---
title: "Yunlian Organizational Reflections"
description: "Yunlian Organizational Reflections is a series of essays exploring organizational management, covering concepts such as structure, goals, vision, values, diversity, discipline, talent management, communication, culture, leadership, delegation, and exceptions, emphasizing the importance of human nature and practical wisdom."
author: "韩秀超"
publisher: "New Distribution"
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published: "2016-09-06"
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# Yunlian Organizational Reflections

> Yunlian Organizational Reflections is a series of essays exploring organizational management, covering concepts such as structure, goals, vision, values, diversity, discipline, talent management, communication, culture, leadership, delegation, and exceptions, emphasizing the importance of human nature and practical wisdom.

**Yunlian Organizational Reflections I: Concepts**
The topic of learning from Taoism has ended. I need to pull my thinking from over two thousand years ago back to the present and start a contemporary management topic: organizations. This topic is naturally related to management and marketing, but ultimately it is about people—about individuals, groups, mechanisms, and emotions. In the end, my thinking can never escape human nature. Perhaps this is my personal thinking style. Let me first talk about the concept of organization and directly state a few key points:
The first concept: Arrangement. What is an organization? Fundamentally, it is about shaping a pile of loose sand into an orderly thing. So this process is arrangement. Whether the force of arrangement is natural or man-made, such forces are needed. To understand an organization clearly, the most important thing is to understand the arranging force behind it. Many people say this is too simple—the arranging force is naturally interest. But you would be too superficial. Most organizations cannot do without interest, but it is definitely not just interest. The invisible arranging forces are particularly complex, waiting for me to think through them slowly in the remaining parts. I don't know if I can sort them out in the end.
The second concept: Structure. The most important concept in an organization is structure. This structure has official aspects, such as formal appointments and responsibility statements, and unofficial aspects that also exist and play a huge role. Most of these are the result of time fermenting. If you don't respect this fermentation effect of time, you don't understand organizations. Recently, I learned a concept called the eagle-swallow structure. A good organization should have a leading eagle. Why use an eagle instead of a leading swallow? Because market competition is too cruel; a swallow cannot represent its danger and strength. The team should be like a flock of swallows, flying in two rows in orderly formation. So structure is a key factor in an organization.
The third concept: Purpose. In reality, people cannot control everyone's thoughts because you can't see what they are thinking. Secondly, you cannot control people's behavior because you can't always follow them. Even if you use a GPS-tracked phone, it only controls the form, not the essence. So the only thing you can truly focus on is the goal. The question is the temporality of your goals. For example, if you only use an annual goal to manage, it's too coarse. If you track daily goal completion, it's too trivial. Grasping the granularity of goals is key to organizational control.
The fourth concept: Subsystems. You must understand that large organizations are composed of small organizations, and small organizations are composed of independent individuals. Each small organization and even each individual has its own independent operating mechanism and needs to be respected. So mechanism is also a concept that needs special attention. Mechanism is a convention formed through rules, habits, processes, incentives, and other factors. If you don't respect the demands and laws of subsystems, your organizational plan won't be implemented.
**Yunlian Organizational Reflections II: Goals**
Why write about goals in the first part? Because people of our age are influenced by Chairman Mao's thoughts. Chairman Mao once said: "We are all from all corners of the country, gathered together for a common revolutionary goal." I remember this passage clearly. At that time, the teacher repeatedly explained what "all corners of the country" meant, which left a deep impression on my young mind and made me want to go out and see the world. Finally, I left the countryside and entered a broader world. The core idea of Chairman Mao's passage is: what is the driving force or origin for everyone coming together? It is a common goal. So a goal is the starting point of an organization. This goal may be the founder's initial intention, a proposal to attract investment, or a mobilization order to recruit troops. However, having a clear and attractive goal is crucial for an organization, for a group of people from different backgrounds. Because this is the meaning and hope for people. Whether a person has meaning and hope is very important. I remember talking to a boss who said, "I don't need to announce goals because I'm the boss; the goals are in my heart, and I know them well." I told him, "You are your own boss, but employees also need to be their own bosses. You know in your heart, but employees also need to know in their hearts. Your knowing refers to how much profit you'll make; employees' knowing refers to how much bonus they can expect. A goal system is to make everyone know in their hearts." I remember this made the boss suddenly understand, and he paid great attention to the goal system from then on.
A company's goals can be roughly divided into three items: first, profit; second, sales volume; third, market share. The first and second are common, but the third, market share, is less monitored, especially in foreign companies. It can be said that market share is a concept of brand, competition, layout, and planning. In this regard, private enterprises still lack systems and attention.
Goals are roughly divided into three types. The first is long-term strategic goals, such as three-to-five-year plans. These are directional and investment/financing-related, tied to industry trends and policies. The second is annual goals, which are related to signing annual contracts with customers and policy rebates. The third is execution goals, which are actually monitored. In my own industry, there are about two types of execution goals: one is executed monthly, the other quarterly. Both are common. Execution goals correspond to a whole set of tracking, assessment, and adjustment systems. Many private enterprises are also weak in this area.
The goal system is important in terms of formulation, decomposition, responsibility statements, authorization, interests, supervision, and adjustment. Especially goal decomposition is a big project, just like playing bridge: the bidding process is the most critical. Once the bidding is clear, playing the cards is almost unnecessary—it becomes a formality, a process. Sales are the same. If you lay out a complete and detailed victory on the sand table, and the team reaches a consensus, execution becomes simple, and execution becomes a natural process. This is the biggest lesson I learned in over 20 years in foreign companies.
The goal is the dragon head. Once the dragon head moves, the dragon tail swings wildly!
**Yunlian Organizational Reflections III: Vision and Mission**
Last time I talked about goals. Goals are actually specific, achievable, quantifiable, interrelated, and time-bound—what is called SMART. So they are all phased. Whether it's a three-to-five-year long-term phase, a one-year medium-term phase, or a one-month short-term phase, they are still phased. What big direction do these phased goals serve? That is the question of vision and mission.
