Rekindle 2003

Chapter 1109 Mr. Ren: I will definitely copy this homework today!

Qing Yun stood on the stage and began to explain in detail the management and control of the legion and the corresponding internal structural adjustments of the group company.

Everyone in the audience knew that this step was the key, and it would determine the success or failure of the legion model.

To ensure that the operations of the overseas corps are consistent with the group's global strategy, the group-level internal structure, including market positioning, product development, brand building and long-term development planning, must be compatible with the corps-level command.

In particular, the corps structure currently announced by Qing Yun integrates basic research scientists, technical experts, product experts, engineering experts, and sales and delivery service experts into the same department.

The Legion's authority and scope are far beyond the reach of traditional "overseas subsidiaries".

“First of all, I want to emphasize that the control of the Corps is not laissez-faire, but planned and organized management.

It means 'let go of the organs and the businesses'!
It is 'the government agencies should control the money and the businesses should use their power well'!
It is also a relatively self-managed and self-managed business operation model where ‘money must reflect the company’s will and power must be visible’.”

Qing Yun explained, “We will reshape the financial system of Yanhuang Group and implement a planning, budgeting, and accounting system centered on financial management.

To accelerate the construction of a planning, budgeting, and accounting system centered on financial management, we must establish a planning, budgeting, and accounting system based on product lines, regional departments, and representative offices as basic units.

The purpose is to serve the corps operations that bring together regional departments, representative offices and product lines, rather than to compile a financial statement for the headquarters.

This means that each corps will have its own financial targets and budgets, which will be closely linked to the overall strategy of the group.”

What is the driving force behind the company? Finance? Products? Sales? Human resources?

There is no distinction between good and bad, but it depends on the specific analysis of the specific situation.

In the domestic base, Yundi is naturally driven by products.

However, after watching many years of overseas expansion in his previous life, he believes that financial drive is the most reliable model.

If you can make money, do it. If you can’t make money, don’t do it.

We cannot cultivate the market like we do in China.

Even places where you can make money but the money cannot flow back to the country should be avoided as soon as possible.

Yundi elaborated in detail the changes in Yanhuang’s comprehensive budget management framework, including key links such as medium- and long-term financial planning, plans and budgets, management forecasts, budget granting and control, and financial performance evaluation.

“Each corps will have its own financial targets which will be aligned with the group’s overall strategy.

At the same time, we will implement budget granting and control to ensure that the Corps' financial activities are under the supervision of the Group.

Our profits come from "customers", so the source of our budget should also be "customers". Only when the budget for customer sales is clear can we break it down into a reliable and solid annual budget for products and regional dimensions.

The formulation of the annual budget is based on projects/opportunities, and a budget allocation mechanism is established according to the logic of "strategic plan-project-budget".

The project management team purchases resources from the supporting organization based on the business plan and the granted budget.

……

Strategic planning (SP) is the main wheel that guides the company to focus on long-term strategy and conduct strategic reviews regularly;
At the same time, improve the medium- and long-term strategic planning capabilities of business units (BU), market units (MU), functional units (FU), etc., strengthen the strategic synergy of regions, product lines and departments, ensure strategic benchmarking, and consistency between strategy and action, and ensure that the strategy is connected and linked from company planning to organizational goals, department and position goals, to personal goals.

In addition, the circulation management mechanism of this system must be connected and implemented with the financial plan.

……

In addition to strategic planning (SP) and business planning (BP), another very important planning content is project planning (PP).

SP, BP, and PP all include closed-loop management of "planning-budgeting-accounting", thus forming the PDCA management and operation process.

……

These links will ensure the financial health and strategic execution of the Corps.”

Qing Yun also mentioned the new business analysis meetings and rolling forecasts, tools that will help the Corps adjust its strategy in a timely manner to adapt to market changes.

“No goal or plan is static and often requires appropriate strategic adjustments as the market environment and competition landscape change in order to achieve operational success.

The basis for this adjustment is business analysis. Through monthly rolling forecasts through business analysis, the Corps can optimize strategic plans and budget plans to ensure stable operations and the achievement of business goals.

So what is a rolling forecast?

A rolling forecast is to estimate and infer future business trends and key events based on reality at the present point in time, and to arrange resources and formulate relevant financial plans to ensure stable operations and the achievement of business goals.

Dynamic monitoring is implemented through rolling forecasting. The main tools of rolling forecasting are three GAPs (gaps), namely target gap, execution gap and predicted changes.

And 3 lists, namely the "confirmation list" for execution and efficiency, the "risk list" for looking for hidden dangers and clearing risks, and the "opportunity list" for finding opportunities and winning opportunities...

Based on the business plan/goals and KPI, we will complete actions such as "rolling forecast - task order - deviation analysis" through monthly business analysis meetings to establish a closed loop of business management. "

Yundi on the stage continued, "We will use a series of management tools and processes, including regular performance evaluation, strategic review and financial audit...

And what does it mean to delegate planning, budgeting, and accounting to the corps?
I give you the plan, and you can organize resources to attack according to the plan.

