Governing Enterprises

Author Charles Yeung  Translated by Soula Lo

After operating for a period of time, enterprises would start to age. If they begin to deviate from markets, they would start to show problems. How can enterprises maintain their vitality? To achieve this, we really need to re-examine, re-plan and follow through these plans in order to get back onto the right track. By viewing our markets’ experience and some experts’ opinions, I found the following perspectives on how to govern enterprises to be very helpful:

1. (a) Effective cadre leaders

An enterprise needs to have a leader first, just as human beings need the brain to lead the body. Nowadays, enterprises advocate teamwork, so they require a good cadre team leader. The standard of the team leader must hold bearing consciousness, responsible consciousness, and a good ability to deal with problems. If truly the leaders have hearts and power, their enterprises can function efficiently.

 (b) Cadre team

If we have direction and methods, this means we have policy and strategy. Whether successful or not, it depends upon the cadre team.

(c)Unified common consensus

If an enterprise has too many targets, its strength may become scattered; and the effect would be less obvious. So it is very important to seek common consensus about target goals for enterprises.

2. (a) Long term strategy

The direction of enterprises is very important. If the direction is right, it can have the effect of “sailing along with the current.” If the direction is wrong, it would be like “sailing against the current.” Thus, as an old saying says, “Even we have a fast horse; it is in vain without a direction.” As we can see, even should we have a great horse, if the direction is wrong, it is useless.

(b) Customer orientation

After gaining some success, people are easy to fall into the traps of objectivism and experimentalism. Only if we persist in market orientation, customer orientation and effect orientation, can enterprises maintain their beneficial results and continually progress.

 (c) All personnel involvement

It is not easy to ask everyone to be involved, but an enterprise must have a reward and punishment system in order to encourage the majority of personnel to be actively involved.

3. (a) Messages from markets

Since success depends on market orientation, it is important to understand, organize, analyze and conclude the messages from markets. Only when we understand the market consumers trending direction and provide the products that can meet the consumers’ need, can we gain consumer support.

(b) Good systems

We need to establish good systems that can adapt to market changes and also meet the needs of employees. A company must have a unified standard in order to function efficiently. As a proverb says, “We can’t draw squares and circles without a ruler and compass.” Without the compass and ruler as tools, it is hard to draw the pattern of grid and circles.

 (c) Business performance

Presently, there are a couple of popular views in Hong Kong and Mainland China: “Whether it’s a black cat or white cat, the one can catch mice is a good cat.” “Practice is the only standard to examine truth.” These are truly classic sayings to interpret the standard of governing enterprises. How to examine whether or not our strategy is correct, or if our methods are efficient, or how are the managers’ abilities? At the end of the day, we should let the business performance do the estimation, and let the numbers speak. Because without good business performance, an enterprise cannot operate, nor can it survive. Therefore, at the end, we still need to hand out a satisfying report.

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