Vision is the appearance of the ideal country, the other shore, the original intention, your ideal, your dream, the earliest original intention for establishing this organization. Perhaps because we have walked too far, we forget why we set out. So vision needs to be sorted out, often encouraging yourself, supervising yourself, and asking whether you still remember the original intention.
Mission is actually what you need to do to realize the vision. Of course, this "doing" is not specific work, nor is it phased goals, but the general direction of what to do when you set the vision. It can also be said to be your earliest business model, or not a business model, but just what to do, or the boat you take to reach the other shore.
In fact, vision and mission are very critical for an organization because they determine where the organization will eventually go and how it will get there. This determines what kind of companions to find. These companions must share a common belief, which is values. I will discuss this topic in the next part.
From establishment to gradual growth, vision and mission become the wind vane and motivator of organizational development. So it is necessary to refine a vision and mission that everyone can understand and that is unique to the organization. This is an important part of culture.
Don't forget the original intention, and you will achieve the ultimate goal! Vision and mission are the soul of the organization!
**Yunlian Organizational Reflections IV: Values**
An organization is a group of people doing one thing together. This thing is the vision and mission. The clearer and more explicit this thing is, the easier it is to inspire everyone to reach the other shore. So what characteristics do this group of people have? Here there is a question of common values.
Values, as the name implies, are about what is valuable and what is not, what is high value and what is low value. So when you face choices, you naturally choose what is valuable or high value. So values are actually a guide for choices. But the problem is that it is difficult to truly perceive our values. Why? Because most of our choices are a coexistence of consciousness and subconsciousness. Consciousness is mostly calculation, such as which plan is more beneficial to me, which plan gives me more face, etc. But the subconscious is instinct. Perhaps you calculate countless logics in your consciousness, but when it comes to the final decision, you inexplicably choose another. What is the mechanism here? Many people don't understand it themselves. It's like a joke: a boss recruiting a secretary gave a test, and the answers varied, but in the end, the boss chose the girl with big breasts. This is actually subconscious and instinct. People's subconscious and instinct are hidden deep, often unnoticed by oneself, but they can be seen from details and behavior, and others can see them clearly.
So when choosing a founding team, people often consider values and personality more, and they are cautious. So in the early days of entrepreneurship, everyone works hard and harmoniously. This is the foundation for the organization's survival and development. But later, as the organization expands, many people ignore the attention to values. Even some people who select others have values that deviate from the enterprise's values. Naturally, it deviates more and more, and then it becomes a mix of good and bad. Later, there is no core value or common value. Such an organization loses its culture and gradually loses the combat effectiveness of the early entrepreneurial period. In this regard, Huawei's Ren Zhengfei has done very well. From the Huawei Basic Law to "Striving for Survival" to "Huawei's Winter" and finally to the "Wolf Culture," he has always emphasized values.
People live because of values. After death, reincarnation is also due to karma, which is beliefs, values, and habits. Among them, values are the core. So values are the soul of a person, and also the soul of an organization. This soul needs to be sorted out and cleaned daily to avoid dust. The organization's vision, mission, and common values are the core content of organizational culture, and they deserve attention!
**Yunlian Organizational Reflections V: Diversity**
In an organization, different types of people come together. In fact, strictly speaking, everyone is unique and different from others. We just don't observe so finely in daily life, so we classify people with similar personalities or interpersonal styles into one category, resulting in various types. Today I want to use a classification method called the DISC model. This model can be tested through test questions to see which type you are.
The first type is the Peacock type. Naturally, they like to show off, like to perform, are active, quick to react, optimistic, positive, and open. This type of person is more emotional, likes to socialize, and seems not very scheming. Personally, I feel this type suits the marketing department personality. In fact, I am one myself.
The second type is the Tiger type. They like control, like to be the boss, have courage and responsibility, like risk, withstand pressure, are result-oriented, and don't like details. This type fits the traits of leaders or bosses. I also score high in this area, although I know I am definitely not a tiger type.
The third type is the Koala type. They are gentle, like to follow, don't have strong opinions, like to socialize, and are the lubricant of the team.
The fourth type is the Owl type. They are rational, good at thinking and analyzing numbers and logic, have their own opinions, don't like socializing, prefer solitude and quiet, and are technical talents.
There is also a Chameleon type, where the four scores of control, following, self-control, and letting go are all similar. This type has no typical traits and changes with the environment.
It is important to understand that everyone is different and differentiated.
It is important to understand that everyone has needs. While observing their behavior, think about what their needs are.
It is important to understand that everyone feels and reacts differently to the same thing. Never use your own feelings to infer that the other person feels the same. This is my biggest inspiration and feeling now!
**Yunlian Organizational Reflections VI: Discipline**
It's been several days since I wrote my reflections. Of course, I can say I've been busy, but overall, it's because I haven't been strict enough with myself. Thinking about it, I've already completed reflections on human nature, product, price, channel, promotion, Buddhism, Confucianism, and Taoism. Now I'm on organizational reflections. Each reflection is 20 pieces, meaning 20 days. So I've been persisting for almost a year. I really don't know if I can keep this habit for ten years! I really need to give myself a thumbs up!
Today I want to talk about discipline. These are my own feelings. In an organization, especially an old and large one, there will be many old-timers and slickers. They usually hold high positions, have strong abilities, rich experience, and many resources, but they are not easy to manage, especially when the leader is younger than them. These old generals become the biggest obstacles. If you dismiss and clean them all out, it will also harm the organization greatly. What to do? This is a long-standing difficult problem for many enterprises and organizations.
