Liu Chuanzhi - How to be a good president

How to be a good president

——Liu Chuanzhi’s speech at the Peking University International MBA Senior Manager

Lenovo's management rules sound very simple, but the actual implementation has a very high demand for managers.

The president generally has to do two things in the enterprise. The first is to develop a strategy and design tactical steps to implement the strategy. The second is to bring a good workforce and let your team have the ability to implement this strategic goal. These two things are done well, and the company can develop to the benefits. But before doing these two things, there is one more important thing to do, that is, to build a team. Enterprises must have a good leadership team, otherwise you will not do what you want after you have arranged things. With a good team, we can work together and have constraints on the first handle. Without a good team, we can't make a good strategy, so we can't bring a good team, so the leadership team is actually the first. Lenovo sums up the above into three elements of management: building a team; setting a strategy; bringing a team.

Facing the national conditions

In today's China, being a good president, there must be a capability other than the three elements, that is, the ability to adapt and transform the Chinese environment. The meaning of this sentence in the primary stage of socialism is too rich. Everything is in the primary stage, and there will be a lot of economic and business affairs that are bothering us. In this regard, the president should also consider whether it is possible to transform the environment for the enterprise. Generally, it can't be changed. Can it partially transform the small environment in which we survive? If it still doesn't work, can we adapt to the current environment? The future conditions allow for the immediate response. Do big moves? This is a question that must be considered when making a good president in China.

Mechanism issues are often not determined by the president. The mechanism problem is a necessary condition for doing a good job. If you spend half of your life to make the company bigger, you can do it well. If you retire, you will have nothing to do with it. It will be very difficult to accept. Then there was the 59-year-old phenomenon of Yan Shijian. I have a sympathetic side of this matter. He is absolutely wrong in breaking the law, but before he broke the law, he has been a good president for 18 years and has created hundreds of billions of profits and taxes. This is a lot of money! But in his 18 years, he is personal. The total return is only 800,000 yuan, which is too disproportionate and unreasonable. This matter is unreasonable in the past and illegal in the future; illegality is absolutely wrong, but the state should also reflect on it, otherwise such things may happen in the future.

We have concluded that the bosses of the state-owned economy have four methods to fight with the state: the first one is the practice of Qi Shijian. This is completely illegal. Once it is seized by the state, it is completely over. The second is to turn the enterprise into a joint management. It’s like saying that I am running a state-owned enterprise here, and letting one of the most effective subordinates run a company in another place. Then I introduce a good business to his side, and all the profits go to him. There is my investment there. Or do not invest in the final dividend. This is not illegal, but can this enterprise be done? The third method is more passive. When I retire, I choose someone I can see to pick up my class. This will enable me to retired. Keep going. This practice is the most common and most frequent. But the boss did this, the party secretary did the same, and the executive vice president did the same. There are two in the enterprise that will form the sect, and there will be no cure for it, and eventually the enterprise will be ruined; the fourth The situation is that when a monk hits a day, I will not give you a good job, and I will protect myself. So the problem of the mechanism is not solved is indeed a big problem.

We study high-tech enterprises to put together four major barriers: one is the concept; the second is the mechanism; the third is the environment; the fourth is management. Management is important, but in this special environment of China, the boss does not study the first three aspects, and things are not doing well. In this regard, there are two requirements for the CEO: First, the goal is high, and it is necessary to treat the enterprise as a cause, so that it can be subject to the commission and be full of uprightness. The second is to have the ability to see the bottom of the environment at a glance. It is necessary to be able to judge the situation, to see things clearly, to know what can be done, and what the consequences will be. Lenovo has seriously studied this issue. We have a public relations outreach department that specializes in dealing with various ministries and commissions in the country to see how we can maintain the normal operation of our company and how to get the support of the state as much as possible. This is a door study, a special case of China, and will not be mentioned in the Harvard course.

