In the reform of mixed ownership, Shuifa Group, as an innovative enterprise with differentiated control and control, has formed the experience of "diversified shareholding, independent operation, terminal feedback, and headquarters empowerment", created a cluster-type management system, and achieved "fast mixing, openness, and good management", and moved towards a new stage of mixed ownership reform with high quality and excellent governance. This is not only of exemplary significance for clarifying the focus of deepening the reform of mixed ownership, but also for strengthening modern management and building world-class enterprises.
The report of the 19th National Congress of the Communist Party of China pointed out: "It is necessary to deepen the reform of state-owned enterprises, develop a mixed-ownership economy, and cultivate world-class enterprises with global competitiveness." In the past five years, with the gradual expansion of the reform of state-owned enterprises from point to surface and the gradual expansion of the scope, the mixed ownership reform of state-owned enterprises has entered the "deep water area". There is a Water Development Group in Shandong, and they have provided convincing experience for the mixed ownership reform of high quality and excellent governance.
In the past five years, the total assets of Shuifa Group have increased from 32.2 billion yuan in 2016 to 168 billion yuan in 2021, the revenue has increased from 44 billion to 77 billion, and the total profit has increased from 137 million yuan to 1.85 billion yuan. While rapidly expanding the competitiveness of state-owned enterprises, Shuifa has led to the development of hundreds of private enterprises and hundreds of thousands of market players. The key to the success of Shuifa's high-speed and high-quality development lies in exploring a cluster-style management model, innovating the four major mechanisms of corporate governance, market operation, incentive constraints and supervision, and breaking out a new management path that can be used as a reference for mixed ownership reform.
Understanding the phenomenon of water development and dissecting the management method of the steady development of water hair is the best summary of the reform of state-owned enterprises since the 19th National Congress of the Communist Party of China, and also provides a sample for deepening the reform of mixed ownership of state-owned enterprises in the future.
A water-borne sample that is growing rapidly in the development of a mixed-ownership economy
Shuifa Group Co., Ltd. (hereinafter referred to as "Shuifa"), formerly known as a platform company under the Shandong Provincial Water Conservancy Department, was placed under the unified supervision of the State-owned Assets Supervision and Administration Commission of Shandong Province in 2017. Since the 19th National Congress of the Communist Party of China, this enterprise from the market has been a provincial state-owned enterprise with the largest scale, the fastest development speed and the best effect of the mixed ownership reform in Shandong Province.
How can the water industry, which is dominated by water affairs, agriculture, environmental protection and clean energy sectors, be achieved by enterprises without allocated assets and without injected funds? It's a "mystery." The anatomy of the water phenomenon will provide extremely important enlightenment for solving several important problems in the reform of mixed ownership.
Some people say that "mixed reform is a form, and it is mixed capital that is pictured together." The practice of Shuifa tells us that they mostly implement strategic investment rather than financial investment, and they must find "three views consistent", market factors are "rooted and strong", and solve problems from the source. Their "reform should be made" is not a digital "mixed capital", but a real "reform mechanism".
Some people say that "the mixed ownership reform will not dilute the state-owned assets by bringing in so many private enterprises?" Shuifa itself is an enterprise that the government does not have a penny to invest, and Wang Zhenqin, chairman of Shuifa Group, said that the mixed ownership reform is the biggest policy opportunity for Shuifa. More than a decade ago, Shuifa started from borrowing 100 million yuan, five years ago the operating income was 57 billion, and in 2021 it was 77 billion. Promoting the reform of state-owned enterprises should be conducive to maintaining and increasing the value of state-owned capital, to improving the competitiveness of the state-owned economy, and to enlarging the function of state-owned capital. -- This is the first time that value judgment standards have been established for the reform of state-owned enterprises. Water hair is the three most convincing proofs of "favor".
Some people say that "according to the management of private enterprises, the rules of state-owned enterprises have been lost, and there is no way to lose state-owned assets", and the result can only be managed by traditional state-owned enterprises. Shui Fa's answer is that there are new management methods for mixed ownership, cluster management is open and manageable, state-owned enterprises do not lose rules, and private enterprises have sufficient vitality.
