1, enterprises are social tools.
It is hoped that people in China and China will learn to use the diamond model of China-China enterprise strategy, so as to have the deepest and most comprehensive understanding of the enterprise. This diamond model, you can call it the nature of the enterprise, the essence of the enterprise.
I have thought a lot about business management. I also hope that everyone can form the habit of learning like me. We say that enterprises are a mechanism of social division of labor. Social division of labor has formed different institutions, including government, enterprises, institutions, non-governmental organizations, societies, associations and so on.
Generally speaking, we divide social institutions into public institutions and private institutions, that is, institutions serving the public interest and institutions serving the interests of shareholders. The method of Hua Shu requires us to change the perspective of looking at enterprises, that is, to regard enterprises as public * * * departments and "profitable public * * * departments", both of which serve the public interest in essence, and enterprises are social tools.
Some so-called "nonprofit organizations" are not unprofitable. They just don't pay dividends, and they have to do business to be competitive.
To clarify this understanding, we must first regard enterprises as social tools and use social tools to demand ourselves. Just like Huahua, the shareholder right belongs to me and South China, but if we want to develop, we must share interests and opportunities with employees, which is what I call "establishing a professional community of employee autonomy"; For customers, we say we are absolutely loyal to the interests of customers, and China is the strategic and creative department of customers; For the whole society, China and China are social think tanks and brand marketing knowledge bases.
Therefore, Huahua is a social tool and a profitable public sector.
Drucker's Essentials of Management Thought is a book that I hope everyone must read, because Drucker has a lot of works, and this essence should be compulsory for us. In the book, Drucker said: "Commercial enterprises and public service organizations are important organs of society. They exist not only for their own purposes, but to achieve a special social purpose ... they are not an end in themselves, but a means. Any organization exists for a special purpose, mission and social function. No matter from the perspective of psychology, geography, culture or society, an organization must be an organizational part and an important organ of society. "
Here Drucker talked about the deepest essence of an enterprise: any enterprise can survive because it meets the needs of a certain aspect of society and realizes a special social purpose.
The essence of an enterprise is a mechanism of social division of labor, so when you want to find out the positioning of your own enterprise, you must first find out the social division of labor, and positioning is to determine your social division of labor. Social problems are business opportunities, and enterprises are social organs to solve problems for society.
Then, since the enterprise is a social division of labor mechanism, it involves how the society divides labor-what problems the enterprise solves for the society and what social responsibilities the society gives it.
2, to solve social problems must be specific, specific problems have specific countermeasures.
Some of our colleagues, when using this diamond model, are always easy to find problems for the sake of finding problems, and do not help the client enterprises to determine the real social problems to be solved.
For example, on the official account of WeChat, namely "Huahua" WeChat, we have a question-and-answer section of "I asked Huashan", where fans leave messages to ask questions, but many questions have their own problems.
We diligently seek answers, often because we don't find the right questions, especially many people find the wrong questions.
For example, a fan said that he was a huge fan of China and China. He wrote a lot at the beginning of his message, which shows that he knows China and China, but his final question is-what do you think are the similarities and differences between Confucianism and Marxism?
I am proficient in Confucianism, but not in Marxism, so I can only answer the questions of Confucianism, but I can't answer the similarities and differences between Confucianism and Marxism.
Why would anyone ask such a question? Because he doesn't have this "thing". If there is something concrete, there is something concrete. Everyone must remember that this is called "something must happen", and you must remember that this is bound to happen. We must do something, which is the basis of the unity of knowledge and action.
If you combine knowledge with practice, you will live in a completely different world from others. Be sure to have it. If not, don't ask questions. Don't listen to evil, don't see evil. Don't say evil, don't move evil, don't ask evil, don't answer evil. For example, business school students said to talk together and see what we can cooperate with, but I said I wouldn't listen. I only care about my own affairs, which is called every reason.
When you find a very specific question, you can quickly find a specific answer. We are always looking for answers because we haven't found the right questions.
How can we find specific problems? Just one word-pain!
Finding a problem is to find a pain point and a customer's pain point. This word is familiar to everyone. Looking for social problems is looking for social pain points. Then, finding the pain points of customers, finding the pain points of the industry and finding the pain points of the society are these three levels.
There must be, that is, there must be pain Wang Yangming said that learning must first be determined, and only when you have ambition can you have motivation and perseverance to learn. So what is ambition? Wang Yangming said, "Holding on to ambition is like heartache. Do you have time to gossip and mind your own business? "
A person can concentrate and persist, and only do one thing in his life, because he is suffering, and his ambition is like heartache. Just now he said that he was asking about the similarities and differences between Confucianism and Marxism. Is he in pain? Where there is no real pain, you will ask some innocuous questions. Last year, I gave a speech at the Confucius Institute in Guiyang and was interviewed by reporters. I was asked similar questions, but not about Marxism, but about the similarities and differences between Confucianism, Protestant ethics and capitalist spirit. This is also idle.
