Eight Major Problems In Strategic Implementation Of Chinese Enterprises

We all know enterprises.

Reform and opening up has gone through over 30 years. We are glad to see that the pace of Chinese enterprises going global is faster and faster.

We all know that strong countries must first strengthen their enterprises.

However, in my days of management consulting, I found many common problems in the implementation of Chinese enterprises' strategy. If these problems can not be solved smoothly, they will inevitably affect the way of Chinese enterprises' internationalization in the future.

Here, readers and I analyze these problems one by one, and at the same time hope to attract the attention of top executives of Chinese enterprises! Maybe there are such problems in your business.

First, the enterprise strategy can not land, only targets, no relevant measures and action plan support.

I managed diagnostics for a private enterprise in Suzhou in December 2008.

The company is a group company, with an annual output value of over 2 billion, under four business units, and each division is an independent business unit.

I found this phenomenon in the process of management diagnosis of the company: because time is December, the company has always had such a tradition since its establishment, that is, every year in December, the chairman of the company signed the economic responsibility letter with the general manager of the Department through the form of the meeting. The responsibility document of the economic goal is mainly signed around the financial target, that is, the sales revenue of each department, how much the profit is, how much the management cost is, and so on.

The contents of the conference are also some commonplace content. For example, in 2008, there are several aspects that have not been done well, and 2009 improvements have to be made.

After the meeting, I found the chairman of the company and the general manager of the Department separately.

1, how big is the scale of the industry? For example, the sales volume of the industry is 10 million units, the unit price of each unit is 50 yuan, and the big plate of the industry is 5 billion. Then what is the share of your company?

2, what are the ways to achieve financial goals only by signing financial goals? What are the key measures and what target customers should be targeted?

3, what are the customers' most valued values: delivery date, price, quality, product function, service, brand, after sale service and relationship?

4. What resources do we need to carry out these key measures? What is the human resources and financial budgets? However, to my regret, no one can answer them. The chairman and the general manager have said: their company does this every year. If the company lists only financial targets, but there is no support for any measures, action plans and budgets, then the strategic goal of the enterprise can only be seen in mist and water.

Problem two, performance management is only the responsibility of human resources department.

One day in October 2009, I received a call from Liu Qiang, director of human resources in a private enterprise in Nanjing. Liu Qiang was very annoyed about the recent events of the company on the phone: two months ago, the general manager of the company put forward a project at a regular meeting: we hope that the company can implement strategic performance management projects as soon as possible, strengthen management and improve the company's operational efficiency.

The general manager hopes that he will be responsible for carrying out the project.

The reason is that performance management is one of the main responsibilities of the human resources department.

After receiving the task assigned by the general manager, director Liu Qiang immediately began the work: he organized a strategic seminar attended by senior executives at the end of August.

In the process of organizing a strategic seminar for nearly a week, four of the five executives of the company did not participate, and the general manager was also away from business. 1/5 of the middle managers did not attend.

When Liu Qiang was giving training to his supervisors, because there were some objectives to discuss, when he asked some questions about the chief financial officer and the marketing director, they knew clearly, but they did not know. They asked the general manager of the company.

What makes Liu Qiang more angry is that when we opened the seminar, we did not seriously discuss the goals, but instead discussed the unhappiness in our normal work.

When implementing strategic performance management, some enterprises are only promoted by the human resources department. The top management of the company is not involved, which leads to the difficult implementation process and finally has to give up.

We should know that the essence of strategic performance is to integrate the management system of strategic planning and performance management, pform the company's strategy into the daily actions of employees, and achieve the company's strategic goals through the process of strategic discussion, strategic planning, goal setting, performance implementation, performance appraisal and return.

Without high-level participation, the strategy can not be clearly defined, the strategy can not be defined, and the performance management will lose its source. When the company promotes strategic performance management projects, it will definitely need the highest level of management.

Question three, performance appraisal indicators can not catch the key points, and do not reflect the concern of enterprises on performance and the traction of employees' behavior.

In the summer of 2010, I worked in Wuxi to design a strategic performance management system for a well-known local machinery manufacturer.

When we read the company's performance appraisal system, we found that the company's assessment indicators were not derived from the company's strategy or annual key work. Most of the assessment indicators were derived from the job descriptions, and such assessment indicators can no longer represent the focus of the company's operation.

Because the company's performance management system is not linked to the source of the performance - the company strategy, can not support the strategy, the situation is: the Department's performance may be good, employee performance will also be good, but the company's performance is not good.

Some enterprises, when implementing performance appraisal, can not catch the key examination index, and only push from the duties of staff posts to the assessment index, which can not reflect the concern of the enterprise and the traction of employees' behavior.

Problem four, ignoring the participation of grass-roots employees, the lack of communication between the upper and lower levels results in conflict of performance management.

Qin Qin, manager of equipment department of Asia Electronics Company, said to another manager at lunch. "This morning I suddenly remembered that today is the last day of performance appraisal, but I haven't given an assessment to Zhang Ping, the Department's subordinate, so I called him from the budget meeting.

He said he had no time to prepare. I told him a few things that I was not satisfied with, and told him how to correct the mistake, but he just said that he disagreed with me on several issues and asked me to give an example of every criticism.

I can't believe his reaction. I get angry and silent.