The water-haired people cut through the barriers, gnawed a hard bone, and created a brilliant and amazing.
The acquisition of Xingye New Energy by Shuifa Group in the form of mergers and acquisitions can be regarded as a representative case. Xingye is a private listed enterprise in Zhuhai, dying because of financial difficulties. However, Shuifa saw the development prospects of new energy and acquired it for 900 million yuan. Shuifa pays attention to major matters such as investment, layout, finance and compliance operations, and only sends the chairman and financial director, while the general manager and operation management are responsible for the original team. With the full trust, authorization and support of Shuifa, the vitality of Industrial Energy has been fully released, and equity incentives have been implemented on a large scale, covering nearly 200 core management and technical backbones. Similar to such difficult enterprises, there are more than 300 mergers and acquisitions of Shuifa.
Since the 19th National Congress of the Communist Party of China, Shuifa Group has insisted on deepening the reform of mixed ownership and achieving "six major changes".
The first is the "leap" of scale and quality efficiency. In 2021, compared with 2016, the Group's total assets increased by 4.2 times in five years, operating income increased by 16 times in five years, total profit increased by 12.5 times in five years, net operating cash flow increased from negative value to 5.43 billion yuan, and entity enterprises with profits of over 100 million yuan increased from 0 to 9. In 2021, the Group entered the Top 500 Chinese Enterprises for the first time, ranking 434th among the Top 500 Chinese Enterprises and the First Among the Top 100 Water Conservancy Enterprises in China. This contrast is rare in China.
The second is the "qualitative change" of innovative achievements. R&D expenses increased from 75.2 million yuan in 2019 to 700 million yuan in 2021; The number of high-tech enterprises increased from 11 in 2019 to 74, and the growth rate and the total number of high-tech enterprises were far ahead of provincial enterprises; Technology SMEs increased from 1 in 2019 to 51; Provincial specialized new enterprises increased from 3 in 2019 to 23; The number of provincial R&D platforms has increased from 10 in 2019 to 32 today; The number of granted patents has increased from 707 in 2019 to 2707 today. 5 academician workstations, 1 postdoctoral workstation and 2 postdoctoral innovation practice bases have been established. A number of research and development achievements have reached the leading level in China.
The third is the "transformation" of vitality efficiency. Vitality and efficiency have become the most important supporting factors for the development of the Group, and have also become the distinctive characteristics and beautiful business cards of the Group. The 6.5 billion yuan Huangshui East-to-East Diversion Project, which completed a four-year workload in two and a half years, was hailed as "a miracle in the history of Shandong's water conservancy construction". Invest in the construction of the largest photovoltaic energy storage demonstration project in Tibet, negotiate in May, sign a contract in June, start construction in July, and connect to the grid in December. Invest in the construction of the "Jidian into Lulu" Jilin Tongyu 500MW wind power project, which was fully completed and put into operation in 9 months, far ahead of other enterprises approved in the same period. Of course, greater dynamism comes from the endless creativity within the team.
The fourth is the "drastic change" in the form of the industrial chain. Shuifa's development concept is "good as water, development benefits the people", they use the industrial chain supply chain to drive the common development of upstream and downstream enterprises of various ownership systems. Many private enterprises entered Shuifa when it was extremely difficult, and many people still say that Shuifa saved them. Moreover, most of these enterprises and people's livelihood industries, those who collect and cultivate land, industries that can be entered by anyone and no one is willing to enter. Peony International Commodity Trading Center, in the agricultural planting area famous for the price increase of "garlic you fiercely", with agricultural product trading as the center, the formation of acquisition, warehousing, transportation, financial industrial chain, the 15,000 individual households, rural cooperatives into the industrial chain, the annual sales volume of 450 billion yuan, driving the employment of 40,000 people in related industries, to solve the problem of sharp fluctuations in garlic prices, stabilize the planting area, and help rural revitalization to contribute to the "state-owned enterprise reform force".