3. Work hard in the face of problems, and each step must have the effect of each step.
When we help enterprises to face a social problem and formulate enterprise strategies, we should remember that "the world cannot rely on wisdom". For our think tank company, we must remember this sentence.
Enterprises only meet the needs of society and help society solve problems, and society will need you and repay you.
Heaven rewards diligence, down-to-earth step by step, and luck also has a large part.
Leaders are not thinkers, but doers. Because if you don't do it, there will be nothing, everything will come step by step, and everything you do for our customers will come step by step. So we must come up with the stupidest method.
For example, now our customer, Bama Tea, is trying to solve the problem of drinking tea for consumers in China. What are the pain points of customers? What are the pain points of the industry? What is the pain point of society? You list the problems, set the goals, and I will solve them. This is the big picture! How long will it take you to solve so many problems? Ten years? Twenty years? Thirty years? You think China tea industry has these problems, and it takes you 30 years to solve them. This is the way of thinking of social tools. It's not that you have a brilliant idea, how many hundred million can you achieve in three years. It's all gambling Winning a bet can only be managed for a while, but not for a lifetime. Because you only think about yourself and don't take the world as your responsibility.
I also spent a lot of effort to write Huashan's understanding of the art of war, Huashan's understanding of the Analects of Confucius, Huashan's understanding of the golden mean in universities and Huashan's understanding of Mencius. I will spend another ten years writing Zi Tongzhi Jian and Historical Records. Can others look back after these practical things are taken out?
What we have to do is that every step should have the result of every step, and I will do it. The customer found Huahua, and after three months, Huahua made a move, and the customer needed to use it immediately, and it was effective immediately after use.
China and China should help enterprises acquire the ability to solve social problems step by step, whether it is ten years or thirty years, which is also our concept of lifelong service.
4. The mission determines the strategy, and the first positioning of the enterprise is the positioning of the business mission.
Enterprise solving social problems is actually a kind of enterprise autonomy.
An industry with a reliable leading enterprise can dominate the world in this field. When you see that enterprises can solve such social problems, you list it as the business mission of enterprises, which is called the first orientation of enterprises.
The first orientation of an enterprise is called business mission orientation, and the mission determines the strategy. The task is "I'll take care of this"
How to manage enterprises? Is to use the products and services of enterprises to manage, is to use the products and services of enterprises to solve this social problem.
When we were doing 360, there was a TV advertisement: "Spam SMS, harassing phone calls", and then Liu Yiwei shouted angrily at the camera: "Nobody cares?" At this time, a sledgehammer fell from the sky and smashed the words "spam messages, phone calls". The voice-over said, "360 pipes!" Later, CCTV wouldn't let us say "nobody cares". We are a socialist country. How can you say nothing? So I changed "nobody cares" to "can't care?"
360 established the enterprise security group, which is now Chianxin, to be responsible for Internet security.
What does China care? Regardless of the worries, doubts and fears of entrepreneurs, why worry, doubt and fear? Because there is no ambition, because of suffering, because of greed, always want to take advantage, so pull out the seedlings and encourage them; Always trying to overtake in the corner, so the corner overturned. Therefore, our business mission is to make enterprises take fewer detours, that is, to make great plans for entrepreneurs.
5. The second orientation of the enterprise: the strategic orientation of operation.
The second orientation of an enterprise is its strategic orientation. Mission determines strategy, and enterprise strategy is not an enterprise strategy, but a strategy formulated by an enterprise to solve a social problem. Qi Anxin should formulate a strategy to solve the Internet security problem in China; Eight horses should formulate strategies to upgrade China tea industry; China and China should formulate a strategy to make entrepreneurs in China let the benevolent not worry, the wise not be confused and the brave not be afraid.
This strategy is the products and services of the enterprise. You design a set of products and services to solve social problems. This is the business strategy.
We should use the method of management accounting to decide the planning of enterprise strategy.
The strategic positioning of the enterprise is what business does the enterprise have? Choose what business to do, what not to do, and when to do it. According to what? What the hell am I going to do? Don't do what? We call these "ups and downs". Prosperity is doing things that have never been done before, and waste is doing things that have been done before. Not now. If we increase what we are doing, we will increase it; if we decrease it, we will decrease what we are doing.
In fact, we are designing the increase or decrease of business every day. How do you decide whether to increase or decrease your wealth? It should be decided by the management accountant.
Business downward decomposition is an operation, and operation downward decomposition is an action. Activity-based costing is what we call activity-based costing of management accounting, because every activity consumes resources and is a cost.
How to treat the specific actions in homework? For specific actions, what we have to do is to constantly improve. This is why we implement TPS and keep improving.