Management three elements

First, build a team

The strategy must be based on the team to develop, the team must rely on the team to bring, so the construction team is the first of the three elements, the team is not right, nothing can be done. There are two situations in which the team is not built: one is "1+1<1", which means that a team is not as good as a leader. The main reason is unprincipled disputes and sectarianism. The second is "1+1<2", which is indeed stronger than you alone with this team, but far from the ability it should play. This is mainly because the enthusiasm of the team members has not been fully mobilized. How can we mobilize? How can we prevent collisions when the enthusiasm is too high?

How to prevent the sect and unprincipled disputes in the team?

This is not difficult. The core is to solve the problem that the first handle is to put the interests of the company first. If you take the initiative to self-discipline and strictly demand yourself, you can talk about everything on the table with great brilliance, and you can boldly criticize the signs that may lead to sectarianism and may lead to unprincipled disputes. In order to prevent such things, Lenovo has taken some measures that sound terrible.

For example, we don't allow our children to enter the company, so as not to form a power that can't be managed. There is a deeper meaning here. For example, my son is a "Northern Post" computer, and later Columbia University has a master's degree. If he comes to work in Lenovo, it will greatly affect the enthusiasm of other young people. If some leading departments and related households recommend some people to the company, they must conduct a written test. After passing the qualification, they must sign the three vice presidents to allow this person to come in. It must not form a separate relationship with the outside. To show such a righteousness. One year in the Spring Festival, my family gathered, and one of my aunts yelled at me, saying that her children wanted to enter Lenovo after the university graduated, but the classmates in their class went in the back door. I went back to understand, not only, but also several. I made a fire and spoke at every meeting and dealt with it.

In order to suppress unprincipled disputes, we have a rule that when such disputes occur between the first handle and the second or third handle, if the work performance of the department is OK, the second handle will be unconditionally transferred, but Give a warning to the first hand - if you change someone else, you must have a problem and ask for sanctions. This one will be very careful.

How to achieve "1+1>2"

First of all, the team members must understand the relationship between him and the whole battle situation, and also explain how this thing will be done well. What will happen if it is not done well? This has a preliminary mobilization of his enthusiasm. The second is why you say that you have done well or done badly, and why you give this kind of reward or punishment. If this is stipulated, it is not artificially determined, and enthusiasm will be more mobilized. Lenovo in Hong Kong once had a general manager, and the rights to dividends, warrants, and options were all in his pocket, and then he announced how much he wanted to give. Today, it seems that there are a lot of things for people, but no one is grateful. No one really is motivated by this move. The third is that this rule should be recognized and studied by the team. At this time, the enthusiasm will be more fully mobilized. Lenovo's high-level team is the main engine, and the teams on the lower floors are small engines, not some unpowered gears. It’s moving up and down, and it’s very coordinated. It feels very good. Of course, if the first handle does not put the interests of the company in the first place.

Three major problems in building a team

This is the three problems that everyone will encounter. The first one was to be incompetent after entering the team and how to get him out. There are two points to be paid attention to in solving this problem. First, all the people who come in the team must have both morality and ethics. This is extremely important, otherwise it will be difficult for you to just ask the incompetent person to go out. The morality of the top leaders is to take the interests of the company as the highest point. The first is that all the people coming in the team must have both morality and morality, and morality is the main factor. This is extremely important, otherwise it will be difficult for you to just ask the incompetent person to go out. The virtue of the top leaders is to take the interests of the company as the highest interest. The second is to talk on the table. The first time he had something wrong to do, he would have to criticize him. Closed the door, two people said that they are also on the table, can not understand that they do not tell him. The Academy of Sciences replaced the leader of a company and he made the company a mess. When he was replaced, he was smashed in a sly way. He didn't want to, and he yelled at night when he drank too much. In fact, the company made this look, why not tell him in person earlier? Once I said that he was afraid that he couldn’t stand it. Why didn’t he talk to him once and for all? The second time I said that it is still impossible to change public criticism. The third time you commit the crime, you will be replaced. So what other opinions can he have? The ability to talk on the table is the key to unity and integrity. If the first hand really puts the interests of the company first, there is nothing to say publicly.

