Deciphering Five Major Diseases In Small And Medium Sized Enterprises

The maximization of economic benefits is

When the fierce competition leads to price war, customer complaints, inventory pressure, capital turnover, small profits, high cost and low efficiency, more and more business owners are deeply aware that management is really very important, raising management and management level and managing efficiency.

In the practice of SME management, I feel deeply that there are many non-standard phenomena that restrict the realization of management functions.

First, management is useless.

It is very strange that in today's highly developed market economy, there are still quite a number of people in small and medium-sized enterprises who hold the argument of management futility. The fundamental reason for this bias is that they do not know what kind of value management can create for themselves and enterprises. People's general thinking habit is to attach importance to some visible and direct results, but the contribution of management is not generated by management itself, but by the object of management implementation. This object includes: people, products, sales, processes, technologies and services, etc. the value of management is determined through the implementation of the object's work results and operational efficiency, such as sales volume, profit margin, satisfaction of employees and customers, process efficiency, execution intensity and so on.

The mission of management is to achieve organizational goals, enhance efficiency, improve efficiency, reduce costs and improve quality.

The basic functions of management include goal, plan, organization, command, communication, service and control. Management is to do things through "people". Management needs to change people's ideas, regulate human behaviors and unify human goals.

Therefore, in the process of management, the "object" of the management object is "limited" by certain rules. "People" will feel uncomfortable or even conflicted, and the management efficiency will not be high.

At the same time, due to the limited management ability of small and medium-sized enterprises, improper management is adopted, and improper or even wrong methods are adopted, or any management measures are not implemented effectively.

When management does not produce benefits, it will be further deepened and mistakenly considered that management is useless, but the real problem is: using inappropriate people, inappropriate methods or inappropriate implementation.

Here, Shen Hesheng, a well-known Chinese management expert, agrees that

When you deny a person's value, acknowledge that he will succeed elsewhere.

When you deny the value of a method, admit that many others rely on this method to succeed.

Management is not everything, but without management, it is absolutely impossible.

Two, theory is divorced from reality.

In developing small and medium-sized enterprises, most of the bosses who pursue have already realized the importance of management without the author's unnecessary words.

Bosses have stepped up their study of management, read books, study EMBA, train around, hire management consulting companies, and introduce management professional executives. Various management theories have been experimented in enterprises. There are many good cases in combination. However, "water and soil are not satisfied", and the failure examples of theory divorced from reality are everywhere.

There is a famous saying in Chinese society that "practice is the sole criterion for testing truth". I think of the great man who changed the destiny of China: Mao Zedong, the greatness of great men lies in grasping the dialectical relationship between theory and practice accurately.

{page_break}

In the period of the new democratic revolution, Mao Zedong accurately grasped the present situation of Chinese society, combined the universal truth of Marxism Leninism with the practice of Chinese revolution, and finally led the Chinese revolution to success. Mao Zedong's original intention was very simple. What the West said was not important. The key is China's "problem".

However, under that historical condition, "returnees" who have mastered the western theoretical weapons have acquired the right to speak after all.

To Mao Zedong, the greatest enemy of the early Communist Party was not the Kuomintang, but the foreign students who returned from abroad.

They are the dogmatism that Mao Zedong criticizes. They only know the answers from Marx's books, consecrate Marx doctrine, and regard Marx's Classics as scriptures. They think that what the classical writers say is correct and seldom consider the actual situation of China.

Mao Zedong pointed out that...

A lot of people who quote quotes and speak will be called Greece. They will only quote Marx's and Engels's individual words one by one, instead of using their positions, viewpoints and methods to study China's current situation and Chinese history concretely, analyze the problems of Chinese revolution and solve the problem of Chinese revolution.

These people mainly include: Wang Ming, Li Lisan, Bo Gu, Li De and others. They regard themselves as "the one hundred percent correct Bull J Vic". They think that they can guide the Chinese revolution without any difficulties by engaging in some relatively new ideas and models.

Such "28.5 Bolsheviks" are young, highly educated, have overseas learning background and backstage, and become arrogant and arrogant when they are "CEO" of the Chinese Red Army.

Although Mao Zedong has rich revolutionary experience, but he has no academic background and no country, dogmatism naturally does not put these "Buns" in his eyes.

The 28 Bolsheviks only experienced the Soviet Union's experience. They copied the route of the Soviet Union's "urban revolution", and attacked the enemy's powerful cities with their own feeble forces. Finally, they led to fifth defeats against the encirclement and suppression. The Red Army was forced to March long. They almost killed the Red Army and destroyed the Chinese revolution.

