Haier Zhang: I learned from Peter Drucker what? First, please review the origin between you and Drucker. I actually first saw the book Drucker does not understand who he is, did not know he was well known. At that time, I was feeling no way out. Chinese companies did not you know what their management theory and management thinking in particular, Haier was also very small only a few hundred employees, insolvent. We can do start up mainly by improving quality. More sensational event that we fail to use a large hammer to shatter the refrigerator. Our approach then is to learn from Japan&#39;s total quality management, I was more familiar is the Deming (WilliamEdwardsDeming), also raised the quality of ring (qualityloop) of Juran (JosephH.Juran) to do exactly as they say . After doing so, feeling that these proceedings are a number of management methods, and not really thinking of management theory and management. Around 1987, I do not remember where got one from Peter Drucker&#39;s book, the book&#39;s translation is &quot;effective management&quot; (TheEffectiveExecutive). I thought, this alien did not understand the specific situation in China, he said not necessarily do it. But then I was sick, trying everything, we re-read. What impressed me the most profound words are: management of a good business is always tedious, there is no exciting to happen. His words and we did exactly the opposite, not to mention Haier, when all the Chinese companies try to do every day in some exciting things, such as things like the battle, swearing and the like. Drucker&#39;s view and our approach is completely different, but I carefully think about what he said makes sense. Enterprises in most of the things that should be treated as routine matters to management. However, most of Chinese enterprises at that time what happened to go to solve anything, haphazard and budget. This time, inspired by Drucker, we started the budget Haier and create a &quot;work methods Nissin,&quot; that is &quot;something on completion date, clear day on high&quot;, the goal of each task to every person, per day. Before work each day in the completion of work under the objective circumstances, &quot;Nissin.&quot; Nissin work method to solve the management issue of confusion is invalid, so we did a bankrupt small factories turn around quickly, and picked up the refrigerator in the history of China first gold medal. Nissin gold medal thanks to the work of law, but also thanks to Mr. Drucker. Drucker&#39;s book also said that, if repeated with a crisis, managers are often caused by negligence and negligence. This is my personal management style to change from a lot. We were proud of the management practices are busy, working 10 hours a day, late work, as if this is a good manager. The Drucker said, excellent managers not to this standard, we should take effective management as the standard, so you can not handle duplicate questions every day and repeat the error. He is very reasonable. I suddenly fell in love with Peter Drucker, Peter Drucker&#39;s books since then as long as I will get to read again. I very much respect Drucker, always wanted to meet him personally. I once met an American in the United States publisher, said he and Drucker are good friends, can help introduce me. Unfortunately, he was quite old and soon died, I have not seen Mr. Drucker, very regrettable. In addition to his other books to see Drucker, would you recommend to others to see it? Read Drucker&#39;s book, I will in the company&#39;s meeting and share. I also bought some books, to give our executives, such as &quot;effective management&quot;, &quot;The Practice&quot; (ThePracticeofManagement), &quot;21 century management challenges&quot; (ManagementChallengesforthe21Cen more recently, this &quot;Drew grams of the final advice &quot;(TheDefinitiveDrucker). In the &quot;Drucker&#39;s last advice&quot;, I gave each of our executives wrote a sentence: &quot;Each of us is their CEO.&quot; I think this sentence is very important to managers. The CEO is you want to challenge themselves, for men, you have to create more of CEO. Drucker&#39;s idea of what inspired you most? In fact, the concept of Drucker inspired me are great. To sum up, I think his main idea can be divided into three categories: the first is to create customers, create value for customers; second is to give employees the opportunity to provide innovative and platform; third category is the challenge themselves. Drucker said: &quot;The purpose of business, the definition only correct and effective is to create customers.&quot; In practice, I thought this was a very big help for us. Doing a lot of doing business in China can not find a direction where there is where the profits go. But Drucker believes that yield is not the purpose of organization and business activities, but the limiting factor in business. In the actual operation of them is easy as the leader in business to profit and profit. When we just start, China is still in the shortage economy, any products are in short supply, can be produced as long as you can sell, businesses are rushing to pull goods. With sales of production there, with sales there are huge profits. So when all businesses are desperately on production, imports, production lines. But then we realize that the purpose of corporate profit is not only concerned about the current high profit margins can not guarantee our future survival. Instead, we change improving quality, the surface looks like we&#39;re a lot less profit, and our business and some production reached almost 100 million units, we have less than 10 million units. However, when supply and demand changes in then, many companies have closed down overnight, but we have a foothold. I deeply appreciate this creation is the soul of the enterprise customer. And today we still follow this set. For example, how in the Internet era, to create a new topic for our customers. The traditional economy, you just have a good product, you can attract customers. But now, even with a good product, not necessarily a lot of customers. Because the product too much, too many good products, supply exceeds demand. Therefore, the need for good service at this time. How? Drucker&#39;s words give us a great inspiration, he said, the greatest impact the Internet is eliminating the distance. It makes us think of the Internet era and customers to create customer must be zero distance. Our recent exploration in this area, we call the &quot;actual situation network integration.