Fifth, the "great change" in the status of development. Shuifa Group's 19 sub-industries ranked among the top 10 in the country, 27 sub-industries ranked in the top three in the country, and 10 sub-industries ranked first in the country. Including gas equipment market share of 75%, ranking first in the same industry in China; Intelligent dimming film market share of 40%, ranked first in the same industry in China; Resistive conductive film market share of 40%, ranking first in the same industry in China; The land circulation area ranks second in China; The installed capacity of biomass power generation ranks 3rd in the country; The scale of kitchen waste disposal ranks 3rd in the country; The transaction volume of Shandong Rural Property Rights Trading Center ranks fourth in China, and it is the only provincial-level platform in the province. These rankings, five years ago, Shuifa could not rank in the top 100 in the country. In just five years, it has jumped to the forefront.
Sixth, the "change" of the management system and mechanism. Shuifa's enterprise system has been iteratively improved in practice, and a corporate governance mechanism with the company system as the core and the statutory rights and responsibilities, transparent rights and responsibilities, coordinated operation and effective checks and balances has been established, a market-oriented operating mechanism has been established, and the inspection, assessment and evaluation of the system and process have been improved, forming a guarantee system for system implementation. They have two magic weapons, one is the cluster management, and the other is the primacy system, which are the original creations of Chinese enterprises.
Especially in the first half of 2022, the Group achieved a year-on-year increase in operating income of 48%; Total profit increased by 39% year-on-year; Total assets increased by 18.8% year-on-year; Net operating cash flow increased 2.17 times year-over-year. Under the background of the continuous pressure on the domestic and international economic situation this year, Shuifa Group has maintained such growth on the basis of a high base, indicating that it is indeed not simple. The results of mixed-ownership reforms have been too hard.
"Cluster Management" Controlled by the Mixed Ownership Era Group
Shuifa has promoted the reform of mixed ownership, and since the three-year reform of state-owned enterprises, it has entered a new stage of focusing on governance. They start from the four major powers of modern enterprises, grasping the ownership of the company's equity structure, grasping the authorization of the right to operate, grasping the incentive of the right to distribute, and combining the right of supervision with the right to grasp the decentralization and management. The most distinctive and decisive is the innovation of group control, with "cluster management" to achieve "open and manage". This kind of "cluster management" began to explore in 2019, put forward the idea of building a cluster management system, and held a series of symposiums for research; In 2020, the framework system was determined, the objectives, paths and measures for building a cluster-type management system were clarified, and a special work class was established to promote specific deployment; By the end of 2021, a relatively systematic cluster management system will be established, and the main measures will be implemented, and in 2022, it will be improved on the closed loop and theoretically summarized and improved.
The "star cluster" management method is to mixed ownership enterprises absorb the operation law of the universe galaxy, rotate vigorously under the premise of sound corporate governance structure and perfect checks and balances mechanism, and operate according to the trajectory. The core idea is "dynamic rotation, running according to the trajectory". This is the enterprise management model in the mixed ownership economic period and the latest management achievement of mainland state-owned enterprises.
The creation of water hair is forced by practice. With the continuous expansion of scale, format and region, the complexity and difficulty of management of Shuifa Group have been increasing. By the end of 2018, there were more than 500 independent legal person enterprises, nearly 80% of which were equity diversified enterprises, with property rights level up to 5 levels, and the business was distributed in various provinces and cities in China and some countries. The main problem in management is that power is not dare to decentralize, and the vitality of the grass-roots level has weakened; The control mechanism is not sound enough, the management means are relatively lacking, and so on.
When Wang Zhenqin went to the Tengger Desert in Inner Mongolia, he faced countless galaxies and stars in the vast cosmic space at night, and found that the number of levels and amplitudes was unimaginable, but each star rotated and rotated in an orderly and regular manner according to its own orbit under the action of gravity. It is enlightened that if an enterprise group wants to achieve efficient and orderly operation, an important one is that each of the following enterprises itself must rotate and be dynamic. There is a premise here, every terminal enterprise should have the constraints of the mechanism, the corporate governance structure should be sound, and the checks and balances mechanism should be perfect. In other words, enterprises must establish a governance system in which investors, decision-makers, and executors supervise each other, and the corporate governance structure is very perfect.
