We introduce it from four aspects.
one
Strategic direction
Kodak film invented the digital camera, but it was finally knocked down by the digital camera manufacturer headed by Sony; Nokia invented the smart phone, but it was defeated by the smart phone manufacturer headed by Apple.
They don't seem to have any problems in technical strategy. Why did they end in failure?
The most direct problem lies in the unreasonable design of incentive mechanism:
The inherent budget and assessment mechanism can not mobilize the enthusiasm of employees, and mature business teams have no motivation to develop new products and explore new markets; In the early stage of new business development, there is not much contribution of economic interests, and there is a potential interest conflict between new and old businesses.
On the other hand, in Huawei, Ren pays special attention to strategic fund sharing and strategy in resource allocation.
Some businesses that can't make direct economic contributions in the current period, but have important strategic significance for the company's sustainable development, often set up separate incentive mechanisms for these strategic contributions, including cadre promotion, share allotment and special awards.
For example, in Huawei, promotion and making a fortune are often separated.
If you happen to be sent to a fertile market, this place is already well run, with strong accumulation and brand influence, which can create current economic benefits for the company and get more returns.
On the other hand, in such a mature region, it is generally difficult to make great achievements and lack of breakthrough strategic contributions, so it is difficult to be promoted in this market.
If you are sent to some new areas, some markets called saline-alkali land or competitors' main granary markets, even if there is no obvious economic benefit in these places, as long as you can break through a hole and win a mountain project, you will often get promoted.
But promotion doesn't mean that you can get a lot of bonuses in the current period.
This is why Huawei's cadres in China have been promoted slowly for so many years, while those in overseas areas have been promoted faster.
Therefore, Ren advocated that economic contribution should be determined according to the output at that time, and strategic contribution should be determined according to the transformation of fertile soil.
We should do both. No current contribution, no bonus package, no strategic contribution, no promotion. This is also a manifestation of Huawei's diversified incentives.
two
Based on value contribution
To understand the value contribution, we must first understand the standard.
People who finish their work efficiently are general value creators.
Capital is an investment behavior, and Huawei defines it as a value creation factor, not a unique resource.
This factor can get a reasonable financial return, and it will not make him get an excessive return, nor will it pursue the maximization of shareholder value like western enterprises.
On the basis of the above definition, Huawei Struggler Project is based on the closed loop of value creation, value evaluation and value distribution, creating a "customer-centric, not competing for profits with customers; Struggler-oriented, so that strugglers will not suffer "struggler culture".
1. Huawei's value evaluation
Around this value circle, Huawei is supported by value evaluation to realize a virtuous circle of value.
Huawei's value evaluation has a relatively complete system, including:
Performance management system based on employee PBC and KPI: position management system based on job description and evaluation: value evaluation system based on ability, attitude and key events; Year-end debriefing system based on organizational performance target evaluation: an evaluation system based on ability, performance, quality, morality and cadres.
The above multi-dimensional value evaluation is only an evaluation tool, and it will eventually be implemented in the evaluation of a specific person. How to ensure the relative objectivity of employee contribution evaluation?
Huawei separates the evaluation of people and things, and its operating mechanism is contradictory in a sense, which is also its uniqueness.
For example, when evaluating people, Huawei advocates coarse and fine. We should judge people by the image of Cao Chong, not by a microscope.
In evaluating things, Huawei's proposition is to be refined rather than coarse.
Therefore, the evaluation of people and things within Huawei is operated separately by AT team and ST team.
AT team is the core member from ST team, and it is mainly responsible for the assessment and decision-making of the person in charge, including transfer, promotion, salary adjustment, share allotment and so on. Let's briefly understand that the at team is a bit like a government department or a party committee of a state-owned enterprise. They are mainly evaluators and are not responsible for specific management.
Huawei's ST team is responsible for business management, and all business discussions and decisions are operated by the ST team.
The decision-making mechanism of AT team leader is conformity rather than wisdom, which is democratic centralism; The decision of the ST team in charge is to follow the sages and not follow the crowd, which is the responsibility system of the person in charge.
I think this arrangement is very scientific, because the evaluation of people is particularly complicated and difficult to grasp, which requires collective decision, and at the same time it can avoid cronyism and cronyism.
