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Tan Xuguang, a pioneer in the reform of state-owned enterprises, | Friends of Trucks Network

author:Friends of Trucks

On February 7th, the new "top stream" of Shandong entrepreneurs was freshly baked, and Zhang Ruimin, honorary chairman of the board of directors of Haier Group, Tan Xuguang, secretary of the party committee and chairman of Shandong Heavy Industry Group Co., Ltd., and Chen Xueli, former chairman of the board of directors of Weihai Weigao International Medical Investment Holding Co., Ltd., were awarded "Outstanding Entrepreneurs of Shandong Province" and recorded first-class merit.

Tan Xuguang, a pioneer in the reform of state-owned enterprises, | Friends of Trucks Network

Tan Xuguang, the only state-owned enterprise at the helm, is a well-deserved pioneer in the reform of state-owned enterprises. On the coordinate axis of the development of shandong heavy industry enterprises, Tan Xuguang has deeply branded the mark of self-revolution.

Reform, the achievement of the king counterattack

Tan Xuguang's Shandong Heavy Industry Group has 150,000 employees worldwide. The author looks at the annual reports of the State-owned Assets Supervision and Administration Commission of Shandong Province, and Shandong Heavy Industry under the leadership of Tan Xuguang has repeatedly ranked the throne of "profit king".

Bloated institutions, rigid mechanisms, conformist, inefficient... With the continuous expansion of the scale of enterprises, the "disease of large enterprises" will also follow. The inevitable result will be large but not strong, weak innovation, insufficient development stamina, and will eventually be abandoned by the tide of the times.

Tan Xuguang, a pioneer in the reform of state-owned enterprises, | Friends of Trucks Network

Tan Xuguang is known in the industry as "Tan Bold", and in 1998, at the age of 37, he was appointed as the head of Weichai. At that time, Weichai, like other state-owned enterprises, could not withstand the impact of the market economy and fell into the mire of bankruptcy.

After coming to power, Tan Xuguang carried out reform in a big way, launched a hard battle of "slimming down and keeping fit", and took the lead in establishing a market-oriented mechanism in the whole country that "cadres can go up and down, employees can go in and out, and incomes can be high and low."

"Reform is not feasible, only dare not dare." Tan Xuguang introduced that in the 1990s, Weichai stripped off its auxiliary industries through reforms, which enabled it to "lightly load" and achieve high-quality development for more than 20 years. "It wouldn't have been possible without the reforms of the year."

Along the way, Tan Xuguang led Weichai to forge a new path in the high-quality development of Chinese manufacturing, creating a leading enterprise with revenue exceeding 300 billion yuan.

Those who can bear their weight. In September 2018, Tan Xuguang was appointed to take the helm of Sinotruk, still taking up the "sharp blade" of reform and opening the knife to the "disability" and "lack" that hindered the development of enterprises.

"I am not afraid of death, and it is better to put the urn in Weifang than on the Hero Mountain in Jinan." Tan Xuguang "moving the knife" China National Heavy Duty Truck is a real knife and a real gun.

Remove the "sofa chair", change the "glass door"... Let the leading cadres who are chaotic and inactive be exposed to the sun.

Leading cadres compete for posts, redundant employees are completely streamlined... The use of thunder means to further activate Sinotruk.

In April 2020, Sinotruk signed a strategic cooperation agreement with Country Garden to formally withdraw from real estate. This incident sensationalized the industry and provided reference significance for the reform of state-owned enterprises in Shandong Province and even the whole country, focusing on the development of the main business.

It is not difficult to find that Tan Xuguang's "iron blood" operation in Heavy Duty Truck has an immediate effect and the effect is not bad. In 2021, the share of Sinotruk's single-brand heavy-duty trucks has risen to the second place in the domestic industry!

Tan Xuguang, a pioneer in the reform of state-owned enterprises, | Friends of Trucks Network

"Replicating" the success of Sinotruk is not an isolated case! According to public data, in 2021, the sales volume of the main products of Construction Machinery under Shandong Heavy Industry increased by more than 20% year-on-year; after Weichai's strategic reorganization of Lovol Heavy Industry, the agricultural machinery sector achieved efficient integration, industrial synergy and chain extension, with sales volume increasing by 48% year-on-year; the group's overseas enterprise revenue increased by 23% year-on-year, and net profit doubled year-on-year, all of which hit the best level since mergers and acquisitions... The report card of Shandong Heavy Industry's enterprises strongly proves the success of the "Tan Xuguang-style" state-owned enterprise reform.

