"So, you've been holding back and not using equity incentives until this time, because you're trying to convince your current team that is making money lying down to move to a project that is still pure investment and has an uncertain future?

Are you because their short-term interests are aligned with the company's short-term interests, and now their long-term interests may not be aligned with the company's long-term interests, so you add equity as a factor to make them 'personal long-term interests are also consistent with the company'?"

After listening to Gu Biao's analysis, Han Ting concluded.

Gu Biao drank all the red wine in one sip and affirmed: "That's right, I have always believed in a sentence, if you only have one day of common interests with the other party, then you should treat the other party as a migrant worker on a construction site, and pay the other party for daily labor services."

If you have a week's worth of mutual interest with the other person, then pay a weekly wage, just like an assembly line worker in the United States.

If you have a monthly mutual interest with the other person, then pay the same monthly salary as a white-collar employee.

If you have a common interest with the other party for a quarter or a year, then you rely on commissions and year-end bonuses to attract people just like you do with R&D/sales backbones and department managers.

You only need to use equity if you have to maintain a common interest with the other party for more than two years. Once the equity is used, it means that he will always go with you.

The company's brand, goodwill, and reputation become valuable, and it is also good for him, even though these intangible assets can never be directly realized by him. The company will temporarily lose a year or two of commissions and losses from investing in new projects, and he will be willing to endure it temporarily. The use of equity is only related to one factor, and that is how long you need him to consider your interests in the future.

If the short-term interests of less than two years do not need to consider equity, then the thing is not flexible, and the tail is not big. The year-end bonus is so good that you can still work hard this year to give more, and you won't give it next year. After the equity is given, you can't regret it, and there are many fewer ways to deter the lazy and selfish. ”

Internet companies talk about equity because Internet companies are losing money.

From the very beginning, it was a cash cow business, what equity to talk about!

Gu Biao began to give shares to Erikson, Professor Lucas, and even Yang Hao and Lu Yunda, precisely because from today on, he needs them to cherish the brand "Tiankun" with him, so that they don't think about anything that can make quick money, but will damage Tiankun's reputation.

For example, the one that was vetoed by Gu Biao was "recreated a handheld that users will throw away after buying it and playing it for 200 hours, and regret buying it at a loss".

When Han Ting heard this, she only felt a burst of enlightenment, and many things were completely integrated.

The performance is their own, the brand is the company, only the brand and goodwill, can never be used by employees to realize. Therefore, if you give them a little equity, you can buy off the employees to cherish the company's public brand.

Therefore, the maximum scope of equity distribution is all employees who "have the opportunity to add to the company's reputation, or damage the company's image".

As for those who want to damage the company's reputation, they are not eligible for equity allocation, because they are not even theoretically threatened.

For example, workers on the assembly line, even if they want to slack off to produce defective products, quality inspection will find and stop them, so they have no chance of destroying the company's reputation.

As for salespeople, they may slander the company's goodwill from customers, leak insider information and pretend to be close to customers, in exchange for "the company's reputation is damaged, but personal performance increases", so they theoretically have the use value of being granted a little equity.

As for R&D and design personnel, they also have the opportunity to slack off, make a product experience that is not very good, and do not strive for excellence, so that the company's reputation and image will be reduced.

In a word, only those who have the opportunity to damage the company's reputation can be included in the basic plate for the subsequent consideration of the equity utilization value. This outsider, when considering the issue of equity structure, is not even qualified to be used like a complete person.

However, the above words are just Han Ting's extreme ideas of overcorrection before she was stimulated by the novel management concept of the outside world and the trend of slightly blackening.

Confused, she asked with difficulty and sadness: "I somewhat understand the old Ford's sentence 'I just want to hire a pair of hands, why do these hands have to bring a head to let me feed together', at least, according to this standard, I return to Hanle Electronics, where there are not many employees who can be respected like 'complete people'." I don't want to be such a black-hearted capitalist, the worker level is the master!"

Gu Biao comforted: "Of course not, those assumptions just now are 'assuming that they are not qualified to affect the company's reputation, so there is no use value at the equity level'." However, if you can refer to Toyota's 'lean production/lean management model', instead of just looking at Ford's half-century old-fashioned cliché, it is not difficult for you to find:

At Toyota, a production line worker can also put forward QC suggestions, can also propose to optimize the process, and also has the right to press the emergency stop button on each station and temporarily stop the flow of the assembly line after discovering the risk of systemic defective products.

In this case, the worker is a variable that has the right to affect the company's brand image and value. This is also why over the years, many of my technological processes and quality inspection standards have been moved to other countries, and the product quality is not as good as the quality of the local company, because in Japanese companies, everyone's enthusiasm or not affects the final degree of excellence.