The general solution to this problem is discipline, because reasoning with these people is useless. They know more truths than you do, but they just don't act. For these people, the most important thing is to find someone who can suppress them, gather them together, scold them, reprimand them, let them reflect on themselves, make commitments, and take action! At this time, don't reason with them, because the person reprimanding relies not on reason but on authority! This authority is enough!
Where does authority come from? First, from grace. As they say, grace and authority go hand in hand. Without grace, where does authority come from? But only grace without authority still won't wake up the dreamers, because people are cheap! If no one beats them for a few days, they'll tear off the roof tiles! If no one scolds them for a few days, they feel uncomfortable all over. It's said of children, but adults are the same, especially those in high positions. Finding someone to scold and reprimand them actually makes them feel better. Generally, one such reprimand can be effective for half a year, and then you do it again. Of course, the reprimander must be highly respected and speak to the point, stopping at the right moment. This is great wisdom!
Once these troublemakers are cured, the organization is peaceful. In an organization, there are all kinds of people and roles, and different methods are needed for each. I observe and think from the sidelines, which is also a pleasure!
**Yunlian Organizational Reflections VII: Using Talent**
Today I continue to talk about using talent in the selection, use, cultivation, and retention cycle. I'll discuss a few key points:
In fact, the core of using talent is to make the best use of everyone and everything. So the core is to truly understand their strengths and weaknesses, especially the potential that has not yet been shown, and then stimulate it. This is not easy. Many good leaders can even be called second parents, giving employees a chance to be reborn, because they gradually become a completely different self. Of course, not everyone can encounter such a fate.
So, the first point is the organizational structure and job responsibilities. The leader himself must truly understand this. Many incompetent leaders don't even know what the position does. Some divide positions too finely, increasing communication costs and making people lack a big-picture view. Some leaders make positions too broad, and everyone is unclear about their specific responsibilities. Some job responsibilities are unclear, ambiguous, and overlapping. These hard injuries are the first obstacle to using talent. It seems I haven't discussed the topic of organizational structure yet. This is a big topic, and I will write it clearly below.
The second is to have a deep understanding of subordinates, including their hometown, family, growth experience, educational background, career, personality, habits, demands, complaints, emotions, etc. That is, the more you understand them, the closer you get, the easier it is to prescribe the right medicine. Many leaders are aloof and don't mix with subordinates, so they gradually become lonely and unable to form synergy with subordinates. The main purpose of understanding subordinates' various situations is not just for understanding, but to sort out their strengths and weaknesses, to complement each other. Everyone has something to offer. The key is your vision as a talent scout.
The third is to boldly use new people. I find that many leaders blindly trust headhunters to recruit new people externally. This parachuting model is not only costly but also prone to acclimatization problems. In fact, I prefer internal cultivation and promotion. Since you have the ability as a mentor, promoting new people internally may be more effective. And the biggest benefit of internal promotion is that everyone sees hope and is willing to perform, rather than feeling a ceiling effect. Boldly using new people will be hard at first; you need to teach them hand by hand. But once they grow, they will become your right-hand men. So the core at this time is: first, let them try and make mistakes; second, stand not far away and observe, and step in to fill the gap when problems arise.
The fourth is the management of particularly good and particularly poor employees. Generally, it follows the 721 principle: praise and encourage the 20% good performers, criticize or even eliminate the 10% poor performers, and finally drive the 70% majority. I will discuss the methods and measures in this regard later.
Using talent means being unconventional, bold, and careful!
**Yunlian Organizational Reflections VIII: Selecting Talent**
The most important factor in an organization is, of course, talent, and talent cannot be separated from the four links of selection, use, cultivation, and retention. Below, I will discuss these four links in four parts.
Selecting talent is naturally the first link, because a company is like a car heading to a destination. Choosing who gets on and who gets off is particularly important. It directly affects the speed of reaching the destination and also affects the performance and development of others. People in an organization are contagious. Positive energy spreads, but negative energy spreads even faster. So one person can affect a large area.
So the first principle of selecting talent is values. Look at whether this person's initial intention is for the good of everyone or selfish, cooperative or divisive, honest or lying without blushing. This is a way of life and thinking habit. Its contribution score to the organization ranges from +10 to -10. Obviously, if you select a negative person, the stronger their ability, the greater the harm.
The second criterion for selecting talent is a person's ability. How to judge ability? Based on their past learning experience, work experience, and achievements. Generally, at this stage, let the other party describe some cases, including background, goals, actions, results, etc. When discussing cases, the main thing is to understand their role and contribution. Many times, a person's achievements are based on the company platform. So when selecting talent, the main thing is to examine what this person can do after leaving that platform.
The third factor is work willingness, which is also very important. Generally, willingness comes from three aspects: first, the willingness brought by salary pressure; second, the willingness brought by interest in something; third, the willingness brought by the pursuit of success and the habit of not admitting defeat. I feel the latter two are particularly important, especially the third. I find that many successful people have developed this unremitting pursuit of success and the habit of never admitting defeat. Once this habit is formed, they can do anything well. When selecting talent, we should look for such people. Don't be afraid of their high demands. People who ask for high prices are always more cost-effective than those who ask for low prices!
The fourth factor is to observe their personality type. As I said a few days ago, people can be divided into peacock, tiger, koala, owl, and chameleon types. Different types of people are suitable for different types of work and for matching with different personalities. Especially for executives, careful assessment and planning are needed.
**Yunlian Organizational Reflections IX: Communication**
It's been several days since I wrote my reflections again. Haha, I can't blame other reasons, so I'll just attribute it to the hot weather. Last time I talked about the topic of selection, use, cultivation, and retention, but I haven't finished it. However, today I'm inserting a topic: communication.
Communication is particularly important. I even say on many occasions: management is communication, various kinds of communication, such as internal communication within the enterprise, customer communication, consumer communication, shareholder communication, media and government department communication, etc. This is what is called management, sales, brand, board of directors, public relations, and other different functions.
