1 Why in large companies, do people collectively march forward on the path of self-deception? Let's look at a case: Once, I trained a cold beverage company. In this industry, peak season sales are a hundred times greater than off-season (in winter, terminals basically don't sell ice cream), yet the company's sales reps still made weekly route visits to terminals. During class, I asked: "When you visit terminals in winter, can you sell goods?" The trainees answered: "No! Except for a few school stores, internet cafes, and factory stores, other terminals basically sell one box for half a year." I asked again: "Then why do you still visit terminals once a week in winter?" The trainees answered: "%&......¥#*#@ It's company policy, they require us to visit... to build relationships (some started giggling)." I asked further: "Since school stores, factory stores, and internet cafes can still sell, and other stores can't in winter, shouldn't we consider adjusting? For opportunity stores that can move goods, visit three times a week; for non-moving outlets, visit once every two weeks or once a month." The trainees answered: "...Right... makes sense... but company policy says once a week." I asked everyone: "Do you think this is crazy?" The whole class shouted: "Crazy!" This is not a joke; it's a true story. Don't laugh at this company; it's actually excellent, with brand operation and management capabilities surpassing most peers. Please think about this: Why, in large companies, do people know some things are wrong, yet while complaining, they collectively do the wrong things to the end? Why do so many people march forward on the path of self-deception? Why do obvious management loopholes and bugs exist without anyone improving them? As a trainer, before training, I conduct phone interviews with companies, covering from executives to sales reps, with detailed questions—products, channels, terminals, pricing, promotions, team structure, performance evaluation, turnover, route design... everything. Each year, I interview dozens to hundreds of companies. During these interviews, I learn many good cases and methods—that's the benefit of being a trainer: learning from the world. But often, I also notice anomalies— Some renowned large companies, seemingly powerful and dignified, are actually timid—with obvious management flaws and bugs, even lagging behind grassroots private small companies. For example: They constantly assess sales reps on "new product new store openings," but only manage "increments," not "existing stock." Each month, they assess "new store openings" but not "existing stock of new products" (how many terminals are still selling the new product). This inevitably leads to "bear breaking corn," where while opening new terminals, they lose old ones. This is wrong, and frontline managers all know it, but from top to bottom, they fool each other: the small ghosts make reports to deceive the big ghosts, and the big ghosts know there's water in the reports, but they still do it—because it's set by the "chief ghost" above. For example: The company wants to sell new products, but there are no hard indicators for new product assessment for managers and distributors at all levels. Employees won't earn more from selling new products; if they don't complete new product tasks, they just don't get the bonus, but their old product commissions aren't deducted... So who would sell new products for you? For example: Manufacturer sales reps take orders, and distributors deliver goods, making distributors content to be mere delivery agents (a distributor sells 1,000 boxes a month, 800 of which are sold by the manufacturer's reps). But the manufacturer's contract and assessment for distributors are only sales tasks + quarterly rebates + annual rebates... without assessing distributors on "adding people and vehicles" or "active marketing." This way, with 7 million terminals in China, the manufacturer would need to hire 35,000 sales reps (each covering 200 stores) to achieve perfect coverage—disabling distributors' marketing ability is disabling the manufacturer's own market. Everyone from top to bottom knows there's a problem and understands this leads to a dead end, but they continue helplessly, no one dares to say "wrong," no one dares to push for improvement. For example: Price structure is inverted, distributors make huge profits—6 yuan per box, but sub-distributors only make 2 yuan per box. Where does the sub-distributor's motivation come from? If distributors sell to wholesalers with a profit of 6 yuan per box, and to terminals with a profit of 8 yuan per box, a difference of 2 yuan, then which distributor would still want to visit terminals? It's easier to sell to wholesalers. For example: After implementing a mobile system, the initial terminal positioning was wrong, so subsequent positioning monitoring is inaccurate. Plus signal drift... the so-called visit rate monitoring is fake. Sales reps with the mobile system are forced to take photos at terminals, but the photo upload speed is too slow, so they spend all their time uploading photos in stores. And the mobile system should have functions that help sales, like monthly alerts for declining sales stores or declining item stores... but the system doesn't have them. In short, the system lacks necessary functions but has a bunch of unnecessary ones... And so on... 2 Mature companies are like middle-aged men: behind glorious stability, there are hidden ailments. In many impressive companies, these obvious management loopholes and bugs exist without hindering their daily operations, growth, or industry leadership. Why? There are two reasons: China's marketing management level still has room, giving these problematic companies a chance to survive. Especially in fast-growing industries and companies with heavy brand investment, they can temporarily "one white covers three uglies"—but luck runs out, and these accumulating issues will "empty the body," eventually leading to "horse dead and gold gone," and you'll have to drag your blade to save your life. These obvious management loopholes and bugs are known to frontline managers, but they lack the ability to change them. They can only complain quietly below, cursing while filling useless reports, executing mindless processes, surviving in a system of mutual deception, content to be a small ghost. Hopefully, there's a third explanation. —Knowing it's wrong, but collectively doing the wrong thing to the end is the most terrifying. Optimistically, this symptom is like diabetes: the body's immunity declines, requiring external insulin to survive (like companies hiring consulting firms or poaching operators). Ultimately, high blood sugar isn't fatal; diabetes complications are. Pessimistically, if the body's immunity is lost, it's AIDS. No external force can save you. Then, being tripped by incidental events becomes highly probable; a common cold can send you to the gates of hell. "Middle-aged men" with hidden ailments aren't scary. The key is to mobilize their own immunity. Otherwise, IV drips, tonics, chicken blood, health shows... all useless. The larger the company, the more it needs the ability to self-correct and iterate. Didn't we agree to "let the frontline directly call for artillery fire"? I think what's more urgent is: "Let the frontline directly expose problems." —No expert is as reliable as your own frontline staff. They know your company's problems, but no one listens to their voices. Management upgrades and iterations require a bottom-up information transmission pipeline. Frontline staff raise pain points, needs, and solution suggestions. Management must have dedicated departments and people to listen, research, initiate projects, and drive improvements... If personal grievances can shake the state, this mechanism is a revolution in organizational efficiency. People or companies should have the strength and courage to pull themselves out of the mud by their own hair. This internal self-correction ability will help you find a turning point in adversity. Perhaps at the end of a dead end, you'll find another dimension, soar up, build your own path, and reach the summit of light. At the very least, you can correct course in time and avoid being fooled a few more times. How wonderful that would be. Wei Qing, written on October 5, 2017 Source: Teacher Wei Qing (ID: weiqinglaoshigongsi) The 3rd (CFIC) China FMCG + Internet Conference will be held in Chongqing in November 2017. The conference will closely focus on the theme "New Forces, New Ecology," inviting 1000+ distributors, 500+ brand owners, 200+ B2B platform founders, and 100+ investment and financing institutions to explore a new chapter of cross-border integration! November 8-9, 2017 Chongqing Yuelai International Conference Center, Xinyue Hall Registration is now open. Long press the QR code below or click "Read Original" to register. Add friend with note "Conference Registration" Click the links below to review the highlights of the 1st and 2nd FMCG + Internet Conferences: 2016 "FMCG + Internet" Summit Forum -END-