The cost of resources is constrained by the budget. When the budget is used up, I will account for you.

As sales skyrocket, your budget will naturally skyrocket.

If your sales are not increasing but you have spent all your budget, then you are incompetent and you don't deserve to be in that position!

But if you don’t spend money and cannot drive the market forward, that won’t work either. That means you are mediocre and doing nothing!
Managers need to exercise flexible control based on business realities. It is impossible to manage well if they use plans and budgets rigidly.

……

Don’t waste your strategic competitive strength on non-strategic opportunities!
Not only because we don’t have that much money, but also because we can’t manage so many burdens.”

After a long while, he finally calmed down and smiled at the people below.
"Of course, responsibility and assessment alone are not enough. The corps-based business model also has its own incentives."

The atmosphere at the scene relaxed and everyone laughed in unison.

Li Yali glanced at her peers in the student camp on the left. Most of them were looking at the figure on the stage, their eyes full of concentration and admiration.

This made her laugh in surprise.

She originally thought that she would see some envious looks.

Well, sitting in the audience at this moment, she felt mixed emotions.

The person standing on the stage looks like a sun.

So dazzling.

It is so dazzling that it is impossible to look directly at it.

She withdrew her gaze from the left and looked to the right.

The eyes of those social people were filled with excitement at this moment.

She had been secretly observing the situation in the venue and knew very well that this was not the acting of a professional.

It's their true reaction.

After all, the Yanhuang Group is famous for its generous treatment and Xiaoqing is always willing to spend money.

The incentive method specially proposed at this time is worthy of their excitement.

“Before the army moves, food and fodder must go first. Regarding the performance appraisal of the overseas legions, the group will implement a new incentive system.

I call it the 'food package' policy."

"The food package policy is a bold innovation of the Yanhuang Group to the corps system. It is not only a financial incentive mechanism, but also our recognition of the corps' performance and investment in its future development.

This policy will provide each corps with sufficient resources and support to ensure that they can not only survive but also succeed in the fierce market competition.”

Qing Yun explained, "The food package will include a salary package and a bonus package. The salary package will be used to pay the fixed salary of the corps employees, while the bonus package will be linked to the corps' performance targets."

He explained that the design is intended to motivate Corps employees to work hard to achieve higher performance goals.

Qing Yun elaborated on the specific content of the food package policy in detail.

First, he mentioned the accounting caliber of operating assets, which is the basis of the food package policy.

Each legion will obtain a certain scale of operating assets based on its business needs and market potential.

These assets will be used to support the Corps' daily operations and market expansion.

"The bonus package in the food package is our direct reward for the corps' performance." Qing Yun emphasized, "This bonus package will be linked to the corps' contribution profit to ensure that the corps' performance is consistent with the overall interests of the company.

This means that the better the performance of the regiment, the more bonuses they will receive.”

“At the same time we will take out a portion of the bonus package as a strategic and land fertility bonus.”

Yundi continued, “This part of the bonus will be used to encourage the Corps to invest in the mid- and long-term business development foundation, including research and development, market development, and talent training.

Moreover, I want to emphasize that the daily operation salary package can adopt a model of saving and keeping, so as to drive the continuous improvement of per capita efficiency;

The savings in the daily operating salary package resulting from the improvement in per capita efficiency can be converted into the operating bonus for that year, but the bonus package in the food package cannot be converted into a wage salary package.

However! The strategic compensation package is mainly used for the investment of the consumer BG in future business competitiveness! Adopting the model of saving money but not keeping it for yourself!

If not used up, all will be collected and returned to headquarters!

And let me be frank with you, there is no problem in saving 5% in the strategic salary package. But if the savings exceed 5%, I will hold the corps commander, the chief of staff, and officers at all levels accountable!

This is not saving me money, but ignoring the investment in the future competitiveness of the Corps!"

As he spoke, the PPT behind him showed the contents of the food package in detail.

Read more latest popular novels at 6.9*shuba!

Don't expect the venue to be quiet at a time like this.

Whispering and talking are inevitable.

This is human nature.

This is also what Qingyun hopes to see.

If a policy is announced and there is no response from below, then the policy is likely to be bad.

Zhang Yu is a senior engineer. He is particularly excited about the R&D investment and talent training mentioned by President Xiaoqing.

He whispered to his colleague next to him: "This policy is great. Our R&D team can finally get more support.

This will allow us to more boldly try new technologies and promote product innovation.”

The colleague next to him wanted to laugh when he heard this.

What does 'more support' mean?
Obviously, this is more of a bonus.

In the past, other companies’ rewards that were linked to operating profits were usually given to front-end business departments such as sales, and had nothing to do with back-end development departments.

Now, the front-end and back-end business lines have been completely opened up. This is a model where everyone prospers together and suffers together.

Zhao Lei is from the Human Resources Department. He is very satisfied with the talent training and incentive mechanism mentioned by President Xiaoqing.

He nodded and praised: "This policy is a two-way constraint mechanism. The input-output ratio is fixed there, and it is linked to various departments. Those hiring departments will no longer hire people blindly.

