Speech by President Tian Mingge at the Amoeba Business Project Launch Meeting (excerpt)
Why do we import Amoeba mode?
At present, our team has great confidence, strong cohesion, and the company is maintaining rapid development, which seems to be good. However, we must be aware that our strategic implementation path is not yet particularly clear, and even a considerable number of people are confused; Our core capabilities are not outstanding, and our tactical level is not scientific or precise enough. Our customer positioning is scattered, and our product strength (including technical level, product performance, service capability, innovation, etc.) needs to be further strengthened. Our industry advantages need to be further strengthened, and we have made too little breakthrough progress compared to ourselves; The communication between various departments of the company is not smooth enough, there are still departmental walls, poor collaboration ability, and organizational efficiency is still at a low level; Our business accounting is not timely and accurate enough, just like the dashboard of a high-speed train is inaccurate or slow to reflect; Our incentive mechanism is not sound, and the work results of some departments are not reflected or recognized, which affects work enthusiasm. The existing performance management system is ineffective for some departments and personnel, and is merely a formality; Our blueprint has been drawn, and our career continues to develop. However, talent cultivation is relatively lagging behind, and there is a huge shortage of independent management talents... and so on. We still have many unresolved issues and a large number of shortcomings that need to be addressed. These issues and shortcomings constrain our long-term, fast, and stable development, and hinder the timely achievement of our four step strategic goals.
To solve the above problems, we have been constantly exploring. Recently, our accounting issues have become more prominent and sharp contradictions. Although the company is constantly improving, the progress is slow. Why do we have to spend so much trial and error cost to explore on our own? Why don't we adopt the 'take it' approach to bring in mature experience? At the February business analysis meeting and last Monday's executive meeting, we reached an agreement through two discussions to introduce the "Amoeba" business model.
Some people may think that our company has too much training and learning, and feel that the company has learned too much. I would like to discuss and clarify this with everyone. Our company is different from friendly forces and constantly surpasses them. One important factor is that we are constantly learning. Everyone agrees that learning plays an important role in our personal and company growth and progress. So, you can review how many courses we have learned over the years? How many hours of effective learning time do you have in 365 days a year? How much time is dedicated to training and learning organized by the company? For the vast majority of people in our company, what we learn is not too much, but too little. From the perspective of the company, are we learning a lot? In fact, so far, there are only three systems of courses that we have truly invested our energy and financial resources in learning. One is Shenzhou Yingcai. I started my personal learning in 2008, and then our team started learning. Yingcai enlightened our business and management ideas, laid the foundation for our company's strategy, mechanism, culture, and team, opened up the framework, and continuously improved it; The second one is the Shengjing Online Connection course that some of our personnel have studied. This course has enhanced our cognition, cultivated our awareness and ability in top-level design, especially in business models. Our tactics have become increasingly clear, and we can say that we have made significant improvements in both strategic and tactical aspects; The third one is the financial course that our finance department has learned. Through this learning, our finance has become standardized, relieving concerns for the long-term and healthy development of the company. We have repeatedly studied on these three platforms, and the longest one has been studied for 12 years. We once introduced a ZBX consultation and found it to be of no help to us. We immediately called to stop the damage. It can be said that we do not have a fickle approach to learning. The courses and institutions we choose are carefully selected based on our characteristics and development stages, and then we persist in learning thoroughly and continuously deepen and implement them over the long term.
What are the benefits of Amoeba? The teacher will cover them in future training. I won't go into more detail. What I want to say is that Daocheng Amoeba is particularly suitable for the characteristics of our company and our current development stage.
In recent years, our country's international status has been increasingly high, and the cohesion and development confidence of the people have been unprecedentedly enhanced. This is largely due to our leaders, whose ideas on governing the country have benefited from a set of books: "Essentials of Governance in a Group of Books". Emperor Taizong of Tang, Li Shimin, and Emperor Xuanzong of Tang, Li Longji, created two of the greatest eras in Chinese history, the "Zhenguan Reign" and the "Kaiyuan Prosperous Era," and this series of books has played an indispensable role. This set of books later spread to Japan, where an important figure in the Meiji Restoration and the father of modern industry in Japan, Eiichi Shibuya (whom our supervisors and above should have learned about in the study of "The Power of the Company"), greatly benefited from the ideas of "Essentials of Group Book Governance", especially Confucianism. Setsuzawa Eiichi wrote a book called "The Analects and the Abacus", which deeply influenced the management philosophy of the god of management, Konosuke Matsushita. The founder of Amoeba management, the Japanese sage of management, Kazuo Inamori, also directly benefited from Konosuke Matsushita. Teacher Kazuki Tanaka introduced Amoeba to China and implemented it. It can be said that the concept of Amoeba management has gone through a circle and returned to its starting point, which is located in Jining, the birthplace of Confucianism. We are more qualified than anywhere else to learn and apply this set of theoretical methods and practical tools. In addition, both Kazuo Inamori and Kazuo Tanaka take philosophy as the premise or foundation of their business models, pursuing both spiritual and material prosperity. This is completely consistent with what we advocate and pursue. The first keyword of our core values is "health", which clarifies that employee health includes two parts: physical health and mental health; Our second mission is to continuously strive to create a prosperous and beautiful life for our employees, which is the wealth of spirit; We have been talking about the fact that the income of employees at sciengreen is divided into two parts, one is put in their pockets and the other is put in their heads, creating a double harvest of material and spiritual life together.