This decision-making mechanism of Huawei AT ensures the effective operation of Huawei's value evaluation mechanism and makes Huawei's diversified incentive mechanism based on value contribution play a continuous incentive effect.
2. Huawei's value distribution
Huawei's value distribution has two basic mechanisms: acquisition and sharing system and evaluation and distribution system.
In a sense, these two mechanisms are opposite and complementary.
1) Access to the shared system
For example, for mature and stable businesses, according to the amount of profits created by business units and business units, they are distributed in the form of bonuses according to the principle of getting more for more work.
However, the collection and sharing system often can't solve the business scenarios that have no economic benefits or no economic benefits in the current period, such as new business, new area or middle and back office departments.
2) Evaluation and distribution system
For example, for a market that is difficult to open in a short time, it is obviously unfair to distribute it by sales performance or profit contribution.
The assessment and distribution system will set a benchmark bonus package in advance to balance the thin market and the fat market, and set some key assessment items according to this benchmark bonus package to make appropriate adjustments.
The basic orientation of Huawei's incentive scheme design is "one country, one government". The situation in each country is different, and the incentive scheme is also different. This is a targeted incentive scheme based on the principle of value contribution.
three
Struggler-oriented
I believe everyone has heard of Huawei's struggler culture. How does Huawei define strugglers? Huawei divides employees into three categories.
The first category is ordinary workers.
At Huawei, they are employees below 12. These employees are suitable for the management system of labor law and enjoy various rights and interests of workers, including legal holidays, overtime pay, paid annual leave and so on.
For ordinary workers, Huawei can ensure that their income reaches or slightly exceeds the market average.
The second category is the general struggler.
Corresponding to Jack Welch's vitality curve, the average struggler is likely to be in the middle of the curve, accounting for about 60-70% of all employees.
Although these employees also have a tendency to struggle, they are not active strugglers, but more expect to go home on time after work every day to ensure their spare time as much as possible.
By measuring, Huawei can continue to hire them as long as it is convinced that their output and contribution are greater than the cost paid by the company, and Huawei will also ensure that their remuneration is slightly higher than the market level.
The third kind of people are the real strugglers advocated by Huawei.
They are willing to give up a comfortable life, and they are willing to give up all kinds of holidays and overtime pay for their own mission. They are the core strugglers and the backbone of Huawei.
Huawei will give them priority in bonus distribution, stock incentives, promotion and growth opportunities to ensure that they have rich income and reach the highest income in the industry.
four
Diversified incentives
Based on the complex and diverse scenes of human nature, Huawei has set up a very rich incentive model.
Article 18 of Huawei's Basic Law also clearly stipulates:
The distributable value of Huawei mainly includes organizational rights and economic benefits. The form of distribution is not only money or economic benefits, but also development opportunities.
In other words, in addition to wages, bonuses and medical insurance, it also includes personnel benefits such as equity, dividends and retirement security.
In many domestic enterprises, the way to motivate employees is not only to use money, but also to use money. In the end, it is easy for employees to haggle over every ounce, and everything depends on money.
Huawei's incentive mechanism is very flexible. We call it diversification incentive, which is mainly reflected in the following five aspects.
First, how heavy it is.
The economic income of employees includes wages, bonuses, dividends, special bonuses and subsidies.
Second, many times.
Huawei's distribution includes monthly distribution, quarterly performance bonus, annual bonus, and even cross-year TUP and some irregular special awards.
Third, the variety.
Incentive not only corresponds to money, but also includes honor, promotion, certification and some opportunities for growth.
Fourth, there are many people.
Huawei's distribution and incentives will cover as many employees as possible. For example, there is a very famous honor award in Huawei called the Star of Tomorrow, which will basically cover 80% of employees, try to motivate everyone as much as possible, and create an atmosphere in which everyone strives to be a hero.
Fifth, multiple scenes.
Huawei's business is very complicated. There are mature businesses, new businesses and strategic tasks, including the old Red Army (old employees) and the New Fourth Army (new employees). Use different incentives to match in different business scenarios, and try to be accurate.
The above is the theory and system practice of employee motivation concept of Huawei Company shared today.
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