The creation of "cluster management" is compared with the traditional pyramid-type hierarchical management and flat management, forming a new management model. Pyramid-type hierarchical management, rigid organizational dogma, decreasing management efficiency, long intermediate processes, many procedures. When the group owns thousands of enterprises, the management range is too wide, the energy and vision will not be able to keep up, and the headquarters may be too caught up in transactional work. Shuifa Group must break through this management thinking mode and forge a new management path.
The characteristics of the "cluster management" system can be clearly reflected, which are four sentences and sixteen words: multiple shareholdings, independent operation, terminal feedback, and headquarters empowerment.
Diversified shareholding is the foundation. To ensure that each independent market entity is rational, the construction of a diversified shareholding structure is an inevitable choice. Practice has proved that for enterprises of the nature of entrusting agents, it is difficult for a single shareholder to achieve standardized independent operation. As the controlling shareholder, it may either monopolize decision-making power, and there is no supervision and lack of adjustment mechanism when contradictions arise; Or they may lose management rights and be assimilated by minority shareholders. If there are too many shareholders, it will increase the difficulty of coordination and communication, and to a certain extent, affect the efficiency of decision-making. In general, the two shareholders also have certain drawbacks, they advocate a balanced structure of three or four shareholders, which can effectively achieve mutual checks and balances without increasing the difficulty of communication.
Autonomous operations are key. The biggest difficulty of the mixed economy is the management of ownership enterprises, which is highlighted by the fact that private entrepreneurs do not have the right to decide on operations or even participate in operations. Since its establishment, Shuifa Group has always attached importance to the independent operation of ownership enterprises. Construct a cluster-type management system, focus on improving the independent operation ability of front-end enterprises, and fully decentralize the market perception, judgment and business decision-making of front-end enterprises, so that enterprises can fully release their development vitality in market competition. Shuifa is characterized by governance-based control based on equity relations and relying on the dispatch of equity directors, while the general managers are almost all private shareholders, with reasonable authorization and decentralization, and the implementation of more flexible and efficient management. They also tried to implement practices such as "rotating chairman", "hanging chairman", and "changing chairman", in order to better protect the right of enterprises to operate independently. Since April 2018, Shuifa has mixed reform heze Fonda Renewable Resources Company, and the general manager of the company is Wang Kai, a private entrepreneur who started from old steel, and the income has increased by 10 times in just two years, prompting the city without mines to provide 1.9 million tons of steel at once. Shuifa quickly achieved layout in Heze, Jining, Weifang, Qingdao, and Laiwu, and the scope expanded to most of Shandong. Then the establishment of Dafeng Company, still by the private entrepreneur Sun Zeling as the general manager, formed from investment - steel spin-off - transportation and processing - precision instrument production - logistics chain, from "collecting rags" to modern steel precision instrument production, to achieve transformation and upgrading, only three years. The general managers of Shuifa subsidiaries are basically private entrepreneurs, so that they have the right to work, so that the vitality of private enterprises can continue to be rejuvenated.
Of course, the independent operation of mixed ownership enterprises must operate on the track, and this track is a strict institutional system. Adhere to compliance with laws and regulations, strictly abide by the requirements of national laws and regulations, standardize procedures such as state-owned asset assessment, pricing, trading, liquidation, and withdrawal, strengthen the supervision of the whole process of reform, ensure that mixed reform operations are carried out under the sun, resolutely prevent the loss of state-owned assets, and seriously investigate and deal with violations of laws and regulations. It is necessary to model compliance with relevant laws, regulations and policy requirements such as safe production, environmental protection, and network information management, and independently bear responsibility for violations of laws and regulations.
