Fully consider the staged characteristics of management innovation to enhance the pertinence and effectiveness of enterprise management innovation. Critical to the success of management innovation.
At present, many entrepreneurs have realized the importance and urgency of management innovation and have taken practical actions to invest in the practice of management innovation. But the actual effect of management innovation seems to be less than ideal. Although this result occurs due to the risks of management innovation, employee quality, organizational culture and other aspects, the mismatch between management innovation measures and the growth stage of the enterprise is an important reason. For example, some private enterprises take the initiative to learn advanced enterprise management concepts, methods and technologies at home and abroad and implement them in their own enterprises. Although this proactive attitude is worthy of recognition, it failed due to the failure to carefully examine whether the management concepts, methods and technologies of these enterprises are suitable for the growth stage of the enterprise. This will not only cause entrepreneurs to doubt management innovation but also increase resistance to the next round of management innovation. Therefore, fully considering the stage characteristics of management innovation is crucial to the success of management innovation. Through an in-depth investigation of Ningbo Fotile Kitchenware Co., Ltd., the author found that Fotile’s management innovation has typical stage characteristics. This phased characteristic not only contains the general rules of management innovation but also presents a distinctive personality that is worth summarizing and learning from.
Fangtai Company was founded in 1999 and specializes in the production of kitchen products including range hoods, stoves, tableware disinfection cabinets, integrated kitchens, and gas water heaters. The current chairman and general manager are Mao Lixiang and Mao Zhongqun, their father and son respectively. Fotile Company is a subsidiary of Feixiang Group. The predecessor of Feixiang Group was Cixi Radio No. 9 founded by Mao Lixiang. By the year the company has employees, including marketing personnel at the headquarters. % of the administrative employees at the headquarters have a college degree or above. The company's total assets are 1.1 billion yuan and it has become one of the most successful manufacturers in the kitchen field in China.
The Three Stages of Management Innovation of Fotile Company
Fotile Company was directly born out of Feixiang Group, and it fully inherited the management practices of Feixiang Group. Therefore, the management innovation process of Fotile Company should be counted from the founding of Cixi Radio No. 9 Factory, the predecessor of Feixiang Group. The whole process can be roughly divided into three stages. The first stage is the first stage, the second stage is the second stage, and the third stage is the beginning of the year.
The first stage is the entrepreneurial stage of Fotile Company. The main content of management innovation is to rely on experience to continuously improve management practices.
The landmark work of Fotile Company at this stage is to implement the contract responsibility system in the workshops and branches. The main contents can be summarized as first change, second guarantee, third release, fourth unification and five assessment. The first reform refers to reforming the wage system, that is, overthrowing the original fixed wage and implementing three wage systems: triple piece rate wage for workers, dynamic structure wage for workshop directors, and performance wage for upper-level workers. The second contract refers to the implementation of two-level contracting, setting up contracting workshops, and turning the factory director's contract from the whole town into a full-person contract. The three decentralizations refer to the decentralization of labor employment rights, wage distribution rights and workshop fund approval rights. The four unifications refer to the unification of external supply and marketing, the unification of fund use, the unification of quality management and the unification of financial accounting. The five assessments refer to monthly assessments on planning, quality, cost, civilization, and safety and are linked to wages. This contract responsibility system is essentially an innovation in the corporate management incentive mechanism. The management model is experience management with family management as the main content. Family-style management has the characteristics of rapid decision-making, efficient execution, flexibility and strong cohesion, which is more suitable for the needs of Fotile Company in its entrepreneurial stage. But overall, all the activities of the enterprise basically revolve around the survival of the enterprise. The business owner is directly responsible for the daily business affairs. The strategic issues of the enterprise have not yet been put on the agenda. The corporate culture is in a spontaneous state and is mainly managed through the personal charm of the enterprise operator. The foundation is not solid enough and management functions are not differentiated. The overall management level of the enterprise is not high, which restricts the further development of the enterprise. So FOTILE began the second stage of management innovation.
The second stage can be said to be the take-off stage of Fotile. The main content of management innovation is to implement scientific management, focusing on consolidating basic management and improving the management system.
The representative work of consolidating basic management has two aspects: one is quality system certification and the other is management. As Nian Fangtai's leading product shifted from electronic lighters to range hoods, the technological content of the company's products suddenly increased. The business volume and scale of the company also increased sharply, and the complexity of the business and organization increased rapidly. Management innovation faced all-round pressure. The problem that easily arises at this time is to attack from all sides without regard to priorities. But Fotile's approach is to introduce modern management methods step by step based on existing management experience. Nian Fangtai has passed the latest series of quality system certifications. Through the certification process, a rational, proactive, and all-round control process was introduced into Fotile in a documented form. Nian Fangtai passed the quality system certification of 2018. The quality system's strong internal audit system, broad inclusiveness, regular re-inspection by certification bodies, and compatibility with original management have completely changed employees' concepts and greatly improved the management quality and level of managers at all levels. The implementation and implementation of management have made Fotile's basic management work such as rules and regulations, information and intelligence work, standards and quotas, safety management, and measurement more detailed and solid, laying a solid foundation for future management upgrades.
The method adopted to improve the management system is to introduce a large-scale management intellectual resource system, implement scientific management comprehensively and three-dimensionally, and consciously prepare for the next stage of management upgrade. One way to introduce management intellectual resources is to introduce professional managers. Initially, FOTILE introduced a large number of professional managers for key positions. These professional managers generally have many years of experience working in large international companies. Their broad international vision and mature management experience provide human resources guarantee for FOTILE to build a three-dimensional scientific management system. Another way to introduce management intellectual resources is to cooperate with internationally reputable management consulting firms. Nian Fotile cooperated with a number of professional consulting companies and introduced professional managers to implement changes in R&D management and marketing management, and formulated a ten-year vision for Fotile's strategic planning. At present, Fotile has fully introduced/passed the system certification and applied for the national quality management award. The brand building has been very effective and FOTILE has begun to establish an excellent business model. Managing intellectual resources has led FOTILE into a comprehensive stage of scientific management.