Today I mainly talk about communication between leaders and subordinates. These are also some of my recent feelings, because I have personally experienced different communication styles. Let me summarize them as a souvenir. We often see scenes of subordinates going to the boss's office to communicate. I see roughly three types of such scenes, and the actual effects and psychological feelings they bring are particularly different.
The first type is the boss sitting behind the big desk, and the subordinate sitting in front of the big desk or even farther away. The two are separated by the big desk or even a greater distance. This situation is particularly common. I think this kind of boss doesn't understand communication. This gives the subordinate a feeling of severe inequality. The actual result is that you don't get real information. Such enterprises are unlikely to have good development. You can see the corporate culture from some aspects. This is the old-fashioned traditional enterprise.
The second type is when the subordinate enters the office, the boss immediately gets up and goes to the conference table together to chat. Everyone sits equally at the conference table to communicate, not far apart, equal, and rational. Such enterprises belong to Western-style management. I worked in foreign companies for over 20 years and saw mostly this. Most of these conference tables are small round tables, usually seating four people. This kind of communication is harmonious and intimate. The boss is not condescending, and everyone discusses matters on their merits. Such enterprises are more rational, and communication topics are limited to work. I think this is not the best either. Of course, corporate culture is neither good nor bad; it's just my personal preference.
The third type is that the boss gets up and sits on the sofa with the subordinate. This way, everyone is particularly relaxed and intimate, with no obstacles in front. It can be said to be knee-to-knee talk. This atmosphere is not only about work, but more about feelings, dreams, vision, problems, and ideas. This is what a boss should really do. The boss should talk about ideological issues, and the people the boss communicates with should be executives, not the execution layer. So I am more optimistic about this communication style.
The boss's communication style is directly the core embodiment of corporate culture. When I go to an enterprise, I usually meet the boss first, and I go to the boss's office to chat. Naturally, from the boss's sitting posture and position, I can judge the style of the enterprise. Then I contact a few executives and see their communication style, sitting posture, and position, and I know where the problem lies. This is my insight today!
**Yunlian Organizational Reflections X: Cultivating Talent**
Earlier, I discussed the selection and use of talent in the selection, use, cultivation, and retention cycle. Today I will discuss cultivation. Many people think cultivation is training, but that's wrong. According to the 721 principle of self-growth, only 10% of growth comes from being trained and educated, 20% comes from guidance from wise people. Of course, the wise people here are not formal wise men; they may be your colleagues or subordinates, but their casual suggestions can inspire great progress and inspiration. Why? Because you have been pursuing hard, so such guidance has an effect. The other 70% comes from your own slow exploration and self-adjustment in practice, which is what Wang Yangming called the unity of knowledge and action. So the latter two items total 90%, and they share a common feature: you want it yourself! You have the willingness! With willingness, improving ability is not difficult. So today, when I talk about cultivating people, I mainly discuss a famous model called the GROW model, which is goal setting, current reality assessment, solution options, and next steps and commitment. I feel these four points are really important:
The first step is goal setting. This is completely different from the usual determination of work goals and goal decomposition. Most goal management is about things, is rational, and even logically derived. But when it comes to people's problems, reasoning is useless. The most important thing is to stimulate their inner desires and passion, thereby clarifying what they want. So this goal setting is actually a problem of exploration and guidance. It must be their own willingness, their own pursuit, their own responsibility. This is particularly important! It is not imposed by others, not forced, not out of reach, but something they must do and can achieve. This process of determining goals is particularly critical. In this process, guide the other party not to consider the current situation and the mess, but to look forward, so that hope and inner motivation can arise!
The second step is current reality assessment. That is, calmly look at what you do every day. In this discussion, do not bring subjective judgment or personal likes and dislikes. Just look at the other party's behavior and words in reality, including time management, attitude, methods, results, etc. In this discussion process, the other party gradually discovers the gap between the real self and the self required by the goal. Then it's easier later. Make this gap concrete, even write it down.
The third step is to let them think of solutions themselves and propose solutions. Of course, as a leader or mentor, you can also provide some suggestions and resources, but these are auxiliary. Be sure to note that the method is finally proposed by themselves, so they have a sense of responsibility. The responsibility is theirs, and the method is theirs. Naturally, it turns to the fourth step: implementation.
The fourth step is to propose the next specific action plan: how to truly bridge the gap, what specific actions and steps are, what the timeline is, what the short-term results are, who the supervisor is, etc.
Cultivating people is coaching. Coaching requires heart, with dedicated tracking, dedicated responsibility, making plans, and following up step by step. If you can truly do this, talent will gradually grow!
**Yunlian Organizational Reflections XI: Retaining Talent**
After discussing selection, use, and cultivation, we finally come to retention. Only by retaining talent can the team have internal cohesion and external attractiveness. I remember a teacher talked about team levels, saying that an excellent organization needs four levels. The first and most basic and difficult is team stability, which is related to today's topic of retention. The second level is standardized processes and systems, requiring a lot of training and supervision to achieve uniformity. The third level is the continuous improvement of skills and techniques, which is more about establishing a learning organization and cultivating a sharing culture. The fourth level is clear and correct strategic guidance and leadership. If all four levels are achieved, it's not just a retention issue; it's an excellent organization, a state of ideal country.
Today, when talking about retention, I mainly want to say three points. The first point is to give everyone something to look forward to, hope, and light. This is particularly important. Many people in the workplace feel a sense of torment. When will this torment end? It's hope, including the future of the enterprise and the future of the individual. This is the so-called vision. The more specific, clear, and achievable this vision feels, the better! What does it mean to feel achievable? It means information transparency, letting everyone see that the organization is approaching the vision day by day, and we as individuals are also approaching our goals day by day. No matter how long the road is, as long as you are sure you are on the right path and approaching the goal step by step, hope will rise in people's hearts. So the core of retention is to give people hope. Companies that grow year by year are fine, but companies on the decline are dangerous. If it is a declining company, you must explain the situation to everyone truthfully. Otherwise, letting people speculate and spread rumors will definitely be worse than the facts. This reminds me of a saying: Facts are never terrible; not seeing the facts clearly is terrible!