This is definitely good news for the long-term development of our company.”

Overall, employees responded positively to the food package policy.

If everyone can figure it out with their toes, it will not only benefit individuals but also the entire team. It will not only increase their enthusiasm but also bring greater development potential to the company.

I have to say that Xiaoqing is always a kind person.

He wants the horse to run but is also willing to feed it with concentrated feed.

"The food and fodder have been provided, but of course, there must be some restraint. I'll keep you well fed, but you can't let me starve and become skinny."

Emperor Yun's words caused laughter in the meeting hall.

"That's definitely not possible!"

"Xiaoqing, you can't be fat or thin, you have to be handsome!"

The sudden outbursts of voices from the female employees made Qin Manyan and others grit their teeth in anger.

What the hell!
You just know how to take advantage of my husband!

Qing Yun smiled and began to say, "The implementation of the food package is premised on the cash flow constraint mechanism."

Qing Yun described in detail how cash flow management works, including how to improve cash flow management by broadening and consolidating cash flow management channels, refining capital income and expenditure plans, improving the collection system, and promoting horizontal collaboration and joint efforts.

These measures will help the Corps better control and manage cash flow and ensure that the Corps' financial objectives are aligned with the Group's overall strategy.

Next, Qing Yun discussed how the Corps evaluates its performance goals. He pointed out that the Corps' performance goals will be calculated based on the historical extension line and the current year's sales gross profit and bonus TUP before contribution profit to the food package.

This means that the Corps' performance targets will be closely linked to their actual performance, ensuring that Corps performance evaluations are both fair and accurate.

"As for the specific ratio of the bonus package to the legion's profit,"

Qingyun continued, “We will generate bonus packages based on a certain percentage of the legion’s pre-TUP contribution profit for bonuses.

This ratio will be determined based on the Corps’ performance and market conditions to ensure that the Corps’ bonuses match their contributions.”

Qing Yun emphasized that this incentive mechanism will help improve the work enthusiasm of the corps personnel and ensure that there are rewards and punishments within the corps and a clear system.

In this way, the Corps' employees will be more motivated to work hard to achieve higher performance goals, while also ensuring the Corps' financial health and strategic execution.

Finally, Qing Yun concluded, “The food package policy is an important investment in our corps model.

It not only provides the necessary resources and support, but also stimulates the Corps' innovative spirit and execution through incentive mechanisms.

I believe that through this policy, our corps will be able to achieve brilliant achievements in its journey of globalization.”

When Qing Yun finished her speech, the venue burst into warm applause.

The eyes of middle and senior leaders revealed determination and resolve.

They are well aware that Yanhuang Group's overseas expansion strategy will lead the company to a new height, and President Xiaoqing's unique food package policy will become an important driving force in Yanhuang Group's globalization journey.

Unless it is a natural disaster or man-made disaster, there is no reason not to succeed.

In the audience, Mr. Ren also applauded while sitting there. Next to him were Xu Zhijun and his eldest daughter Meng Wanzhou, who had just been promoted to director of the company's international accounting department.

The old man turned around and asked Meng Wanzhou in a low voice, "Wanzhou, what do you think of Qingyun's food package policy?"

Meng Wanzhou withdrew her gaze from the PPT on the stage, her eyes flashing with shock and admiration.
"Dad, this policy is too comprehensive!"

Her main job now is to establish a globally unified Huawei financial organization. This series of reforms includes organizational structure, business processes, financial systems and IT platforms, enabling the global financial organization to operate with higher efficiency and lower costs.

She paused, then continued, "We can definitely copy it. Qing Yun's approach coincides with my idea, but he obviously considered it more carefully and comprehensively."

There was a glimmer of interest in Mr. Ren's eyes: "Oh? Tell me more about it."

Meng Wanzhou nodded and continued, “Qing Yun’s considerations are reflected in the comprehensive evaluation of the legion’s performance and the design of the incentive mechanism.

By linking bonus packages to profits, he not only ensured the consistency of the Corps' performance with the company's overall strategy, but also greatly stimulated the Corps' innovative spirit and execution.

This mechanism ensures that the Corps will not lose sight of long-term development and strategic goals while pursuing performance.”

Hearing this, Mr. Ren nodded with satisfaction: “Then just copy the homework.

I will go and ask for his entire system later, and I believe this guy won't dare to refuse.

When the time comes, you can organize some people to take a look and find an opportunity to have a discussion with the financial department of Yanhuang Group so that we can improve together."

Hearing what Mr. Ren said, Xu Zhijun beside him couldn't help but laugh: "Mr. Ren, your expression of 'copying homework' is really vivid."

Mr. Ren smiled and waved his hand, “Xiao Xu, you need to be thick-skinned!

And this is not simply copying homework.

Qingyun is a visionary and courageous child.

We at Huawei must learn this innovative spirit and constantly absorb and draw on advanced management experience in order to remain competitive in the global market.

So, I will definitely copy this homework today!"

……

(End of this chapter)