In a growth-oriented private enterprises, see the production workshop piles of work in progress inventory and scrap, see the plant around the hoarding of all kinds of stagnant inventory, we can not help but ask, this business to make money?
An executive of the enterprise told me: the company's profits are not bad, every year in the steady development.
Waste and attrition is so great, but also can make money, is the enterprise in the industry there is profiteering?
And the boss of this enterprise communication, he is pleased for the enterprise is a sunrise industry, at the same time, but also for the enterprise problems worry; in-depth understanding of this enterprise, found that the problem of this enterprise and most of the growth of the same enterprise, there are six "internal injuries": organizational disorders, talent recruitment, huge losses, anomalies frequently, site chaos, the boss tired. The company's business is also a major player in the market, and the company's business is also a major player in the market.
1, internal injuries: organizational dysfunction
Growth-oriented SMEs organizational structure design, there are two extremes, one is the understaffing, the most common is the lack of key departments or key positions, such as some manufacturing enterprises, two key departments such as PMC, PE department functions and responsibilities are missing.
Organizational understaffing left the enterprise's "pain" is that everyone is very busy, a person to do a few jobs, from the morning chicken busy to the evening ghosts, bosses and managers are physically and mentally exhausted, playing the role of the "saint" (left him alone).
The second is overstaffing, the most common problem is that the functional departments are overstaffed, while the business sector is tightly staffed. I was once in a growing SME and saw that the indirect department's labor costs accounted for 70% of the total labor costs, and that the company's organization was bloated, overstaffed, and inefficient.
Organizational bloat should be a "disease" of large companies, but it exists in some growing private companies. Organizational overstaffing leaves the enterprise "pain" is too high a cost, shirking responsibilities, and do not want to make progress.
I am often asked by business owners or HR leaders what kind of organizational structure should be used?
Chandler, an American management scientist, has a famous theory: organizational structure follows strategy.
What kind of organizational structure depends on the business development of the enterprise, the business development trend is good, high long organizational structure has certain advantages, is conducive to the replacement of talent, is also conducive to reducing the impact of brain drain, but at the same time we have to guard against overlapping powers and responsibilities of the wrong to do the organization of the vertical report and horizontal communication will not appear obstacles.
Flat organizational structure is suitable for supporting broadband pay structure, flat organizational structure requires managers to have good quality, stable workforce, rapid transmission of information, the problem is that there is a risk of loss of control of management.
The existence of organizational structure enables ordinary people to do extraordinary things, the structure determines the function, the structure determines the process. The rapid development of growing small and medium-sized enterprises needs to give priority to good organizational grooming and optimization, because, structure determines results.
2, internal injuries two: talent is difficult to recruit
10 years ago is the employee looking for the enterprise, now is the enterprise looking for employees. Employees are difficult to recruit and employees are difficult to retain even more than financing and technology, becoming the most headache of growing small and medium-sized tricky problem.
Jack Welch, former president of GE, said: My company's greatest resource is the ability to walk home.
People are not assets, assets to be depreciated; people are resources, to be constantly developed. The development of human resources, including staff training and staff recruitment.
The lifeblood of talent recruitment for growing SMEs, weak salary competitiveness is the pain point, in addition, the working environment, working hours are not competitive.
I often chat with corporate HR, high wages do not necessarily recruit good talent, but low wages must not recruit good talent; good talent is free, bad talent is the most expensive.
Growing SMEs want to solve the difficult problem of recruiting talent, the best way is to improve efficiency, improve efficiency, and then feed the employee compensation, like the United States Group advocated the "534" law: 5 people work, 3 people do, take 4 people's wages.
In addition, is to use the means of marketing to do talent recruitment, to some extent, the talent is not by "recruiting", but by "grabbing".
The development speed of the enterprise can not be long-term beyond the development speed of human resources, to a certain extent, the ceiling of human resources is the ceiling of the enterprise.
The rapid development of growing small and medium-sized enterprises, talent is the most basic guarantee, because talent can drive the future.
3, internal injury three: huge attrition
In 2019, I went to a trailer manufacturer with an annual output value of about 700 million to counsel, and the attrition rate of their main raw material, steel, was close to 10%.
We can not help but sigh, 10% material loss, the enterprise can still survive, this is the heaven has a good life of virtue, the earth has a load of thick.
In industrial enterprises, the most important loss is material loss; and to reduce material loss, R & D and process departments to reduce the standard dosage, production and quality departments to reduce the bad, reduce the scrap, reduce the residual, reduce the corners.
