As a crucial link in the commercialization of products, distributors serve as strategic chess pieces for manufacturers and indicators of product popularity for retail outlets. For distributors themselves, the ability to grow rapidly, adapt to market dynamics, and operate in a standardized manner is fundamental to their success, or even the key to their growth.
To achieve standardized operations, I believe internal management is the most foundational aspect, and it is the first step towards standardization, apart from strategic planning.
We often see that distributors are quick, even efficient, in expanding their external business, where the key lies in grasping information and making rapid decisions. However, when it comes to internal management, most distributors may only focus on whether employees collect payments on time and the quantity and quality of developed customers, while neglecting detailed management, thinking that as long as it looks acceptable overall, it's fine. I think if distributors can start with internal management and gradually form a standardized habit, their small shops may develop into enterprises more quickly.
Let's analyze the internal relationships of distributors. Initially, most distributors are family-run, such as husband-and-wife teams or siblings, and internal management and decision-making rely mostly on customary rules. The advantage is faster decision-making because most people are family members. But as the business grows, the small family business may introduce outsiders to assist in operations, such as sales personnel, administrative staff, or even managers. At this point, establishing a standardized internal management system is crucial to avoid interference from family members and to enable rapid development. Why? Because without institutional constraints, employees will consider interpersonal relationships when doing things. If they follow the rules, they might offend the distributor's family members, so they prefer to avoid trouble. This leads to a vicious cycle where balancing relationships becomes more important than doing the work. How can a company develop under such circumstances? Therefore, having systems and rules in place reduces such psychological burdens and enhances employee motivation.
So, what does internal management mainly include? I believe there are two main aspects:
First: Establishment of Systems
As a small economic entity, distributors do not need to establish grand systems, but they must have some. A widely circulated story is about Zhang Ruimin when he went to Haier and established about ten rules, one of which was no urinating in public. We can imagine the situation then, but these simple rules might have been the most suitable for the company's development at that time. For a distributor, it is necessary to gradually establish systems based on their actual situation. Adhering to the principle of high efficiency, I think the following four areas need to be standardized:
Behavioral Norms Although distributors start small, how many large enterprises did not start from small beginnings? The key is that distributors must have the ambition to grow. The behavioral norms of people within the enterprise can indicate whether they are professional or have development potential. Behavioral norms help everyone gradually form habits, such as warmly welcoming visiting clients, speaking politely, and demonstrating professionalism when visiting downstream customers. Overall, I think behavior can be addressed from the following aspects: language, demeanor (clothing, attitude, expressions, etc.), safeguarding company interests, and complying with company rules. Of course, these are general contents; when formulating your own behavioral norms, you should start from reality and avoid being too broad and empty.
Reward and Punishment System The establishment of a reward and punishment system is actually to strengthen incentive measures for distributor enterprises. We all know that the result of egalitarianism is that everyone is unwilling to work hard, as working more or less yields the same outcome. Therefore, for current distributor enterprises, establishing a reward and punishment system helps stimulate employees' enthusiasm and meets the development needs of distributors under current conditions. Of course, rewards and punishments should be strategic. I think it can be done from two levels: first, material rewards, such as bonuses and sales commissions; second, spiritual incentives, such as monthly evaluations where winners not only receive material rewards but also spiritual encouragement, like a training opportunity, a few days of paid leave, or even a certificate of honor. Combining both wins employees' hearts. The main contents of the reward and punishment system include: first, the overall reward principle, i.e., what is encouraged and what is opposed; second, detailed reward items and requirements, including the form and amount of rewards; third, the principles and contents of punishment, mainly to constrain behaviors that may harm the company's interests.
Attendance System Attendance is also one of the constraint systems, aiming to ensure that employees complete their work on time and with quality. In fact, for sales-oriented distributor enterprises, attendance is just a time management tool for employees, not the primary means. Its purpose is to remind employees to arrive on time and ensure working hours.
Business Standards This is an important part of system establishment and a key factor in ensuring the competitiveness of distributor enterprises in the market. I think business standards mainly include the following:
- Product Selection: To develop, distributors must choose suitable products. As a distributor, you need to have such judgment. If you can communicate with core employees, new products will face less resistance during promotion, mainly because employees participate in the product selection process.
- Market Development Principles: This includes which downstream customers to choose to sell your products, how to win their recognition, which region to start with, which channel to prioritize, etc. There should be detailed standards and requirements. Of course, different products have different market development principles, so decisions should be based on your actual situation.
- Market Management Principles: This includes delivery, returns and exchanges, and management of cross-regional sales (diversion).
- Behavioral Standards for Sales Personnel: This is fundamental. Only when you do well yourself can you influence others. This mainly includes work standards, daily operations, and management processes for sales personnel.
- Internal Affairs Management: This mainly includes the management of support departments such as administration, warehouse, and finance. During the process of business standardization, it may be necessary to break their conventional thinking patterns to focus on supporting business development.
Business standards start from the distributor's product selection, extend to market operations, and include company logistical support. Through this process, standardizing business ensures that all employee actions have a basis, gradually forming habits and becoming standards, thus forming a unique internal management system for the distributor enterprise.
The above four aspects basically set requirements and standards for employees' behavior and actions. This is the foundation. However, having these rules alone cannot truly solve problems. Therefore, the execution of the systems is what determines whether they are suitable and beneficial to the development of the distributor enterprise.
Second: Execution and Management of Systems
The execution of systems ensures the normal operation of the organization. Without rules, nothing can be accomplished. Whether they can be executed depends on management. In any organization, people are always the first priority, and managing people is the most difficult task. I believe that managing people mainly involves emotional management because systems are rigid, but people are emotional. This is very important in the development process of distributors because you are not yet strong; rules and regulations are just a lever and a measuring standard. Emotional management of personnel facilitates communication and helps employees identify with the company from the bottom of their hearts. This identification reduces the rigidity in the management process and encourages employees to consciously uphold the "dignity" of the systems.
Of course, during the execution and management of systems, you should not blindly follow past practices. You should revise these rules according to market changes and even the company's development needs, aiming to keep pace with the enterprise's development. Management is not an end but a means for the sustainable development of the enterprise. Overdoing it is as bad as not doing enough; it should be moderate.
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