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The growth rate of "double digits" is "outstanding" in the Chinese automobile market and engine industry, and it is hailed as a "miracle in Yuchai" by the Chinese business community. The maker of "Yuchai miracle" is Fuping and his management team.
Yuchai's success is not a result of falling from the sky, nor is it an accident. It is due to the wisdom and intelligence of Jun Ping as an entrepreneur and professional manager. It is a matter of renewal of corporate philosophy, reengineering technology platform, reengineering of the company for three years, and corporate property rights. The successful innovation of reforms and other mechanisms and systems is heartfelt.
“The Yuchai Group is reborn as a new Yuchai because of all aspects. However, if the company is large enough to a certain extent, the core competitiveness will be reflected in the corporate culture. The corporate culture depends to a large extent on the company's leaders. Uncertainly, jade is said. The vitality of Chai today is brought by Fuping." On the morning of August 19, 2008, Dr. Gu Tangsheng, general manager of Guangxi Yuchai Group Co., Ltd., said with passion.
According to the ancient introduction, in 2005, the value of China's auto market was severely declining, and there was a general negative growth in internal combustion engine manufacturers. On May 20th that year, Fuping came to Yuchai. Not only did Yuchai not repeat the phenomenon of frequent turbulence in the handover of old and new leadership of state-owned enterprises in China, but on a new year in a year, the development was irresistible: In 2005, the sales revenue was 12 billion yuan, and the production and sales volume of diesel engines was 260,000 units; in 2006, the sales revenue was 140. Billion yuan, diesel engine production and sales of 360,000 units; 2007 sales revenue of 18 billion yuan, diesel engine production and sales of 500,000 units; 2008 estimated output value of more than 23 billion yuan, diesel engine production and sales of more than 600,000 units.
The growth rate of "double digits" is "outstanding" in the Chinese automobile market and engine industry, and it is hailed as a "miracle in Yuchai" by the Chinese business community. The maker of "Yuchai miracle" is Fuping. His people are now among the leaders of China's machinery manufacturing industry.
After the excavation interview by the reporter of China Reform Network, it was a truth ballad that “the pain behind is behind the successâ€. Yuchai’s success was not caused by the falling of the sky, but it was not due to Lupin’s fortunate success. Instead, it was due to the three-year wisdom and integration of entrepreneurs and professional managers: the renewal of corporate philosophy, the reengineering of technology platforms, and the reform of corporate property rights. The successful innovation of the system is heartfelt.
Management Innovation: Rebuilding a New Yuchai within Three Years
At 4 o'clock in the afternoon on August 19, 2008, China Reform Network reporter went into the office of Li Tiansheng, general manager of Guangxi Yuchai Machinery Co., Ltd.
Li Kaimen see the mountain. The development of Yuchai before 2005 was also good. However, in the past two decades of rapid growth, “Yuchai’s internal self-satisfaction and a bit of tiredness have caused Yuchai to be boring and lack of energy. Yuchai needs to sprinkle some stimulants on it.†The new leader is the most appropriate time."
In the face of the reporter, “Why Yuchai proposed to recreate a new Yuchai within three years? Isn’t it better to make no more?†Li Tiansheng believes that Yuchai’s reengineering is one of the internal requirements mentioned above. The second is the change in the external environment. In recent years, the country’s economy has developed rapidly, and the machinery industry has also developed rapidly. It is impossible for Yuchai to seize the good development opportunities. At the same time, domestic competitors have grown rapidly and are stronger than in the past. Moreover, these companies have consistently studied Yuchai and adopted competition measures for Yuchai. Competitors took Weichai as an example. In the past few years, they have grown up in the capital market and developed rapidly. Yuchai's performance in the capital market is obviously slower than that of Weichai. At this point, Yuchai’s development pressure is high. The third is to comply with national policies and regulations. Both the 17th National Party Congress and the two sessions this year explicitly demanded that enterprises take up social responsibility. As a leading enterprise in the industry, Yuchai, as a representative of the national industry, should continue to take the lead. Rationalized users will now consider how Yuchai will fulfill its social responsibilities.
On May 20, 2005, Yu Ping made an investigation and analysis after arriving at Yuchai, and then put forward the general requirements of “New Yuchai, new thinking, and new developmentâ€.
In January 2006, Yu Ping, who had just come to Yuchai for half a year, formally proposed "rebuilding a new Yuchai in three years." Yuchai’s reengineering was finalized at the end of 2005 and was achieved in 2006, 2007 and 2008.
Li humorously stated that the connotation of Yuchai’s reengineering and the media understand better, and the government’s understanding is the scale of operations. In fact, the scale of the company is only a form. The connotation of Yuchai's reengineering lies in enhancing its core competitiveness.
The specific embodiment of Yuchai’s reengineering is: the business philosophy of the company. The core philosophy of Yuchai before was: "People-oriented, Struggle for the first, and the starting point." After thorough investigations, Yuping proposed Yuchai's new concept: "Green development, harmony and mutual benefit."
Li explained that Yuping’s reform means that, from the scope, the original Yuchai’s concept focuses on the inside. The scope of the new concept completely jumped out of Yuchai itself. Yuchai's operating principles have greatly increased. Junping pointed out that “doing a good job of the enterprise is not only for the company, employees, and shareholders, but also for social benefits, national needs, and public needsâ€. Junping stressed that "All products of the Yuchai Group must be environmentally friendly to the entire environment, and the environmental protection cause of the entire society should be treated as Yuchai's responsibilities and interests. Yuchai's new business philosophy must be to provide suppliers, indirect users, and direct users. Social benefits and so on."
