Introduction: Weichai has found a way to manage innovation: inherit and carry forward the organic combination and dialectical unity of the traditional advantages of state-owned enterprises and innovative management mechanisms.
In recent years, some leading large-scale state-owned enterprises in China have gradually found a unique development path in the market competition. Weichai Holding Group Co., Ltd. is one of them.
From 2001 to 2007, Weichai Holding Group's economic indicators have doubled in six consecutive years, and business income, total profits and taxes, total profits, and foreign exchange earnings from exports have increased from 1.63 billion yuan, 90.5 million yuan, 1.92 million yuan, and 40.12 million U.S. dollars. 42.8 billion yuan, 4.8 billion yuan, 3.45 billion yuan, and 550 million US dollars, respectively, increased 25 times, 52 times, 172 times and 12.8 times.
It has been growing at a rate of about 100% for 6 years in a row. This is incredible for a normal development company. Based on business income of 42.8 billion in 2007, if it grows again by 100% for 6 years, there will be an astronomical figure of 2,788.8 billion. Of course, as scale increases, we know that no company can maintain 100% growth over the long term.
The speed of development of the Weichai Holding Group is based on the vigorous development of the Chinese economy. On this basis, the unique management thoughts and experience explored by this state-owned enterprise have played an important role. The "State-owned Enterprise" magazine summarized it as "Chinese-style management of Weichai Power", which is characterized by a combination of local and foreign cultures. In their own words, it is to find a way to manage innovation: to carry forward the organic combination and dialectical unity of the traditional advantages of state-owned enterprises and innovative management mechanisms.
Don't forget the old tradition
In April 2007, "State-owned Enterprises" once reported the story of Qingdao Port Group's emphasis on the integration of state-owned enterprise traditions and modern western management concepts with the "Chinese-style management of Changde Chuan." In Weichai, you can see yet another version of this story.
In 1998, the leadership team headed by Tan Xuguang took office at the beginning of his term, and he solemnly promised to all employees that he had “approximately three chaptersâ€:
Adhere to the principle, dare to grasp the courage to manage, do not be a good old man, improper peace officer; throw himself out, really do practical work, do practical things for the company, do good things for the employees; set a good example, require honesty, and require employees to do our first, do not We do not allow employees to do it.
Tan Xuguang's "covenant chapters" reflect the state-owned enterprises' tradition of "community with one heart, common prosperity and common prosperity" and the state-owned enterprise tradition of "responsible to the nation, responsible to the unit, and responsibility for the staff". This really awakens the staff. The resonance of identity and feelings inspired the development of passion and fighting spirit.
In the past ten years, everything in Weichai has undergone tremendous changes, and “the three chapters of the Act†have not changed and become the basis for establishing a factory.
Tan Xuguang also put forward the concept of the Weichai Family: workers are all members of this family. The prosperity of family business and the personal development of employees are unified. Cadres must treat employees like their children and their loved ones.
In the specific work, Weichai insisted on traditional forms such as employee representative conferences, democratic appraisal and leading cadres, maintained a smooth channel for communication from top to bottom, and safeguarded the rights of employees to become masters; Weichai insisted on making employees' lives a priority issue. real.
In 2000, Weichai implemented the reform measures “Laid-off diversion, reduction in staff and increase efficiency†in the same way as other state-owned enterprises. Unlike other state-owned enterprises, Weichai was reduced from 14,000 to 7,000. No one employee was unemployed. Followed the position or business to realize the transition from "State-owned enterprise employees" to "Diversified investment enterprise employees", and required the restructuring units to sign the agreement promise of "guarantee participation in restructured employees within five years".
From treating state-owned diseases to lean management
In 1999, faced with the changes in the market economy environment, Weichai found that the root cause of SOEs was the management mechanism, the mechanism changed, and the vitality was unlimited. The prescription for curing state-owned enterprise diseases is "introducing market mechanisms."
Weichai’s management reform first started with the organization’s personnel issues, introduced market competition mechanisms, implemented personnel system reforms, and implemented the appointment system, exchange system, and competitive employment system for leading cadres and management personnel. ". Followed by the introduction of the market elimination mechanism, the employment system reform, according to the unit production, work task load size and degree of responsibility, to determine the fixed, fixed posts, fixed staff, the implementation of the full competition for posts, for those who do not meet the requirements of the post, arrange to leave the post Training or re-selection of posts has formed a mechanism for the retention of talents. The third is the introduction of market value mechanisms, the implementation of the reform of the distribution system, the separation of management and engineering technicians from the technical titles, the implementation of piece-rate hourly wages on production workers, the income of employees and individual performance, the results of department assessments and the overall benefits of enterprises Hanging on the hook, the practice of remuneration on the basis of posts, the payment of rewards on the basis of contributions, and the conversion of "unit wages" into "individual wages." For a time, the market mechanism, like the water flow, has infiltrated Weichai and all the staff. Weichai's management reforms are well-established, and they have begun to double for five consecutive years since 2000. In 2004, they achieved a sales revenue of 10 billion yuan, shocked The entire automotive industry.
