Holistic Management: Entrepreneur'S Management Theory

Since Harold Kunz observed the "jungle of management theory", plants in the jungle have become more diverse and dense.

There are many people who want to unify this jungle, but I am ready to give up this effort: I want to provide another plant variety.

As for consensus management theory or management science, let plants grow freely.

The new variety I want to offer is called "holistic management".

From the undergraduate era of management science and engineering, I began to see some confusion in the management field. After that, I read and thought, and I communicated with friends in the business community, and gradually formed a self-contained management idea, named "overall management".

In recent years, lectures have been well received by the business community.

An entrepreneur who listened to the lecture said, "you must be.

Enterprises are entrepreneurs.

Why did Sam Wharton start from a supermarket in a small town to make a global super enterprise with a market capitalization of 200 billion dollars and more than 4000 stores? Why did the US Enron Corp, the largest energy dealer in the United States with a market value of up to $about 80000000000, drop to more than 200 million dollars in just a few months, and was forced to go bankrupt?

An enterprise has the potential of unlimited development and the possibility of death at any time as well as human beings.

In the long run, an enterprise is a product of an entrepreneur rather than a product of a project's feasibility report, nor is it a product of a governance mechanism.

Back in 1984, how many state-owned enterprises, collective enterprises, and township enterprises? How many "considerable money" projects? How many advanced technology pipelines? How many data and detailed feasibility reports? But most enterprises lack such entrepreneurs as Zhang Ruimin. With the ups and downs of the market, the business situation is floating with the enterprisers' own emotions and interests.

More than 20 years later, most of these enterprises are still spinning around, good and bad, little improvement, and a large number of enterprises have gone bankrupt and gone bankrupt.

A few enterprises have been prosperous for a while, but they have declined again.

Only a small number of enterprises like Haier have really grown up.

Why is Haier? Because there is Zhang Ruimin.

The ancients said well: "there must be very many people in the world, and then there are very few things. There are very few things, and then there are great achievements."

It is Zhang Ruimin who is a very extraordinary person who has made Haier a very extraordinary thing.

It is Zhang Ruimin's extraordinary will, perseverance, dedication and wisdom that enable Haier to seize opportunities one after another, to avoid risks one after another, to pool talents in batches and groups, to form one production base after another, and to create Haier's brand.

Some would say that such an enterprise is a man governed enterprise, and the enterprises ruled by man will sooner or later be forced to die.

Therefore, the establishment of a sound governance mechanism of the separation of the three powers can ensure the long-term stability of Haier.

However, the governance mechanism of the separation of three powers can only make enterprises do not make any obvious mistakes, but only allow the leaders of enterprises not to be selfish, but can not let enterprises find the right direction and form a strong cohesive force and fighting capacity.

More than 20 years ago, Haier did not have a sound governance mechanism, but it had an excellent leader. So a small collective enterprise could grow into an international large enterprise.

More than 20 years later, Haier has a "sound governance mechanism". But if Zhang Ruimin's leadership is not enough, her anti-interference ability will be reduced and her control power be weakened, if the enterprising spirit of Haier's leadership is declining and competing for power and profits will rise, the international big enterprises will also be able to break up and break up into numerous small businesses.

What is important is that when we cast our eyes on the "sound governance mechanism", the importance of invisible enterprises in the minds of entrepreneurs is neglected. Entrepreneurs do not know more about running enterprises, but rely more on "governance mechanisms" and rely more on external experts. Enterprises will gradually lose their creativity and vitality, and become the bureaucrats under the three power separation governance mechanism and are good at playing the power game of decentralization checks and balances.

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More importantly, the "sound governance mechanism" has led entrepreneurs to an unrealistic topic: how to pursue everlasting life and longevity? In fact, businesses and people alike are dying.

As entrepreneurs, what we really care about is not whether enterprises can live forever, but whether enterprises can live longer. It is not whether enterprises will go to sleep or not, but how to cultivate and select successors so that the governance of enterprises can continue as long as possible.

For an enterpriser struggling in the market storm and struggling in the construction of enterprise organization, but with a strong enterprising spirit, the real problem is how to capture market opportunities, form development strategies, lead the management team, perfect the internal system of enterprises, develop and utilize new technologies, and tap the potential of enterprises.

This process takes time in 2030, and may create world-class enterprises that consume most of the efforts of entrepreneurs.

As for how a world-class enterprise can survive, it is neither a matter of urgency nor an entrepreneur's control and consideration.

Furthermore, when an entrepreneur can really put all his efforts into business operation, it is entirely possible to bring out a business team that is equally dedicated, equally responsible and equally capable, and finds one or a group of less successful successors so that the company can complete the shift smoothly.