Terminal feedback is the guarantee. The management of terminal enterprises by large enterprise groups is a major problem, and the flow of state-owned assets and the development strategy of enterprises need all-round supervision to ensure that state-owned assets will not be reduced and lost. With the development of modern information technology and digital technology, it is possible to carry out timely supervision and prevent information asymmetry. In order to build the digitization of terminal feedback in the cluster management system, Wang Zhenqin proposed the top-level design of "value reset, organizational reconstruction, business reorganization, and process reengineering", arranged the organization team of the digital office and invited several experts to spend several months doing business design, using modern information technology to establish a terminal feedback mechanism, converting all corporate governance elements into data, comprehensive information into the network, so as to stand on top of the sky and achieve efficient supervision. The terminal feedback proposed by Shuifa Group is comprehensive in content, as long as it is the information that the group needs to understand, it must be fed back; In a way that is radioactive, all kinds of information of the terminal enterprise are fed back to each shareholder and the parent company at all levels at the same time; In the process is automatic, the terminal enterprise can not choose the information, as long as the information into the system will be automatically feedback, and which information into the system is clearly defined. Such terminal feedback makes the information of terminal enterprises impossible to shield, and effectively solves the problem of information asymmetry. On this basis, risk indicators such as asset-liability ratio, cash flow to debt ratio, two gold to current asset ratio, and current liability to liability ratio are designed as a response system, and once the red light is on, it warns the entire system. In the big data monitoring, it was found that the debt ratio of a subsidiary enterprise in Qingdao continued to rise, affecting cash flow, sending a team to solve difficulties, empowering the enterprise, making the funds recover and resolving risks. Of course, Shuifa Group has established a special representative system for property rights, optimized various supervision forces, established an internal coordination mechanism, and continuously improved the supervision system in terminal feedback.
Headquarters empowerment is support. In the management of the group, many of the way of the headquarters is approval, "a square to take medicine", the following into a workshop. This is a common problem in the management of large enterprises. The core of the cluster management system is to enhance the vitality of front-end enterprises and market response capabilities, the group headquarters as the center of the entire group, resolutely abandon the approval-based way of work, the focus of work on the front-end enterprises to empower, timely provide development support and support for front-end enterprises. Shuifa has a group of managers who have worked in the posts of secretary, county chief, bureau chief, and secretary general, and they are familiar with the needs and resources of the government, similar to big data centers and property rights trading centers, and Shuifa will do it when it is picked up, where it is not clear, and integrate all kinds of resources, so that the vitality of all labor, knowledge, technology, management, and capital can fully burst forth, so that all the sources of creating material and spiritual wealth can fully flow and exert the overall effect. Agricultural products trading center was originally licensed and no transaction, after the establishment of the Peony International Trading Center, from the policy, talent, technology, capital support, the introduction of financial institutions Lu Qing institute, to do supply chain finance, to provide financial services for trade; Please come to Ruitu Standard Testing Structure and provide standard services. As a result, the trading volume has increased significantly, becoming an innovative model between futures and spot spots in the mainland, and the trading volume of agricultural products has entered the first echelon of the country. What is the maximum ability of Shuifa is the ability of the market to allocate resources At present, it opens up the silt blockage points between departments, industries, and regions that hinder the optimal allocation of resources. Because they come from the market and do not have much power themselves, they empower the enterprise and become their housekeeping skills.
Shuifa Practice explores the basic laws of mixed ownership reform of state-owned enterprises
In the reform of mixed ownership, Shuifa Group uses cluster management, organic combination and dynamic balance of "liberalization" and "good management" to form a situation of "high quality and excellent governance". Shuifa's exploration provides some regular understanding of the current deepening of the mixed ownership reform of state-owned enterprises and the cultivation of world-class enterprises with global competitiveness.
The introduction of high-quality strategic investors and the construction of a new industrial chain are the basis and premise of the mixed ownership reform of state-owned enterprises in the new era.