Do people not care much about improving themselves now? He's usually pretty good, but he seems unhappy in his assessment.

What do you say about him? "

In the process of doing the performance management, Qin manager neglects the communication with his subordinates. He should ask subordinates Zhang Ping to conduct self-evaluation first, while Zhang Ping should take part in the performance plan, performance implementation and performance appraisal. In each of these four links, communication should be strengthened.

In reality, many enterprises ignore the involvement of grass-roots employees when implementing strategic performance management. The lack of communication between the upper and lower levels results in conflict of performance management.

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Problem five, performance management is only a means of bonus distribution / promotion.

Some company executives think that if their employees perform well and perform well, I will give him a raise in salary.

Salary increase bonus can certainly motivate employees to work hard and create better performance.

But there will also be two misunderstandings. On the one hand, the company's operating cost does not allow unlimited salary increase to employees. On the other hand, if the company's performance is simply raised by salary increase, it is not a permanent solution.

The effect is, for example, for young employees, who are more important in career development and ability training, then companies should focus on motivating them in career development and ability training. For those middle-aged employees with more than 10 years of work experience, companies need to go elsewhere to set up new business units, companies should encourage them to work in new business units, companies should help them solve their worries and help them solve housing, etc., and for those old employees who are retiring from their jobs, companies should encourage them to take more apprentices inside and inside departments and pfer their rich experience and skills to young workers who have just entered the workforce, so that those young people can grow up quickly. In fact, motivating those who perform well, besides salary and bonus, there are other incentives to motivate employees.

In short, the company should try to meet the needs of those excellent employees, even if the excellent employees hope to increase 3 days of paid annual leave each year, and try to satisfy this demand.

Only by meeting the needs of employees can the company's incentives be put in place.

In practice, there are many companies that regard performance return as a means of bonus distribution and job promotion. The incentive mode is single, and it is difficult to meet the multi-level needs of employees.

Problem six, pay too much attention to short-term performance and neglect long-term performance.

It has been reported that a large dyeing and finishing textile company did not dispose of the waste water, directly discharged the waste water outside the factory, causing serious pollution around the factory area. There was no wild grass around the factory area, and the trees planted were not long enough to die.

The reason is that the company directly discharged the large amount of wastewater dyed and processed to the factory and seriously polluted the environment.

Finally, the local environmental protection bureau handled this matter: the drainage of the factory must be processed to reach the national two level standard before it can be directly discharged to the factory and fined 300 thousand yuan.

It is beyond reproach for enterprises to pursue economic interests, but they can not sacrifice social interests, do not sacrifice long-term interests, do not sacrifice the living environment of ordinary people, and do not sacrifice the resources of future generations for short-term economic benefits.

In reality, some enterprises pay too much attention to short-term financial performance and ignore non-financial performance. They only pay close attention to the interests of investors, ignoring the interests of stakeholders such as customers, employees, communities, suppliers, and ultimately lead to a decline in corporate performance.

Question seven, performance appraisal equals performance management.

Liu Yang, director of R & D center of a large electronics group, gave a bad performance to the lower level engineer when he assessed the performance of the company. He told him during the performance appraisal guidance: I have observed that you made the same mistake two times, so you gave the worst performance.

Hong Feng was very unhappy when he heard it, so he said, "Liu, why don't you point out when I made a mistake for the first time?"

Performance management should be a systematic process, including performance planning, performance implementation, performance appraisal and performance return.

Subordinates in the implementation of personal performance planning cycle, it is inevitable to make mistakes, director Liu Yang should not just in the assessment stage to subordinate flood peak said: you made two times the same mistake.

In fact, when subordinates make a mistake for the first time, they should point out clearly and give guidance and support.

Some enterprises regard performance appraisal as performance management, and lack of systematic performance management, such as performance plan, performance implementation, performance appraisal, performance return, and so on, and become an assessment for examination, resulting in performance management unable to form effective support for company strategy.

Problem eight, lack of corporate culture and leadership to support performance management systems.

Liu Wei, the technical department of Fei Xu machinery manufacturing company, commended the lowest score for his subordinate leaflet this month. During the performance interview, he had an argument with manager Liu.

At the time of grading, manager Liu commended: "you are so disappointed with me, you have scored the lowest score in the Department."

Xiao Liu said, "manager Liu, you come to examine me. What is it, I don't approve of it?"

After the leaflet also asked Liu manager: "you give me the lowest score, then how should I do it in order to do better?"

Manager Liu did not reply explicitly.

"In the performance interview, I didn't help me, and didn't tell me how to do it," I said.

Xiao Ye complained to Liu manager and put forward two reasons for complains:

Reason for complaint 1: it is impossible to explain the basis of assessment.

Reason for complaint 2: ask for a method of performance improvement, Liu manager did not give a definite reply.

In practice, many companies will have such things as Liu manager and lobular.

In the absence of performance management culture, executives lack sufficient leadership in performance management.

What are the responsibilities of supervisors? What should be assessed? What aspects of subordinates need improvement? How can we improve it? How bad is the poor performance of subordinates? Are they personal skills or skills? Psychological reasons or other reasons? Do you need superior support or peer assistance?

In the process of implementing strategic performance management, many companies lack the support of corporate culture and leadership in performance management system, resulting in performance management can not play a corresponding role.