"Amplifying defects and self-revolution are the cultural characteristics of Weichai. Weichai's political advantages as a state-owned enterprise and its cultural advantages of being good at self-denial are the most valuable experiences of Weichai to this day. At the 2022 annual meeting of Shandong Heavy Industry, Tan Xuguang said. This is the cultural self-confidence of Weichai Group, and this tone stems from the courage of a 36-year-old state-owned entrepreneur who dares to revolutionize himself.

Innovation and subversion, the evergreen gene of the "Iron Throne"

Reform has gone to the depths of innovation and subversion. There are no successful enterprises, only the enterprises of the times. Every historical change, there will be a number of traditional enterprises to perish, but also to give birth to a number of new industrial giants.

Kodak, Wang An Computer, Nokia, these "business giants" collapsed examples, admonishing all enterprises, either innovation, or death, only the fearful survive!

"How does the main business break the ceiling? Why is the strategic new business not big? Where is the road to rebuilding a new group? How to create a high level of external circulation? At the annual meeting of Shandong Heavy Industry, Tan Xuguang threw these four questions to more than 3,700 cadres attending the meeting online and offline.

Tan Xuguang, a pioneer in the reform of state-owned enterprises, | Friends of Trucks Network

An excellent entrepreneur must put the "chess pieces" clearly from the strategy and path, how to put the cars and cannons? Tan Xuguang, who has long been engaged in diesel engine and power system technology innovation and project management, is also a science and technology entrepreneur. Innovation, he said, is the soul of entrepreneurs. He transformed scientific and technological innovation into an endogenous driving force for Shandong Heavy Industry to achieve high-quality development. In the author's view, this is the "success code" for the successful reform of Shandong Heavy Industry's state-owned enterprises to maintain its longevity.

In today's world, the development of a low-carbon economy has become a global consensus. A careful study of Tan Xuguang's three "platoons" in scientific and technological innovation in recent years shows that he "profoundly grasped the trend of technological development and industry change from a more macroscopic and long-term perspective", and created a future-oriented and sustainable "science and technology moat" for Shandong Heavy Industry.

Below, I use three examples to peek into the depth of the river.

First, in 2015, Tan Xuguang proposed to challenge 50% thermal efficiency. At the time, it seemed like a fantasy. Tan Xuguang overcame everyone's opinion, and the R&D team made a military order, and finally gnawed down this hard bone. On September 16, 2020, Weichai Power successfully released a diesel engine with a thermal efficiency of more than 50.23% of the body. After 480 days, under the encouragement of Tan Xuguang's "unveiling the commander", more than 200 young researchers increased the thermal efficiency technology of diesel engines to 51.09%, creating a global ceiling! Tan Xuguang's leg of traditional energy has reached the forefront of the industry.

Tan Xuguang, a pioneer in the reform of state-owned enterprises, | Friends of Trucks Network

Second, in 2021, Weichai Power will take the lead in building the only national fuel cell technology innovation center in Shandong. Relying on the "Hydrogen into Ten Thousand Homes" demonstration project, Weichai carried out multi-scenario application demonstration operation of fuel cells, and the leg of new energy was multi-point power. It is worth mentioning that Sinotruk is equipped with Weichai-powered hydrogen fuel cell engine Yellow River brand independent snow wax car service for the Winter Olympics, achieving "China's first, world-class, completely domestic".

Tan Xuguang, a pioneer in the reform of state-owned enterprises, | Friends of Trucks Network

Third, first look at a set of data, Weichai reorganized Lovol for one year, the number of R & D personnel doubled, and the R & D expenses increased by 150% year-on-year. Under the guidance of Tan Xuguang's idea of "no upper limit on R&D investment", the country's first heavy-duty intelligent CVT tractor was created, filling the gap in the stepless shifting technology of tractors in the mainland.

Tan Xuguang, a pioneer in the reform of state-owned enterprises, | Friends of Trucks Network

From the layout of high-thermally efficient diesel engines to fuel cells, to intelligent CVT technology... Behind this is all a reflection of Tan Xuguang's "management philosophy", innovation incentives, ecological stimulation, scientific researchers go forward and follow, to no man's land for the future.

When the reform is not completed. "We want to dig deep into the mines of state-owned enterprise reform ... Resolutely complete the three-year action task of state-owned enterprise reform, and walk in the forefront and become a model in the reform of state-owned enterprises. A few days before the award, Tan Xuguang said publicly.

2022 is the year of the end of the three-year action of state-owned enterprise reform. No wonder, at the beginning of the new year, the Shandong Provincial Party Committee and Provincial Government gave the honor of "Outstanding Entrepreneur of Shandong Province" to Tan Xuguang. Such pioneers of state-owned enterprise reform can afford and stand.

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