There is a clear trend in the mixed reform of Shuifa, that is, to choose strategic investors, and the two companies work together, not to take your money and spend it. They select strategic investors with market-oriented characteristics, industrial synergy and complementary advantages, and are in line with mixed reform enterprises to form active external shareholders. In Xinjiang, they found that most of the business entities have the drawbacks of "scattered, chaotic and small", in accordance with the scale planting + service value-added + processing and sales + cotton seed research and development industry chain development model, the use of investment in equity, joint investment, mergers and acquisitions and reorganization, the integration of more than 100 enterprises, cotton processing plants, gathering more than 100 middle and senior professional titles, take a solid step towards rural revitalization. The circulating land exceeds 8 million mu, of which 5 million mu are planted with cotton and 1 million mu are vegetables, and the annual cotton processing volume is close to 1 million tons, which controls 1/6 of the cotton market in the country in less than two years.
Optimizing the equity structure of mixed reform enterprises, promoting the "433" model, and improving the governance of statutory rights and responsibilities, transparent rights and responsibilities, coordinated operation, and effective checks and balances are the keys to the mixed ownership reform of state-owned enterprises.
The focus of the mixed ownership reform is to allow private capital and social capital to enter the state-owned economy and state-owned enterprises, so as to change the property rights structure of enterprises and create a governance system for enterprises that conforms to the statutory rights and responsibilities, transparent rights and responsibilities, coordinated operation, and effective checks and balances. The main business of Shuifa Group is enterprises in the field of full competition, with a shareholding ratio of more than one-third of the total share capital of the enterprise and maintaining a relative holding, and strive to create a more scientific and reasonable equity structure. Two shareholders, in the event of disagreement among shareholders, lack coordination mechanisms. To solve this problem, the Group implemented the "433" model, in which the Group holds 40% of the shares and the other two shareholders hold 30% of the shares. At present, the proportion of "multi-shareholding" enterprises with more than three shareholders in the group has approached 50%, of which the proportion of "433" model has reached 30%. Encourage cross-shareholding between enterprises. Encourage relevant ownership enterprises to cross-shareholding, and promote mutual supervision and business synergy. At present, there are 75 enterprises with cross-shareholdings.
Guaranteeing the managers' right to operate independently and "letting those who hear the cannons direct the battle" are the core factors to fully release the vitality of the market mechanism of mixed enterprises.
Shuifa Group regards the promotion of the independent operation of ownership enterprises as a key measure, and establishes a set of reasonable mechanisms to ensure that front-end enterprises are full of vitality and can respond quickly to the market. The first is to make decisions, supervise and implement the shareholders' meeting, the board of directors, the board of supervisors and the managers according to their respective rights and responsibilities in accordance with the law, so as to realize the standardized operation and independent development of the enterprise. In the design of the corporate governance mechanism of mixed reform enterprises, the shareholders of the state-owned assets generally serve as the chairman and financial director, the shareholders of the cooperative party serve as the general manager, and if the shareholders of the cooperative party are not suitable to serve as the general manager, the board of directors shall conduct market-oriented selection and recruitment. The second is to formulate and introduce systematic decentralization and authorization measures, clarify the scope, standards, processes and monitoring measures, and release them to the fullest. The Group has carried out 5 batches of decentralization and decentralization of 14 First-tier companies, covering 19 business types. The chairman of the board participates in the decision-making of major matters through the board of directors, so that the general manager can institutionalize and standardize the exercise of daily operation rights. The third is to fully implement the contractual management of the tenure system of managers, strengthen the review of contract contracts, and implement the professional manager system in 17 enterprises. Explore the implementation of the contractual management of the chairman's term system. In the past two years, 167 of the management personnel of the group headquarters have been demoted and demoted due to poor performance of their duties, and the contract has been terminated through consultation.
The implementation of the first degree system and the comprehensive improvement of the quality and efficiency of the development of the main business are the key links to enhance the core competitiveness of mixed reform enterprises.