The second point of retention is fair, just, transparent, and satisfactory treatment and income. Obviously, the biggest demand for work is income. Whether income is satisfactory is related to several factors. The first factor is fairness. As the saying goes, people don't worry about scarcity but about inequality. The second is openness and transparency, and being able to calculate it yourself and know how to work to earn more. People are afraid of not knowing how their income is composed and how to earn more. In this way, the role of interest-driven incentives is lost, and it's naturally hard to retain talent. The third is that your enterprise's income level should be competitive in the same industry and region, such as at the upper-middle level. This is also important. Of course, income level is related to work efficiency. So my personal view has always been to use fewer people, simplify relationships, simplify work, and avoid those flashy formalities. Everyone should talk about the essence. This will greatly reduce personnel and workload. In this regard, big enterprise diseases are particularly serious, especially among the global top 500. I dare say that at least 60% of the work is completely ineffective, just for show!
The third point is interpersonal relationships, that is, to have a human touch. In fact, the key here is how the top leader views people. If the top leader respects employees, the culture will be good. If the top leader doesn't treat employees as people, such as some Taiwanese enterprises, the culture will be bad. I particularly hate the culture and style of some Taiwanese enterprises. Naturally, those enterprises' retention is crippled!
Giving hope, adequate treatment, and a warm culture—I personally feel these are the three key points of retention!
**Yunlian Organizational Reflections XII: Span of Control**
I feel the topic of span of control is very important but also very difficult, because it involves many different issues, such as leadership style, organizational structure, management model, information technology, network platforms, meeting methods, etc. Especially recently, flattening has become popular. Some companies stipulate that from decision-makers to the front line, there should be no more than three layers. But the span of control cannot be too large, otherwise communication is difficult. So how should these problems be solved?
Generally, when talking about span of control, it is often related to the number 7. The general span of control is seven direct subordinates. For example, at PepsiCo, a sales director led seven sales representatives plus a clerk, forming a standard sales office structure. Why is the number 7 so important? Because a famous psychologist made a major discovery: people's short-term memory elements are 7±2. That is, a good memory can remember 9 things at once, a bad memory can only remember 5, and most people can remember 7 things at once. So with 7 subordinates, a leader can manage. If too many, the leader may neglect one thing for another. If too few, efficiency is too low.
The span of control is also related to the nature of subordinates' work. If everyone's differences are particularly large and complex, the span of control should be less than 7, such as 5-6. So generally, VPs in large companies are set at 5-6, which is appropriate. But if subordinates are similar and their assessment systems are similar, such as a sales director leading several sales managers, it can be more than 7, such as 10-12, because everyone can compete on one platform, and more people can promote growth.
Also, if the company's information systems and IT systems are developed, such as OA systems, EAP systems, etc., the span of control can be increased, because a lot of information is easy to share and communicate, reducing the time for face-to-face communication and on-site guidance. Sometimes, to improve efficiency and increase the span of control, the most important means is to improve office automation, allowing everyone to report work on an information platform, and at the same time, improve together in a sharing culture and inspire each other.
Another way to reduce management layers and increase the span of control is to change the management model from process management to result management. This is authorization and delegation, even using business division systems, independent legal person governance systems, or listed company systems to split management functions. For example, a group is split into dozens of independent companies. Although the group president is only one, the span of control seems to be dozens, but because the group's management has become platform-based management, with various rules, regulations, standard processes, and various ROI evaluation systems and standards, the management model has changed.
So, span of control is a complex topic. If it is process management, it is generally about 7. If it is result management, it depends on whether the platform management functions are complete and coordinated. This is various governance models, which is another topic. I'll discuss it later if there's a chance.
**Yunlian Organizational Reflections XIII: Organizational Structure**
I have been learning about organizational structure since university, and it has been nearly 40 years. I have personally experienced all kinds of structures and have many feelings. Today I will talk about my feelings.
The line system, as the name implies, is one person fully responsible, without a staff department. All subordinates' matters are reported to one immediate superior, without the participation of others. This model is generally suitable for small organizations and has high requirements for leaders, requiring them to be all-rounders. This model has many advantages, the biggest being high efficiency, quick response, and harmonious relationships. Generally, the boss manages everything himself, especially in newly started companies. Of course, the boss in such organizations is also very busy and under great pressure, but with strong control. Among the enterprises I consult, many still continue this model even at a large scale, and it is still effective, but the boss is quite miserable. A typical example of this model is Wahaha, where Zong Qinghou is a representative of one-man rule.
The second model is the functional system. That is, the headquarters' functional departments are very professional and manage and control subordinate organizations in a line-based manner. In my over 20 years of foreign company experience, I feel that many of these Fortune 500 companies are structured this way. In these behemoths, you don't know who the boss is, and performance is not absolutely good or bad. The key is how you report and how you deal with the questions of the big bosses in various functional departments. So this requires particularly high emotional intelligence and PPT presentation skills. These foreign companies are actually very similar to state-owned enterprises, but of course, efficiency is much higher.
The third is the line-functional system. These are still relatively good models. There is a fully responsible boss at each level, and around the boss are some professional departments to help monitor and analyze the business. This model is well constructed in many joint ventures. Of course, I have worked in such enterprises for many years myself. It has both efficiency and analysis, with ideal big directions and practical execution. I like this style.
The business division system was invented by Sloan of General Motors. It is a decentralized system, result-oriented, that separates different business groups and lets them operate independently, so there is no need for too detailed intervention. The enterprise where I serve as an independent director is a typical example of this model. This model has unified responsibilities, rights, and interests, and is very good.