The second problem is that there are different opinions on major issues. The ratios on both sides are similar. What should I do? The first step is to talk about principles first. The first step is to talk one by one, not to talk about specific things, and to talk about the highest principles concerning this matter. For example, when formulating wages, we must first decide what wages are for, is it for the fairness of some people, or is it to let the enterprises develop better? Which one is the first one? After the big principle is fixed, step by step Small principles, then talk about specific issues, just solve them. The first-hand power should be cautious. When it is inconsistent with the opinions of the subordinates, if I am not sure about this matter, he is very plausible, then follow his instructions, but after the matter is finished, it is necessary to summarize. Well done, I want to find out what I thought at the time, he should be praised. If he doesn't do well, he has to make a point. If you think about things clearly and think that you are really right, you are determined not to have more discussion. If you do everything right, you will easily agree with you in the future. There is also a voting system in our company, but it has not been used yet. Everything is solved in this way, and there is nothing to go through.

The third big question is how to improve the quality of the team members. What should I do if the company has just started and the quality of the staff is not high? At this time, the first hand should pay attention to the first focus on democracy. That is, I will rule the rules for everyone to do, and after gaining the trust of others, gradually improve the quality, replace the team members, and step by step to achieve the team command. There are three types of work methods: the instructional approach, the instructional approach, and the participatory approach. When it comes to instruction, the following are all engines. Lenovo is now between instructional and directive, and it needs to be step by step. If you take over a big company, a cultural background, and a good quality of staff, this is not the case.

Another important point in building a team is that the first-hand is to value the long-term interests of the company and to continue it for a long time, so it is necessary to form a rule and form a method of deliberation. The chairman of Citibank of the United States told me three years ago: "The assessment of me should be based on the stock value of Citibank after I retire. If I am fine after 5 years of retirement, it means that I have done a good job." I am greatly inspired by me. I am going to retire soon, and I should accept this assessment standard.

Second, the strategy

The essence of developing a strategy is to determine the goal, then how to achieve it and how to break it down. The long-term goals are far-reaching, we have to do it in stages.

Lenovo has a five-step method

The first step is to determine the company's vision. Our own slogan is: Lian wants to be a long-term, high-tech enterprise with scale. We don't do things about short-term behavior. We don't do things in non-high-tech companies. I mean listed companies in Lenovo, not holding companies.

The second step is to determine the strategic goals of the development of the long-term and long-term development. The length of the company's goals varies, and we believe that Lenovo can only develop a five-year vision plan at best. Because some of the core technologies in the computer field are still in the hands of others, we just follow the trend and can't make longer plans.

The third step is to formulate the overall route of the development strategy. This is a relatively important part of the development of the strategy, there are many specific steps: 1. Pre-development investigation and analysis. The first is external investigation and analysis – the analysis of the political and economic aspects of the world and regions, and the analysis of the status and prospects of the industry. 2. Review of internal resource capabilities, including analysis of all aspects of the value chain; analysis of core business processes; analysis of core competencies. The third is the analysis and comparison of competitors. Analyze competitors' strategies, actual conditions, and more. After the investigation and analysis, the route is formulated.

The fourth step is to determine the strategic goals of the year and break them down into specific strategic steps.

The fifth step is to check the adjustments to reach the goal.

Lenovo's strategic case analysis

Take the five routes from 1996 to 2000 developed and implemented by Lenovo as an example. The first one is to insist on diversified development in the information industry. After we have set a vision for long-term development, the first thing we have to do is to make us grow our business. In 1993-1995, China picked up the trend of real estate, when almost all companies drilled. We met several times and analyzed it and thought that we could not do this thing. It is possible to do it once, and it is likely to be planted twice after it, unless it is specially researched, and we mainly study high-tech things. Even if you make money once, but don't have the skills, you just don't do it. Later, several famous large companies in Zhongguancun planted big heads in real estate, causing many contradictions, and Lenovo avoided the disaster.

