How can enterprises improve their performance and break through the bottleneck?

According to years of experience in enterprise management, the breakthrough of enterprise performance bottleneck is nothing more than four sentences: "top management is not chaotic, the direction is right, the organization is effective, and the personnel are strong." From these four points, we can find ways to break through the bottleneck of enterprise performance management.

High-level chaos is the premise of improving enterprise performance

High-level chaos refers to the corporate governance of enterprises, that is, whether the relationship between investors, decision makers and operators is smooth and powerful. The deep-seated problem is whether the arrangement of responsibilities and rights among investors, decision makers and operators is balanced. There is a problem here, and other points are difficult to do well. Even though it may not appear in the performance in the short term, in fact, "boils will fester." Once this problem is highlighted, it is impossible to do a good job. There are countless such cases in enterprise management. The distant case is the dispute between Gome and Chen, which directly led to the decline of Gome's performance being surpassed by Suning. Recent cases, such as Lei's dispute, have led to a sharp decline in the performance of listed companies. These cases have proved time and time again that "top management is not chaotic" is the premise of enterprise performance improvement.

There are short-term and long-term differences in "the upper level is not chaotic". A good corporate governance system arrangement can ensure the long-term "the upper level is not chaotic". The famous Lee Kum Kee Group relies on this long-term arrangement, which makes its performance grow continuously and ensures the enterprise to survive for a hundred years, becoming an internationally renowned food ingredient manufacturing group. We often see that many private enterprises adopt a corporate governance arrangement to ensure that they can survive the start-up period and the initial growth period. But with the growth of performance, the original balance may be broken. If the arrangement of governance system is not readjusted, the performance of enterprises will be affected, which may eventually break out and seriously affect the performance of enterprises, and become a cancer that stifles enterprises. The right direction is the condition to improve enterprise performance.

Finding the right direction refers to the strategy of the enterprise. Sometimes the performance improvement brought by grasping the direction is far greater than the internal tapping potential. In the past 30 years of reform and opening up, external opportunities have led to the growth of enterprises in China market, which is confirmed by the family history of many private entrepreneurs. For example, Hejun, an old customer, is struggling in the printing industry. If he didn't seize the opportunity to reposition himself and move towards the cultural industry, even if he tapped the potential internally, he would not have achieved today's achievements and become a listed company.

or vice versa, Dallas to the auditorium When the opportunity is not grasped correctly, even if the internal strength is constantly cultivated, the performance of the enterprise cannot be improved. I have a friend who is the richest man. Due to the current financial crisis, his industry is losing money, and his enterprise is no exception. But some enterprises in this industry can still make profits. Through investigation, we found that it is not those back-office workers who practice better than him, but the business model and strategic direction are better than him. Although the richest man agrees with us, he insists that his current direction is correct, mainly because he lacks internal training. He also pointed out many examples of sunset industrial enterprises coming back to life. As a result, although we constantly practice internal strength, we get half the result with half the effort, and the improvement of enterprise performance can only wait for the opportunity change of the whole industry.

