From the “ coaching †of business leaders to the formation of self-restraint, institutional constraints, and supervision and restraint mechanisms, Weichai Holding Group has been actively exploring institutional innovation for 14 years to promote the standardized operation of enterprises, and has finally pushed “Chinese power†to the high ground of the global engine market.
"Three Acts" Leads Companies to Rejuvenate
In June 1998, the roads along the roads of the Weichai plant area were piled up with diesel engines that could not be sold. The employees had not paid salaries for half a year and the people's minds were floating. In the face of this once-growth but increasingly dilapidated state-owned enterprise, Tan Xuguang, the newly appointed factory director, promised to the entire factory staff that he should stick to the principles and dare to grasp the courage to manage; he should not be a good old man or an improper “taiping officerâ€; For enterprises to do practical things and do good things for employees; to lead by example, to be clean and honest, and to require employees to do it, leaders must do it first, do not allow employees to do it, and the leadership must not do it resolutely.
The three promises are as loud as the new business leaders' own “three chapters of the covenantâ€. Soon, Weichai began a drastic reduction in staff and efficiency, and the number of employees was reduced from 13,000 to 8,000. More than 20 relatives and friends of middle-level and above leading cadres were laid off from the factory, but no one went to talk.
In October 1999, Tan Xuguang broke four ribs because of a car accident. Just at the critical period when companies entered the construction machinery market, Tan Xuguang took a short rest, and dragged patients around running customers. Under the influence of the factory leader “shut himself down†and “lead by exampleâ€, the company condenses unprecedented centripetal force. Since then, Weichai Power's listing, the launch of the “Lan-Qing†engine, and the acquisition of the French Baudouin have resulted in an explosive growth in company sales revenue, reaching RMB 98.3 billion in 2011, about 170 times that of 1998.
Weichai Engine
With the development of the enterprise, the connotation of the "three chapters of the Covenant Law" has been continuously enriched. At the beginning of 1999, the enterprise reform entered a critical stage, and the leadership team made four promises such as “complete transformation of work style and honesty and self-discipline†to the employees; in 2004, Weichai Power was listed in Hong Kong, and the leading group promptly put forward “strict self-discipline, standard behaviorâ€, etc. Six criteria; In June 2010, Shandong Heavy Industry Group was established with Weichai as the main body, and Weichai also proposed “five to do five†and asked leading cadres to “do not do self-interested cadresâ€. “At each stage, we have targeted and enriched the content of the 'three chapters of the law'.†Tan Xuguang said that the “three chapters of the law†has become an important “magic weapon†for bringing people’s hearts together and promoting enterprise development.
Create new advantages for state-owned enterprises
For more than ten years, from the initial “covenant chapters†to the current “three-in-one†system of “self-restraint, system constraints, and supervision and restraintâ€, Weichai has formed a corporate culture of scientific democracy, decision-making, transparency and business, and comprehensive and fair assessment. During the “Eleventh Five-Year Plan†period, Weichai invested a total of 12 billion yuan in technical reforms, and there has been no case of violation of rules and regulations. The “three constraints†system cannot be separated from it. Cheng Huiming, head of Weichai's technical transformation department, said that the company's engineering bids are subject to the evaluation of bonuses to minimize human factors interference. In the tendering and evaluation process, disciplinary inspection, auditing, and auditing departments participated in the entire process, and no one could say anything.
Many employees told reporters that if they found that the company had irregularities or unreasonable behavior, they could be directly reflected to the chairman. The reporter saw on the home page of Weichai Group's office system that the “Banner's Blog†has become a platform for direct “dialogue†between employees and the chairman of the board, covering more than a dozen aspects of production and management, employee life, and so on. “The chairman and management team have opened a blog and placed the officers under the supervision of the staff. This is a self-discipline and supervision constraint.†Tan Xuguang explained that since Weichai’s leadership blog was opened, the average daily traffic has exceeded 5,000 person-times. Employees have concentrated on issues that have been resolved through open and transparent blogs.
Weichai also combined the selection and appointment of cadres with assessments. According to Yuan Zaixin, the Weichai Group's human resources department minister, according to the results of the assessment, the top 25 percent of the cadre ranks are promoted each year to be rewarded, and the latter 10 percent are eliminated. In 2011 alone, the number of cadres was adjusted to 276, including 59 new cadres, 157 positions, and 31 demotions and removals. Through strict control of integrity and a series of management systems, the company has formed an atmosphere of unity. Wei Yong, deputy general manager of Weichai Group, said that the reforms of some companies are difficult to implement because they involve the vital interests of workers. However, Weichai has received the support of the broad masses of employees and progressed smoothly.
Independent Innovation Creates Heavy Machinery "Chinese Heart"
In the Weichai Group exhibition hall, an engine named "Blue Engine" attracts attention. This engine, developed by Weichai in 2005, has completely independent intellectual property rights and ended the history of “foreign-driven Chinese carsâ€. At the end of 2007, China's first "powertrain" product for engine, transmission, and axles was matched and developed in Weichai. It made China's commercial vehicle R&D efficiency one-third higher, and also made Weichai. In the domestic and foreign markets have gained wings.
"China's heavy-duty truck assembly Weichai engine accounted for more than 40%, in some large-scale engineering loading machinery, this proportion even reached 80%. At present, Weichai manufacturing 'China Power' has been sold in more than 100 countries and regions. "Wu Dehui, vice president of Weichai Power Co., Ltd., said. Weichai also dances in the capital market. In January 2012, Weichai Group signed a strategic restructuring framework agreement with Ferretti Group, a world-renowned yachting company, and obtained a 75% stake in Ferretti. This is another major overseas arrangement after Weichai succeeded in acquiring France’s Boduuan Engine Co., Ltd. in January 2009 for 2.99 million euros.
Today, the Weichai Group has three listed companies and its business scope includes four parts: vehicle manufacturing, powertrain, core components, and yachts. It has become an aircraft carrier in China's power sector. According to Weichai's plan, sales revenue in 2015 will reach 200 billion yuan, and sprint in the world's top 500. Driven by the management system with the "three chapters of the covenant" as its core values, Weichai has become a model of "China's drive" in the battle for the world.
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