The second is the simultaneous development of the international and domestic markets, with the domestic market as the mainstay. The computer field was a fairly closed field before 1992. The tariffs were extremely high. There must be approvals, and the machines of foreign companies could not enter China. In 1992, the approval was removed, and the tariff was greatly reduced. In fact, at that time, China was equivalent to joining the WTO in the PC field. After opening this door in 1993, China's computer industry was greatly affected. Several old computer companies, Great Wall, Inspur, East China Sea, and Lenovo were defeated and collapsed. Lenovo has not completed its mission for more than a decade, and that year was not completed. I was also anxious to get sick and lived in the hospital for 3 months. At this time, we conducted a serious analysis. In the end, whether Chinese computers can fight this with foreign countries can not be used as agents. Capital advantage. Management advantages, technological advantages, and talent advantages are all people's, and our advantage is local advantage. So we re-integrated the team to disrupt the entire structure, how to reflect this advantage, and chose Yang Quanqing, the most capable young person, to be the head of the department. After 1994, Lenovo’s computer revenue and output grew at a rate of 100% per year; it began to occupy China’s first place in 1996, and Taiwan’s overall level of R&D and manufacturing is high. Compaq, IBM The machines are all made by Taiwanese, and the designs are designed by Taiwanese. But why don't Taiwanese play their own brands? The reason is that Taiwan's domestic market is too small, and it is very difficult to go out to play brand games. China has such a large guaranteed market. Why not fight this international war in China? The main problem in the domestic market is that Lenovo achieved $3 billion in 2000, and the target for 2005 is $10 billion. What is the dollar used to fill? First, the products in a certain field are refined, deep, and developed globally. The second is to broaden the local market. The product is not only a PC, but also other devices on the access side, network equipment, and then from the product brand to the information service field.

The third article is the road to trade, industry and technology. This outside is very controversial. We have been criticized a lot. Some old academicians with scientific background think that we don't pay attention to technology. In fact, we are not doing it right, it can't be. How to survive without trade, how can we develop? Through trade, we also learned marketing, business management and so on.

The fourth is to actively develop product technology, based on which to approach the core technology. Mastering the core technology, the profit is not 3%, 5%, like the towel twisting water, the goal is on the other side, but we can't cross the river, so my strategic route emphasizes all the ways to build bridges and cross the river. .

The fifth article is to make full use of the stock market fundraising as a means of financing to achieve the mid-2000 goal. The knowledge here is also quite big. When I went public in 1994, we chose a financial consultant. It was not very good, which made me confused. Later, we were briefed by the general manager of an investment department of HSBC and now our financial advisor Goldman Sachs. First, if you want to raise funds in the stock market, you should honestly do a good job. Many companies are not doing well. Second, there must be high transparency in performance. The average Hong Kong company announces its performance for half a year. We announced the results in three months because the shareholders will raise various questions that he finds difficult to answer when the results are announced. I went to Europe and the United States one or two times a year to answer and answer all kinds of questions, so that shareholders can trust us.

Five routes have been developed, followed by implementation steps. It is to split the long-term goal into what is to be set this year. What goals should be set in this quarter, and what should be done to achieve this goal. In 1996, Lenovo turned over, PCs cut prices four times in a row, far away from foreign companies, grabbed market share, became the leader of the Chinese market price, we chose the price as a breakthrough, because other aspects are difficult More than others. The main cost of a computer is on several important components - CPU, hard drive, and memory. Due to the continuous development of technology, these three pieces will be greatly reduced in price every year. Lenovo’s big loss in 1995 is actually a problem of inventory backlog. We analyzed in detail the reasons for the impact of inventory, how to shorten the order cycle, production cycle, how to make sales smooth, how to expand the market; to conduct these one by one, the drill was announced to reduce the price. The tactical step is to conduct the exercise.

Adjustments are more important, and few goals can be achieved with certain goals. When we are developing our strategy, the front seems to be grass, quagmire, be careful, repeat, carefully observe, and then walk lightly on it. Going true, it’s the yellow land, and it’s running. The process of development is a very careful process. It’s going to move faster, and adjustments are things that move afterwards.

