership and there is no hope of solution in the short term, Haier is still growing and has not been depressed like the Chunlan Group, which has not yet solved the problem of property rights.


    Starting in 2001, although Haier's growth rate began to slow down, Haier achieved a turnover of 62 billion yuan in 2005.

    Turnover

    For the first time, it exceeded 100 billion yuan, reaching 106 billion yuan.

    Since then, Haier has been hovering around 120 billion yuan in sales for many years.

    In 2007, the turnover was 118 billion yuan; in 2008, 17 billion 400 million dollars, about 118 billion 800 million yuan.

    Obviously, Haier has encountered its own "speed" bottleneck.


    Zhang Ruimin's analysis is, "what I said ten years ago, you can do as you like.

    I can see that plate on my own.

    Now Haier is like a building, as the top leader of the enterprise, Zhang Ruimin himself may never know the truth of what happened next.

    Zhang said: "how to get through this building and solve the problem of big business is a topic that Haier will always face."


    Zhang Ruimin has always been very concerned about that.

    enterprise

    Speed of development.


    On a Saturday in 2002, Zhang Ruimin had a problem with the training of Haier senior managers: how to let stones float on water? The answer he gave was speed.

    12 years ago, a foreign businessman also asked Zhang Ruimin a question, "can Haier still have its vitality now in 10 years?" at that time, Haier was the most dynamic company that the foreign businessman saw in China. The foreign businessman then said with a clear heart: "those Japanese companies were full of vitality 10 years ago, but now they are no longer in sight."

    At that time, the rapid development of Haier made Zhang Ruimin not fully understand the meaning of the problem. But by 2006, he had deeply realized the meaning behind this problem.


    Inside Haier, Zhang Ruimin is directing a SBU revolution, which aims to make every Haier person a market unit.

    SBU came from Zhang Ruimin's "internal simulation market" proposed in 1998. He originally planned to complete it in 10 years, but in 2008 he found that 10 years is not enough.


    In April 26, 2007, Zhang Ruimin also suggested that Haier would use 1000 days to complete the reconstruction of 2000~2500 processes.

    In fact, this plan is only the continuation of Zhang Ruimin's "SBU" and "man in one" development model in recent years, which is precisely the speed of solving the problem of the development of large enterprises.


    "Since 2007, we have begun to implement our pformation plan and plan to complete the pformation in 2010.

    Under the new system, Haier will change from a large group to 6 small groups. Different users and different products will form different product groups.

    In the near future, white electric products such as refrigerators and air conditioners, digital home appliances such as televisions, mobile phones, and so on, will integrate central air conditioning, UHome system integrated product resources, system engineering products, spare parts and die products, monopoly stores, and other channel systems, and financial products will become the six largest product clusters of Haier; plus 7 functional departments such as strategy, market, logistics, human resources, law, finance and information, Haier matrix will be formed.

    Yang Mianmian told China business reporter that Haier's effort to build the system is an architecture, a mechanism, and a development mode that allows Haier to maintain the proportion and goal of this development forever.


    Obviously, it has always been innovation.

    management model

    Zhang Ruimin, who is well known for her management thoughts, is striving to solve the problems of future successors in enterprises, the speed and profit of Haier development through the success of Haier matrix.


    In 2007, Zhang Ruimin said in an interview that the biggest difficulty facing Haier is the most important product of the group. White goods encountered obstacles to development. As the main business of Haier's rise and career, Bai electric products now have a thin profit like 2%~3%., and because of the relative absence of equity incentives, the loss of Haier's middle and high management talents is common.


    At the end of 2006, Qingdao Haier (600690.SH) launched a stock option incentive plan at the beginning of the split share structure reform, and Yang Yang was awarded 3 million.

    This plan also provides for the phase change MBO. Any 1%. whose incentive object can not exceed the total share capital of the company is not directly in the equity incentive plan of Zhang Ruimin.


    Qingdao Haier's earnings report shows that Chairman Yang Mianmian has an annual salary of 251 thousand and 300 yuan and holds 61 thousand and 300 shares at the end of the term, while chairman Li Dongsheng of the TCL group (000100.SZ) has an annual salary of 2 million 590 thousand yuan and holds 160 million 662 thousand and 400 shares at the end of the term.


    Obviously, Zhang Ruimin and Yang Mianmian are "inferior" in terms of the value of wealth.

    This reminds us of an anecdote of Zhang Ruimin's 5 years old: Zhang Ruimin, who was looking for a beautiful shell for his younger companion, risked danger on the island and was almost trapped in the sea by the tide.

    When dad found him, he gave all the shells to the other children, and he did not keep any of them.


    Dad asked him why he answered the following: "I can pick it up again."

    And I'm already familiar with that place, but those kids can't pick it up by themselves.

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