Amoeba's operations are fully aligned with our five business policies, which are the practical versions of each policy. The first policy is centered on customer value: Amoeba establishes a departmental accounting system linked to the market, communicates customer needs layer by layer, and meets customer needs. The second step of the eight step chain implementation is "strategic positioning", starting from meeting customer needs; The second innovation: Amoeba management for us is management innovation, strategic positioning, and actually business model innovation, with a strong emphasis on technological innovation in terms of product power; The third lean approach: Amoeba management transmits market pressure by dividing accounting units and operating accounting statements, implementing the principle of "maximizing revenue and minimizing costs", forcing continuous improvement, improving human efficiency, and continuously reducing costs; The fourth empowerment: The fundamental purpose of Amoeba's business is to cultivate management talents with consistent ideas. This is both the starting point and the end point of enterprise management. The company provides a platform and resources, and employees can exert their talents on this platform to operate independently with extremely low risk and achieve personal value; The fifth struggle: Amoeba ideology comes from Kazuo Inamori, whose six improvements include "putting in as much effort as anyone else". His works such as "Burning Fighting Souls", the formula for success in life, living methods, and dry methods all promote the spirit of struggle. The Amoeba business model can also present the achievements of strugglers, reflect their value, and build an incentive system based on strugglers.
We explored the project manager system seven years ago, and the accounting method of the project manager system was quite similar to Amoeba's business accounting. After seven years of continuous improvement, it has now basically taken shape, and the incentive problem for project managers and construction managers has been preliminarily solved. For a considerable number of managers, performance presentation and incentives have not been effectively addressed. At this stage, it is a critical period for us to comprehensively improve and iterate our organization, operation, and management. We are planning to use profit units as accounting units for organizational division. How to scientifically and reasonably divide is the issue before us, and how to calculate after division is also a difficult problem. At the critical stage of climbing uphill, if these problems are not solved, the confidence and motivation that the team has finally established and gathered will be affected, and the driving force for future development will not be reserved. At this time, introducing Amoeba not only solves the current problems, but also continues to boost our potential for future development and reserve power.
Due to the impact of the epidemic, many of our projects are still unable to start. We are seizing this window of opportunity and continuing to cultivate our internal skills. Due to the impact of the epidemic, we have lost some performance. If we can further gain organizational growth and solve the fundamental problems for the long-term development of the company, we will definitely gain much more than what we have lost.
The above is why we introduced Amoeba, and the reasons and significance of introducing it now. Below are a few requirements.
1. Our cash flow is not abundant, and in the context of the epidemic causing cash flow to be "locked in" and triggering a cash flow crisis, we have invested a huge amount of money to introduce the Amoeba consulting project. We must turn this cost into an investment, which can only succeed, not fail. We need to produce returns dozens or even hundreds of times. This project will affect all of us in the future, and we must attach great importance to it from an ideological perspective.
2. This investment is not only an investment in the company's business, but also an investment in the growth of our team. The fundamental purpose of Amoeba's management is to cultivate management talents with consistent ideas. The future development of our company depends on these talents. We hope that everyone will actively invest, take on responsibilities, actively accept challenges and exercises, and grow into management talents with consistent ideas.
3. Change the mindset of learning. This consulting project is not about learning knowledge, but about practical experience. It's about hands-on work, where the teacher teaches us methods and we carry our own weapons to fight on the battlefield. Everyone should study and understand the methods and tools seriously, and take immediate action to complete the phased tasks on time.
4. Each of us has our own job, and there will inevitably be a lot of work to be done to implement Amoeba. We need to plan and allocate our time reasonably, promote the spirit of hard work, and ensure that our job responsibilities and Amoeba learning are balanced.
As members of our generation, let us join hands and immerse ourselves in the learning and implementation of the Amoeba model, and contribute to the cause of building a great company together!