&quot; Both the virtual network of the Internet, but also our marketing, service, logistics and the actual network, these two together, when the customer needs most, the first time to meet their needs. How kind of talent and customer Zero? This end, we changed our organizational structure. The organizational structure is the past, we are triangular, the top leadership at the top, the functions of management one level down, which is the traditional management structure. Now we put it upside down, and direct customer-facing employees at the top, while the top leadership down to the bottom of the pyramid. Leadership from top to bottom over the past issued orders, the present leadership is bottom-up support. Line manager&#39;s commitment to our customers, we must ensure the support to complete. China&#39;s market is so big, big difference between consumer demand, only a deep understanding of line managers customer needs. In the United States in April this year, to IBM&#39;s former CEO Lou Gerstner (LouisV.Gerstner) painted our current organizational structure of the inverted triangle, he looked after the very identity, said he wanted to do when in IBM, but for For some reason not to do so, he believes in the Internet age must take this positive direction. Now we have the beginning of the change is effective. We are currently proposed &quot;zero inventory for under-Demand&quot;: custom needs, I can immediately provide; customers do not need, and we do not have stock. Figuratively speaking, 20 years ago, we hit the refrigerator, 20 years later we hit warehouse. Failed to drop the refrigerator is quality innovation, smashing warehouse is business model innovation. This requires Haier system, all processes and consistent customer demand, online and consumers to do the full communication. For example, the present research, planning ahead of time must have a great amount of 6 months ahead of forecast customer demand - we call it hit flying targets. The past, we hit a fixed target, where customer demand, we aim branded herd. Now every day changes in customer demand, we have to move the hair under the gun flying target. In the Internet era, we have the fastest, shortest time to satisfy customers. Currently I have the inventory turnover cycle has dropped to 5 days, less than the industry average one-tenth of the number of days. Certain product lines, such as refrigerators, this cycle has been reduced to half a day even. The BPR process is painful, our sales fell badly once, but we must persevere. Essence of change: many companies actually sell their &quot;stock&quot;, and we&#39;re selling &quot;services.&quot; A while ago I read Jialihamo (GaryHamel) of the &quot;manage the future&quot; (TheFutureofManagement), is pleased to find that the United States, Whole Foods (WholeFoodsMarket) and other companies are doing the sam thing with me. Haier, providing a platform for staff innovation and create value for customers together, that is, I just mentioned inverted triangle, employees at the top levels of management to provide a platform for them, reflect their own values. We give every employee to develop individual profit and loss account: calculate how much each employee using the company&#39;s assets for the company created a number value; if created to bring additional value to the company&#39;s profits, employees can get an additional award. This suddenly changed the staff would have to consult higher authorities of the bad habits, at all levels of employees have the right to make decisions based on market demand directly. In innovation, the washing machine can wash sweet potatoes, summer, wash only one or two small clothes washer, this is our past innovations. In this round of economic recession, the government formulated the &quot;home appliances to the countryside&quot; policy to boost domestic demand, we now share in the Chinese home appliances to the countryside which is the first one. Why so many? To know that much of rural China, we are sent to rural areas and the headquarters of these employees were very far away, but we give them the power and incentive to create a rural market. We used to sell such products in rural areas have a rodent control board, designed to prevent graffiti inside the wire drill into mice. However, we found that some mice employees or Fangbu Zhu, because those mice can be recycled only 4 cm in size, small mice, then immediately called for R &amp; D design changes. In fact, this was not difficult, but if you do not give employees a stage, he will continue to ask for instructions to report, so this process has completed, and the needs of customers would hardly be found. At this point, I always think of Peter Drucker&#39;s words, &quot;the task of organization is to allow ordinary people to do extraordinary things.&quot; Haier hopes to become such an organization. Third, challenge themselves, mainly in terms of the management. Why? I am most worried about is the success of Haier&#39;s management w originally thinking of living in bondage, in accordance with the methods of the past has been to do so, can not challenge themselves. So we used the method of Drucker, requires that all executives ask themselves every day three of the most important questions: First, our business? Second, my customers are? Third, the customer that what is most valuable? We therefore asked the executives to do so because the needs of customers is changing every day, if the path, tomorrow, keep up the customer request. You have to challenge your thinking inherent to break their own past success, not to be opinionated, should think of non. In this case, managers will continue to put forward the business process I have any questions, I created value to the customer what worse, we can constantly change and improve. We all know that you&#39;ve seen a lot of management books, Drucker What do you think different? From each of the management guru&#39;s book I learned a lot, but Drucker and others are different; First, he looking very strong, far-sighted. His 60 years in the last century to write the book, now it is still very reasonable, a lot of management books can not do this. Second, although he can see very far, but very practical, he said, is happening around you today. This is also very rare. Third, his views are novel. Drucker&#39;s own words to use, &quot;the concept of change and not change the fact that change is the perception and understanding of the facts,&quot; Drucker&#39;s perspective is always different, makes you enlightened. For example, he mentions that he was doing consulting when asked a customer what do you do? Very unhappy customer, said. You see what I have to ask me to do, I do bottle. Drucker said, you are wrong, you do not do the bottle, and you are done packing cause. This is not the case at once, if I do not see cause I do packaging, plastic instead of the bottle so tomorrow, my business is finished. Therefore, the Drucker&#39;s book will guide you always use a different angle of view and found that if I went into the errors. Drucker brings you inspiration, there is no you do not do it? I put a picture on the table, that is, the sinking of the Titanic look like, I draw attention Drucker said a word. Drucker said that bankruptcy is because the CEO used as a basis for organizational decision-making assumptions about the external environment is no longer realistic. This is my every moment every day to alert their own. I think I must be making constant changes in line with the external environment. If you did not, then it may not immediately revealed, but once exposed as dangerous as an iceberg, the Titanic just as companies may have been too late to turn the. To do this hard, I used this sentence to time to alert himself. If you were to see Drucker, what questions would you ask him? I would ask him how he was able to allow enterprises to flourish forever. For Chinese enterprises, large enterprises do at once, then quickly withers away, this phenomenon is particularly common in the Chinese market. Leading the trend in 2035. &quot;The moral&quot; There is a word called &quot;strong things of old,&quot; all things to the peak would decline down, which seems to be a law. I would like to ask Mr. Drucker what advice we can make our businesses stay focused.
Pages to are hidden for
"Zhang Haier I learned from what Drucker"Please download to view full document