Chen Chunhua: How can companies survive in the complex world?

Chen Chunhua/Wen

Living is the basic choice of an enterprise in the crisis, and it is also the most characterized criterion for judgment. Keeping cash flow is the core key for enterprises to survive, and even the fundamental requirement for many small and medium -sized enterprises.

Obtaining good cost ability is one of the key factors for corporate keeping cash flow. At the time of crisis, I emphasized that it is more emphasized to challenge the cost reduction.

1. Challenge the extreme reduction cost

In the usual good business environment, many companies emphasize expansion. However, in the face of an unstable environment like the epidemic, what the company needs more can adjust the model of its development, and more importantly, remove those no quality growth and loss, optimize the loss business, ensure their cash, and ensure their cash. Streaming.

In this process, the most important thing is that companies must be able to help themselves through this difficulty. The most important choice in the middle is how to challenge the extreme reduction of costs, that is, the intensity of reducing costs is greater.

"Challenge the extreme reduction cost" was when the Asian financial crisis in 1997, Samsung put forward such a word in order to save himself, which means the following three things:

First, eliminate all waste.

When the enterprise is in the situation, there will be a lot of waste of costs in management. For example, the cost of the meeting, many seniors are going to meet in order to prove that they are busy. The conferences let everyone stop what they are doing. This is a huge waste.

For another example, the process cost, the problems that could be solved immediately after two hours after the exchange of two people, but chose to borrow the process to solve it. It takes at least three people to come down in one process, and it takes three or four days. This is also a one. The pen is a lot of waste, so companies need to simplify the process and improve efficiency.

Second, stop losing business.

When it was loose before, it didn't matter if a certain business lost money, there was still a chance in the future. However, when the crisis is coming, when the company is tight or without cash flow, these loses business need to stop because the enterprise has no resources and has no space to support the losing business.

Third, find effective business flow as soon as possible.

While reducing some things, it is necessary to add something. By paying attention to the real customer value, the current cash flow is generated. Enterprises can make adjustments in their business, and make the cost more efficient in good business direction.

Therefore, in the challenge limit cost, on the one hand, how to strictly control their funds and their own efficiency; on the other hand, enterprises can "increase and subtract" the business value and adjust their business value.

This is also an effective way for enterprises to obtain cash sources, which can help enterprises get new business capabilities and new business value while dealing with the crisis.

2. Release employee energy improvement efficiency

In adversity, many companies mentioned that the cost of reducing costs is a keyword. But in my opinion, how to grow in adversity is to rely on employees, not layoffs.

The effective way to reduce costs is to improve efficiency, and efficiency comes from employees. Employees willing to change and contribute efficiency are one of the prerequisites for growth in crisis.

Therefore, in the crisis, the core is how to release the energy of employees and help companies over the crisis. Just like during the epidemic crisis, many restaurants or retail pauses, but some employees gave some solutions to sell the goods as a live broadcaster to contribute their own efficiency and send charcoal to the company's snow.

In a turbulent environment, employees' sensitivity to markets and customers sometimes surpass managers. Relying on employees' energy and relying on the creativity and action of employees, they can often get more direct smiles. As Drucker pointed out, the biggest opportunity for improving economic performance is whether companies can improve employees' work efficiency.

How to release the energy of employees, enterprises can take the following five actions: stimulate employees 'business; respect the contribution of employees; authorize employees to reform; people first profit; opportunities for employees' self -development.

Employees determine the cost of the enterprise. If the output of employees is high and the value creates is high, the cost of the entire enterprise is actually low. Therefore, during the crisis, excellent enterprises will find ways to retain employees, retain talents, and even use the crisis. The talents of many companies flow out, absorb better talents, and optimize their own talent structure.

These enterprises know clearly: the implementation of the corporate strategy requires a better talent structure, and the continuous development of the enterprise depends entirely on the talent itself. To be more clear, successful leaders rely on the environment of creating a good corporate culture to stimulate people's power.

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