That is to say, without considering the evergreen problem of the foundation industry, the base industry is likely to be relatively green. Every day, we should consider a "sound governance mechanism" to ensure that the foundation industry is evergreen.

In fact, in the real enterprise operation, the leadership of every enterprise thinks about the distribution of rights and the sound system, and the enterprise dies. When the leadership of a company is united, the right distribution and the system are sound, the enterprise can thrive and thrive.

Some may say that dedication, professionalism and sense of responsibility are unreliable. These things are scarce resources. Enterprises can not rely on these unreliable things.

The best business is what these ordinary people seem to be unreliable.

An outstanding entrepreneur is the ability to explore and motivate his dedication, professionalism and sense of responsibility, and turn something unreliable into the most reliable and create a miracle on earth.

Miracles are a combination of scarce resources.

If any person can bring out excellent enterprises by a sound governance mechanism, tens of millions of enterprises can become excellent enterprises.

So when ordinary people commented on WAL-MART's success and praised its satellite pmission logistics information system, the outstanding people saw the leadership team and internal system that Sam Wharton brought out. When ordinary people commented on Haier's success, saw Haier's rules and regulations and the slogan slogans of the day's day, the excellent people saw Zhang Ruimin's dedication and ability.

Walton's role is a bit like WAL-MART's sun.

The sun doesn't seem to do anything.

Every tree and leaf of the earth is anatomically sliced for chemical analysis. It contains only carbon, hydrogen, oxygen, nitrogen, phosphorus, potassium, and no elements of the sun.

But every leaf on the earth is inseparable from the sun.

When the sun sets, plants can still survive and grow. But if the sun does not come out for a long time, then the fertile soil and warm climate will not grow plants, and the earth will be dead.

Walton left, but left some small suns to WAL-MART, which could continue to shine on WAL-MART's land.

If these small Suns are extinguished one after another, and how much energy can be used to pfer enterprise assets and how to fight for power and profit, then, no matter how perfect the system is and how to improve the governance structure, WAL-MART's huge commercial empire is likely to decline rapidly.

The whole management is to regard the enterprise as an interactive life body between invisible enterprise and tangible enterprise. It does not pursue the maximization of short-term profit but pays attention to the long run growth of enterprise life.

According to the overall management thinking, the most urgent need for enterprises to develop and rectify is not the assembly line, not the warehouse, not the finance, not the sales, but the minds of the leaders.

Leaders have a clear mind, correct thinking and strong dedication. Temporary chaos and difficulties can be overcome.

If the leader is confused, erroneous, short-sighted, eager for quick success and instant benefits, temporary profits and temporary reputation will vanish.

In fact, all outstanding entrepreneurs, such as Walton, Zhang Ruimin, Rockefeller, Carnegie, Panasonic, Akio Morita, Li Jiacheng, Inamori Kazuo and so on, all have very strong overall management thinking.

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Entrepreneurs do not believe in equilibrium.

The mainstream equilibrium economics holds that the market economy is an optimal resource allocation mechanism, which can make the resources flow to the highest efficiency area until the resource value is equalized.

However, this argument fails to pay attention to four key issues.

First, the greatest extent of resource efficiency is determined by human analysis.

This process of judgement is actually speculation.

Second, when many parties simultaneously judge that a commodity or a securities is worth buying, it will lead to a highly unbalanced distribution of resources, which will form a positive feedback effect of catching up and killing, so that the market will soon become overly prosperous and soon be overly depressed.

Third, due to the existence of positive feedback effect, we can artificially create the illusion of ups and downs and make pure speculation develop towards fraud.

Fourth, whether monetary capital, mineral resources, technological resources, human resources, information resources, pportation resources and so on, the spatial distribution is highly uneven, forming a certain central peripheral hierarchy order.

This imbalance in space and cyclical fluctuation in time make speculation the first way to obtain profits under market economy.

Since 1980s, as all countries' economic policies have turned to new liberalism, various government controls have been lifted. The limited financial capital that can only be limited within a country can now flow around the world, looking for or creating imbalances, and making profits from it.

Its strength is large, and if it enters a country, it will be prosperous.

Fry the oil and stir fry the sugar; fry the sugar and fry the refined copper; fry the refined copper and fry the rubber.

Everywhere, prices surged and plummeted, and the millionaires producing a large number of overnight outbreaks also produced a larger number of unlucky eggs.

Enterprises and countries that engage in physical production are often the objects of such an international financial predator.

