Liu Chuanzhi: The Three Element Of Management Is Association Winning Magic Weapon.

Editor's note: in March 25th, Lenovo convened the oath convention of the new financial year.

Last year, Lenovo's growth rate was far higher than the global average growth rate, and the pre tax profit increased by 148% over the same period last year. This excellent performance is very exciting for Liu Chuanzhi.

Liu Chuanzhi said, "build a team, set a good strategy and bring a good team". The three element of management is the winning magic of Lenovo. This "three elements" must be mastered and victorious.

The following is the full text of Liu Chuanzhi's speech:

In the past two years, every time I held the board of directors, every time I announced the results, I was particularly excited.

What was the most exciting highlight of the last quarter?

In the last quarter,

When the last financial crisis broke out, our profit in the previous year was US $480 million. In the two quarter, we lost more than two billion US dollars. One of the important reasons is that China's market suddenly weakened in that quarter, which would be devastating to us.

In the past quarter, there has been a similar phenomenon. China's market is relatively weak. Our business, our profits and turnover are increasing. This is due to the fact that not only our Chinese team has done a very good job, but also we have done a particularly good job in the global market, in mature areas and in emerging markets.

Sales volume, turnover and market share far exceeded our competitors. That's not the case. All regions are profitable, especially in the United States. I am very excited about the growth of profit.

Of course, the excitement is not the profit itself, but the equilibrium, not the equilibrium phenomenon, and more importantly, the reason for the balance. Why is it balanced? This is because we have worked hard, persistently and firmly in implementing the correct strategy. Who formulated this strategy? Just like what yuan Qing and Rory have just said, they are formulated by a strong collective leadership.

Who executed it? The backbone leaders at all levels worked together with our associative staff.

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A ship, as long as the helm is in the right direction, the crew can pull the slurry forcefully, and the heart thinks together, so that the ship can jump over the rapids and jump through the dangerous beach to achieve our goal. Now this ship is our association.

Because

In 90s, the rapid development of China's PC market attracted the global giants to compete in China. At that time, Lenovo, no matter from technology and capital, had no way to compete with other people, we only accounted for less than 2% of China's market, but we killed a blood route. By the end of 2000, we accounted for 27% of China's market and took the first place.

What revelation does this fact give us?

In the field of high technology, because an enterprise, because of technological innovation, or business mode innovation, the enterprise may suddenly become red and occupy the leading position.

However, when another enterprise has made new breakthroughs and innovations, they may be in the lead position. If the leading enterprise can not adjust their strategy in time, if the heel is not solid enough, the final result will be eliminated and even disappear.

Lenovo has been established for 26 years, from domestic to international, and has gone through many trials and hardships. It has gone through many difficulties. But we are the stronger Vietnam War. Why is this? Why? I think the most fundamental reason is that we have not competed with our competitors at this level of business only. We have established a solid foundation for management, established a good team, have a correct way to formulate strategies, and have a strong team capable of fighting well, which is the three element of management we often call.

When the new product form, Pad (tablet PC) and smart phone appear, the influence of our brand and our technological accumulation are definitely not as good as our competitors at the moment. But as long as we can work out a set of correct competition strategies according to the subjective and objective situation, and constantly adjust and resolutely implement, we will surely increase BBK (24.21, -0.64, -2.58%).

There is bound to be a partial defeat, but because we have strong leadership and excellent corporate culture, we will not be discouraged. We will adjust the war again.

From 2002 to 2004, we fought with DELL for three years. DELL went from America to Europe. We fought all the way. We fought for two years before losing the battle. Did we finally turn over? {page_break}

The "three elements" of "building a team, setting up a strategy and bringing a good team" must be mastered and victorious.

This happens not only to Lenovo but also to Lenovo, the parent company of Lenovo Group.

In 2001, when I and my controlling colleagues entered the field of investment and real estate, no one believed that we could succeed. When I visited a bank in the EMBA class of business school, I was confronted with a sharp challenge. I was clearly told by me: Mr. Liu, you have made great achievements in the computer industry. But if you do something else, if you do, it will be like a mountain pass. But ten years later, what is the result? Lenovo now has two investment management companies. The number of funds managed by the association has exceeded six billion US dollars, and more than 140 companies have been invested. Most of the companies that we have invested in have substantially increased their performance.

And we ourselves have made good returns.

As you can recall, in formal occasions, I use words very carefully and stingy. The word "very" is very good. The word "very" in return is matched with reality and objective reality.

These two investment companies are recognized as the fund management companies at the forefront of Chinese and foreign investment enterprises by various domestic and foreign rating units.

Real Estate Company is also excellent in performance and provides good economic returns for holding.

Why is this? It is also because we use Lenovo's "three elements of management", that is, to set up a team, set strategies, guide our own work with teams, and use it to help our invested enterprises.

Lenovo is a people-oriented company. The core of people-oriented is to integrate employee's pursuit into the goal of enterprise development.

That is to say, all the staff work together to improve the goal of Lenovo, while the better the Lenovo, our employees will be rewarded materially and spiritually.

Last year, one of the international awards we received was that I thought it was very valuable, that is, "the top 50 employers in the world". No Chinese enterprises have ever been selected before. I believe that after a few years, we will not be shortlisted but the top ones.

After a few years, Mr. Yang Yuanqing was respected because of the prominent position of Lenovo in the industry. Because of Lenovo's excellent social responsibility, he was given the opportunity to discuss the progress of science and technology and social progress with our heads of state and the president of the United States and the heads of the great powers. Our staff happily carried their wallet in the television to watch their boss's appearance. They were confident and proud of their bright future and their bright future for personal development.

Build a good team, set a good strategy, and bring a good team.