No matter what kind of organizational model, it is only a principle, it is a symbol, it cannot be regarded as an output system, it is only understood as a label, there is no substantive operational significance, and the core of group control is not to label the model, the core lies in the responsibility system.
(1) Division of responsibilities and powers of strategically controlled group enterprises
The responsibilities of the parent company of the strategic control group mainly include:
1. Formulate the strategic plan of the group company and approve the development strategy plan of the subsidiary;
2. Establish a mechanism for the group company to send personnel to select, train, assess and encourage, appoint or replace shareholder representatives to subsidiaries, and recommend members of the board of directors and the board of supervisors;
3. Approve the major decision-making plan and annual business plan of the subsidiary;
4. Establish the financial management system and comprehensive budget management system of the group company, review the financial system and financial budget and final accounts of the subsidiary, and conduct internal audit of the group company and its subsidiaries;
5. Formulate the investment strategy of the group company, decide on the major investment, financing and technological transformation projects of the group company, foreign economic and trade cooperation, and major scientific research and development projects;
6. Approve and supervise the financing, investment, mortgage and guarantee of subsidiaries, etc.
(2) Division of responsibilities and powers under the operation control-type control model
Under this control mode, in order to ensure the implementation of the strategy and the achievement of the goals, the various intelligent management of the group company is very in-depth. The core functions of the parent company include group company strategic planning, investment management, financial strategy, marketing, asset monitoring, acquisitions, mergers, public relations, legal, auditing, group company marketing, procurement, new business development, human resources, etc. For example, human resource management is not only responsible for the formulation of human resources policies for the whole group company, but also responsible for managing the selection, appointment and removal of the management team and business backbone of each subsidiary company.
The responsibilities of the group's parent company mainly include:
1. Formulate the development strategy and development plan of the group company, review and approve the strategic plan of the subsidiary, and guide, inspect and supervise the implementation of the development strategy and development plan of the subsidiary;
2. Approve the design and adjustment of major organizational structures, and approve the articles of association and major decision-making plans of the subsidiaries;
3. Establish a mechanism for the selection, training, assessment and incentive of the group company to send personnel, appoint or replace shareholder representatives to subsidiaries, and recommend members of the board of directors and the board of supervisors;
4. Monitor the implementation of the subsidiary's business plan, main business initiatives and performance, and key financial indicators;
5. Establish a comprehensive budget management system for the group company and formulate a unified budget system;
6. Establish the financial management system of the group company, formulate the financial and accounting policies of the group company, review the financial system and financial budget and final accounts of the subsidiary, etc.
(3) Division of responsibilities and powers under the financial control-type control model
Group parent companies generally focus on investment and financial management, such as the finance and assets of group companies, strategic planning of group companies, monitoring/investment management, acquisitions, mergers, etc. In this way, the parent company of the group is basically equivalent to an investment management company or a venture capital company, and such a group company does not necessarily focus on the long-term development of its subsidiaries, but may only be in the appreciation of business prospects. Their main control over their subsidiaries is financial indicators, which guarantee the return on assets and related financial indicators of a specific business. This group company control focuses on asset management rather than day-to-day operations and management matters. Each subsidiary will have its own annual financial targets, and they only need to achieve their financial goals. In the group companies that implement this control model, the parent company of the group does not need a lot of people, all of which are legal and financial personnel, and the relevance of the business of each subsidiary is also very small. This type exhibits a very strong tendency toward decentralization.