Chen Jiulin of China Aviation Oil Singapore company is the prey of international capital in this volatile oil price fluctuation. It lost 4 billion 500 million yuan at a time. The British Bank of Bahrain, a 100 year old bank, was also losing $1 billion 200 million by a Singaporean trader.

Therefore, entrepreneurs are good at identifying opportunities and grasping opportunities, that is, they are good at speculation.

Speculation is in a highly uncertain and unbalanced market, making use of the difference in time and space between politics, economy, technology, culture, consumption and so on.

Compared with the planned economy, the most obvious feature of the market economy is highly uncertain.

Therefore, people call "go to sea" by doing business, because the waves in the sea are huge.

Just as people immersed themselves in economic prosperity and saw the rise of wages and prices as natural phenomena, a great depression came. When an industry was on the verge of death, the emergence of a new technology made it suddenly become the darling of the market; when a region was accustomed to high wages, businesses suddenly left, shops closed down, unemployment rate rose sharply, and wages fell sharply.

Only faith and will can penetrate the future.

We often talk about enterprise strategy.

We know that strategy is the long-term and overall planning and guidance for the development of an enterprise.

But in the long run, everything is uncertain.

On the whole, no matter how big the enterprise is, it is also partial and small.

Small businesses need to penetrate the huge uncertainties of politics, economy, technology, culture and law in the future, coupled with the ups and downs of management turbulence and adjustment, self will and energy.

Many things known as enterprise strategy are actually "going one step at a time," and "crossing the river by feeling the stones".

Many of the so-called strategic pformation is only a matter of course and has to be changed.

So what kind of entrepreneur has a strategic mind? Only faith and will.

Realizing that McDonald's can go all over the world is a fast food industry's outsider, then a 53 year old milkshake salesman Crocker.

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Crocker is just an old salesman, but why does he have such a magic strategic vision? Or why does Crocker believe in the future of McDonald's? By reason of that, the fast food industry has a low threshold, a large number of alternatives, fierce competition, low profits and huge risks.

According to some business school professors, it is a mistake to choose to enter such industries.

But Crocker firmly believes that McDonald's fast food model meets people's needs in many ways, and has unlimited potential.

The only condition is strong will, energy, prudence and smart business experience.

Crocker believed in his abilities.

Others thought Crocker must have gone mad, but Crocker recognized it and went to the end.

This means that a person's strategic vision is often associated with his belief, will and spirit of doing things.

What can pierce uncertainty in the future? It is a person's belief, will and spirit of doing things.

According to this logic, the best combination of strategic vision and strategic practice may not be in the business world but in the military sector.

Mao Zedong's "protracted war" was published at the beginning of the war. However, whether it was the war of resistance against Japan or the progress of the more magnificent second world wars, it was foreseen by Mao Zedong.

He not only saw clearly the pattern and growth and decline of various political and military strength, but also found his own position, resisted all kinds of threats and temptations, and made full use of guerrilla warfare behind the enemy lines to develop the great revolutionary forces, waiting for a major turning point.

In view of this, the most influential figures in China's enterprises are Zhang Ruimin, Ren Zhengfei, Zong Qinghou, Duan Yongping and others.

When running an enterprise, the best business growth case they have in mind is the history of the growth of the Communist Party.

They were able to stand up to loneliness and make every effort to understand the "encircling the city by the countryside".

Ren Zhengfei even directly pferred the fine tradition of the Communist Party, including "criticism and self-criticism", "education and production practice" into HUAWEI, and brought out a strong cadre and staff contingent.

In fact, most enterprises are in the ups and downs of market opportunities, because most business leaders are not those who have long-term vision, strong belief and practical spirit.

In the leadership of an enterprise, there is often only one strategist who plays the role of backbone in the crucial period of cohesion and solidarity.

With his leadership, other leaders' vision can also become more long-term, more confident and more practical.

However, apart from the backbone, other leaders may not be able to recognize the road by themselves and tide over difficulties.

Leadership: the art of reducing paction costs

What is leadership? Leadership means learning to establish trust relationships with subordinates and others and form a tacit understanding.

When you have trust and tacit understanding with your subordinates, paction costs will be greatly reduced, the efficiency of discussion can be greatly improved, and even the state of knowing and laughing can be achieved.

When leaders always actively consider subordinates' interests, subordinates should take the initiative to do their work well, and let the leaders worry less.

Or, when subordinates take the initiative and pay no remuneration to work, leaders should take a look at them and take the initiative to care for their interests and lives.

When celebrating success, leadership should be attributed to cadres and masses. Cadres and masses should recognize the role of leadership.

