Although most companies implement amoeba's original intention is very good: talk about the penny everywhere, think that the money is divided well, the employees will obey, hope that the performance of the enterprise will improve, and also hope that the employees will get higher returns. But implementations are often disappointing: not only are bosses and employees dissatisfied, but management costs are increased.
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A common feature of companies that have not been well implemented by amoeba has been that it is not clear what amoeba management is used for. In other words, in the process of promoting amoeba, it is often deviated from its true purpose.
These problems arise because companies do not consider conformity to the purpose as the primary factor when designing the amoeba system. Even when many companies introduce the amoeba model, it seems to be used as an assessment tool, and there is no clear purpose at all.
The pursuit of performance is an inevitable requirement for the development of enterprises. Jack Welch once said, "Our vitality curve works because we've spent a whole 10 years building a performance culture." "However, the landing of the amoeba is a headache. According to relevant surveys: most companies have failed to land the amoeba model, and the effect is not obvious.
Why is this problem?
So, what is the purpose of amoeba management? In our view, there are three purposes for amoeba management.
First, the purpose of the amoeba model is to measure value contribution – compensation incentives.
Most companies regard the amoeba model as a tool for "rewarding the good and punishing the bad": on merit and reward, on crimes. This seems to be correct, but in fact, it is only the most basic purpose of management, and it is also the lowest purpose.
However, people are not simple animals, and when they are fed and eaten well, they will work hard. Today's employees, in addition to focusing on the basic need of salary, have strong demands and expectations for self-growth, team and the company's cultural values. Especially for today's post-90s employees, this feature is particularly obvious.
Therefore, it is not enough to give money alone, and if the way of giving money is unreasonable, or other needs other than money are ignored, the expected incentive effect cannot be achieved.
Second, the purpose of the amoeba model is to find gaps and continue to improve – to improve performance.
Mr. Robert Kaplan, inventor of the balanced scorecard, famously said: "If it cannot be measured, it cannot be managed." By establishing objective and unbiased measurement measures, better management of performance goals and sustained improvement can be achieved.
The purpose of the amoeba model is not to divide the money, but to make money, to guide performance growth.
At the end of the year, many companies begin to evaluate performance, and no matter how well the company is running, the bonus seems to have become a rigid welfare of the company.
However, Huawei is not like this. Huawei distributes bonuses based on business results and employee contributions. If the company's efficiency declines or loses money, the employee's bonus will be reduced or even not there.
In this way, the income of employees is closely related to the operation of the enterprise, prompting employees to work harder to create value.
Third, the purpose of the amoeba model is to align goals and interests – to desire the same. This is also what Ren Zhengfei called "force out a hole, profit out a hole." ”
The most important problem of amoeba management is the problem of people. How can we fundamentally establish a self-driven performance growth mechanism for employees?
Only through a reasonable performance management model can employees be stimulated and let them strive unremittingly for a long time to achieve the goals of the organization. This is the essence of amoeba management.
That is to say, the fundamental purpose of amoeba management is to closely link the organizational goals of the enterprise and the personal goals, when the individual takes the realization of the organizational goals as their own goals, the amoeba can release the greatest energy and exert the power of corporate value creation.
This is the essence of Drucker's "target management", which is exactly what Ren Zhengfei said: first of all, we must "force a hole" - everything is customer-centric, and we are fully focused on creating value for customers; Then there is the "profit out of a hole" - the benefit comes from the short-, medium- and long-term contribution to the customer, and the distribution of benefits is "based on the strivers".
Today, the amoeba model is used as a tool for performance appraisal, but it is often difficult to achieve results. Therefore, business managers need to return to the original point and re-examine the purpose of our amoeba, which is the key to the success or failure of amoeba management.