Unlike the "dogmatism", Mao Zedong is a typical "pragmatism and landing faction", advocating that everything should proceed from reality and practice, be realistic and not blindly copy books.

Practice is the sole criterion for testing truth.

According to the reality of "the main force of the Chinese revolution in the countryside and the relatively weak force of the rural enemy", Mao Zedong put forward the "rural encircling city" line, thus pointing out a bright road for the Chinese revolution and saving the party and army.

Similarly, "dogmatism" and "pragmatism" are common in Chinese management circles.

What is the dogma of management? They do not investigate, divorced from reality, only talk on paper and sit on the right track. Management is completely out of touch with the reality of the enterprise, and it follows the world's top 500 theory, flaunting knowledge and making sensationalism.

Some management consulting companies, MBA who do not have many actual combat experience, never study the industry, study the actual situation of enterprises, prescribe prescriptions blindly to the enterprises, regardless of the actual effect.

For Chinese managers, what the western management theories say is not important. What is important is the problem of Chinese enterprises. We should analyze the actual situation of the problem in a realistic way, and summarize the rules and experiences from it.

The foundation of Chinese society is in the countryside. The market of small and medium-sized enterprises is mainly in counties, townships and rural areas. Most of the customers and employees come from rural areas. The brand of farmers is born. Farmers' personality, values and life consciousness are deeply rooted.

All these are facts that exist objectively in small and medium-sized enterprises.

"People oriented" is the core of management. Any theory deviating from this core is divorced from practice and dogma.

We believe that the theory of management is not wrong in itself. It is not wrong to learn from the top five hundred. It is more accurate to accept training from management consulting companies. It is only that our study is a critical study, and we can not copy it blindly, especially considering the reality of our enterprises.

{page_break}

The successful operation experience and norms of large enterprises may not be suitable for themselves. Management is not right or wrong, only suitable or not.

Any management theory has its specific industry and enterprise background. The management theory of the top five hundred was formed one hundred years ago or several decades ago. It was born in a relatively stable and mature environment. It was summed up in the reference system of perfect environment. The environment in China is so complex that it differs greatly from the foreign urban culture. The theoretical mode of the five hundred strong enterprises is not effective for small and medium-sized enterprises.

The management level of small and medium-sized enterprises needs to be improved. It is necessary to consider their own actual conditions, analyze the specific problems concretely, adapt theory to the actual situation of enterprises, instead of adapting to the theory at the expense of their actual conditions.

Only by combining mature theory with specific practice of enterprises can we accomplish the pformation of management theory.

Three, lack of strategy

To achieve great success, we must think strategically, so for a company, strategy is very important.

Some people say that our small and medium-sized enterprises do not need strategy.

Is that so? What is the strategy?

To put it simply, strategy is to set up a long-term vision and plan for achieving the goal track. It is a macro management category. It has six main characteristics: guiding, overall, long-term, competitive, systematic and risky.

We believe that not only small businesses, but even small to individuals, they also need strategic goals, with clear and precise goals being the prerequisites for success. Harvard University has conducted a survey: 27% of people have no goals; 60% of them have vague goals; 10% have clear but relatively short term goals; the other 3% have clear and long-term goals.

25 years later, 3% of the people have almost become successful people from all walks of life; 10% of them live in the upper middle class; 60% of them live in the middle and lower classes of society; the remaining 27% are complaining about others, complaining about society and complaining themselves.

If you say that you only want to survive, do not want to develop, then I believe that individuals may earn a living, but as enterprises only fail, the management state of an enterprise is either development or bankruptcy, and there is no intermediate state.

Market competition is cruel. If you do not develop, others will develop, others will eat you. The cake is so big. So many people are scramble for this cake. If you stand there, will it still be your turn?

Therefore, enterprises, regardless of size, need strategies.

This is absolutely right, and is universally applicable. Both large and small enterprises must follow this principle, otherwise enterprises will not survive and develop.

The enterprise strategy has the characteristics of overall and systematic. The long-term goal is the first step of the strategy, but not all, and the strategy includes planning and implementation.

The goal of three years, five years or even ten years is to represent the strategy, which is a great misunderstanding of strategic management. The strategy is a combination of long-term goals and strategies, and the overall planning, policy and positioning of the vision, mission and proposition of an enterprise.

The core of the strategy is the determination of the direction and the choice of the overall policy and strategy.

Many small and medium-sized enterprises often show "no war or no strategy" in strategic planning.

This is due to the fact that many corporate founders are busy with entertainment, drawing on relationships and marketing, and not being able to calm down their minds to think about the long-term and global problems. However, there are many reasons for their lack of understanding or misunderstanding in strategic management.

