Song Zhiping, President of the China Association of Listed Companies and Chief Expert of the China Enterprise Reform and Development Research Association
Steady operation and high-quality development.
Text | Zhu Huiqing
Source | President's Reading Club
Not long ago, Song Zhiping published a theme article on "Talking about the Stability and Progress of Enterprises", which accurately expounded the dialectical relationship between "stability" and "progress". Song Zhiping believes that "stability" is the foundation, "progress" is the goal, and "stability" creates conditions for "progress", but "progress" can help the long-term "stability" of the enterprise. If the enterprise is only stable and does not advance, it will stop moving, and if it is only unstable, it will fall down. Just like we ride a bicycle, only by riding can we be stable, and the same is true for enterprises, only by constantly forging ahead and innovating can we develop steadily.
At this time, I was fortunate enough to read Song Zhiping's new work "Steady Management" for the first time, and I couldn't help but feel in my heart: Isn't this exposition on the dialectical relationship between "stability" and "progress" the best commentary on "steady management"? "Stability" means that enterprises should make as few mistakes as possible, not make mistakes, and should first be undefeated and then win, which is mainly reflected in the fact that enterprises should be pragmatic, professional, finely managed, and prevent risks; "healthy" means that enterprises should keep pace with the times, make correct choices, and move towards healthy, benign, and healthy enterprises. High-quality, sustainable direction.
"Steady Operation" mainly covers Song Zhiping's latest thoughts and main views from 2021 to 2023, with a total of 50 articles, which are derived from his published articles, speeches and lectures at events, etc., which is another book in the form of an essay collection after his "Corporate Words" and "New Machines and New Bureaus", and it is also the 23rd corporate management book written and published by Song Zhiping in more than ten years.
The book is divided into five chapters: the power of capital, enterprise reform, from management to operation, high-quality development, innovation and entrepreneurship. From the overall content point of view, whether it is from the main line of the book, or the branch line of each chapter, or even to each article, it can be said that it is closely focused on the theme of "steady operation and high-quality development". This is also a major feature of Song Zhiping's works, with a clear layout, rigorous logic, seemingly independent composition, and deep internal relevance, which makes people read with great interest and endless aftertaste.
The following are some of my personal thoughts and experiences when reading, and I will discuss and share them with you.
Keep pace with the times and follow the "trend".
In "The Art of War", it is said that "those who are good at fighting seek the situation", and the "potential" is the opportunity. I remember once during a roadshow in Hong Kong, a reporter asked Song Zhiping: "In charge of a large enterprise, where do you think you are most successful?" Song Zhiping replied to reporters: "It is to seize the opportunity after seeing it, and then formulate a clear strategy and do it without hesitation." ”
"Potential" is an opportunity, but where does the "opportunity" come from? From the in-depth insight and accurate grasp of the country's general trend, economic situation, market trend, industry trend, and enterprise advantages and disadvantages. Enterprises can not exist independently from the overall environment, they must change with the times, keep pace with the times, move with the situation, and follow the trend in order to seize the opportunity for development and win a good momentum of development.
Song Zhiping has a very clear understanding and grasp of the "potential". For example, in the nearly 20 years he has been at the helm of China Building Materials, he has brought China Building Materials from a "grassroots" central enterprise with an income of 2 billion yuan to a Fortune 500 enterprise with an income of more than 400 billion yuan. The rapid development of China's building materials is to follow the "trend", which refers to the rapid development of China's economy, industrial structure adjustment, high-quality development, "The Belt and Road" and other historical opportunities.
In the book "Steady Operation", we can see that Song Zhiping attaches great importance to the current situation, especially the idea of "how to better integrate into and serve the national strategy". In the book, in every speech and article, he will chew and integrate his thoughts and opinions in the context of national strategy, economic situation and market development.
For example, the twelve-character work policy of "seeking progress while maintaining stability, promoting stability through progress, and establishing first and then breaking down", the development concept of "innovation, coordination, green, openness, and sharing", Chinese-style modernization and high-quality development, unswervingly developing the real economy, accelerating the construction of a manufacturing power and a quality power, supporting the development of specialized, special and new enterprises, rural revitalization, and common prosperity, jointly building the "Belt and Road", China's "dual carbon" goal, and building a new development pattern with the domestic cycle as the main body and the domestic and international cycles reinforcing each other, etc.