1. Formulate the development strategy and development plan of the group company, and approve the strategic plan of the subsidiary;
2. Appoint or replace shareholder representatives to subsidiaries, and recommend members of the board of directors and board of supervisors;
3. Monitor the implementation of the subsidiary's business plan, main business initiatives and performance, and key financial indicators;
4. Establish the financial management system of the group company, and review the financial system and financial budget of the subsidiary;
5. Approve and supervise the financing, investment, mortgage and guarantee of each subsidiary;
6. Conduct internal audits of group companies and subsidiaries;
7. Handle the external relations of the group company, coordinate the major relationship between the group company and the subsidiary and the subsidiary;
8. Provide legal and tax consulting services to subsidiaries.
Take China Resources Group as an example. Its headquarters only does four things at the management and control level: first, it manages the strategy and determines the development speed, scale and direction of the first-level profit center; second, it manages the people and decides the composition of the first-level profit center and the team members; the third is to manage finance, including the capital policy and the financial statement policy, and the enterprises implement unified accounting policies to eliminate false accounts; the fourth is to manage the assessment and budget, assess the operating performance of each profit center, and review and approve the budgets reported by the companies.
A good book recommendation every day
Classic case book on group control
preface
Group control is first and foremost the control of strategy, and the focus falls on the control of the organization.
The fifth edition of "Group Control" will continue to be cutting-edge insights, as always, as always, practical operations, based on a large number of classic control cases, combined with the needs of enterprise control, to help enterprises build a control model that not only meets the flexibility of business sectors but also achieves effective management.
directory
Chapter I New Trends in Group Control8
Section 1 Management Innovation in the Internet Age 14
Section 2 Group Control under the Trend of Decentralization19
Section 3 Group Control under the Reform of State-Owned Enterprises26
Section 4 Group Control in the Context of Internationalization34
Section 5 Financial Holding Group and Group Control41
Chapter II: Practice System of Group Control46
Section 1 The Five Major Systems controlled by the Group46
I. Strategic Management System 47
Ii. Organizational management system 47
Third, the responsibility management system 48
Fourth, the performance evaluation system 48
V. Culture and Brand Management System 49
【Case】China Resources Group's control model49
Section 2 Group Control General Model 53
First, the general model of group control 53
Second, the core issues of group control 57
Third, the full elements of group control 60
Chapter III Group Strategic Management System61
Section 1 Strategy first, planning and then moving 61
First, select the industrial portfolio and optimize the layout of the industrial chain62
2. Distinguish between diversified industrial groups and investment groups 65
Third, the mystery of the success of the industrial portfolio of diversified industrial groups 66
Section II: Strengthening Strategic Regulation and Control Capabilities68
Section 3 Improving the Strategic Management System69
【Case】Strategic management case of a pharmaceutical group 69
Chapter IV Group Organization Management System71
Section 1 Selection of Control Mode: An Important Prerequisite for the Implementation of Control and Control71
I. Financial control type 71
Second, strategic control type 71
Third, the operation control type 72
Section 2 Headquarters Positioning: Clarify the functions of the group company 76
I. General functions of the Group Headquarters 76
Second, the headquarters positioning under different control modes 77
Third, the new trend of decentralized positioning of headquarters 80
Fourth, the headquarters of the control of subordinate units 81
【Case】China Power Construction Strategic Control Headquarters Positioning 88
【Case】COFCO Group headquarters positioning 88
【Case】Huainan Mining Group headquarters positioning 89
【Case】China Construction Headquarters Positioning 90
Section 3 Organizational Structure: Effective Carrier of Group Strategy92
I. Main types of organizational structure 92
Relationship between strategy and organizational structure 100
Determination of the business portfolio 101
IV. Principles of Organizational Adjustment and Key Points 102
V. Design of the Organizational Structure of the Group 104
6. Selection of the type of organizational structure of the group enterprise 105
Section 4 Case Analysis of Group Organization Management System 106
【Case】From HNA's point of view, organizational adjustment is not a "life-saving grass" for strategic mistakes 106