Another model is the project system, or matrix system. It is a cross-departmental temporary organization formed for important projects. This organization has clear goals and processes. Members are mostly part-time and still in their respective departments, but they are also in this project team. For example, various committees in an enterprise are such organizational forms. Such committees may hold one or two professional meetings a month, make decisions, and then implement them separately. This model is very good!
Of course, there are other models in theory, but I have not personally experienced them, nor do I have deep feelings, so I won't discuss them.
The core of organizational structure is responsibility, rights, and interests. I will discuss this specifically in the next part!
**Yunlian Organizational Reflections XIV: Responsibility, Rights, and Interests**
In organizational design, the consistency of responsibility, rights, and interests is the most basic requirement. But in actual implementation, how to achieve the consistency of these three is not easy. Below, I will talk about my personal experiences.
The first is, of course, to clarify what responsibility is. In fact, many enterprises are not very clear about this. The first principle is that responsibility is attached to the position, not to the person. But in reality, in many enterprises, especially small private enterprises, responsibility is attached to the person. I once went to watch a formal symphony performance, and you could clearly feel that in a good work, the role is more important than the individual. In a symphony orchestra, you are just a role. Whether your ability is high or low, you must first obey the role's regulations, and each role's contribution in a work is limited. The most important thing is harmony and rhythm.
So responsibility first is the job description. This description is unrelated to the specific person. It stipulates what the position should do, with both qualitative and quantitative aspects. Of course, some positions can be specified very specifically and strictly, while others, especially higher positions, can only be specified in general directions. But the job description is still very important, especially for new employees. Receiving a detailed job description and a complete onboarding training is particularly important for them to quickly adapt to the new position and improve work efficiency. So responsibility should be specified first.
Second, rights are the resources needed to complete responsibilities. If rights are greater than responsibilities, it will form privilege and corruption. If rights are less than responsibilities, it will lead to inability to bear responsibility, resulting in powerlessness and complaints. Obviously, both situations are not conducive to the operation of the organization. Rights include personnel rights, including organizational structure design, staffing, recruitment, promotion, dismissal, assessment, incentives, etc. Second, financial rights, including budget formulation, approval, verification, reimbursement, etc. Third, material rights, such as work plans, material allocation, business command, policy formulation, emergency handling, etc. Fourth, information rights, such as which meetings to attend, which reports to view, which issues to discuss, which decisions to participate in, etc. Obviously, personnel, financial, material, and information rights determine your actual position in the organization and also ensure whether you can smoothly deliver the responsibilities you bear.
The third is personal interests. As the saying goes, no one gets up early without benefit; people die for wealth, birds die for food. The guarantee of interests is also particularly important. Interests include basic salary, bonuses, commissions, benefits, equity, special rewards, etc. Many old concepts felt that talking about interests was not good, but now with labor laws becoming stricter, the aspect of interests is becoming more rational and objective. The relationship between individuals and organizations is mutual use. This was said by my big boss at Shell Oil in 1998. At that time, I was young and felt how could such a big boss talk like that. It wasn't until many years later that I realized it's actually good to treat the contractual relationship between employer and employee rationally. Putting aside the so-called feelings and dedication, this is the easiest thing to do.
Regarding rights, responsibilities, and interests, I think the most important thing is rationality. Think clearly in advance, focus on the matter rather than the person. This will simplify complex problems and separate them from individuals. This may be a professional HR's homework.
**Yunlian Organizational Reflections XV: Change**
Change is a very common word, because the market is changing, consumers are changing, and our original successful experiences no longer work. Not changing is waiting to die, but changing is seeking death. However, seeking death is still better than waiting to die, because you might still find a way to live. Many successful people have discovered miracles on this so-called road of seeking death.
When is change needed? Naturally, it's best to change proactively. When performance is still rising but you find that the momentum is weakening, at this time, the system's resources and confidence are still there, and change is relatively easy. Also, when performance has begun to decline and everyone is panicking and confused, change is still possible, although it will be more intense. The worst is when performance has begun to plummet and distributors have left one after another. At this time, it becomes a life-and-death decision of cutting off the wrist. Generally, the difficulty of change at this time is very great, because you have been abandoned by everyone, and it tests the psychological quality of the operator.
There is a lot of research on change, but I still prefer John Kotter's theory. I feel his eight steps are very practical and very similar to the changes I have personally experienced.
The first step is to create a sense of urgency in everyone. This is particularly important, because people naturally don't like change and uncertainty. They always fantasize about continuing the current good life, or even miss the old life. Especially some older employees and those with vested interests are more resistant. At this time, the best method is the "see-feel-change" model: use various vivid tools to put the cruel facts in front of everyone, let everyone talk about their feelings, and finally gradually reach a consensus for change.
The second step is to build a core leadership team. Change must have someone to lead, and it is not spontaneous but organized. This change leadership group does not necessarily consist of current leaders; you can also find professional technical personnel and ordinary people, authorize them, and support them to explore.
The third step is to establish an inspiring vision. Tell everyone where we are going! What are the benefits there compared to here? Such benefits and interests are very critical. Give everyone hope, light a lamp in the dark night of fear. Although the lamp is far away, we still need to explore many roads to get there.
The fourth step is large-scale communication of the vision. That is, do everyone's ideological work: various meetings, various articles, various posters. This reminds me of Li Dongsheng of TCL's "Eagle Rebirth" back then. A series of actions were very exciting. I was moved to tears at the time.
The fifth step is more authorization. Change naturally has risks and requires trial and error and funds. No one can guarantee that change will succeed. So the boss must give the change team more support and encouragement. If you quickly ask the change team for ready-made results, you will return to the old path, because there is still food on the old path, but it is a road of no return, only short-term maintenance. So once you decide to change, the boss must bear the risk together. In fact, this stage is the most difficult and painful time, and many changes die here.
