Twenty Years Of Management Innovation Of A Private Enterprise

"AOKANG is a model for Chinese private enterprises to innovate."

--- Fei Xiaotong, a famous economist, in July 24th, more than 60 executives of AOKANG group, after 10 days in a whole country, went to the 34 branches of the whole country to do field research. They gathered in the beautiful island of lakeside and started the annual "thinking week" activities, which once again raised the brainstorming of the company's future development strategy.

"Thinking week" is AOKANG's "Mount Lu conference". We have been sticking to it for 8 years, with different themes and forms every year.

Wang Zhentao, President of AOKANG shoes group of the world shoe king, likes to say that "opportunity favors only those who dare to think and dare to work." if enterprises want to develop and innovate, they must have the wings of thinking, and the power of thinking is endless.

In just 20 years, AOKANG started from 30 thousand yuan and seven or eight workers, and became a national top 100 private enterprise with more than 20000 employees, 10 million annual output and 3 billion yuan output value.

According to Wang Zhentao's development process, AOKANG's 20 years are the 20 years of continuous breakthroughs and continuous innovations in the internal management of enterprises. It is a 20 year pformation from family management to modern enterprise management and international management.

The family members have played a very important role in the initial stage of AOKANG, but with the continuous expansion of scale, the drawbacks of family management have emerged.

For a long time, Wang Zhentao was trapped in the trivia of family members' disputes and became a "firefighter" who had no time to take care of others.

"What am I running this business for?

No, do you want your family to live a good life?

But now that life is good and the whole family is making a lot of noise, what is the point of my hard work in this business?

Wang Zhentao, who was extremely contradictory at that time, often asked himself this.

Just when he hesitated, a thing that shocked the Wenzhou industry took place.

At that time, a well-known shoemaking enterprise in Wenzhou suddenly collapsed, and it used to be the biggest shoemaking enterprise in Wenzhou.

Two years ago, Wang Zhentao and the boss of the enterprise discussed the problem of family business, because he was the chairman of the board, the son was the general manager, the son-in-law was the deputy general manager, and the wife was the financial manager. When he talked about how to deal with the family conflicts in the enterprise, the boss then laughed, "are you a family, can you really fight?"

As a result, neither son nor son-in-law would be able to fight anyone. He really fought, and the management was in a mess.

This incident deeply shocked Wang Zhentao, urges him to make up his mind to break through the great resistance and make drastic reforms within the enterprise and break away from the management malpractice of the family business.

In 1994, most of Wang Zhentao's relatives left the company, from the operator to the sole shareholder, and the ownership of shareholders was separated from the management rights of enterprises. Blood ties no longer impede the development of enterprises, and laid a solid foundation for AOKANG to further expand its development.

In order to further standardize the internal management, improve the management level and efficiency, and promote the pformation from extensive management to meticulous management, AOKANG group has gradually developed a relatively advanced and complete management system and personnel mechanism.

A comprehensive performance appraisal mechanism is introduced to make clear the responsibilities of all staff, fixed posts, and quantified indicators. The results are directly linked to personal income and effectively improve the efficiency of employees.

At the same time, AOKANG group has been carrying out creative management reform in terms of management mode and management concept.

In 1995, in order to further integrate resources, speed up the pace of establishing modern enterprise system, and constantly deepen the reform of internal management system, Wang Zhentao successfully operated more than 10 enterprises and set up AOKANG Group Co., Ltd.

In 1997, AOKANG was approved by the State Administration of industry and commerce as a national no regional group, and gradually formed a new pattern of cross industry, cross regional and diversified development, and further promoted the enterprises to move towards the whole country and become stronger and bigger.

Today, AOKANG has developed into a shoe-making industry, involving commercial real estate, biological products and other fields, under the jurisdiction of 18 domestic and foreign subsidiaries and business units.

In 1998, as the market competition intensified, Wang Zhentao took the opportunity to introduce the franchise mode and boldly introduced chain monopolization.

In January, the first AOKANG chain store was also the first chain store in China's leather shoes industry. It officially appeared in the Shang Tang town of Yongjia County, Zhejiang.

The spark has already become a prairie fire. Now there are nearly 5000 chain stores all over the river.

It is precisely under such a "creative change" that everything is quietly changing in AOKANG.

Despite the breakthroughs in blood relations, in 2001, 80% of the company's employees were Wenzhou native, who went to work to speak Wenzhou dialect, to work at 9:30 at 9:30, to go to bed at work, and so on.

Today, 90% of the company's management personnel are recruited from other places. It is not surprising that graduates from universities such as Peking University, Tsinghua University and Zhejiang University are passing you by.

Jiang Xinghua, director of AOKANG human resources center, said that rather than trying to reflect the subsequent changes, it was better to remind AOKANG of its low starting point.

In January 2007, it invested ten million, and the AOKANG University was formally established in the past two years. This is also the only enterprise university in China's shoe making industry.

At present, the second class MBA class ended, Zhang Weiying, Liang Xiaomin, Yu Dan and other famous experts and scholars have been invited to AOKANG University platform.

"AOKANG university is the soul of AOKANG, and it is an important part of AOKANG's development."

