Uncertainty

  Nowadays, the word “uncertain” is used very frequently, but in fact, there are some definite changes under the background of uncertainty. I think there are at least three things:
  First, the arrival of a new pattern of dual-cycle development. In the future, the world’s development trend will be dominated by internationalization and globalization. At the same time, the world is still changing and will become more regional. In response to this situation, the central government proposed to “build a new development pattern in which the domestic and international double cycles promote each other”. This is a very big change for enterprises.
  In the context of the new development pattern, it is very important for companies to attach importance to the development of domestic brands and build domestic brands. I think the gap between domestic and international is mainly in the brand. The internationalization will usher in changes, which is a definite trend.
  Second, the arrival of the new energy era. We have been working on the new energy track for many years, but since my country announced that it will strive to achieve carbon peaks by 2030 and carbon neutrality by 2060, the era of new energy has truly arrived.
  There is no doubt that this will be a new era. In the past, we have been arguing about whether gasoline cars are better or electric cars, but in the near future, people may have to choose electric cars. In the future, energy will no longer be based on fossil energy, but instead will be based on new energy sources such as solar and wind energy. In my opinion, this is also the definite direction.
  Third, the arrival of the digital age. From the Internet to the Internet, to the rise of the consumer Internet, and the arrival of the intelligent and digital era marked by 5G and cloud computing, it is undeniable that these digital changes have been completely integrated into the daily life of enterprises.
  Therefore, today’s enterprises either carry out digital transformation or are eliminated by digitalization, and there is no third way to go. The growth of digital enterprises is an exponential growth, while traditional enterprises are linear growth. Once traditional enterprises ignore digital transformation, they are likely to be defeated by digital enterprises. This is today’s reality, and this is relatively certain.
  These three trends are identified changes in uncertainty, and companies must see these changes.
Strategic Realignment

  I use the term “new season” to describe these relatively certain changes. So, how should companies in the “new season” make strategic adjustments?
  First, strategic adjustment must be carried out during the heyday of enterprise development. Most of the time, companies only start to consider strategic adjustments during the downturn, and they are even forced to make adjustments after they have reached the bottom. However, the times are undergoing tremendous changes. Entrepreneurs should learn to play first moves, and they should learn to take precautions instead of waiting for the enterprises to have problems before rushing to fight.
  Second, under the “new season”, companies must choose their strategic positioning. In the selection process, companies must take globalization, climate change, low-carbonization, and digitalization into consideration and integrate them into their corporate strategy. In other words, any of the above changes may reshape our corporate strategy.
  Third, strategic adjustments must grasp the key to the “new season”. Having determined the strategy does not mean that everything is going well. The company still needs to self-examine the following questions: What is the key to the next step? In the process of adjustment, what kind of work should be the “big nose” for business leaders? I think that issues such as branding, low-carbon, new energy business, and intelligence are the keys that companies should think about in the next step of their work.
Growth mind

  In the “new season”, after the company has made strategic adjustments, how can it get the help of the next stage of development? I believe that competition, cooperation, and sharing are important methods of corporate growth.
  First, from competition to competition and cooperation.
  During the 18 years of working in a central enterprise, I always hope that the enterprise will grow in a symbiotic environment. The so-called “symbiosis” should not only consist of simple competition. Although competition can play a positive role in promoting most of the time, the negative effects of disorderly and vicious competition cannot be ignored. Therefore, there must be competition as well as cooperation between enterprises.
  I once put forward the view that “industry interests are higher than corporate interests, and corporate interests are nurtured in the interests of the industry”, but many people disagree and think this is just a beautiful sentence. After a large-scale reshuffle, the surviving companies can talk about growth, and there were not a few people who held this view at that time.
  But now, the “war” is over, and companies need to cooperate. When companies seek development, they must not only consider competition, but also cooperation.
  Take the cement industry as an example. In fact, cement companies have been doing this for so many years and have followed this line of thinking. For example, if the customer is very far away from the production site, the cement company may transfer the order to another company that is relatively close, and this company will help in the production. This means that enterprises within the cement industry are both competitive and synergistic. In this way, these competitors are linked together and obey the principle of lowest cost.
  Today, China’s cement companies have embarked on a healthy development. Although there is a certain amount of excess capacity, the entire industry has achieved healthy development because of internal synergy.
  Take another automobile company as an example. This company not only produces cars of its own brand, but also produces cars for some new car companies. Doesn’t this mean supporting the competitor? In this regard, the manufacturer gave this explanation: “Fundamentally speaking, the automobile manufacturing industry is homogeneous. If you don’t do it, others will do it, and I help them do something, which can also reduce my costs. “This kind of explanation is thought-provoking. The key is “If you don’t do it, others will do it”, so the new power car companies don’t actually need to have a production line. They only need to have a separate design, trendy styles and other electronic things. The production process can be completed by traditional car manufacturers.

  Today’s enterprises either carry out digital transformation or are eliminated by digitalization, and there is no third way to go. If traditional enterprises ignore digital transformation, they are likely to be defeated by digital enterprises.

  How much change does this reflect? According to traditional concepts, isn’t the new power car company a competitor? Why can cooperation between competitors? Why do traditional car companies process products for competitors? And this embodies the truth from competition to co-opetition.
  The same is true in the aviation industry. In the past, competition among airlines was fierce. Companies that always delivered tickets for free ended up going bankrupt. Later, airlines established industry alliances, such as the Star Alliance. Why do you want to do this? For example, for a plane that flies to a certain place, several airlines that belong to the same Star Alliance each sell a part of the ticket. If passengers can get together and take the same plane, it will reduce jet fuel for the airline. Waste, but also maximize the benefits. The airlines that competed in the past are now also moving towards cooperation, so I particularly agree with the concept of competition and cooperation.
  Second, from division of labor to coordination.
  Scientific management actually improves efficiency through careful division of labor. But now, we also need to rely on collaboration, and rely on strong individuals to drive the development of the entire organization, so as to bring more benefits and improve efficiency.
  Third, from symbiosis to sharing.
  I have worked in a company for many years, and I often consider the issue of sharing, that is, how to put the effectiveness of corporate human capital into a panoramic view of corporate development. For example, Haitian Group, which is an employee-owned company, accounts for up to 59% of employee-owned shares. what does this mean? In such a changing era, can companies create an environment where everyone is a shareholder? Can human capital be included in the distribution and turn the company into a shared platform? If a company can give employees additional dividends in addition to salary bonuses, I think this is an ideal company and should become the future direction of the company’s development.

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