Enterprise operation changes with the changes of the external environment, but the general enterprise process management is still at the level of many years ago, which is completely disconnected from the actual market conditions faced by enterprises. It is difficult, not to mention efficient, to provide quick feedback and obtain effective market information.
In April 2016, Fang Hongbo, chairman of Midea Group, publicly talked about a lot of enterprise-related data, but only three of them impressed us deeply: in the past five years (2011-2016), Midea Group's operating revenue only increased by 3.2%, its staff was reduced by nearly half (-46.4%), and its profit more than doubled (105.2%).
The first thing that comes to mind when I look at these numbers is that 3.2% revenue growth is a bit low for a company of Midea's size; Secondly, it laid off nearly half of its employees. For an enterprise, laying off employees usually means a decline in corporate profit. However, the fact that Midea's profit has more than doubled makes us dumbfounded.
What does that tell us? In the means to increase profits of enterprises, the improvement of "efficiency" has already exceeded the original sales revenue in the enterprise occupies an important position, and the new management concept comes into being. So, how should enterprises improve management efficiency in the end?
Break the process, the whole department unified cooperation, from department to individual, to create a different enterprise management.
Process management is getting old
The process management method used to be the internationally recognized core management method of enterprises, but that was only once.
Speaking of an order, from the beginning to the end, the operation process of the enterprise is like this: from the beginning of sales to the order processing center, to the logistics department, to the financial department, to the after-sales department. If there is customer feedback information, then feedback to the product research and development department, and so on. This is the enterprise operation under the process management system of a link to a link.
In fact, the original intention of this traditional process management is to improve management efficiency and reduce management costs. Under the circumstances at that time, management penetrated into every link of the enterprise, and the efficiency was indeed improved to some extent. However, this traditional pyramidal organizational structure is no longer able to meet the current and future business challenges.
With the fragmentation of consumption behavior, enterprises are faced with personalized consumption demands. Consumers have shifted from the concept of "just having something" for a single product to multi-level logistics, service and information guarantee for products (also known as "consumption upgrade"). Not only do they have complex information requirements, but they also want companies to move at the speed of light from start to finish. And in this process, consumers themselves are not static.
Fast, efficient, anytime and anywhere to solve consumer problems, in the process of process management, these are just hard.
First of all, the process management of most enterprises starts from the development of detailed process management content. However, in the execution force, because of the excessive complexity, there is always a lack of process management. Therefore, once encountered problems, departments or individuals will inevitably pass the buck to each other, more reluctant to solve the first, thus causing harm to the entire enterprise.
Secondly, the operation of enterprises changes with the changes of external environment, but the general content of process management norms remains in the state of many years ago, which is completely divorced from the actual market situation faced by enterprises. There are difficulties in getting quick feedback and effective market information, let alone efficiency.
Thirdly, in the process of cross-department and cross-business unit, because the process is often separated, there are a lot of interface conflicts (department interests) in the enterprise, so they have to resort to a lot of meetings, more and more complex processes to try to solve, which often makes the process more complex and more serious conflicts.
Thus, it can be seen that the process management that most enterprises have been using is more and more difficult to adapt to the "complex", "fast" and "changeable" business needs. It is necessary for enterprises to improve their adaptability and adaptability through more efficient operation mode, so as to make their business processes transparent. At the same time, avoid all kinds of waste caused by step by step transmission, improve the overall efficiency.
A network of business departments around the consumer management, more able to face changes, respond quickly.
In this process, people are the most important factor.
"Freedom with boundaries" energizes traditional enterprises
As those born in the 1960s and 1970s enter the executive suite, Internet natives born in the 1980s and 1990s, who are full of personality, are becoming the main force in the middle. Compared with the former, this new generation is more self-oriented. When facing the enterprise system and process management, they are in a state of unacceptable or reluctant acceptance.
Oppressive management does extract some efficiency from their bodies, but this is likely to be penny wise and pound foolish. Why do you say that? Their raw efficiency has not been fully exploited.
The post-80s and post-90s love freedom. In fact, we do not know whether it is praise or criticism in the enterprise. Let's go with their free hearts and see what they can do with their freedom.
Freeing them up, the first thing companies should do is change management from firm to soft. The process management under the system is rigid. We should let the management change their thinking and achieve a kind of "freedom with boundaries", so that they can release themselves in their own space, but will not touch the red line. Let them reasonably arrange their own work time, in what kind of time, want to do what kind of things, as long as in the planned time, complete the established workload, to ensure the completion of the task. In this way, there is no pressure on individuals and no loss for enterprises.
The original working time of a week may be 5 times 8 equals 40 hours, maybe you let him free for three days, he planned to work for two full days equals 48 hours, which is actually a kind of work efficiency improvement for the enterprise. There is no reason why we should not embrace this kind of fast and efficient execution that releases the nature of management.
However, as managers, we should simplify our management methods. In the face of demands, we need a method or software to solve them, but we often can't throw away the attachments generated by management. Just like a piece of software, we can only use half or 70 or 80 percent of the functions, but there are always some redundant things, which slow down our processing speed. It affects efficiency.
So, the modular selection of management functions is particularly important, I need to solve what problems I choose what function, on an integrated platform, with flexible, efficient, convenient to meet the individual needs of every consumer.
i in place, the most effective enterprise transformation management support
The external environment of enterprises has been changing constantly. In fact, the disadvantages and slow response of process management have created opportunities for those "management pioneers" who actively explore the most suitable for the current enterprises, just like giving them an injection of stimulants, so that they can keep the momentum on the road of seeking the most suitable for the management of Chinese enterprises.
In 2016, mobile management expert i put forward the management concept of "modularity" and "people in place".
Modularization, the enterprise retains the original organizational structure, but breaks the "process", business departments, financial departments, logistics distribution departments, after-sales departments, all the stakeholders of a consumer online at the same time, parallel services, anytime and anywhere quickly and efficiently solve problems in the market.
The staff in place, through mobile positioning to maintain contact and interaction with post-80s and post-90s employees, remote management, maximize their freedom of choice, stimulate their sense of independent work, improve work efficiency.
These two management concepts just break the traditional thinking and adapt to the real needs of the two biggest problems of domestic enterprises, which at least shows that this enterprise has a clear understanding of the current situation of Chinese enterprises. In fact, they have been recognized by quite a few transformational enterprises. Undoubtedly, through the implementation of a platform to achieve the "qualitative change" of enterprise management level, has the best input-output ratio.
i in place is right. The best management must be on demand.