But if you don't have these understandings in your mind, you won't get through in your mind. If you don't get through, your efficiency will be low and your progress will be slow.
Therefore, it is the cost and income of operation that determines what business we do or not. This involves our third orientation: the orientation of business activities.
6、? The third orientation of enterprises: the orientation of business activities.
A unique set of business activities can help enterprises realize unique value and lead assembly, which is difficult for competitors to imitate.
Unique business activities bring unique cost structure to enterprises. What management accounting should pursue is to form the best cost structure of enterprises.
The epidemic has come, and many enterprises are cutting costs and not spending all the money they can. In fact, reducing the cost structure can also be achieved by increasing investment.
Reducing costs means reducing total costs. Reducing the total cost means changing the cost structure. Changing the cost structure involves the rise and fall of costs. However, when many companies want to cut costs, they don't consider prosperity or increase at all, but only waste and reduction. Can the company become better if it only considers waste and reduction? In the end, I can only get through it.
Let's take the solutions from China and China as examples-why do customers say that the solutions from China and China can be implemented? It is precisely because we have passed the pre-inspection of management accounting that we have calculated what to do, what not to do, what costs to generate and what costs not to generate. We know that this plan is capable, so we put it forward. In this way, customers can immediately implement the plan after they get it.
7. Finally, the total cost will be ahead, and it will be difficult for competitors to imitate.
In business activities, you should constantly ponder the cost structure inside, in order to finally achieve the leading total cost and make it difficult for competitors to imitate.
Taking sunflower as an example, sunflower has realized "big advertisement+multi-products+pharmacy terminal counters", which sunflower can do, but other enterprises can't, because the cost structure may not be established.
There are many products of sunflower, such as sunflower brand Xiaoer Zhike granules and Xiaoer Zhike Huatan granules. And the profit for the terminal is also high. The terminal does not want to sell children's lung fever, but is willing to sell other products of small sunflower. Therefore, the customer insists that children with lung fever can also take it. Because there are dozens of varieties of sunflowers, the cost structure is different from others. Because there are so many varieties, children's medicine counters can also be set up at the terminal. Other companies can't do big advertising brands, and there are many high-profit varieties of terminals. Such business activities can't support the enterprise strategy, so they can't survive gradually.
8. Applying game theory and management accounting is the key to designing business activities.
When designing business activities, as mentioned above, we should first design solutions to social problems, and the solutions should be complete.
The second trick is to use game theory. What about the game I want to tell you? Because solving the dilemma of the game is to introduce more stakeholders.
Everyone should learn some game theory, which can help you see many problems clearly. For example, the price game:
For example, Carrefour promised the lowest price in the city. If someone finds out where the price is lower than mine, I'll make up the difference by ten times. What will happen? As a result, customers help Carrefour maintain its price monopoly for free.
Carrefour is afraid that someone will bargain at a low price. Now, no matter which store is making a low price, customers will immediately report it, and Carrefour will immediately drop to this low price. This has been done several times, and competitors find it boring. It is better to make the original price, so that the price will go up. One of Carrefour's lowest price promises is Sun Tzu's art of war. On the contrary, no one fought a price war with him to maintain a high price.
Game is to introduce more stakeholders and influence the decisions and behaviors of all parties. I recommend you to read a book, Interesting Game Theory, which is a popular and necessary game theory reading. I have read it three times.
When designing products, services and business activities, there are two models that can be referenced by game theory. One is Michael Porter's five-force model, and Michael Porter's competitive strategy, with the wrong name, should be called enterprise game strategy, because the five-force model itself is five kinds of games, and it is not about competition at all. Understanding Michael Porter's competitive strategy from the perspective of competition has gone astray from the beginning.
The second model we can refer to is the five major market models in China and China. In the customer market, capital market, talent market, policy market and civil society, the transaction cost of enterprises will be reduced in an all-round way to create greater value and create value for more stakeholders.
The third measure is management accounting, which depends on the marginal rate of return and operating leverage rate of the enterprise. The cost structure of business activities depends on which costs are fixed and which costs are variable. Here is a marginal rate of return (marginal rate of return, that is, operating income MINUS fixed costs, and then divided by operating income).
Take airlines as an example. As long as the planes fly together, the cost is basically fixed and the variable cost is very small. Whether people sit or not, it costs so much to fly once. So airlines should sell as many tickets as possible and bring as many people as possible.
What business activities should such a company do? Advertising is to attract as many customers as possible. For manufacturing and processing enterprises, the proportion of fixed costs is very large. Every time you increase the unit output, you will invest a fixed cost. Relatively speaking, there is less space for advertising. China and China have high operating leverage rate, high fixed cost and low variable cost. The higher our income, the higher our profit rate. Therefore, we also want to advertise and have more customers. It's best to queue up from the door to Hongqiao Airport.