In the failure of the review, the leader should make self criticism and bear the main responsibility. The cadres and the masses should review their respective problems and shoulder corresponding responsibilities.

In this way, a tacit agreement is formed between the upper and lower levels.

In ancient Chinese language, this kind of relationship is called "gentleman's courtiers' respect," the superior is benevolent and beloved, and subordinates love their work and dedication.

Please note that I have made a handover here, referring to the superiors, the ministers, the subordinates, and more generally, the king refers to the leading Party in the relationship, and the minister refers to the restrictor in the relationship.

For example, in the father son relationship, the Zhuang father is the king and the youngest son is the minister. With the passage of time, Zhuang Zi is the king while the old man is the minister.

When Chinese medicine is compatible, we should pay attention to "gentleman and assistant", that is, some drugs can solve the main problems.

Once the handover is completed, the classics of ancient Chinese governance can be used for reference by modern enterprise management.

Without this switch, ancient Chinese classics are a bunch of lifeless and meaningless waste paper.

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Therefore, the theory of leadership in China can be summed up in four words: "Kimihito Chenjing."

It should be said that this leadership theory applies not only to China, but also to any human organization and human life.

The paradox of leadership and system design capability

Generally speaking, due to the long edification of Confucian culture, "Jun Ren Chen respect" has almost become the default mode of behavior and psychological expectation of the Chinese.

Therefore, for thousands of years, the leadership level of Chinese people is generally high.

However, the prevailing culture of liberalism in the west is a natural distrust of subordinates.

The superior will be mistaken for deception, fooling and flickering by the lower level. Therefore, the superior should make a detailed employment agreement for the subordinate work, and write a clear contract for the rights, duties and obligations.

Furthermore, Westerners do not even have the concept of upper and lower levels, and only have the concept of contract voluntarily signed on equal terms.

Therefore, the western level of the formulation system is generally high.

These two cultures have their advantages and disadvantages.

The disadvantage of Confucianism is that employees lack the ability to restrain their boss.

In a society deeply influenced by Confucianism, such as China or Japan, if employees do not trust their bosses, they must sign contracts with their employers before they can work.

Once the boss wants to fire the staff, there is no way for the staff to do so.

Because of this, employees must always pay attention to the boss's eyes, or use their work or flattery to please the boss.

When the boss can't see it, he may cut corners and shoddy things.

However, because there is no written contract between employees and bosses, negotiations are ongoing at any time. Therefore, bosses must care about their employees, respect their employees, care for their employees' well-being, and care for their employees' growth.

However, the problem followed, the boss took the initiative to care for the employees, the employees loved the job, and the relationship between the boss and the staff was unequal.

Psychologically, both the boss and the staff will be grateful, and they may even influence and shape each other in their personality.

In this kind of enterprise, the conflict between labor and capital is not easy to break out systematically.

Under the best circumstances, it is possible to form a harmonious situation of labor and capital and jointly promote the growth of enterprises.

The advantage of liberalism culture is that employees have the ability to restrain the boss. During the contract period, the boss can not do whatever he likes and must act according to the rules.

However, the details of the formulation and implementation of the contract are in the hands of the boss. When signing the employment contract, the bargaining power between the employers and the employees is asymmetrical, and the management has the ability to lower the price of the workers, but the workers lack the choice.

After entering the enterprise, because of institutional constraints, the management can not care about the well-being of employees, do not care about the growth of employees, can disposable consumption, use of the workforce and even life.

But because of this, it is easy to erupt a systematic labor conflict. Even in the best case, the employers and employees are still mentally and emotionally antagonistic.

On the other hand, psychological opposition is psychological equality and personality independence.

This cultural difference has led to the westerners' ability to design systematically.

It can be said that the greatest advantage of Western business management lies in the ability of system design.

As China changes from Confucian culture to liberal culture, the Chinese system design ability is gradually improving at the expense of leadership.

How can a person with Confucian leadership be able to learn the design system as soon as possible and keep his leadership skills on the decline?

The key is to understand the limitations and applicability of the interpersonal relationship of "Jun Ren Chen Jing".

Yes, the relationship between Jun Ren Chen and respectful type is probably the best interpersonal relationship. Once established, it can be "confidant in the sea and the next world". It can solve the problem of trust and tacit agreement once and for all.

But this kind of imagination may also be a lazy mentality.

If we can only cooperate with such people, then we can only move in small circles.

Businesses and businesses need to establish connections with countless strangers.

There are usually one or two points of cooperation and common ground between people.

Being able to pool these one or two points of cooperation and common ground and form institutional arrangements will enable countless strangers to cooperate under the same system and generate profits.