Song Zhiping also gave an in-depth interpretation of the policy documents issued by the central government and national ministries and commissions that are closely related to enterprises, such as the "Guiding Opinions on Accelerating the Construction of World-class Enterprises", "Guidelines for the Governance of Listed Companies", "Implementation Plan for Improving the Delisting Mechanism of Listed Companies", "Opinions of the State Council on Further Improving the Quality of Listed Companies", "Action Plan for Promoting the Improvement of the Quality of Listed Companies", "Three-year Action Plan for Promoting the Improvement of the Quality of Listed Companies (2022-2025)", "Work Plan for Improving the Quality of Listed Companies Controlled by Central Enterprises", "Work Plan for Improving the Quality of Listed Companies Controlled by Central Enterprises", "Work Plan for Improving the Quality of Listed Companies Controlled by Central Enterprises", "Work Plan for Improving the Quality of Listed Companies Controlled by Central Enterprises" Guiding Opinions on Deepening the Reform of State-Owned Enterprises", etc., he also combined the current situation and problems of enterprise reform and development, and put forward his own opinions and ideas, providing good guidance and reference for enterprises.
Why do you want to write the book "Steady Management"? Song Zhiping wrote in the preface that in the previous era of extensive and high-speed growth, it was relatively easy to make some hot money, fast money, and big money. In the current period of high-quality development, enterprises must strengthen scientific and technological innovation, operation and management must be refined, and enterprises must rely on technological innovation and intensive operation to make money. In the operation and management of enterprises, it is necessary to transform from the so-called leapfrog development in the past to steady innovation and development.
To this end, "steady operation and high-quality development" is not only a new challenge and new opportunity for enterprises in the new era, but also a major practical topic that enterprises must face at present, which is very in line with the practical needs and has a very distinct significance of the times. From this point of view, "Steady Operation" can be called an achievement and contribution of Song Zhiping to actively explore high-quality development at the micro level of the enterprise.
In fact, no miracle appears in a vacuum, but is the result of following the law. The business scope and operation and management mode of different enterprises are very different, but they are the same, that is, they must abide by the basic laws of economic operation. Only by grasping these laws and analyzing various factors such as the general trend of the country, the economic situation, the trend of the industry, the market demand, and its own conditions can we talk about strategy and development on this basis.
Empty talk misleads the country, but hard work prospers the country
When it comes to the general trend and economic situation at home and abroad, there is no shortage of people who talk about it. However, in the face of the current triple pressure of shrinking demand, supply shocks, and weakening expectations, we need not empty talkers, but doers. This is also the value of Song Zhiping and his "Steady Operation".
In his 2024 New Year's message, Song Zhiping put forward three key words that he has been thinking about recently: mentality, state, and ecology. He believes that the mentality of developing the economy and doing business is very important, and the mentality comes not only from how to look at the situation, but also from the way and method of thinking about the problem of entrepreneurs, and thus puts forward the three mentalities that business operators should have: ordinary heart, enterprising spirit and empathy.
In the face of the current economic situation, Song Zhiping neither approves of pessimism and disappointment, nor disapproves of blind optimism, but likes to be pragmatic and upright. The so-called pragmatic outlook is to seek truth from facts and be more open-minded. To do business, not a 100-meter sprint but a marathon, is a long-distance run, to do business or to adhere to pragmatism, professionalism, long-termism and humanism.
As Song Zhiping said, his books are not written, but made. "Steady Management" is such a book that is not only based on lofty goals, but also takes root. In the book, in view of the key points, pain points and difficulties faced by enterprises, Song Zhiping stands at the commanding heights of enterprise management, and provides unique solutions and solutions for enterprises with the mind, pattern and vision of a leader, combined with his own 40 years of practical experience in running enterprises.
As the president of the China Association of Listed Companies, the high-quality development of listed companies has always been one of the topics that Song Zhiping focuses on. In the book, he expounded on the development of the capital market, the power of capital, the current situation of China's listed companies, the governance of listed companies, and the importance of the development of listed companies. He believes that there are several important tasks to improve the quality of listed companies: First, it is necessary to do a good job in corporate governance, and the most important thing is to respect the independence of the company; second, it is necessary to strengthen the main business and not deviate from the main business and blindly invest; third, it is necessary to improve the core competitiveness of enterprises, and it is necessary to carry out purposeful, high-quality, and effective innovation; fourth, it is necessary to avoid risks, especially the risks of cyclicality, decision-making, capital chain, and large enterprise diseases; fifth, it is necessary to return to shareholders, carry out good dividends, and enhance the value creation ability of enterprises, so as to become a listed company with excellent performance.