Generally speaking, in the scientific management stage, Fangtai is no longer satisfied with basic survival, but treats the enterprise as a career and begins to strategically consider the long-term development of the enterprise. The corporate culture changes from a spontaneous state to a conscious state. Basic management It has also built a very solid management function to achieve professionalization and formed a strict organizational management system. The scale and management level of the enterprise have increased rapidly. However, in this process, the disease of large enterprises has begun to emerge. The power and interests of each functional department have been fixed. The overall interests and goals of the enterprise have been challenged. Strategic execution has become a bottleneck. Coordination among various departments has become difficult. Enterprise management efficiency has declined. A conservative atmosphere has emerged within the enterprise. Decreased response sensitivity to environmental changes, etc. Faced with these problems, Fangtai began the third stage of management innovation.
The third stage can be said to be Fang Tai’s mature stage. This stage roughly begins in 2001. The main content of management innovation is cultural innovation.
Fotile attaches great importance to the construction of corporate culture when the company was founded and has persisted for a long time without giving up even when the company is in the most difficult times. In order to cope with the new problems arising in the new growth stage, FOTILE has innovated on the basis of the original simple corporate culture. The main work is to refine Fangtai's culture, make it clear and systematic, and gradually enter the spiritual level of employees from the physical and institutional levels, so that the corporate culture can be internalized in employees' ideologies and behaviors. At present, Fotile has formed a corporate culture with distinctive characteristics. When designing the corporate culture system, FOTILE drew on the Western framework and proposed FOTILE mission, FOTILE philosophy, policy, vision, strategy and other constituent elements. However, the content of the elements shows significant Chinese characteristics. For example, in Fotile's philosophy, they proposed that Fotile's core values are products, factory products, and character. The three criteria for judging behavior by Fotile are whether it is conducive to the sustainable development of the enterprise, whether it is conducive to improving customer satisfaction, and whether it is conducive to balancing the interests of relevant parties. Fotile Culture embodies the organic integration of traditional Chinese culture and modern Western management philosophy. Fotile has compiled the "Fotile Vision and Culture" manual and distributed it to employees for study and implementation. If scientific management is the skeleton and flesh and blood of FOTILE, then corporate culture is the soul of FOTILE.
By reviewing the management innovation process of Fotile Company and combining the experience of other companies and relevant literature, we can try to summarize the staged rules of management innovation of private enterprises.
The table summarizes the management characteristics of private enterprises at different growth stages and the key tasks of management innovation.
Through this table, we can roughly determine the growth stage of the enterprise based on its current management characteristics, and further determine the focus of enterprise management innovation based on the growth stage to enhance the pertinence and effectiveness of enterprise management innovation.
The personality of Fotile's management innovation
The general rules contained in Fotile's management innovation practice can be used as a reference for many companies, but its management innovation process also contains unique personalities that other companies cannot directly imitate. Although these aspects cannot be directly imitated, they reflect problems that should indeed attract special attention.
First of all, Fotile Company properly resolved the property rights issue. This is obviously different from state-owned enterprises and other private enterprises. When Fotile was founded, Fotile made it clear that its internal property rights regulations did not allow other family members to serve in the company. Mao Zhongqun's own talents enabled the smooth intergenerational inheritance of property rights. In contrast, management innovation in state-owned enterprises is often hampered by property rights issues. Due to the current institutional problems, the property rights issue cannot be completely solved in the short term. Therefore, in order to avoid property rights issues from interfering with the management innovation of state-owned enterprises, we must find another way. For other management innovations in private enterprises, management innovation plans often fail due to family conflicts because internal property rights are not clarified in a timely manner. Therefore, if private enterprises want to carry out management innovation, they must also find their own methods to successfully solve the property rights issues within the family.
The second decision-making mechanism and mutual trust. Fotile Company is able to introduce a large number of professional managers and dare to use them freely. On the one hand, it is due to the flexibility of the mechanism of private enterprises. On the other hand, it is because the personal charm of Mao and his son and the company system have established a high level of rapport between them and professional managers. degree of trust. Affected by the current system, the decision-making mechanism of state-owned enterprises generally cannot introduce a large number of professional managers like Fotile Company. Although other private enterprises have flexible decision-making mechanisms like Fotile, it is difficult for professional managers to gain the trust of private enterprises due to the immature manager market in my country. Also, it is difficult for professional managers to obtain the trust of professional managers because most private entrepreneurs have scruples about professional managers. People's trust.
The corporate culture of the third party company. Fotile's corporate culture has distinctive characteristics and is the result of long-term accumulation. Mao Lixiang attached great importance to cultural construction when he founded Cixi Radio No. 9 Factory, the predecessor of FOTILE Company. The annual Staff Literary and Art Competition started from then. The role of this mass cultural activity in the construction of corporate culture far exceeds people's expectations. Corporate culture is not the same as employee cultural and artistic activities, but the rich and colorful employee cultural activities are an integral part of Fotile's corporate culture. In addition, the political culture has also been organically integrated into the overall culture of FOTILE and has become a major feature. This is rarely seen and difficult to achieve in other private enterprises. As mentioned above, the combination of traditional culture and Western culture with an open attitude has become an important feature of FOTILE culture, which is also difficult for state-owned enterprises and other private enterprises to directly imitate.
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