Li Jiacheng: To Succeed, It Takes 90% Hours To Lose.

Reporter: we are all very curious. You started business at the age of 22, and did business for more than 50 years.

How to expand in a bold way and not to capsize?

Li Jiacheng: when you are in a sunny day, suppose you are driving an ocean going boat driven by the wind. When you leave the port, you should first think of hanging a ten wind ball in the first place. (editor's note: the typhoon in Hongkong represents the intensity of typhoon, and the ten is equivalent to a strong typhoon). How should you pay it?

Although the weather is good, you still have to estimate that if a typhoon strikes, what will you do before the storm has left?

I will constantly study every project to face the problems that may arise in bad situations, so I often spend 90% on failure.

Because of this, over the years, since 1950 to the present day, the Yangtze River (industrial) has not encountered the tension of loans, never.

The Yangtze River (industrial) has been listed today, assuming that shareholders get a dividend and buy another more than 2000 yuan.

It is to take (dividends) instead of buying Changjiang (industrial), and shares exceed one thousand times.

Knowing details and grasping information often prevents crises from happening in advance.

Reporter: 90% failure? It's interesting. Most people are full of ideas about how to succeed. Why do you spend so much time trying to fail?

Li Jiacheng: you must first think of failure. Once upon a time, we Chinese had a business saying: "buy before you want to sell". If you haven't bought it yet, you should first think about how to sell it. You should first think of failure.

Because the difference between 100% or 50% is not very important, but if a small loophole fails to repair it early, it may cause great damage to the enterprise. So when a project suffers a loss problem, even if the amount involved is not large, I will consult with the relevant departments to solve the problem, and the time and the spirit of the multiples are far beyond the proportion.

I often say that a mechanical watch will stop if you have a little trouble with one of the gears.

A company is also, if an organization has a weakness, it may fail.

Knowing the details often prevents crises from happening in advance.

Interviewer: which details do you want to keep an eye on?

Li Jiacheng: cash flow, the percentage of company liabilities is the most important link I always pay attention to. It is an important health indicator for any company.

In any developing business, cash flow with positive performance must be achieved.

Reporter: 90% failure to consider, it can be said that

Li Jiacheng: it can be said that it is like the commander of the army must consider the retreat.

For example, the commander of a small country has twenty thousand elite soldiers. When planning to take over other cities, he must prepare two times better soldiers, that is, sixty thousand. Because of the activation of war, there may be many unexpected changes. Once the war is defeated, the country will have more than doubled the strength of the normal period to defend the foreign enemy.

It is impossible for any career to consider its own ability to balance risks. Plain sailing is impossible. In the past, I had encountered many political and economic ups and downs in running my business.

I often remember that there are no general victorious generals in the world, so when we are calm and calm, we should plan for the future and carefully study possible accidents and solutions.

Reporter: you emphasize the risk very much. But what outsiders notice is that the Yangtze River group has been in the market for fifty years, including the late 1960s, the opportunity to cross the real estate from plastic to real estate. After 89, investing in Shanghai, Shenzhen port business, and even investing in Indonesian ports during the Indonesian exclusion movement, why didn't your bold move bring fatal risks?

Li Jiacheng: This is actually the time to grasp the ups and downs of the market cycle, and also take into account all the factors related to the international economy, politics and people's livelihood. For example, when the booming supply and demand cycle of real estate has reached its peak, it is almost inevitable that it will decline; and because of the pformation of the industrial base, the need to think about increasing investment and the greatest demand for technology, and so on, we should find out the way to achieve the business goal quickly according to different projects.

To develop vigorously in a recession is to see a latent crisis when the market is strong and how to deal with it when it comes. This is a condition that requires some qualifications.

Reporter: you have some qualifications.

?

Li Jiacheng: the key is to be ready to work, to measure and to balance the risk.

I often say "prudence" is an art, and it is a quick decision to make the right time, but it is not a pretext for silence and stagnation.

To run a large enterprise must be aware that many people's livelihood conditions are closely related to their business, so the attitude of prudent management is very important, for example, when there is a purchase case, all the necessary cash needs to be prepared in advance.

I am more careful. I have been poor. How can I take risks? You can see that many people become poor at a time. I will never do things like this.

There is a saying, I firmly remember: "the poor are easy, the poor business is sad", if you are poor, you can not eat good white rice, you can buy the cheapest rice, or you can eat meat, you can eat vegetables, the cheapest dish, but the poor business is very difficult, very difficult.

So we can be careful to say that we are walking on thin ice.

Reporter: as you mentioned just now, the key to developing vigorously in a recession is to "make enough preparations, do what we can and balance risks".

When opportunity comes, we can grasp the appropriate time to make quick decisions.

In 1977, you bought Hilton Hotel in Hongkong in a flash.