"We invite Beijing University, people's Congress and foreign professors to come to AOKANG University as a concurrently professor and pay attention to AOKANG with their professional eyes. This is the need for AOKANG elites to improve themselves. It is a required course for the enterprise to further develop and go to the world."

Jiang Xinghua, who is also the executive director of AOKANG University, said, "even if you are a master's doctor, you will have to go through the training of AOKANG University in the future to cultivate skills, attitudes and teamwork."

There is no unsuitable person, only an inappropriate position.

Rotation system is an important measure for AOKANG's key position talent reserve plan.

The wheel turned out a genius, and the wheel turned out to be remarkable.

Mr. Guo Yong, general manager of AOKANG group Chongqing flaming bird Shoe Co., Ltd. is typical of this employment mechanism.

From the production manager to the HR Department Manager, and then to the logistics department manager and development manager of the marketing company, his rich experience has made him a compound talent who knows both production and personnel and marketing.

In 2006, after being the general manager of the subsidiary, the company had a new look in its interior, and its sales performance has tripled over the previous year.

After years of development, AOKANG has begun to take shape, but the common problems of large enterprises are slowly emerging.

In the case of love, the speed of uploading information is slow, the channels of information communication are not smooth, and the execution is not strong, which hinders the management's timely and correct decision-making.

In 2000, in a market research, AOKANG found that the total products that had been hoarding in the warehouse of the subsidiary were up to four or fifty million yuan. What is more serious is that the managers of these stores are not aware of the fact that these stockpiling products are not selling well, so that these slow-moving commodities have lost the best time to sell their prices, resulting in the pressure of capital and great risk to the company.

For this information distortion, AOKANG Group Chairman Wang Zhentao called it "information corruption". This initiative or passive information corruption is even worse than cash corruption, because if his information is not told, or later told you, you will miss a lot of time.

The recognition of the current situation of internal management made Wang Zhentao resolve to fundamentally solve the basic management problem of information feedback.

In 2001, AOKANG worked with UF, one of China's largest software vendors, from the ERP software network distribution, and fired the first shot of the "information corruption" protracted war.

After several years of pformation, the application of information technology has covered management modules such as finance, production, operation, product quality, logistics, upstream suppliers, downstream distributors, customers and partners, and basically realized information sharing, office automation, integration of management and control, and informatization of marketing network, so as to achieve the goal of rapid information sharing.

"Now, there are 31 provincial branches, more than 2000 franchised stores and more than 3000 marketing outlets all over the country. Each distribution point sells a pair of shoes at all times, and I can see them clearly at any time and anywhere."

Xiao Zhong, director general of AOKANG group information center, said: "business leaders at all levels can also grasp the distribution of all the inventory commodities, receivable accounts, returns and sales trends in the region, so that every sales link can be effectively monitored, and information corruption and information corruption will be reduced."

It is a long and unrealistic process to explore the development of private enterprises and the road of internationalization.

On this point, AOKANG group also has its own concept: management innovation is the key to the internationalization of enterprises, and the structure of intelligence must be open.

In this regard, Wang Zhentao explained: smart structure refers to whether the enterprise decision is good at absorbing the wisdom of the outside world, and AOKANG has gradually found new ideas and new channels suitable for the steady development of enterprises through the accumulation of wisdom.

In fact, in recent years, AOKANG has been trying to borrow the "external brain", to reform the organization and sort out the process, so as to seek a breakthrough in internal management.

In 2002, the scale of AOKANG expanded rapidly and began to enter the stage of multi brand operation. The retail terminal and channel competition of the external footwear industry became more and more intense, and the further development of the company encountered a great bottleneck.

To this end, the company resolutely introduced the Beijing Peking University longitudinal management consulting company, reorganized the organizational development mode and organizational structure design, laying a solid foundation for further rationalizing the internal management and promoting the rapid development.

In 2006, we took the opportunity to introduce the famous international consulting firms, such as the international profile, and other well-known consulting companies. Once again, we adjusted the company's organizational structure, promoted internal reform, strengthened the functions of group planning, monitoring and service, and gradually changed the operation and management to the strategic management of the group.

In 2007, we signed the global partnership agreement with one of the world's largest strategic management consulting companies, Kearney, to meet the new round of change and upgrading.

According to the agreement, Kearney will make a comprehensive diagnosis and control of AOKANG's management system and the development strategy plan for the next 5 years, including the setting up of footwear strategy formulation and enterprise management and control mode, AOKANG's core competitiveness, five year vision and strategic focus, headquarters location and job determination, and clear management of new management mode and organizational structure.

For this global strategic alliance, Wang Zhentao expressed his real intention with "three needs": the introduction of Global Management Consultants is the need of AOKANG's own internal management development, and is the need for AOKANG to extend from domestic market to international market. It is AOKANG's need to pform from product and brand operation to capital management.

In addition, many experts also said: This marks AOKANG's rapid pformation from marketing channel pformation to management internationalization pformation, and effectively shortens the internationalization of management level. Its essence is to open up the prelude of the footwear industry's overall competition from manufacturing, design, marketing terminals to the capital market and even the international market, which has far-reaching significance.

In the past 20 years, AOKANG has pformed itself from family workshops to stock cooperation, to the establishment of a modern enterprise system, and to the internationalization of management.

In the past 20 years, the practice of AOKANG's management innovation has witnessed the great leap forward development of AOKANG.