The sixth step is to achieve short-term results. This small victory is of great significance; it can boost morale and stabilize the position.
The seventh step is to refuse to relax, because the road ahead cannot be smooth sailing. There will be many repetitions and difficulties. At this time, team unity, firm boss, and positive energy of the masses are very critical.
The eighth step is to fix the new behavioral norms and corporate culture as a system, not allowing anyone to doubt or overturn it, because this is politics within the enterprise. I have seen many enterprises where there is also politics. Political issues are not economic issues; you can't calculate small accounts, but must persist.
Change is a painful thing, but as enterprise consultants, we often intervene at this time. Our greatest contribution is to use our wisdom and experience to tell entrepreneurs: where are we now? Where to go next? Where will we finally go? As for how to get there, that is not something consultants can do!
**Yunlian Organizational Reflections XVI: Culture**
Recently, by coincidence, the two companies I consult are doing the same two things at the same time: brand positioning and corporate culture. I think this shows the wisdom of bosses is similar. In fact, when an enterprise reaches a certain level and wants to break through further, it needs to cultivate both internally and externally. Externally, it needs a clear and consistent brand proposition; internally, it needs a corporate culture that is commonly recognized and believed. And these two are in a chicken-and-egg relationship, and it's good to promote them together!
In fact, brand is a result. When all employees form a unified cultural consensus, the consistent details presented are naturally the brand. So brand is a result and presentation. What matters is the internal cultural construction, which is the foundation. So brand positioning, in the final analysis, is not needed.
But conversely, corporate culture is also a result. If your brand is positioned, the target group is clear, and the product concept is clear, then naturally the behaviors of R&D, sales, HR, and administration are unified. Behind this is culture. So culture is definitely not slogans, not oath-taking at meetings, but everyone's conscious actions and unintentional words and deeds. In the end, it cannot be stipulated; it is a natural process and the accumulation of behavioral details.
This makes it even more confusing. Brand positioning is natural, not deliberate; corporate culture is natural, not deliberate. So what is not natural? What is deliberate? In fact, nothing is absolutely deliberate; everything is a natural process. As the saying goes, birds of a feather flock together. From several founders coming together to the team growing day by day, culture and brand positioning have always been there. So-called sorting out is just to sort out and clarify the existing context and remind newcomers.
Today I was studying Walmart's corporate culture manual. I found that the first page has a sentence from the founder, and the second page has a paragraph from his son, the company chairman. The son wrote about how he and his siblings helped their father look after the store when they were young, seeing the spirit of paying attention to details, the spirit of warmly receiving and serving customers, and the warmth of employees enjoying the big family together. This is culture, a belief, a heritage!
Culture is a silent call, a belief in the heart, a unified unconscious behavior pattern. These all come from the accumulation of details in daily life. If it is real and practiced, it has power, can inspire people, and truly exists. Otherwise, it's just for show; better not to have it!
In fact, brand positioning is the same. What is false can never become true; what is true will eventually be revealed!
Culture first comes from the belief of the top leader, second from your value choices and judgments, third from who you choose to let on the bus, and fourth from where you want to drive the bus. All of this, whether you write it out or not, is there! It is neither born nor destroyed, neither increased nor decreased, neither pure nor defiled!
Haha!
**Yunlian Organizational Reflections XVII: The Top Leader**
Every time I write reflections, it is actually the insight of that moment, a kind of coincidence. Just now, I read an article in my circle of friends about Xu Jiayin of Evergrande, talking about his ups and downs, his boldness and resilience. This reminded me of the various bosses I have come into contact with in the past. I realized that in an organization, the final style is determined by the personality of the top leader. Whether explicit or implicit, the person who makes the final decision determines the direction of the organization. Sometimes you might feel that the boss seems to have no personality, but you are wrong. Everyone has their own personality; some are more prominent, some are more restrained. But if you look at their development trajectory and decision-making style, you will slowly understand their style. There is no good or bad; the top leader is destined to become the soul of the organization.
The top leader's personality is first shown in whether they are adventurous or conservative. Many successful entrepreneurs we see seem to be adventurous, and it seems that doing business should be adventurous. This is a misunderstanding, because the proportion of adventurous entrepreneurs who die far exceeds that of conservative entrepreneurs. So the successful ones you see are lucky ones out of ten thousand. The conservative enterprises around you, although they are unknown, many of them have not died. Being alive is actually very important; being alive means there are opportunities!
Another trait of the top leader is whether their mindset is open or closed. This is reflected in whether they use obedient or talented people, and whether they find partners they can control or those who can bring resources. These are huge choices and also test the nature of the top leader. My personal insight is that in an organization, the most tangled thing is the sense of control and development. This is the most common contradiction. If you want the organization to be under your control, you may not tolerate people you don't like, and you may not tolerate the integration of different styles of capital and resources. Naturally, your development will slow down and you will miss many opportunities. Conversely, if you particularly value development speed, many different styles of talents, capital, and resources will quickly integrate, and the company will develop rapidly. But you will find that your control decreases, and the company becomes more and more unfamiliar to you. This is a big dilemma.
The third trait of the top leader is whether they are truly generous. Many bosses say that to gain, you must give, but when it comes to actually distributing with executives, they are very stingy. In fact, no one is a fool. Whether you are a generous boss or a stingy boss, everyone knows it clearly. This naturally determines the degree of employee commitment. Like Huawei's Ren Zhengfei, who gives greatly and gains greatly, how many people can do that? So Huawei has grown big. The boss's mind ultimately determines how high the enterprise reaches. This is very natural.
Of course, there are many other traits of bosses. In an enterprise, no matter whether the organizational structure is perfect, the rules and regulations are complete, or the process standards are strict, the style of the final decision-maker is there, and it can never be erased!