【Case】Innovative Organizational Change Case 108
【Case】Greenland Group Organizational Structure Adjustment 113
【Case】Organizational structure of Jiufeng Chemical Group 114
【Case】Organizational Chart 115 of China Resources Group
【Case】Organizational Structure of Chinese Minmin Insurance Group Company116
【Case】Organizational structure adjustment and reform of a machinery manufacturing group117
Chapter V Group Responsibility Management System122
Section 1 Structure, Responsibilities and Process Relations122
I. Definition of the group's power and responsibility system 123
Ii. The relationship of authority and responsibility and its structure 123
III. The relationship of authority and responsibility and the principle of its division 125
IV. Objectives of division of responsibilities and powers 126
【Case】Responsibility system of Cheung Kong Industrial Group 127
Section 2 Main Methods of Division of Authority and Responsibility Design128
I. Five basic elements of responsibility design 128
Ii. Conditions for achieving a standardized system of responsibilities and powers 128
Third, the design method of the responsibility system of the group company 129
Section 3 Key Steps in the Construction of a Grid Responsibility System130
First, a central enterprise group grid responsibility system 130
Second, a construction engineering group in M province fine management case 134
Chapter VI Group Performance Evaluation System137
Section 1 Clear performance management subjects: the premise of scientific control137
Section 2 Scientific Performance Management Standards: The Basis of Effective Control138
Section 3 Effective Performance Management Operation System: Guarantee of Standardized Control139
Establish performance indicators 140
Ii. Set performance targets 141
3. Conduct performance reviews143
Section 4 Analysis of Group Performance Management System Cases143
【Case】Performance management of DaimlerChrysler143
Chapter VII Group Culture and Brand Management System145
Section 1 Group Cultural Management under the Control of the Group145
First, the overall model of the group's cultural construction 145
II. Principles, Contents, Roles and Models of Group Cultural Integration 147
3. Group brand management under the control of the group 148
Section 2 Case Analysis of Group Culture and Brand Management System149
【Case】Corporate culture strategy change of a mining group149
【Case】OCT Group's brand three-level management model 152
Annex 1: The cultural construction of the group needs to unify the mission of the enterprise group154
Appendix 2 Differences in cultural construction and unity in cultural management155
Appendix 3 The world is changing, and the brand building of Founder Group is unchanged by innovation157
Chapter VIII Corporate Governance159
Section 1 Main Models of Corporate Governance 160
Section 2 Rules of Procedure and Distribution of Powers of Corporate Governance161
Section 3 Hierarchical Relationships and Management of Corporate Governance164
Section 4 Analysis of Group Control Corporate Governance Cases167
【Case】Corporate governance of a coal industry group167
Chapter IX Other Elements of Group Control172
Section 1 Risk Control and Internal Control under the Control of the Group172
I. Risk control of group enterprises 172
Ii. Internal control of group enterprises 173
Section 2 Comprehensive Budget Management under the Control of the Group175
I. The connotation and role of comprehensive budget management 175
Implementation and control of comprehensive budget management 177
Section 3 Human Resources Management under the Control of the Group178
【Case】A financial group: Modern human resources model under organizational structure adjustment178
Section 4 Informatization under the Control of the Group180
First, the group control information construction step 181
Characteristics of informatization construction under the control mode of the three groups181
Section 5 Financing Investment under the Control of the Group182
I. Financing control and control 182
II. Investment Control and Control 183
Chapter X Control of the Financial Holding Group185
Section 1 Particularities of the Organizational Form of the Financial Holding Group185
I. HSBC Holdings - Pure Financial Holdings Organizational Structure 185
II. Deutsche Bank - Universal Banking Organizational Structure 187
Third, CITIC Group - super industry-finance combination financial holding organization 188
Section 2 Key Points of Control of Domestic Financial Holding Groups189
I. Control model of financial holding group 189
Second, the headquarters of the financial holding group positioning 191
Third, the responsibility system of domestic financial holding groups 192
Section 3 Typical Cases of Financial Holding Group Control 196
【Case】China Resources Group: Strategic Control 196
【Case】General Motors: Organizational Control 197
【Case】Fosun Group: Talent Control 198
【Case】COSCO Group: Comprehensive control 199
Bibliography Index 205
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