Nowadays, enterprises often regard tactical tactics as a strategy, that is, how to act as a strategy for short-term operations, and take specific operation steps and processes as strategies.

Our enterprises often do not think for a long time, but focus on solving short-term problems, how to organize people, how to organize money, and how to fight the market as an enterprise strategy.

In fact, this means that the enterprise has no strategy, but directly to the strategic level.

Strategy is to do the right thing, tactics is the right thing to do, strategy should be directional, overall and overall strategy.

{page_break}

In the Three Kingdoms, Zhu Geliang's "Longzhong pairs" is a classic strategic example. It has both long-term goals: restoring the Han Dynasty and reunifying the whole world; analyzing the environment and resources; and putting forward the long-term policy of East and Sun Quan, North Cao Cao, Jingzhou first, and then Sichuan and Sichuan.

Later, Liu Bei's failure to achieve success was not related to strategy, but because of improper execution.

The strategic thinking embodied in "long Zhong pairs" is worthy of reference from our contemporary business owners.

Four, lack of executive power

Strategy is important. It means a brand-new leap. The vision is important. It points out the direction of the enterprise's struggle. The authorization is also important, which ensures the normal operation of the enterprise.

But we have found that in order to make these important factors play a role, we must rely on implementation.

Without executive power, all excellent programs are empty talk. All perfect plans are only illusions.

Weak execution, almost become a common disease of small and medium-sized enterprises, execution is currently a very popular word in the field of enterprise management, and it is quickly being said to be rotten, and all kinds of research, books, articles and training can be seen everywhere.

At present, SMEs have really learned a lot in order to improve their executive power, so they have made many processes and systems in their own enterprises. The purpose is to improve executive power, but the result is more complicated, and the execution of the system process is also not in place.

I think of a report read in the early years: a large state-owned enterprise in Northeast China went bankrupt and was bought by a Japanese consortium.

The people in the factory are looking forward to the new management methods that can be refreshing by the Japanese side. As a result, the Japanese side has sent several top management personnel, but the rest have not changed.

The system has not changed, people have not changed, machine equipment has not changed.

The Japanese side has only one request to unswervingly push ahead with the established system.

What is the result? In less than a year, the enterprise will turn the profit into a deficit.

Do Japanese have unique skills? No, they only solve all problems by unconditional execution.

So how can we improve executive power? Many people like to complicate a simple question, indicating that he has studied many things and is very knowledgeable, for fear that others will not know that he has knowledge.

In fact, for enterprises, the opposite is true. The practical people in management need to simplify the complicated problems. Only the simplest things are the easiest to understand, and the most practical ones, especially for the grass roots employees.

My understanding of execution is only two words "do" and executive power is "ability to do".

To improve executive power, a simple sentence: when it comes to speaking, we must do it, we must see it, we must check it when we see it, we will reward and punish it when we check it.

We need to "speak", that is, to set up the target planning system and process, and then carry out it through effective communication.

If we want to "achieve", we should first establish the sense of obedience of employees, and then we can start from obedience, then we can talk about other things, learn obedience to the army, obedience is the first virtue of employees, and combat effectiveness comes from obedience.

We must act in accordance with the command, understand the implementation, do not understand, and deepen our understanding in implementation.

Secondly, the operation of the planning process system is changed from "law to law" to "law enforcement". All the contents of the planning process must be carried out to the letter.

The most terrible thing about enterprise management is not the lack of system, but the lack of authority of the system.

The system can not be effectively implemented or the system is not implemented.

It is more harmful to enterprise management than no system.

"To be seen" is a ubiquitous blind area in management. Its implication is that every action that has occurred must be left without a record.

For example, the salesperson's daily work needs to leave a record through the "work day report", and the paction with the customer should be left a record through the customer paction form. The expenses of the salesperson must be kept through the "cost control table". The inspection of the customer should leave a record through the customer analysis table, and the market investigation should be left by the Market Research Report. The sales staff's monthly (quarterly, annual) work should be summarized by the monthly (quarterly, annual) summary report, leaving the record to the customer, and the customer's call should be left through the telephone recording card.

{page_break}

"No record does not happen" is an important concept of management. It has three major functions for management. One is the establishment of responsibility (performance) tracking system, the two is to make the work process pparent, and the three is that the salesperson can summarize the improvement through records.

When you see, you have to check that employees will not do what you ask for. They will only do what you check. Inspection is an important means of management control. We should control the work according to the target plan and system process, and the enterprise should establish a control system.

We should not only control the results, but also control the whole process of work.

