I collect gold fingers in the heavens

Chapter 239 Big company disease and division system

After finishing the transoceanic video conference with Jeff Bezos, Wu Siyuan's attention was temporarily removed from the [audition] matter, and he devoted himself to another important work.

Group organizational structure adjustment!

Over the years, [Chaoqun Group] has developed step by step from a fruit stand, and its business has become more and more complicated, from fresh retail to agricultural planting, animal husbandry development, environmental protection recycling, and now the information technology industry and so on.

It seems that the development is very prosperous, like flowers blooming, and the performance is rising steadily.

From the outside, there is nothing wrong with it.

But in fact, the group has a lot of business, internal communication is not smooth, various departments and subsidiaries are fighting each other, repeated losses are obvious, and large companies are seriously ill.

[Big company disease] refers to a kind of crisis that impedes the continuous development of the enterprise in various aspects such as enterprise management mechanism and management functions after the enterprise develops to a certain scale, causing the enterprise to gradually retreat or even decline. Chronic Syndrome.

【Big company disease】symptoms are generally manifested as: "obesity" with poor information, stiff body, overstaffed departments, and overstaffed organization; "sluggishness" with unclear responsibilities, complicated decision-making, and slow action; The "disorder" of difficulty in coordination and war;Discipline is lax, low efficiency, "laziness" with no enthusiasm for work, "lack of responsibility" with lack of seriousness in work, making excuses when things happen, and weak sense of responsibility; "Blind optimism", "extravagant waste, arbitrariness, and indifference to subordinates" "official style syndrome"!
Looking at it this way, many symptoms have appeared in the [Superior Group], or problems have already occurred.

【Xinghuo】The emergence of software only improves the convenience of some work, but it only solves the symptoms, not the root cause, and the essential problem still exists.

In fact, the reason why [Xinghuo] software appeared was because Wu Siyuan realized some problems within the company and specially asked [Four-Armed King Kong] to develop it, not entirely for the purpose of monitoring the company's corruption, but judging from the current results , is not ideal.

If this "big company disease" is not curbed and rectified in the early and mid-term, the company will become more and more like a cumbersome elephant, and it will be difficult to turn around, let alone dance.

Huang Yuping has already reflected to him more than once that the group's business development has become larger and larger, which has brought about management difficulties.

Wu Siyuan also felt this way.

Therefore, it is urgent to carry out self-reform.

After many discussions with Huang Yuping and other executives, Wu Siyuan held a group executive meeting.

At the meeting, Huang Yuping, as the host, announced the group's organizational structure adjustment plan to the bosses of the group's major branches. Some subsidiaries will be abolished and a business department structure will be adopted.

The business unit structure originated from General Motors Corporation in the United States.

In the early 20s, General Motors merged and acquired many small companies, and the scale of the company expanded rapidly, with more product categories and business items, but it was difficult to straighten out internal management.

[P. Sloan], who served as the executive deputy general manager of General Motors at that time, referred to the experience of DuPont Chemical Company and completed the reorganization of the original organization in the form of a divisional system in 1924, which made the reorganization and development of General Motors a success. It has achieved great success and has become a typical example of the implementation of the business unit system, so the business unit system is also known as the "Sloan model".

At the same time, it is also called "federal decentralization".

The business division system is to set up several business divisions according to the businesses operated by the enterprise, including dividing divisions by products, regions, and customers (markets).

The business department is under the macro leadership of the enterprise, has complete management autonomy, and implements independent management and independent accounting. It is not only a profit center controlled by the company, but also has the functions of profit production and operation management. It is also a product responsibility unit or a market responsibility unit. , responsible for unified leadership of product design, manufacturing and sales activities.

In China, the industry that is most keen to set up a business unit system belongs to the Internet industry.

Because the divisional system has many advantages:

First, each business department has its own products and markets, can plan its future development, and can flexibly and autonomously adapt to new situations in the market and respond quickly. Therefore, this organizational structure has both high stability and Have good adaptability.

Second, the decentralization of power will help the top leadership get rid of the complicated affairs of daily administrative affairs and direct management of specific business operations, and become a strong and powerful decision-making organization. overall benefit of the enterprise.

Third, although the manager of the business unit is only responsible for leading a unit that is much smaller than the company to which he belongs, since the business unit is self-contained and operated independently, it is equivalent to a complete company, so he can withstand the challenges faced by the senior managers of the company. Various tests.Obviously, this is conducive to cultivating comprehensive management talents and reserving cadres for the future development of the enterprise.

Fourth, as a profit center, the business department is easy to establish standards for measuring the work efficiency of the business department and its managers, conduct strict assessments, and easy to evaluate the contribution of each product to the company's total profit, which is used to guide the strategic decision-making of enterprise development.

Fifth, division of business divisions by product facilitates the organization of specialized production, the formation of economic scale, the use of special equipment, and the maximum use of personal technology and professional knowledge in the field of production and sales, which is conducive to improving labor productivity and Enterprise economic benefits.

Sixth, there can be comparison and competition between various business departments.This enhances the vitality of the enterprise and promotes the overall development of the enterprise.

Seventh, each business department operates independently and has clear responsibilities, so that target management and self-control can be carried out effectively. Under such conditions, the management range of senior leaders can be appropriately expanded.

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What the Internet industry pays attention to is the word [fast], small steps forward, rapid iteration.

The flexibility of the business department is better than the traditional bureaucracy, and it is more suitable for the Internet industry with frequent changes in organizational development.

Of course, the divisional system also has its own unavoidable shortcomings. For example, it is easy to breed departmentalism, which increases expenses to a certain extent and requires high management work at the headquarters. Otherwise, it will easily cause the division to lose control, which in turn will drag down the company.

(End of this chapter)