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What are the key factors of enterprise strategic transformation?
In the process of operation and development, enterprises need to make corresponding strategic adjustments dynamically with the change of external environment, and must implement strategic transformation in a timely manner according to organizational vision, corporate culture, internal resources and external market conditions to ensure the sustainable growth of enterprises. So what are the key factors of enterprise strategic transformation? The key factor of enterprise strategic transformation
With the increasing incentive of market competition environment, the living space of enterprises is getting smaller and smaller; The rapid development of China's economy has created many development opportunities in the market. The dual forces of space squeeze and opportunity attraction make enterprises produce the driving force of strategic transformation. In the process of strategic transformation, enterprises often pay more attention to the analysis of external factors such as new markets and new fields, but ignore the analysis of whether the internal environment of enterprises supports the strategic transformation, or fail to fully predict the impact of the internal environment on the success of strategic transformation, which often directly leads to the failure of strategic transformation of enterprises. The fiasco of TCL's European expansion strategy is a typical case. Therefore, this paper will elaborate the key points that enterprises need to pay attention to in strategic transformation from three key factors closely related to strategic transformation: core culture, strategic management and internal resources.
the key factor of enterprise strategic transformation: adjusting the core culture to adapt to the new environment and guiding the new strategy
firstly, adjusting the core culture of the enterprise, because the enterprise culture is the best employee coagulant. To succeed, an enterprise needs a good entrepreneur to lead it, and to keep its success for a long time, it must have a core culture that adapts to the development stage of the enterprise to unite employees' thoughts.
the core culture of an enterprise determines whether it can develop continuously. What is the success of Founder and HP? Entrepreneur innovation? With? Luck? As a result of the combination, although there is a big gap in technology between them, there is no difference in the essence of their success. However, after the successful listing of Hewlett-Packard, its founder led the core managers to hold a summit meeting, and worked out the way for Hewlett-Packard to gain a good reputation in the industry. The way of HP is the source of HP's continuous success, and it is also the fundamental reason why HP has been able to constantly surpass itself for so many years. The founder of Peking University is like a bird flying with gold on its back. It always thinks that it is rich, but I don't know that your real advantage is flying ability rather than external wealth, and the external wealth at present is probably the reason why you can't fly to the sea in the future. In the process of frequent changes in leadership, Peking University Founder has never worked out its own core culture, and has never known what kind of company it is. If even the company's leadership can't clearly explain this problem to employees, then employees are even more confused about where they should go. Founder's loss of HK$ 168 million is not a sudden crisis, and its development thought has already predicted this sad ending.
at the beginning, an enterprise needs to adjust its core culture first. Because with the strategic transformation, new enterprise strategies and a series of strategic themes are bound to be formulated and launched, and the formulation of these strategies must be guided by a clear core idea, that is, what kind of enterprise to become in the future. Moreover, the change of corporate vision, mission and values will also guide employees to change themselves and develop in the direction needed for strategic transformation. For employees who can't adapt to the new culture and new strategy, we should gradually change their blood by recruiting new employees who meet the core culture of the enterprise in a planned way, otherwise these employees will become the resistance to change, and even lead to the failure of change. TCL has been hit hard by this and has never recovered. The strategic transformation of enterprises is a major change, and all changes are the destruction of the existing balance, and the inertia of the original corporate culture will inevitably hinder the change. Without the change of core culture and profound propaganda among employees, the inertia of the original culture will inevitably make employees continue to develop in the original direction, and the strategic transformation will not be successful fundamentally.
Key factors of enterprise strategic transformation: strict deployment of strategic plan and strict monitoring of strategic implementation
Strategic transformation generally involves entering new business areas or introducing new value chain modules. The resources of an enterprise are limited and precious, and strategic transformation itself is a dispersion of resources, which brings opportunities to the development of an enterprise and a certain potential crisis to the enterprise. Once mistakes are made, not only the expansion of new areas will fail, but also the operation of the original areas will be affected.
a comprehensive analysis of the internal and external environment is essential. In China, where the economy is developing at a high speed, enterprises are full of opportunities, but also full of traps. When enterprises see the opportunities, they should also conduct a comprehensive analysis of the external environment and fully evaluate the internal resources, otherwise they may fall into a quagmire because they can't resist the temptation. When TCL merged Thomson, after analysis, Boston Consulting found that the risk of external environment and the lack of internal resources of TCL made the success rate of the acquisition less than 5%, so it suggested that TCL give up the acquisition, but TCL decided to buy because it could not resist the temptation of opportunity, and then the myth of turning losses into losses for 18 months and the huge losses in successive years appeared one after another, which not only hindered TCL's expansion in Europe, but also suffered heavy losses and remained in the shadows.