After the Hong Kong listing in 2004, Weichai has become the vanguard and leader in the domestic diesel engine industry. The environment they faced has become a global economic stage, and their rivals have become advanced enterprises in the world. In particular, after the merger and reorganization of the Hunan Torch in 2005, Weichai itself has further developed into a corporate group. At this time, Weichai shifted the focus of management reforms to the direction of “advancing the world’s advanced management concepts and achieving lean managementâ€.
Weichai first put information construction as a key project for management improvement, successfully built an ERP system, and established a standard, standardized, unified, and efficient management platform. At the same time, Weichai introduced the concept of comprehensive budget management, specifically established a cost control center, and established a comprehensive system from the aspects of establishing a budget organization guarantee system, optimizing the budget system support system, improving the comprehensive performance assessment system, and designing a budget analysis improvement system. The budget management system changes the “find†calculation into a “counterfeit flowerâ€.
Through two years of practice, the cost has been greatly reduced. In 2006, the company reduced its cost by 270 million yuan. In 2007, it reduced the cost by 300 million yuan, and this year it is expected to reduce the cost by 330 million yuan. At the same time, Weichai also introduced a number of normative and scientific management concepts and management systems such as Lean Six Sigma Management, Excellent Performance Management, Lean Production Management, and 5S Site Management, and strengthened strategic management and process reengineering management according to the Group's management needs. The second change in management to meet the requirements of enterprise development has embarked on the path of connotative development.
The key is execution
The staff of the Weichai management department told the reporter that Chairman Tan Xuguang once said that the management system we have established is a pile of waste paper. why? The management system cannot be implemented at work and cannot be implemented. Isn't it like waste paper?
And now, "it is responsible" has become the verbal language of the Weichai people. In Weichai, such a rhetoric without any modification can be heard everywhere. Expressing it in current terms should be called execution. Weichai's management is not the most advanced, but its implementation culture is rare in modern large companies. In summing up the dramatic changes that occurred in Weichai in a short span of 10 years, Tan Xuguang believed that the implementation culture of “the prohibition of the order and the smooth implementation of the decree†is the guarantee for the success of Weichai’s business.
After Tan Xuguang took office, he began the toughest and most painful reform in Weichai's history - streamlining institutions and reducing managers. In this complex reform that touches the vital interests of many people, Tan Xuguang’s personal attitudes and actions will directly affect the success of the reform. Many people stare at him in the clear or in the dark to see if he can face the benefits and In the fight for rights, we must not obscure it for personal gains or feelings. Wu Xingran, Tan Xuguang under the pressure of the most thorny institutions and personnel reform carried out selflessly fearlessly, reduced the management from 53 to 35, reduced the number of management personnel from 1,550 to 700, auxiliary staff from 4,400 people reduced It is 2,200 people. When the first leader took the lead in doing what he said and done, the executive culture began to take root in the firewood.
Tan Xuguang impression
One of the most obvious features of Tan Xuguang is full of confidence. He stood in the meeting and told reporters: What problems do you have, you casually mentioned! Of course, such an ultra-conventional development enterprise will inevitably have sharp problems, but he can indeed resolve his head and head one by one.
Another feature of Tan Xuguang may be easily overlooked: Be cautious. In the past few years, he has hired more than a dozen internationally renowned consulting companies to evaluate every major event of Weichai as if he were to see a patient. He is always vigilant about the problems that tend to arise in an ultra-conventional company.
Chained Innovation
The world's first "powertrain" product for system matching and development of engines, gearboxes and axles was launched at the end of last year at Weichai Power. This means that as long as the automaker matches the design of its own cabs and carriages, a new truck or bus can be brought to market, and the development cycle is shortened by 1/5. This “Powertrain†is one of the results of the “Chain Innovation†technology development strategy of Weichai Power.
On June 28, Weichai Power and Foton Motor signed a comprehensive strategic cooperation agreement in Beijing. An important part of the agreement is that the two sides will further establish a joint research and development mechanism for technological innovation, and will establish a power system technology research and development center based on the needs of the entire vehicle, and at the same time integrate their respective R&D institutions around the world, thereby effectively reducing both parties’ design costs and establishing Stronger competitiveness. As a result, Foton Motors saved test costs and Weichai Power gained a solid and stable customer relationship. In this unique "vertical innovation" approach, a new community based on R&D was born.
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