Shuifa Group has also taken a detour and has carried out real estate development, land consolidation and other businesses in many cities. Later, the development positioning was adjusted in a timely manner, and the four major sectors of water affairs, agriculture, environmental protection and clean energy were clarified, and "there are trade-offs". When implementing the primacy system: First, clarify the functional positioning. Shuifa Group positioned itself as a state-owned capital investment company, focused on the development of the main business and the promotion of the first degree, focused on industrial cultivation and transformation and upgrading, created a number of individual champions with distinctive characteristics, cultivated a number of innovative enterprises with broad prospects, and comprehensively sorted out and improved the mission responsibilities, functional positioning, industrial strategies and operating mechanisms of headquarters and ownership companies at all levels. The second is to strengthen strategic guidance. Innovatively put forward the first degree of leadership strategy, from the scale, technology, talent, brand four dimensions of synergy, focus on creating a subdivision industry single champion and head enterprises. The industrial development momentum is good, and the four major sectors of water affairs, agriculture, environmental protection and clean energy are ranked first in the province and the forefront of the country. The third is to optimize the allocation of resources. Strengthen restructuring and integration, promote the concentration of various resources in advantageous industries and advantageous enterprises, strengthen the main business at the same time, increase structural adjustment, and reorganize and integrate 7 first-level platform companies and 94 ownership enterprises in the past three years, involving assets of 35.1 billion yuan. Cleaned up and exited 72 non-main business and non-dominant enterprises, and all 4 zombie enterprises were cleared, of which 574 million yuan was returned from the equity of 3 real estate enterprises listed and transferred.
Strengthening the incentive mechanism and stimulating the vitality of the internal market economy of enterprises is a lever to fully release the endogenous power of the mixed enterprise market mechanism.
Scientifically set up a performance appraisal mechanism to assess the size of the group's revenue, profit and other contributions as the core, and fully stimulate the internal competitive momentum. Insist on adjusting salaries according to performance, the salary gap between the main responsible persons of enterprises at the same level is more than 7 times, and the salary gap between the deputy posts of members of the same team is more than 30%. Shuifa Group encourages internal competition in the organizational system. The development of each business segment of the Group is undertaken by more than 3 first-level ownership companies, which promotes internal competition, promotes mutual progress, and effectively avoids development inertia. Deepen the reform of the three systems of labor, personnel and distribution in the employment mechanism, reasonably determine the salary composition and salary level of employees, one salary per post, and easy to pay. Establish a medium- and long-term incentive system based on the excess performance of enterprises or the transformation of scientific and technological achievements, such as post dividends and project dividends, excess profit sharing, virtual equity incentives, and tenure incentives, and cash as the method of payment, and effectively mobilize the enthusiasm and creativity of ordinary employees through material incentives. In the past two years, 23 ownership enterprises have been subject to medium- and long-term incentive measures such as equity incentives and employee investment.
Standing at the forefront of economic layout, give play to the control and influence of state-owned capital, and give play to the role of state-owned enterprises as a platform for integration and integration in industrial restructuring.
In the past five years, Shuifa Group has derived a Shandong Provincial Environmental Protection Group, which proves that mixed ownership can promote state-owned enterprises to play a big role in economic layout and structural adjustment. Shuifa Group is a subsidiary of the Water Conservancy Department, because Shandong is a large province of energy resources, and sporadic resources other than these energy resources are often in a state of scattered sand. Shuifa Group saw these gaps, exerted the control and influence of state-owned capital, and made these sesame-like enterprises bigger, and slowly became a watermelon. Kitchen waste is not looked up to by state-owned enterprises, and Shuifa has cooperated with private enterprises to achieve the top three in the country; The scrap steel of automobiles is also disdainful of state-owned enterprises, and The Water Development Group has organized the private garbage collection enterprises to do the first in the province and the first few in the country. Shui Fa is like this, cherishing resources, picking up sesame seeds in the gaps, and making them one by one. Shandong Environmental Protection Group is mainly composed of these enterprises. Obviously, in the economic layout and structural adjustment of state-owned enterprises, there is a lot of room for mixed-ownership reform enterprises and can find their own growth point in the large economic layout. The readjustment of the economic structure has brought into play the vitality, control and influence of state-owned enterprises.
Strengthen the systematic integration, synergy and efficiency of reform measures, and give play to the overall effect of mixed ownership reform in the whole body.