At this time, the system itself is an arrangement, a plan, but this arrangement, such a plan can allow countless people to trade in it, so it can also be seen as a market platform.

Therefore, the theory of leadership in China can be summed up in four words: "Kimihito Chenjing."

It should be said that this leadership theory applies not only to China, but also to any human organization and human life.

The paradox of leadership and system design capability

Generally speaking, due to the long edification of Confucian culture, "Jun Ren Chen respect" has almost become the default mode of behavior and psychological expectation of the Chinese.

Therefore, for thousands of years, the leadership level of Chinese people is generally high.

However, the prevailing culture of liberalism in the west is a natural distrust of subordinates.

The superior will be mistaken for deception, fooling and flickering by the lower level. Therefore, the superior should make a detailed employment agreement for the subordinate work, and write a clear contract for the rights, duties and obligations.

Furthermore, Westerners do not even have the concept of upper and lower levels, and only have the concept of contract voluntarily signed on equal terms.

Therefore, the western level of the formulation system is generally high.

These two cultures have their advantages and disadvantages.

The disadvantage of Confucianism is that employees lack the ability to restrain their boss.

In a society deeply influenced by Confucianism, such as China or Japan, if employees do not trust their bosses, they must sign contracts with their employers before they can work.

Once the boss wants to fire the staff, there is no way for the staff to do so.

Because of this, employees must always pay attention to the boss's eyes, or use their work or flattery to please the boss.

When the boss can't see it, he may cut corners and shoddy things.

However, because there is no written contract between employees and bosses, negotiations are ongoing at any time. Therefore, bosses must care about their employees, respect their employees, care for their employees' well-being, and care for their employees' growth.

However, the problem is coming. The boss takes the initiative to care for his employees, and his employees are devoted to their work. The relationship between the boss and his employees is not equal.

Psychologically, bosses and employees will be grateful. They will even influence and shape their personality.

In this kind of enterprise, the conflict between labor and capital is not easy to break out systematically.

Under the best circumstances, it is possible to form a harmonious situation of labor and capital and jointly promote the growth of enterprises.

The advantage of liberalism culture is that employees have the ability to restrain the boss. During the contract period, the boss can not do whatever he likes and must act according to the rules.

However, the details of the formulation and implementation of the contract are in the hands of the boss. When signing the employment contract, the bargaining power between the employers and the employees is asymmetrical, and the management has the ability to lower the price of the workers, but the workers lack the choice.

After entering the enterprise, because of institutional constraints, the management can not care about the well-being of employees, do not care about the growth of employees, can disposable consumption, use of the workforce and even life.

But because of this, it is easy to erupt a systematic labor conflict. Even in the best case, the employers and employees are still mentally and emotionally antagonistic.

On the other hand, psychological opposition is psychological equality and personality independence.

This cultural difference has led to the westerners' ability to design systematically.

It can be said that the greatest advantage of Western business management lies in the ability of system design.

As China changes from Confucian culture to liberal culture, the Chinese system design ability is gradually improving at the expense of leadership.

How can a person with Confucian leadership be able to learn the design system as soon as possible and keep his leadership skills on the decline?

The key is to understand the limitations and applicability of the interpersonal relationship of "Jun Ren Chen Jing".

Yes, the relationship between Jun Ren Chen and respectful type is probably the best interpersonal relationship. Once established, it can be "confidant in the sea and the next world". It can solve the problem of trust and tacit agreement once and for all.

But this kind of imagination may also be a lazy mentality.

If we can only cooperate with such people, then we can only move in small circles.

Businesses and businesses need to establish connections with countless strangers.

There are usually one or two points of cooperation and common ground between people.

Being able to pool these one or two points of cooperation and common ground and form institutional arrangements will enable countless strangers to cooperate under the same system and generate profits.

At this time, the system itself is an arrangement, a plan, but this arrangement, such a plan can allow countless people to trade in it, so it can also be seen as a market platform.

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Therefore, a Confucian leader must grasp the balance between the two: having a high degree of self-cultivation, being able to serve as a good teacher, at least with good trust and tacit understanding with the immediate subordinates, but being familiar with business details, finding out the similarities between strangers, and being good at designing systems.

From this perspective, we can find that Westerners who are good at system design may be very interested in business details, highly familiar with, and are good at finding common points and cooperation points among strangers.

But in this way, his mood will fluctuate with the fluctuation of business details, or he will be restless or unhappy.

Moreover, because of being too sensitive to details and ignoring the wider world, exaggerating its role, it may be mentally like a child without growing up.