Quality loss is also a common loss, the world's greatest quality guru Crosby said: "Quality can also be measured in money, if we add the cost of doing things wrong and redoing things, has exceeded 20% of the total revenue, the cost of non-compliance to five times the pre-tax profit.
Efficiency losses are even more common, with equipment breakdowns, adjustments, switching, start-ups, stops and idling, speed drops, defects and repairs, and program preservation.
Efficiency losses are also managed by stoppage losses, line imbalance losses, and unreasonable layout and process losses.
Enterprises in business management, attrition is the invisible killer of corporate profits, to find and effectively cut these losses, is the enterprise to enhance the competitiveness of the powerful initiatives. Remember, if our business managers can not find loss, he himself is the company's loss; if you can not improve the waste, he himself is the company's waste.
4, internal injuries four: the frequent occurrence of abnormalities
Most of the managers of growing SMEs, every day is very busy, they are busy every day to deal with a variety of abnormalities and accidents, overtime is more commonplace.
2 weeks ago, I went to a growth enterprise in Zhejiang, they just had a serious employee injury, 1 week ago, I went to a growth enterprise in Guangdong, they just had a serious product quality accidents; a variety of unusual accidents occur frequently, so that the production operation was overburdened into a vicious cycle, so that physically and mentally exhausted employees have lost the last endurance and The company's business model is based on the concept of a "one size fits all" approach.
The lack of clarity of standards (working according to one's own experience or ideas, working arbitrarily, self-righteousness), the lack of constraints (lack of checking and assessment system, each in its own way), the lack of clarity of responsibility (confusion of duties, shirking responsibilities, unequal responsibilities and rights), and the lack of ability (lack of professional training and professional training of employees) are the root causes of the frequent occurrence of abnormalities in growing small and medium-sized enterprises.
Managers of the world's leading companies, 50% of the time every day to do training, 25% of the time to do to improve, 20% of the time routine work, only 5% of the time to deal with abnormalities. And our small and medium-sized growth enterprise managers, more than 70% of the time every day to deal with abnormalities, as the so-called foundation is not solid, the ground is shaken.
5, internal injuries five: site disorganization
Many growing small and medium-sized production site and logistics site are very dirty, the site is the mirror of the management cadres, to see a dirty site, you will see a lack of quality management cadres.
Site chaos is reflected in the layout of the wrong, process disorder, site clutter, cluttered items; bad site blocked everywhere, items mixed everywhere, in such a dirty site, employees spend a lot of time every day looking for items, rework and repair, simply can not do fast efficiency, high quality, low-cost production.
A good site, the staff waiting and looking for time almost close to zero, in-process inventory almost close to zero, redundant processing, handling action and handling distance to the minimum limit, the formation of an impeccable JIT production line.
Site management, I used to divide it into four levels; first level: busy is work; second level: understand that the failure to add value to the product is waste; third level: managers often meet to discuss the improvement of the subject; fourth level: the whole staff to participate in the improvement of activities.
Many growing small and medium-sized enterprises are still at the first level of site management, the road ahead is long.
6, internal injuries six: boss labor
Growth SMEs boss, most of them have a **** the same qualities - workaholic, many of them work more than 12 hours a day.
I once read a survey report, Chinese business bosses in addition to high work pressure and long working hours, easy to dry and irritable accounted for 70.5%, exhausted accounted for 62.7%, frustrated accounted for 37.6%, and doubtful accounted for 33.1%. Business owners, rich sufferers, they are "great men", but not great great, is the aggrieved "commission".
The two key reasons for the growth of SMEs boss tired, one is no good authorization and assessment system, the implementation of the work of the ministry is not assured, resulting in the implementation of all the details of all the things have to do; two is no good talent, worried about the ability of the ministry can not be excellent completion of the work task, resulting in what they do like to insert a hand.
In the Romance of the Three Kingdoms, Zhuge Liang's personal ability is obviously stronger than Liu Bei's, but why is Liu Bei's death, but the state of Shu is declining?
Although Zhuge Liang has a high personal IQ, but everything is hands-on, he is far less than Liu Bei in the use of people. If a business owner is like Zhuge Liang to manage the team, in the end, it will definitely be like Zhuge Liang to die of exhaustion.
Zeng Guofan said: "a **, the most afraid of one for a hundred, the best is a hundred for one". For business, why not!