Clear and feasible strategic planning can make strategic transformation more effective. Because of the strategic transformation, the market positioning and the core competitiveness of enterprises may change. How to enter and quickly occupy new markets and how to combine new modules with existing business methods to make them run smoothly are all issues that need to be considered in strategic planning. Through strategic planning, enterprises will also concentrate resources to re-establish and enhance new core competitiveness within enterprises. In the strategic planning stage, it is necessary to formulate a series of strategic themes supporting the new strategy and the implementation process, and the strategic planning clearly points out the future development direction, road and steps for the enterprise. IBM, a successful model of strategic transformation, saw that the hardware industry was paying more and more attention to manufacturing costs, and IBM's advantages in this respect would be weaker and weaker. Therefore, IBM made a careful strategic plan, from establishing a consulting platform to acquiring Andersen's consulting department to selling its hardware business to Lenovo. IBM firmly and steadily took a step by step in the transformation. Today, IBM has successfully changed from a manufacturer of hardware equipment to a service provider, giving full play to its industry experience and technical advantages, and obtaining higher profits from providing customers with various services.
Analysis and planning are only preparing for the strategic transformation. To successfully implement the strategic transformation, strict monitoring and timely strategic adjustment are necessary means for the strategic transformation to enter the substantive stage. Each strategic theme should be set with a series of indicators, and its implementation should be reflected through regular monitoring of indicators. Because enterprises in strategic transformation have more uncertainties when entering a new field, the implementation of monitoring can help enterprises find possible problems in the process of strategic implementation in time and ensure the effect of strategic implementation by constantly adjusting the problems.
key factors of enterprise strategic transformation: planning and preparation of internal basic resources before strategic transformation
because enterprises will enter new industry fields or new value chain modules during strategic transformation, it is necessary for enterprises to carry out corresponding changes in organizational forms and business methods, and the success of these changes requires the support of relevant resources, among which the most critical ones are management system and human resources. The management system is the institutional guarantee for the strategic landing, and human resources are the key support for the successful implementation of the strategy. These two points are the parts that need to be prepared and planned in advance before the strategic transformation.
management system is the hardware guarantee factor for the success of strategic transformation. Based on the short history of enterprise management in China, especially the weak management foundation of private enterprises, their internal management level is often out of sync with the company's business scale, or even there is a big gap, so it is very necessary to establish a perfect internal management system. Systems and norms provide guidance for employees in their work. The organization and position system help employees to understand their job responsibilities. The target management system makes employees clear the goals they want to achieve. The performance management system helps employees improve their performance. The salary management system makes the relationship between work performance and income return more direct. The career management system establishes a channel for employees to develop their future careers. The internal management system is the basic guarantee for the normal operation of enterprises, and it also provides a strong guarantee for the development of enterprises. It is quite dangerous to carry out strategic transformation rashly when the internal management system is not established and perfected. In a stable environment, employees can still rely on the work practices of enterprises, and in the process of strategic transformation, the internal work practices of enterprises will be destroyed. At this time, if there is no standardized management system to guide and manage the work of employees, not only the strategic transformation cannot be completed, but even the normal operation of enterprises will be affected. Therefore, before starting the strategic transformation, enterprises must have a preparatory stage, improve their management system, and plan the management system after the strategic transformation.