As a veteran of enterprise reform and development, Song Zhiping pays great attention to the reform of state-owned enterprises, specialization, special innovation and the construction of world-class enterprises, and puts forward ideas and plans with practical guiding significance. For example, the focus of the next step of state-owned enterprise reform: First, improve core competitiveness and enhance core functions. The second is to improve the state-owned assets management system based on the management of capital. The third is to promote the integration and reorganization of state-owned enterprises in a market-oriented manner. Fourth, improve the modern corporate governance of state-owned enterprises with Chinese characteristics. Fifth, it is truly operated according to the market-oriented mechanism. Sixth, accelerate the construction of world-class enterprises. As for how to build a specialized, special and new "little giant": one is to focus on the main business, the second is to carry forward the spirit of craftsmen, the third is fine management, the fourth is to cultivate long-term customers, and the fifth is to connect with the capital market. The key points about building a world-class enterprise: First, have a clear strategy and goals. The second is to pay attention to integration. The third is to increase innovation and build core competitiveness. Fourth, strengthen management. Fifth, attach importance to values.
As a long-term enterprise manager who has been deeply involved in the front line, Song Zhiping has rich practical experience and theoretical system in enterprise management, effective operation and building enterprise competitive advantages. For example, with regard to enterprise management, it is necessary to pay special attention to several tasks: one is to strengthen the company's governance and improve the company's compliance; the second is to strengthen strategic management and strengthen the main business; the third is to do effective innovation and improve the quality of innovation; the fourth is to promote fine management and attach importance to methodology; the fifth is to advocate the four spirits and improve the quality of the team; and the sixth is to prevent business risks and pursue steady growth. With regard to effective operators, it is necessary to do a good job in the following points: First, make correct choices; second, make effective innovations; third, operate capital; fourth, integrate resources; and fifth, share mechanisms. As for how to cross the cycle and build new competitive advantages: one is to use continuous innovation to obtain technological advantages, the second is to use comprehensive strategies to obtain competitive advantages, the third is to use industry segmentation to obtain product advantages, the fourth is to use high quality to obtain price advantages, the fifth is to use dual circulation to obtain market advantages, and the sixth is to use independent brands to obtain business advantages.
As an entrepreneur, Song Zhiping also has his own profound and unique insights on innovation and entrepreneurship. He believes that innovation, perseverance and responsibility are the three characteristics of entrepreneurship, and entrepreneurs are hard to find, and we must care for and care for entrepreneurs. At the same time, in the current situation, the mindset and state of the entrepreneur are very important. In terms of mentality, we must not only have a normal heart, be pragmatic and attainable, but also have an enterprising heart and seek progress while maintaining stability; in terms of mentality, we must not choose to lie flat, but must carry forward the entrepreneurial spirit and become more courageous the more we are frustrated. The mission of an entrepreneur is to solve problems. The book also introduces some specific methods for facing and solving difficulties, which are worth learning and learning from entrepreneurs and operators.
Build a new enterprise growth model of "innovation + capital + management + market".
In the past 20 years, the "innovation + capital" enterprise growth model has emerged in the United States, and the traditional value concept of the past has been challenged. The United States has combined the new economy, new technology, and capital operation, so that innovative enterprises and high-tech companies rely on the capital market to develop rapidly, such as Google, Microsoft, Facebook, Tesla and other technology giants, all rely on the cultivation and development of the NASDAQ and other capital markets. Japanese and German companies use the model of "technology + management", pay more attention to the product market, pursue excellence in technology, and achieve the ultimate and high-end products.
In the past few years, the growth model of mainland enterprises has been "manufacturing + market", relying on strong manufacturing and massive product exports in exchange for foreign exchange to balance trade. Mainland enterprises have come from the product economy, and pay more attention to how to open up the market, how to do a good job in products, how to reduce costs, how to do a good job in quality, and how to supply customers. Now in the era of capital economy, we also need to pay attention to innovation and capital.
Song Zhiping's specific analysis of the growth patterns of different enterprises in different countries provides us with a good perspective and reference. On this basis, Song Zhiping proposed that we should organically combine the business model of "innovation + capital" with the management model of "technology + management" to build the comprehensive competitive advantage of mainland enterprises, that is, the new enterprise growth model of "innovation + capital + management + market".
The book gives examples from the CATL era. CATL is mainly engaged in power batteries, and the company has a market value of trillions of yuan because of its focus on "innovation + capital", and at the same time, the company also attaches great importance to "management + market". Six Sigma's PPM refers to the error of controlling product defects to 1 part per million, while the PPB of "extreme manufacturing" proposed by CATL has an error of 1 part per billion. The management requirements of extreme manufacturing are extremely fine, which cannot be solved by manual labor, and rely on intelligence, and it is highly intelligent cooperation.