(editor's note: Cheung Kong acquired HK $230 million for wing Gao company of Hilton Hotel, and the whole paction took less than a week.

This is the first major acquisition of long listed company.

Li Jiacheng: the most important thing is to draw on the latest and most accurate technology, knowledge and all the market dynamics and information related to the industry, so that we can have a thoughtful plan to make it easy to compete in the competitive market.

When you have the news and the opportunity comes, you can have action immediately.

I can buy Hilton because I went to a cocktail party one day, and there were two foreigners talking about it. One said there was a hotel in the central district to sell. The other party asked him where the seller was. They knew that too many people knew it too well. He said, in Texas (Dezhou), I heard immediately after they heard that they were talking about Hilton Hotel.

The reception is not over yet. I have run to the seller's accountant office (the seller's representative), and I want to check with his auditor.

He said it was strange that we decided to sell it two hours ago. How did you know it? Of course, I didn't smile. I just said, if you have this, I will buy it.

At that time, I estimated that the rent of all Hongkong hotels would go up in two or three years.

(seller) is a listed company.

Reporter: is there no other competitor in this business?

Li Jiacheng: one, because no one knows, two, I shot very fast.

Others are not so fast.

Because I heard it at the reception, I called a director immediately. He checked the line. I asked him that he and the seller's audit were good friends, and went to his office immediately.

The place where you sit today (finger ground) is part of Hilton's address.

After the deal I bought, the company's assets doubled in one year.

Reporter: what new industries have you seen lately?

Li Jiacheng: today? A lot of new things. I met yesterday. I talked about Facebook. It was founded by two Harvard students. It is the first photo sharing station in the United States and uploads 8 million 500 thousand photos every day.

More specifically, most of the users will leave their real names and materials for making friends or searching for people.

From the first few universities, some people say that in 2011 or 2012 only reached 48 million users. In fact, the company has reached 45 million active users last month, but if you don't have the information, you need to analyze Facebook, your data is not enough.

Therefore, the most important thing to do is to pursue the latest information.

Talking about investment

Can not be indebted, diversify investment, pay attention to cash in time.

Reporter: in the pursuit of the latest information in business, personal finance?

Li Jiacheng: over the years, from 1950 to today, personal (assets) has never been less than a year ago.

To achieve this, the first principle is to avoid debt.

After 1956, I did not owe a debt to my individual. My debt is this (two big metal legs on the side table, a little polar bear statue, pointing to the little polar bear), my cash is so big (pointing to the big polar bear), this is what I use today (analogy). (laughter)!

Reporter: the first principle of personal finance can not be indebted. What about investment?

Li Jiacheng: when I invested, I first thought about the extent to which investment failure could be achieved. Many times the success did not matter. I also made investment more than 10 times, and some businesses also did very well, losing money very little, because I was not greedy.

The company has never lost money, and personal money and property have been increasing.

But I didn't have the chance to make quick money, because I was more careful.

Reporter: is there any time when personal investment is the biggest challenge?

Li Jiacheng: No, because I am not only investing in one industry, I am diversifying investment, so I will pay more anyway. I am more careful.

And I personally (assets), many a week can get cash.

Reporter: how much can you get cash in a week?

Li Jiacheng: no less than 1/3.

For example, government bonds and stocks can be obtained in a week.

Of course, I have other investments, such as real estate, which can not be exchanged for cash immediately.

Talk about management

Master top-notch knowledge, strive for perfection and establish a good system.

Reporter: Mr. Li, you said that there is no formula for success, but if you have to say the three principles of success, what will it be?

Li Jiacheng: first, you must pursue the best knowledge, information and best technology in that industry and must be in the best condition.

This is the first.

Second, hard work and perseverance (Assistant): Mr. Li said that the meaning of effort and perseverance is not the traditional literal meaning, it is best effort.

However, it is very important that if an organization does not have knowledge about the industry, if you make a mistake, even if you work harder and have perseverance, your failure will be too costly.

The third is to establish a good system and talents.

Reporter: you have just mentioned that we must have the latest information. Besides, there must be a system. But the business you manage is from the retail trade and port pportation to the petroleum industry. There are many kinds of things. How can we use the system to manage it?

Li Jiacheng: now is a pluralistic era. There are many challenges facing all sides.

Our business in 55 countries, the company's structure and corporate culture must take into account the expectations and concerns of colleagues from different places.

Therefore, flexible architecture can provide life motivation for the group, and can also give vitality to the self-development of different business management, and even allow them to compete with each other, and constantly seek the best development opportunities to bring the company's best interests.

The company must have a comprehensive code of governance and clear guidelines to ensure creative space.

For example, Chang Shi, Chang Shi, in the past ten years, there are many different creative organizations and managers. Their performance is excellent. All projects are big and small, all of them have great potential and good profits.