Li Tiansheng emphasized that Yuchai’s new core competitiveness is more rational, with a higher level and richer content. Luanping put forward the concept of harmony. Through the understanding and excavation of the concept connotation, Yuchai Group intensified its work team's responsibility and inspired Yuchai employees' enthusiasm for work.
Li Tiansheng seems afraid of the reporter's forgetfulness and stressed many times that "Suiping is the chief designer of Yuchai's reconstruction."
So how does Yuchai rebuild?
Junping pointed out that remedy and pragmatic work should be done at the same time. Retreat is the idea of ​​propaganda, study, discussion, and excavation, and then understand and apply. At the same time, since 2005, the three-year period has continued to follow some of the more explicit formulation. For example, at the beginning of this year, Junping proposed the concept of “excellent quality and international Yuchaiâ€, further clarifying the development direction of Yuchai: eventually building an international multinational enterprise group.
Pragmatic aspects of Yuchai have several major actions: First, industrial restructuring. From the perspective of the group, the industries that were relatively unorganized in the past have been integrated and classified into six major segments: diesel engines, construction machinery, special vehicles, lubricants, auto parts, and logistics. And the principle that the subordinate enterprises in each sector insist on doing something. To do something is to intensify efforts to nurture and foster advanced technologies that can be in the top three positions in the market. Something not clear is that Yuchai’s subsidiaries will not be able to achieve the top three in the industry in the future and all will be cleared. Yuchai's goal is to be the industry's top three industries, which is the basic idea of ​​strategic mergers and acquisitions. Yuchai recently invested 100 million yuan to acquire Zhejiang Linhai Haihong Group, the largest company in the country for hydraulic valves. The Group's hydraulic valves account for 70% of the Chinese market and are basically monopolized.
Second, strengthen the target responsibility system. There are dozens of subsidiary companies in the group, which implement the target responsibility management system. Each year, the company's management team has set business goals and clearly defined rewards and penalties. In the three years since Muping’s arrival, each subsidiary of Yuchai Group has been able to significantly exceed its mission. Therefore, Yuchai has increased its output value by several tens of billions each year for the past three years. In 2006, there was an increase of 2 billion yuan over 2005. In 2007, it increased by 4 billion yuan over 2006. In 2008, it is conservatively estimated to increase by 45 billion from 2007.
Third, the group's internal integration. Junping established the Yuchai Group management organization as five centers: First, the investment and financing center. The group will no longer be positioned as a fee center and an administrative center; the second is a strategic center. The entire Yuchai Group's industrial development strategy and planning are completely unified within the group, breaking the previous situation in which the group and its subsidiaries did not exchange with each other; and the third is the human resources center. Yulin is a remote place. It is necessary to control talents and reserve talents. The fourth is the financial center. To a certain extent, the scale of the company, the profit management department is the financial center. Yuchai previously focused on financial budgets and cost control, and now implements a comprehensive budget. Comprehensive budget management includes two parts: financial budget and operational budget. The business budget makes all positions have cost responsibilities. Everyone shares responsibilities and works together to achieve the goal. Fifth is the audit center. The scale of the company continues to expand, more and more subsidiaries, and management standards rely on the audit department. In July 2007, the five centers of Yuchai Group have been established.
Fuping's corporate philosophy and business philosophy Yuchai employees have understood and absorbed and are gradually playing their role. Now that the outside world has a new understanding of Yuchai, Yuchai feels more atmospheric, more responsible, and more honest. Li Tiansheng believes that "this is a kind of propaganda that will have a role in the potential users and potential markets of Yuchai."
The result of Yuchai's reengineering is that now Yuchai is truly reborn as "new Yuchai" compared with three years ago. Yuchai’s internal staff has radiated a new look, and Yuchai’s current system has completely entered a virtuous circle. At the same time, Yuchai's operating environment has been improving, and its user base has been expanding. The market occupancy has been expanding.
What are the characteristics of Yuchai's reconstruction? Li Tiansheng believes that, unlike many state-owned enterprises, Yuchai’s “three years of recreating a new Yuchai†was unobtrusive and fruitful. “Looking at Yuchai's reengineering seems to be relatively smooth. Actually, Yuping’s timing is correct, the direction is correct, and the method is in the rightâ€.
why? Because of the change in coaching, Yuchai employees will naturally have problems with wait-and-see, doubt and confidence. Fuping came to Yuchai in a timely manner to seize a few stable: the stability of the science and technology team, the stability of the marketing team, the stability of the management team, the stability of the staff team, and so on. Fuping personally visited the home and asked for advice from the technical backbone. He often went to the following companies for research, soliciting opinions and collecting information.
Li Tiansheng said, “I am very satisfied with the redevelopment of the company’s leadership, because I really feel very much. This is totally beyond my expectation. At that time, I thought it would be possible to increase the output value by a factor of two, but I did not expect to use so little. The investment, the speed of development so fast, the effect is so good, so smooth.I think Yuchai re-building, the total number of the most important. Although he will be a small meeting of the internal and external publicity team play a role, in fact, the key to the team's role is still He's always handsome. It's not good to be handsome and it will be chaotic."