Enterprise performance involves all aspects, such as products, personnel, management and so on. I think only by improving the overall performance management of enterprises can we break through the bottleneck of enterprise development. Obtaining profit is the fundamental goal of an enterprise, and profit is equal to income MINUS cost, which is beyond doubt. However, the current grim economic situation greatly interferes with the realization of this goal, which not only seriously reduces the space for enterprises to obtain more sales revenue, but also increases the operating costs of enterprises. After China's entry into WTO, influenced by the international economic environment, inter-industry competition has become more and more fierce, customers' requirements have become more and more demanding, financial transparency has become higher and higher, and the new labor law has become more and more strict in hiring and dismissing employees ... Faced with these challenges, business leaders and decision makers have to pay attention to: how to measure enterprise performance, how to achieve customer satisfaction, how to standardize internal processes, how to give full play to employees' enthusiasm, what is the core competitiveness of enterprises, and how to establish it. The fundamental goal of an enterprise is profit, and management is a process to ensure that an enterprise can increase income, reduce expenditure and reduce costs. In order to increase the profits and improve the core competitiveness of enterprises, it is necessary to ensure the smooth implementation of the top-down decomposition process from the setting of the mission and strategic objectives of enterprises to the release of the whole task, and then to the determination of the personnel, structure, responsibilities and functions of various departments and the corresponding wages, benefits and treatment. At the same time, it also includes helping enterprise leaders to answer: how to formulate enterprise strategy, how to realize strategic planning, how to ensure strategic planning in financial budget, what the market really needs, how to carry out operational monitoring, how to reduce costs, how to improve internal organizational structure and processes, and what kind of incentive policies can make employees more satisfied and improve their innovation ability. Just like a butterfly flapping its wings, even a small link may affect the profits of the whole enterprise and even bring great risks. Therefore, there is no shortcut to improve enterprise performance, but it comes from the whole process of enterprise management. However, no matter how complicated this process seems, or the management mode, organization and personnel of the enterprise often change, the business objectives and management activities of the enterprise can be quantified into a set of interrelated KPI index system by setting the performance objectives of the enterprise or individual, which will be implemented by managers at all levels, making it a "standard execution language" to help the enterprise achieve its profit objectives. If enterprises can make full use of information technology, get the data of each business link in time and reflect these KPI indicators in real time, and drive business management behavior through whether the indicators are normal or not, and realize real-time monitoring, dynamic assessment and rapid decision-making of the whole business process, it will make seemingly dazzling management easier, thus effectively ensuring the healthy operation of enterprise's fine management around performance goals. Total performance management breaks through the bottleneck of development. Total performance management is not the usual personnel performance evaluation. Performance appraisal is a result, and performance management is a process, not just the work of human resources department. Enterprise performance management is a series of standardized management, policy formulation and enterprise performance evaluation, which regards the enterprise as a whole and involves all aspects of the enterprise, from marketing, customer orders, sales activities, enterprise procurement, raw material logistics, production process, finished product inventory, delivery to after-sales service, consulting and maintenance, etc. In order to achieve the purpose of improving enterprise performance. The establishment of evaluation method and index system is the basis of total performance management. Different enterprises apply different methods and different evaluation indexes; The number of KPI indicators is limited by the requirements of enterprise management fineness, and it should also adapt to the trust degree of enterprise management and the basic level of information. Commonly used methods include: basic financial index method, Wall scoring method, Dupont analysis method, radar chart method, balanced scorecard, economic added value (EVA), six sigma and so on. If an enterprise wants to do a good job in total performance management, it must evaluate the final result. Target cost and budget are the most important criteria for enterprise performance evaluation, and the monitoring of budgeting is also particularly important. The overall budget management of enterprises is the guarantee to achieve this goal. The idea of total performance management makes customer relationship management an important aspect, which requires enterprises to change from self-centered business model to customer-centered, not only to deeply understand customer needs, but also to establish a rapid response mechanism integrating market, sales, production and service, and to satisfy customers through customer care, so as to maximize customer returns. The performance of an enterprise is closely related to the mutual cooperation, mutual support and collaborative work among various departments. Therefore, business process management has naturally become one of the most important topics. Any business has its own process, and it can also be broken down into several activities, which will naturally generate costs. The finer the cost allocation (ABC/ABM), the more clearly you can see the rationality of fee payment, thus providing the most convincing scientific basis for process optimization. If an enterprise wants to improve its profit index, it must satisfy its customers; To satisfy customers, we must ensure good quality and service, and all this depends on people's skills and quality, and on corporate culture. Under the guidance of total performance management, enterprises need to establish a perfect human resource value chain, realize efficient human resource management driven by ability, and design reasonable and effective KPI and salary incentives, so as to continuously improve employee satisfaction and loyalty, improve work efficiency and create greater value. The successful realization of total performance management also needs to make full use of ERP and various information management tools, and constantly optimize and improve them in the process of use, so as to achieve the goal of continuously improving enterprise performance.