After examination, rewards and punishments are necessary. After examination, rewards and punishments are necessary. Rewards and punishments should be clear, timely and communicated in advance. If employees are expected to make some kind of behavior and get some results, they can not just stay in thinking, but make inductive actions on these behaviors and results.

Only by establishing a correct reward and punishment system can enterprises motivate their employees to do their work voluntarily and improve their executive power.

Five. Lack of team spirit.

Many enterprises will intentionally or unconsciously "team spirit" as one of the optional conditions when recruiting. It is easy to see the importance of teamwork to enterprises.

No matter how capable a person is, his creativity and technical ability are limited.

Therefore, only when a group of people contribute themselves wholeheartedly, can the limited ability be integrated into a tremendous force.

Creativity and technological ability will interact with each other for the sake of integration, and they will interact with each other and complement each other, so that enterprises will always be full of vitality.

Small and medium-sized enterprises, most of whom are entrepreneurs, have led their family members, family members, friends and family members, and worked hard to achieve success.

When the enterprise is moving towards a bigger step, there are more and more recruits joining the team. The team is bigger, the problems and contradictions are gradually emerging, and the performance of enterprises has not increased with the expansion of personnel. Instead of being united in the past, 1+1 has not been greater than or equal to 2.

There is a relatively small company.

In the early days of creation, only the boss and his wife, because of flexible strategy, coupled with the joint efforts of both husband and wife, made the company's business very fast.

As the company grew stronger, the boss recruited two people, one to help him with his business, and the other to help his wife manage the administrative duties.

For two years, the company's business is booming.

With the development of business, the company expanded. They bought a building, officially set up many departments, and more and more elites.

But the boss never felt happy again.

It used to take only a week to complete the work, but now it often takes half a month.

In his team, employees always think that others do not pay for the company, and that others are lazy, which reduces their efforts, but the boss is blind to this.

Finally, the problem of the team is becoming more and more serious. It is difficult to coordinate between the sales and support departments. There are three months in which customers need to exchange products.

Of course, the profits of the company have also declined greatly.

Team effect is not simply a cumulative number of people, the team can produce positive synergy effect - the output of the team is more than the sum of the output of individual employees, that is, 2 plus 5 can be equal to 5, but the team may also have a negative synergy effect - the personal output of employees working together is less than the output of employees when they work alone, that is to say, 2 plus two may also be only 3.

Why does this happen? The reason is that the effect of social inertia is that employees work harder when they work together than when they work alone.

As Konosuke Matsushita said, "one plus one equals two, this is a well known arithmetic problem, but in terms of employment, the result may be different.

If used well, one plus one may equal three, equal to four, or even five; if used inappropriately, one plus one can be zero, and more likely it is a negative number.

{page_break}

It is necessary to motivate an excellent team.

Effective incentives can turn the ordinary combination into the best team.

Bill Gates said, "you need a strong team, because a mediocre team will only produce mediocre results, no matter how perfect the management of the team is."

It is the key to the success of an enterprise to make the team into an excellent team and make it play the biggest effect.

The reason why excellent companies are excellent is that because of this, many successful companies are always seeking to build an efficient team.

To build an efficient team and maximize the effectiveness of the team, four strategies can be adopted: first, select common goals.

Those who work for their goals will work longer and harder than those who work for others.

Therefore, the common goal must be suitable for every employee's dream, and effective management measures should be taken to motivate employees to strive wholeheartedly for the realization of this common goal.

Two, we should constantly improve the mechanism and system.

If the goal of the selection team is to establish the core of an efficient team, the establishment of a reasonable authorization, incentive constraint and assessment system is the guarantee for achieving the common goal of the team.

The reasonable mechanism construction mainly includes: team discipline, reasonable authorization from superiors to subordinates, encouragement and restriction of teams, establishment of fair assessment system and improvement of promotion system.

The three is to strengthen communication and cooperation.

Team members will inevitably produce conflicts and conflicts.

Therefore, we must strengthen close and effective communication between the teams and promote mutual understanding, mutual help and mutual communication among members so that members can play their most important role in achieving the overall goal of the team.

In addition, communication and collaboration can also achieve the sharing of intellectual resources among team members and promote knowledge innovation.

In the operation and management of small and medium-sized enterprises, besides the above five diseases, there are also problems that bothers the boss: contradictions between family and professional managers, loss of personnel, lack of culture, difficulty in grasping authorization and decentralization, and incompatibility between rule by man and rule of law.

However, I sincerely hope that the owners of small and medium-sized enterprises can act in a high and pragmatic manner to serve the current shortcomings, improve management level and enhance economic efficiency.