We must know that the larger the enterprise, the single instruction and behavior is not feasible, because this will limit the different management class, give play to his professional and experience.

Let me give you an example.

In 1999, I decided to sell Orange, which was sold at a high price after a British telecommunications company belonging to the Hutchison group of Whampoa, and sold it two months ago. The management advised me not to sell it or even buy another company.

I gave them four conditions: if they can do it, they will do what they want.

First, the acquisition object must have enough cash flow; two, after the completion of the acquisition, the debt ratio can not be increased; three, after the Orange issue of new shares to acquire, Huang and still have to maintain a 35% stake, I told them that 35% stake not only protects and interests Huang, but also protects the interests of all shareholders of Orange, four, has absolute control over the acquired company.

After hearing this, they are very happy, and agree with the four principles. They believe that they can go shopping if they are within the four points.

As a result, they could not do that. Of course, the proposal could not be implemented.

I set up four coordinates for Orange managers to let them know the coordinates clearly. This is the company's principle, and then when he goes there, he will play his role in these four principles.

But I can't go beyond my four coordinates (four coordinates in the air).

This is just one of many examples. In fact, we have many subsidiaries in the Chang Shi and Huang Huang group. I will set different coordinates for each company in terms of its business, business environment, financial situation and market prospect, so that management can play flexibly in the coordinate area.

Reporter: you mentioned that the third principle of successful operation of enterprises is talent, and he said he spent 60% to 70% hours on talents. How do you define talents?

Li Jiacheng: successful managers should be Bo Le, constantly selecting and recruiting talents who are cleverer than him, but some people must avoid them.

We must never select celebrities who are famous but flaunting themselves.

Enterprises can not afford those employees who are ungenerous, yes or no discouraged, and can not tolerate star stars who take their own performance as the starting point.

My experience is that choosing a team and loyalty are fundamental, but it is more important to bear in mind that those who are loyal but low in ability or who are low in moral integrity will sooner or later collapse their team and drag down their businesses, which is the most unreliable person.

Therefore, we must establish a team of concerted efforts.

The first rule is to be able to listen to the sound of silence. You have to ask yourself if your team is happy with you. Can you be open-minded, fair and magnanimous, and admit everyone's dignity and creativity, but I want to remind you that there are principles and coordinates, not that you should be a persistent and persistent person.

It may be the background of my youth's hardship. It allows me to judge the strengths and weaknesses of a talented person in a short time, and guide them from the side to give full play to their strengths.

Reporter: when you have been a boss for more than 50 years, you have a deep understanding of management and leadership, and have made a speech with the art of management. Can you analyze the difference between boss and leader?

Li Jiacheng: I dare not compare with those masters of management. I have no chance to go to school. I work hard all my life, pursue new knowledge and knowledge, and have art in my management. I have my own experience and experience.

I often ask myself, do you want to be the boss of a team, or the leader of a team? Generally speaking, being a boss is much simpler. Your power comes mainly from your status. This may be the fate of heaven or your efforts and professional knowledge.

Being a leader is more complicated. Your strength comes from the charm and appeal of human nature.

Being a successful manager is as important as ability.

Leaders lead people and motivate others to be willing to work hard; bosses only know how to dominate and make others feel small.

Way of management

"Good planning, good governance, quick and ineffective governance"

Reporter: today's talk, you talked about many ways of doing business, whether you echo this year (2007).

Li Jiacheng: for me, the most beautiful battle is actually a battle of gain and loss in advance.

The above four sentences are interrelated and mutually causal.

"Good planning and success" means deliberation, deliberation and action.

"Piecewise governance" is to understand the orderliness of things and proceed step by step.

"No disease and speed", you rely on the fact that you have many information, many difficulties you already know, that is, before you did this thing, you thought of it earlier.

What are you going to do? Because there is enough preparation, you can have a good command of yourself. When opportunity comes, you can quickly grasp it and strike it at once.

If you don't have an idea, how can you speed up?

"Governing by doing nothing" requires good system and good governance system to manage it.

We now have about 250 thousand employees in 55 countries, and most of our employees are in western countries. If you don't have a good system, you don't have enough time to manage.

With these four factors (good planning, piecewise management, fast and no cure), the blueprint for success is natural.

Reporter: so you can achieve "no disease and speed", but in fact, risk management, information collection, and financial preparation are all ready. If we encounter opportunities, we will be able to strike at once.

How do you teach such successes to your offspring?

Li Jiacheng: I told my grandson that if you can be a "benevolent lion", you will succeed. Kindness is nature. You are usually merciful, but just kindness, business can not be successful. You must make money in addition to legality.

But if someone is not good, the lion has the ability to resist. I want to be a man myself.

Very kind, a very good person, but if someone bully you on your head, you must not shrink from it and have the ability to resist.