The five chapters of the book include the power of capital, enterprise reform, from management to operation, high-quality development, innovation and entrepreneurship. After reading carefully, it is not difficult to find that in addition to the main line of "steady operation and high-quality development", we can also build another ideological context, that is, a new enterprise growth model of "innovation + capital + management + market".
Innovation is the soul of an enterprise, and the core of enterprise value lies in innovation. The capital market is an important card in the mainland's economic development in the future, and it is where the confidence and strength of economic development lie. Management is the last word, is the basic skills, whether automation or intelligence, management is irreplaceable. Reform is an inevitable requirement for the development of the socialist market economy, and reform is based on enterprises as the main body and the market as the guide. Through the study and understanding of the new enterprise growth model of "innovation + capital + management + market", it will not only help us deeply understand the main purpose of this book, but also provide a guiding direction for the steady operation of the enterprise.
Of course, the new enterprise growth model of "innovation + capital + management + market" may be more suitable for large enterprises, and the growth model of small and medium-sized enterprises also needs to be combined with their own actual capabilities and different stages of development, and make flexible and appropriate choices.
"Steady Operation" has added a strong and unique touch to the Chinese management model
After the reform and opening up, a large number of Western management ideas and theories poured into China, and at first the Chinese business community basically studied Western management theories and management cases. It can be said that the rapid growth of Chinese enterprises in the past 30 years has benefited from the excellent business management experience of foreign countries.
However, while learning the ideas of Western management masters, we also found that China's traditional culture is highly respected abroad, especially enterprises in Japan, South Korea, Singapore and other countries, which find motivation and spiritual pillars from China's Confucianism and create a miracle of rapid development.
At the same time, with the deepening of China's reform and rapid economic development, today's China's economy has jumped to the second place in the world, and large enterprises have emerged in an endless stream. This raises a question for us: Are we still learning Western management theories in their entirety? How can we establish our own management content and management model in China?
To this end, the Chinese-style management model has become one of the main topics that Song Zhiping has been exploring and studying in recent years. In his view, "entrepreneurs are not respected because they are big, but because they are thoughtful." To be a world-class enterprise needs world-class thinking, and only with world-class thinking can we lead a world-class enterprise. "Nowadays, whether it is in the trend of management research or in the world management trend, we need to have a stronger Chinese color, and we need China to contribute more Chinese-style management cases and management ideas.
The publication of the book "Steady Management" embodies Song Zhiping's latest exploration and latest thinking on enterprise management in recent years, including the continuous summary of past practical experience and the selection of the best and the inferior, as well as the pioneering and innovative research of more than 200 enterprises in new positions.
In the business world, Song Zhiping is a well-known business management expert, who has a pattern vision, theoretical height and practical depth that are difficult for ordinary people to achieve.
He is an outstanding entrepreneur who has brought out two Fortune 500 companies, China National Building Materials and Sinopharm Group. After leaving the leadership of the central enterprises, he served as the chairman of the China Association of Listed Companies, and in nearly five years, he visited and investigated more than 200 enterprises, jumped out of the limitations of the industry, and saw higher, farther and more comprehensive, and these experiences also greatly enriched and broadened his horizons and thoughts.
He is also a corporate thinker, in more than 10 years, he has written and published more than 20 books on business management, "Business Strategy", "Enterprise Myth", "Business Success", "Three Fine Management", "Sharing Mechanism", "30 Articles" and other works are widely recognized and praised by all walks of life and readers.
He also has a very precious and sincere heart of dedication, he is willing to be a paving stone, willing to put in signs and signs for the younger generation. In the preface of "Steady Operation", Song Zhiping wrote affectionately: Although I am not as hands-on in the front line of the enterprise as the leader of the central enterprise in the past, as a veteran of the enterprise, I have the responsibility to help entrepreneurs, especially the younger generation of entrepreneurs, to give them advice and watch the enemy.
We can say that "Steady Operation" has added a strong and unique touch to the Chinese-style management model. Because it is based on the integration of modern management theory with the reality of Chinese enterprises, and is based on the wisdom of this outstanding entrepreneur, corporate thinker and pioneer of enterprise reform for more than 40 years and the wisdom of the spirit of the times. It gives the Chinese management model a new connotation in the capital market, enterprise reform, operation management, high-quality development, etc., and is a rare enterprise treasure book, which is worthy of our serious reading, excavation, thinking, and practice, so as to achieve the steady operation and sustainable development of the enterprise.