Shuifa Group regards the mixed ownership reform as the general starting point of the reform of state-owned enterprises, drives and leads the joint development of various reforms, and forms a climate of reform. In the process of mixed reform, it involves a number of reforms such as restructuring and mergers, market operation reform, three system reforms, chain reconstruction, professional manager system and investment and operation companies. Shuifa Group, out of the water field, in the field of people's livelihood to show their skills, and then into the field of environmental protection and agriculture, their own investment and then handed over to the state, not by the government or financial departments to invest, but their own investment. As a result, the reform of mixed ownership has become a comprehensive and effective reform, and Shuifa Group has in fact become an investment and operation company in the process of reform.
Cultivating entrepreneurs with innovative and creative vitality is the core variable in achieving practical results in the reform of mixed ownership.
Entrepreneurs are the "key minority" that determines the development of enterprises, and state-owned entrepreneurs have a decisive factor in promoting the reform and development of state-owned enterprises and are the soul of integrating factor resources. The cluster management of Shuifa Group is centered on the four major mechanisms of corporate governance, market operation, constraint incentive and supervision. The core issue around these four mechanisms is the regulatory mechanism. The regulatory mechanism is essentially a matter of leadership mechanism, and the core lies in the leaders. There are a thousand families in the family, and there is only one person in charge. The cluster management and primacy system of Shuifa Group are proposed by Wang Zhenqin, secretary of the party committee and chairman of the board of directors of Shuifa Group. Wang Zhenqin is the helmsman of the big ship of shuifa, and the phenomenon of water hair, the speed of water hair, the mode of water hair, and the sample of water hair are inseparable from Wang Zhenqin. When shuifa group did not have a penny of funds, only an office, led by Wang Zhenqin, who had been the county magistrate and county party secretary for many years, he was familiar with the policy of resource allocation. After 2017, the water industry has gone to the whole country on a large scale, and 4 million mu of land has been transferred to the development of cotton in Xinjiang alone. Moreover, in the field of people's livelihood where scrap steel is collected and land is cultivated, and these state-owned enterprises do not do it, or even do not do well, water development is often like a broken bamboo. In the most difficult time, when the risk is greatest, entrepreneurs must have the courage to shoulder heavy burdens, dare to be responsible, seize the growth point of enterprise profits, find the "crux" that restricts the reform and development of enterprises, and make up their minds to push forward reform. The characteristics of shuifa entrepreneurs: the first is freedom, the second is boldness, and the third is innovation. Fundamentally speaking, the rapid and high-quality growth of Shuifa is determined by the quality and ability of state-owned entrepreneurs. Therefore, Wang Zhenqin has successively won the titles of "Shandong Province as a Good Cadre", "Shandong Province Reform Pioneer", "Shandong Province Industry Leading Entrepreneur", "National May Day Labor Medal" and other titles, and has twice been remembered by the Shandong Provincial Party Committee as a first-class merit. Of course, there are still a number of core figures in the second and third level companies of Shuifa, and it is precisely because they have delegated power to them, and they have then delegated power to the following, forming a full of vitality and forming a modern management team with Shuifa characteristics.
The report of the 19th National Congress of the Communist Party of China pointed out that "deepen the reform of state-owned enterprises, develop a mixed-ownership economy, and cultivate world-class enterprises with global competitiveness." "Five years later, Shandong Shuifa Group handed over a beautiful answer sheet. The mixed ownership economy is the highlight of the future reform of the mainland's state-owned economy, and governance is the lifeblood of the next step of deepening the reform of mixed ownership. With this lifeblood opened, many problems were solved. The growth of Shuifa will enlighten the positioning of the reform and development strategy of state-owned enterprises, and will provide a benchmark for what and how to deepen the reform of mixed ownership in the future.
The new management experience created by Shuifa in the reform of mixed ownership has a strong pertinence to solve the problems that have long plagued the reform of mixed ownership, and also has a good benchmarking and demonstration significance for modern management in the reform of state-owned enterprises.