**Yunlian Organizational Reflections XVIII: Delegation**
In an organization, a leader often becomes busier and busier because there are more and more things to handle. At this time, they feel that time is increasingly insufficient. Some leaders enjoy the feeling of constantly signing, and some leaders even lose their temper because of it. But there are also many leaders who are not so busy and have more time to think about more important future matters. Why? Because of delegation!
Delegation, as the name implies, is to delegate your power to subordinates to handle. Obviously, this will reduce your tasks, and subordinates will also get exercise. But the problem is that if you delegate improperly, problems will arise. So delegation must be very careful. At the beginning, subordinates try to handle it but finally get your confirmation, meaning it's not fully let go. The second step is to let subordinates handle it themselves but report to you afterwards. At this time, the power is delegated but the responsibility is not. The third stage is that such matters are completely handled by subordinates, with clear provisions in the work process. Obviously, at this time, both power and responsibility are delegated.
In the process of delegation, there are obviously steps. The most should be delegated are matters that are neither important nor urgent. Delegate all such matters to subordinates, and your mind will be much clearer. For example, small-amount reimbursement signatures, material audits, and unimportant confirmations in the process can be delegated to subordinates.
The second type is matters that are not important but urgent. These also need to be delegated, otherwise they will keep you busy and consume a lot of energy. For example, various unimportant meetings can be delegated to subordinates to attend, and they can tell you the results when they return.
The third type is matters that are important but not urgent. These should not be delegated, because they affect the future and most need to be handled by yourself. If not handled well, they will create many urgent matters. For example, matters about personnel, training, brand, and R&D. These seem not urgent but are particularly important, so it's best to handle them yourself.
The fourth type is matters that are important and urgent. Generally, they need to be handled the same day. Obviously, delegation should be very cautious, but selective delegation is still needed. Of course, you need the most suitable person. Delegating these important and urgent matters best exercises subordinates and also tests the boss's boldness!
Delegation generally requires a process, such as a delegation letter, stipulating the financial amount that subordinates can review, such as the approval amount within the budget, the approval amount outside the budget, and also pricing power, promotion formulation power, personnel power, material allocation power, new customer opening power, etc.
Since delegation is from superiors to subordinates, there are two principles: first, this power must be fully owned by the superior; second, the delegated power needs to be monitored. If problems arise, it can be taken back. I have encountered enterprises that had problems with these two points before, causing many disputes and troubles.
Reasonable delegation: delegate routine matters, handle exceptional matters, be flexible, and lead efficiently!
**Yunlian Organizational Reflections XIX: Making Exceptions**
In an organization, executing according to rules and systems is the most normal thing, but making exceptions truly reflects the charm of the organization and the talent of the leader. Many times, making exceptions is the biggest highlight. Of course, exceptions cannot be too many; only at the most critical moments!
For example, making exceptions to recruit and promote talent is the time that best tests the leader's vision. Because HR, based on general experience, sets conditions and rules for recruitment and promotion. These are conventional judgments. But there are still some exceptional people who have particularly outstanding abilities in one aspect, but other aspects completely fail to meet the requirements. For such geniuses, the probability is low, and management is difficult. But if discovered and used well, they may produce unexpected effects. The key is whether the leader has such boldness.
The second exception is handling emergencies. For example, when encountering natural disasters like typhoons or heavy rains, the company urgently announces a day off, and emergencies can be handled from home. This is actually a small matter, but for a large enterprise, when the boss makes such an exception decision, it still requires determination. Naturally, many times such decisions bring warmth and a sense of belonging to employees, which is very valuable.
Generally, leaders enforce discipline by talking about achievements at meetings and discussing problems privately. For trend or group problems, they must make a mountain out of a molehill, prevent problems before they occur, and criticize loudly. But for individual mistakes, they should communicate privately. When communicating, they should not be polite, speak seriously, dig into the root cause, but if the person recognizes the mistake, the handling can be lenient. This is also an exception. For such handling, you cannot completely follow the rules. In fact, rules are only used to handle general events. Leaders have some power to make exceptions.
Many leaders or bosses have some capricious moments. For example, when the wife suddenly announces pregnancy, they give the whole company a day off. Or when they suddenly hear good news, they gather the executive team for a big drink. Such capriciousness is sometimes cute, but of course, it can't be too much. But occasional exceptions are not bad!
**Yunlian Organizational Reflections XX: Respect**
Unconsciously, organizational reflections have come to the last part. What should I say at the final moment? I finally chose topics like respect, appreciation, and sense of achievement. Why? Because I recently found that marketing increasingly emphasizes stimulating a person's original energy. Only when a person truly understands that they are a person, not a machine, can many potentials be truly stimulated. For example, the Olympic slogan is "Ignite your passion," and Disney's slogan is "Light up the magic in your heart." These are all such methods.
Respect is particularly important in an organization. When a subordinate is truly respected by their superior, their mood becomes happy, confidence strengthens, creativity is stimulated, work efficiency improves, and their attitude toward others becomes friendly. Everything enters a positive cycle. Conversely, if they don't get respect, everything becomes terrible.
Another is appreciation. In fact, a person always has times when they do well and times when they do poorly. Some leaders like to praise, some like to criticize. These are habits. But overall, leaders who know how to praise, especially those who specifically point out subordinates' strengths and appreciate them, will significantly improve organizational cohesion and combat effectiveness.
Third, conduct PK and competitions within the organization to form an internal competition mechanism. This will give employees a sense of achievement and a feeling of winning and losing. Winners are motivated, and losers are convinced. This will make the organization vibrant and full of life. Leaders should often use such small ideas to ignite the organization's inner energy!
Ignite the passion in your heart, light up the magic in your heart. These slogans can be the ending of the organizational chapter. What is the next topic? I need to think about it. Friends can also leave messages to give me suggestions!
-END-
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