Hua Mu Consulting assumes that there is a particularly simple thing in enterprise management, which may be some tools or methods. It can cope with the diversity and uncertainty faced by our enterprise. So we tried to find these things. This process includes what we have accumulated from past experience, what we have learned from some customers, and what we have created in 10. We hope to find out the "mysterious things" that look simple, but can cope with diversity and complexity together, and then make products, so that we can share them with more people, so this is also the original intention of my Hua Mu strategy consultation!
After years of consulting practice and research, Hua Mu Strategic Consulting has summed up the "Hua Mu Strategic Equation" about the sustainable success of enterprises.
We believe that the landing of strategy is related to four elements: strategy itself, organization, talents and culture.
The first is the strategic landing. As we all know, survival and reproduction are the first demands of organic organisms. Similarly, we also believe that most enterprises want to pursue "living, strong and sustainable management" in essence, so we define enterprise success as "long-term healthy development of enterprises". This can be simply understood as long-term healthy development. At least, we should strive for a century-old shop. It is not a long-term healthy development without the inheritance and development of 4-5 generations and spanning several cycles by our own strength. In this sense, the baby enterprises that seem to be in full swing now are only babies, at most, only young people. As entrepreneurs in the new era, what they should pursue is to become a great organization that continuously creates value for society. The world will be different because of their existence, and it will be better because of their existence. Therefore, from a longer-term perspective, the long-term sustainability of enterprises is directly related to the insight, generation, decomposition, implementation and recovery of strategies. The correct choice of each key node is the key factor for the success of strategic landing, which includes not only the formulation of strategy, but also the deployment of campaign and even the execution of battle. Fighting is the smallest combat unit in every battle and even war. No matter how big the strategic intention is, it needs to be achieved in the end, which the commander can't ignore. Many companies clearly have a good track, the right direction and strong decisions, but the results are not satisfactory. According to my observation, most of them are caused by poor strategic deployment and implementation.
Followed by culture.
Why do I put culture before strategy here? It is because culture contains several very important contents that need to be ahead of strategy, and also contains the most fundamental things that distinguish an organization from other organizations, such as DNA. This is why we say "culture is a strategic strategy". Culture includes, but is not limited to, "assumptions, missions, visions, core values, basic principles and organizational-approved employment views". The "mission, vision and values" in this equation will actually affect the strategy, organization and talents in the equation to a great extent. Therefore, we say that if a company only has strategy, organization and talents, it can succeed, but whether it is a correct success or a sustained success needs to be questioned. This is also the main reason why we put culture in this position.
Of course, it is not excluded that the business scope of an enterprise constantly breaks through the original customer/customer value and corporate mission. Huawei is a good example, from the initial agency sales switch, to independent research and development, to ToB business development ToC mobile terminal, to electric vehicles, to the world-famous Amazon, from becoming "the largest bookstore on earth" to "the largest integrated online retailer", and then to becoming "the most customer-centered"
Then there is strategy, organization and talents. If we simply describe these three things, strategy means that we must choose the right thing. Then organization means that we should design structures, processes and mechanisms so that everyone can do things correctly. Talent is to select and retain talents, and ensure that the right people can give full play to their strengths and do the right things.
Let's start with strategy. We define strategy as "realizing customer value rhythmically in a way acceptable to customers", and the company strategy includes six steps in chronological order: strategic insight, strategic generation, strategic understanding, strategic disassembly, strategic implementation and strategic recovery. The whole strategic cycle shows how to find the right thing according to the changes of customers, their own changes and the changes of external environment, and stick to it, and finally realize customer value.
Let's talk about organization. The organization will be a little more complicated. Once we have determined the right direction of our efforts and the right things that must be done in order to realize customer value, we need corresponding organizations to ensure that these right things are done perfectly by the right people in the right way. The organization here includes but is not limited to "customer value stream, organizational structure, division of roles, responsibilities and rights, sub-workflow, decision-making, communication, rewards and punishments, and other mechanisms, as well as various organizational capabilities needed to achieve strategic intentions". The most typical example is Huawei's "building capacity in organization". Ali once said that "everyone is very important, and anyone can do without it".
The final core is talent. Talents here mainly refer to some key talents, including management talents and professionals, their abilities or quality models, and the selection, education, use and retention of these talents. Uncle Li, the leader of a criminal gang played by Ge You in the movie world without thieves, said, "What is the most expensive in the 21st century? Talent! " What is the most expensive since the 20th century? Judging by common sense, what is the most expensive in the foreseeable future? They are all talents! ".All actions of the company are realized by people, at least by technology or tools. Unless one day machine learning and artificial intelligence really surpass the designers behind them, even so, there are still some "unscientific" jobs in the development of enterprises, such as management, relationships, decision-making and other key issues that need to be handled by the human brain. Therefore, the sustainable and healthy development of an organization depends on the personal wishes, skills, knowledge, leadership, emotional management ability, learning iteration ability, mutual trust and high-level communication and cooperation of employees and managers.
In a word, strategy ensures that we do the right thing; Organization is to ensure that we have all the qualifications and abilities to achieve strategic intentions efficiently; Talent designs all this and turns it into reality. Culture ensures that we are in the right direction and in the process of realizing our mission, the way is correct, efficient and reasonable; The organic combination of strategy, organization, talents and culture, with the same frequency vibration, makes our company develop healthily and succeed step by step.