human resources are the software supporting factors for the success of strategic transformation. Due to the strategic transformation of the company's organizational form and mode of operation will change, so some employees in the enterprise will be absent, and some of the original employees may not be able to meet the requirements of the enterprise after the strategic transformation. People are one of the most important resources to realize the strategy, so human resources must be planned before the strategic transformation begins. Strategic transformation cannot be achieved overnight, but it has to go through a process. The company should make a human resource plan based on the importance and urgency of strategic support and the support to ensure normal operation. In human resource planning, it must be clear that the process of human resource construction needs to be completed in several stages; What aspects of staffing are needed at each stage; Whether these personnel are planned to be realized through recruitment, training or internal promotion; Due to the limitation of human resources and the cost of human resources, it is difficult to allocate some human resources in one step, so we can hire people from low level to high level in stages to meet the business requirements at different stages and will not delay the opportunity of strategic transformation. In addition to recruiting new personnel for the company, considering the stability of personnel in the company's development process, we should also provide special guidance for the company's existing employees' career development during the strategic transformation period, so as to help employees understand the company's strategic direction, determine their own development plans, and follow the company's development.
to sum up, the adjustment of enterprise core culture is the primary factor to ensure employees' cohesion and strategic development; Clear and feasible strategic planning and effective strategic implementation monitoring are important means to keep enterprises in the track of strategic transformation and ensure the expected results; The mature and stable internal management system and human resources in line with the development stage provide a double guarantee for the successful strategic transformation of enterprises in hardware and software. By paying attention to these three factors, enterprises will gain greater internal motivation in strategic transformation and enhance their ability to successfully transform. Challenge of enterprise strategic transformation
Challenge 1: web-based management
Enterprise strategic transformation
The Web here means not only the Web on the Internet, but also the Web-based organizational system on which the company will succeed in the future. The organizational system of traditional companies is like a pyramid, which is made up of ordinary employees and managers. At the top of the tower is the CEO who decides the fate of the company. On the contrary, in the 21st century, the organizational system of the company has more Web features: the company employs employees, strategic partners, external contract employees, suppliers and customers through various cooperative relationships. Complicated but equally and orderly linked together, every link in the chain is interdependent.
at the same time, there will be very few companies that integrate all aspects of production and marketing, and companies will be more inclined to seek assistance from outside the company in all aspects, including product research and development, manufacturing and marketing.
the management of these complex networks, which are composed of strategic partners, raw material suppliers, contract employees and freelancers, will be as important as the management of internal business operations of the company. In fact, sometimes it is impossible to distinguish between the two. In this complicated network, especially for outsiders, it is impossible to tell which link belongs to which company.
Challenge 2: Eliminating the fixed mode
The development of the network is helpful for the strategic transformation of enterprises
Companies in the 21st century do not have ideal fixed mode, some companies may be completely virtual, and all business operations depend entirely on suppliers, manufacturers and distributors in the network, while some companies are less virtualized; Some of the most successful companies may be very small professional companies, but other companies with slightly complicated organizational systems and broader scale and business scope also have opportunities for success.
challenge 3: new technology integration competitiveness
advanced technology enables every employee of the company to seize every business development opportunity, and at the same time, every employee also shoulders the responsibility and pressure to keep the company in the leading position in the market, which requires the company to integrate employees' ideas into business development through various forms of networks. The company will also be able to further integrate designers, mold manufacturers, product manufacturers and distributors outside the company with the help of the Web, and accomplish specific tasks together. Moreover, emerging technologies will enable employees from different countries and regions to communicate smoothly with external employees through online channels without the help of translators. A company registered in the United States can carry out software development in Sri Lanka, engineering design in Germany and production in China, all of which are seamlessly connected through the network.
challenge 4: low? Interaction cost? Operation
For companies in the 21st century, the core of technology is what people call digitalization today. In short, digitalization means liberating people's hands and brains from a lot of repetitive work and handing them over to computers and networks. Digitalization can save a lot of time, manpower and material resources, and greatly improve the speed and efficiency of business processing.
every company exists to varying degrees? Interaction cost? That is, the cost of cooperation between external companies and employees in the process of product production and sales. In the United States, such interaction costs account for more than half of all labor costs, and digitalization can significantly reduce such costs.
Challenge 5: Digitization of production logistics
This rapidly surging information trend will gradually change the company's business and management mode. The electronization of order processing can make order processing completely separate from telephone contact and paper bills. Virtual financial statements? The system enables the company executives to actually know the company's sales and profit indicators through computers or mobile phones with the help of voice commands. The potential of networking is ubiquitous in the traditional economic field, and it permeates every
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