Lenovo is preparing to enter a product and service company from a pure product company with a better design. The "network hot" in the previous paragraph made the price of the ICP.ISP for service very high. There was a problem because they used the long-distance running as a sprint. In fact, the Internet company is a long-distance running, and it is still early to make profits. This is determined by the environment. The sprint is the result of the listing, fund-raising and financing as the result of the competition, which is faster than who gets the stock market. As a network service company. Whether funding can be supported is a very important factor. When Lenovo entered, I thought clearly, we have a huge profit when we make products, and we use our services to support our product sales. The United States does not need money for mobile phones, and services require money. On the contrary, we do ISP, do 365 website received China Telecom does not collect money, but the product sold well. In the first quarter of this year, compared with the same quarter last year, turnover increased by 75%, and profits after deducting website fees increased by 136%.

Lenovo’s general strategy is to “maintain stability and strive for stability”. This is determined by my personality traits and the personality characteristics of the people I use below. Not necessarily other companies do the same. Bold innovation is entirely possible. I want to run a long-term company. I can take a risky adventure. Can I still live in the future? I was very adventurous at first, but later became such a style, not necessarily a good style, but We are doing this.

Third, bring the team

There are three things to do with the team: first, how to fully mobilize the enthusiasm of employees; second, how to improve the ability of employees; third, how to make the machines orderly, coordinated, and efficient, these are the things to be solved by organization, structure and rules and regulations. .

When it comes to doing it, it must be reflected in the rules and regulations. Lenovo had a day before, and it was not allowed to seek additional benefits. For this reason, we carried out a resolute struggle and made the company maintain a good atmosphere. Five young people have been sent to the procuratorate since 1990. What is tens of thousands of dollars? But it is not possible in Lenovo, and it is necessary to send it to the procuratorate. The second thing after sending it is to try to help him reduce his sentence, because the law stipulates that tens of thousands of corruptions are just a few years, and we are a pity. Lenovo also has a small rule that is to be late for a meeting. When you are late, you will stand for one minute. Everyone will stop, like silence, very uncomfortable. For whatever reason, except for leave. The difficulty is how to keep this rule for so many years. This was made in 1989. The first time I was punished was one of my old superiors, but I still let him stand for a minute. I was also fined 3 times and only 3 times. It is very great. I have participated in so many meetings. There are many natural disasters and man-made disasters.

The core of motivation is to integrate the development direction and pursuit of employees with the goals of the company. This is our highest wish. If everyone does not have a common interest, everyone is already based on it, and it is not a business. This point we call the mold, no matter what kind of person enters the association, it must be melted in this mold. You can transform this model. For example, we have done a bad job in some places. We can modify it after you mention it, but you should follow this after you come in.

Finally, the cultivation of leading figures and backbone teams is the most important. The first handle is a bit like the Arabic numeral "1", followed by a 0 is 10, followed by two 0 is 100, three 0 is 1000. Although these "0"s are also very important, there is nothing without the "1" in front. We have two requirements for the leading figures: "de" and "caliber". "German" means to put the interests of the company at the highest position; "being" is necessarily a learning person. Be good at summing up, be good at learning, be good at taking theoretical things and practice, and be good at summing up practice. Some people in the enterprise are highly motivated, but they can't reuse it, because he always regards the eight things he has done as very good, and regards the eight things that others do as six points. This is not good at summing up. It is extremely important for companies to constantly open seminars and run various salons to let everyone sum up the regularity. Lenovo often runs such seminars, setting up a keynote speaker, and then group discussion, each group will send people to talk about the problem.

Finally, make a summary, the president must first know the enterprise management, the overall external environment of the enterprise is going on, the thickness must be clear, thick for an hour, even 5 minutes to talk out, can talk about a day, can write a book. The second point is what you and your people are about. The third point is to understand what kind of people you want to do these things. These people are not qualified enough, what is the ideal candidate. The fourth is how to train such people. Knowing things, understanding people, and understanding how to turn people around you into such people is almost a good president.