Also pay attention to the concept of leverage ratio. When we talk about human resources, we mean our talent leverage ratio, that is, how many junior talents a senior talent can bring to make money. The higher the leverage ratio, the more money the company makes. The design of the company's business and operation management activities must think about how to improve the leverage ratio of talents. Our project meeting every Monday is to add leverage to me. So far, I can specifically control the production of each project. Our company 155 people, I am in charge of all projects. At my level, our talent leverage ratio is 155, which is very high! Such a high talent leverage ratio is designed and realized by our unique production model. Have you ever thought about this truth?
I said that we can do 654.38+000 billion consulting fees in the future, which is my judgment on our leverage ratio.
If an enterprise wants to be big, it must rely on adding leverage. We don't need to add financial leverage, because the consulting industry has no business, but for operational leverage, talent leverage should be added every month!
9. Business activities and cost structure design in China and China.
What are the social problems to be solved in China and China? That is, society is full of ideological smoke bombs and spiritual fog, and we can't find the real reason and truth. However, human greed for speed and luck always encourages us to overtake in corners and leads to a circuitous road. This is the problem we have to solve.
In order to solve these problems, we have set a mission, that is, to let enterprises take fewer detours. As a strategist, we should help our customers face major events and major doubts and make major plans.
We hope that customers will take fewer detours and slow down, but never regress? We say that the highest efficiency is not to rework, and the fastest progress is not to regress.
Mission determines strategy. What is the business structure of China and China? There are our consulting service products, our publications, our offline brand courses, online courses with APP, and products with our Million Creative Awards.
Map of business activities in China and China.
Through the activity-based costing method of management accounting, we look at Huahua's activities to evaluate Huahua's cost structure.
The following is the original text of the Million Grand Prix, which is better than this one about business activities, but the title may be mainly medicine.
1) First of all, the whole case consulting service, one contract, one product.
Our consulting service has only one contract, only one product, no single service, and all customers are annual service. When I only have one product, our marketing is the simplest and our marketing cost is the lowest.
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2) Second, uninterrupted advertising investment.
At present, China and China spend the most on advertising in China consulting company, with an annual advertising fee of 20 million. We never stop.
Why? This is to improve the entry threshold. When others want to compete with you again, you have already invested 65.438+billion in advertisements, and if they want to enter, they have to cross the threshold of 65.438+billion.
3) Third, the publication of China and China's method library.
As I said just now, in addition to books on strategic marketing and brand consulting, I also wrote the Art of War by Sun Tzu and a series of four books. In order to strengthen this concept, I want to write Zi Zhi Tong Jian and Historical Records thoroughly.
This year, we will publish China and China Method and Design Purpose.
4) Fourth, official WeChat accounts of China and China.
China and China WeChat official accounts currently have 1 10000 fans, but this may be the highest number of domestic sales conversion rates, and we also publish our selected articles every year.
5) Fifth, overwhelming staff training.
We should cultivate the company's ability in every employee of the company. In China and China, I often say that for us, first, the most important thing is that there are few people, and there must be few people. If our per capita performance is to continue to improve, we must continue to invest in training.
China and China thus formed a unique set of business activities. Generally speaking, through this group of activities, people above 150 can earn 200 million consulting fees. Our unique business activities are interlocking and complementary, all of which can be each other's products, media and advertisements, which strongly support the business mission and corporate strategy of China and China.
Full text abstract
It is necessary to deeply understand the most fundamental nature of enterprises-enterprises are social tools and social division of labor. Which department are you in? Take what responsibility? Responsible for solving what problems? This is the first positioning of the enterprise: the positioning of the business mission.
If an enterprise wants to find its own business mission, it must first determine what the problems in your field are. Find the most fundamental problem. How long do you think it will take to solve these problems? Ten years? Twenty years? Thirty years? Take out your plan. Your solution is corporate strategy. Enterprise strategy is not an enterprise strategy, but a strategy formulated by an enterprise to solve a social problem.
It is the business of an enterprise to solve social problems with a set of products and services. This is the second orientation of the enterprise: the strategic orientation of operation. We should have a broad vision in business design, introduce more stakeholders with the idea of game theory, make more friends and gather the relevant forces of the whole society.
In business, it is an activity, and an activity is a cost. This is activity-based costing. Below the homework is action, action measurement, which means continuous improvement. Management accounting is the increase or decrease of homework and action. This involves the third orientation of the enterprise: the orientation of business activities. Enterprises should achieve the best cost structure and total cost leadership through a unique set of business activities and unique cost structure.
Social problems, business mission and business strategy constitute a strategic triangle of an enterprise, and together with business activities constitute a diamond model. Business activities support the strategic triangle of the enterprise, because nothing can be established without leading the total cost.