Therefore, whether workers have the value of being used at the equity level depends on whether your system is designed to give workers room to play, whether they are willing to play, whether the rewards for good performance are attractive to them, and even the corporate culture, and many other factors. It can't be generalized, you give the opportunity, they are willing to take it, they are the ones who have extra value. Management is too complicated for you to understand after listening to me explain it for a few nights. ”

Gu Biao's final answer made Han Ting's heart feel a little better, and the degree of collapse of the three views she received from her childhood education was also slightly bridged.

"We Chinese workers are definitely more active and diligent than the workers of Xiaoyueben! They must be useful!" Han Ting whispered in a comforting voice.

Gu Biao persuaded softly: "You have been tired in the past two days, don't think about it, rest early." There are other discussions waiting for us tomorrow. The competition of the new generation of home machines cannot be allowed to fail, and our quality control must also be upgraded to another level, and it is not enough for you and Guo Taiming to cooperate now. In the next two days, I still have a few plans, and we will sit down and talk about it. ”

Han Ting listened very well and went to rest.

There was no word in the middle of the night.

……

The next day, Gu Biao recuperated his spirit and continued to lay out the ground vertically and horizontally.

The last uncertainties he has to control are loopholes in production, quality and process, as well as the institutional design of supplier competition.

Han Ting also sat on the opposite side of Gu Biao for the first time and participated in the meeting. The attendees also changed shifts.

At the beginning of the meeting, Gu Biao set a tone magnificently:

"So far, the cooperation between Tiankun Entertainment and Hanle Electronics has been very pleasant, the two sides have fought side by side, intimately, and Hanle Electronics has developed into a large electronics production giant in the mainland under the supply of orders and foreign exchange from Tiankun.

Hanle Electronics and Hon Hai Precision, a more upstream supplier mastered by Mr. Guo, also provide excellent quality and stability for Tiankun's products. Here, I would like to thank all of you for your continued support. ”

Guo Taiming also came from the Special Administrative Region for talks this time, he didn't know the inside story as well as Han Ting, and he was slightly apprehensive.

"Listening to what the boss Gu meant, is it to introduce supplier competition or what? I always feel that behind his good words, he must follow a 'but' ......"

Guo Taiming guessed well, because Gu Biao immediately but.

However, with the increasing volume of business, many problems in inquiry and running-in are becoming more and more prominent. I have a good personal relationship with Mr. Han, if I calculate the cost of materials, and then add a few dollars of gross profit, and report to Mr. Han to let her do the OEM, she will probably give me this favor.

But this is not a long-term solution, because the company is big, each company has dozens or even hundreds of people, and their income and interests are linked to the total profit of their own company and the profit of the project. Mr. Han and I are willing to admit the account, or suffer a loss sometime, and the brothers below will inevitably be unwilling, which is not conducive to serving the public. ”

This reason is very correct, Guo Taiming also felt concerned when he heard it, so he asked first: "Mr. Gu, I also think so about this matter, I don't know what you have to solve it?"

Gu Biao nodded with satisfaction and signaled that this question was very good: "So my assumption is that both parties should expand their business scope and no longer be bound by a large customer, so as not to lose sensitivity to market price signals."

In the future, in addition to looking for Hanle Electronics OEM, we will also maintain one or two small suppliers to provide a part of our OEM and also provide a capacity insurance.

In the same way, in the field of consumer electronics, in addition to the current color TV business for the mainland market, Hanle Electronics can also help OEM some walkmans and other portable electronic consumer goods.

After both parties have spare tires, they can also ensure that the living water of market competition is completely activated, and when they talk about OEM prices with each other in the future, they can no longer feel that you are at a loss or I am at a loss. The brothers on both sides were able to convince the public, so that they would not feel that their interests were channeled by the boss to their friends. ”

Guo Taiming's eyes lit up when he heard this: "We have no problem with this, but aren't we afraid of increasing suppliers and causing quality risks? As far as I know, unless you spend a lot of money to find our own OEM, it will be difficult for you to find the quality of cooperation with my old Guo and Mr. Han in all of Asia." ”

Guo Taiming's sentence is not bragging, because the quality management of the Foxconn department in history is indeed very good, and the stick was not good at that time, so after excluding himself, he really has no opponents in Asia.

Faced with this good question, Gu Biao replied approvingly: "Of course, this is a problem, so I thought of two other supplementary methods - first, I hope that Mr. Han can agree, and in the future, Mr. Guo's Hon Hai Precision will be allowed not only to be an upstream supplier to Hanle Electronics, but also to other electronic assembly companies to do upstream support."

I believe that Mr. Guo has played a sense of quality under free competition. In this way, we have achieved free competition and mediocrity in all three links, and the risk is greatly reduced.

Secondly, we can invest in three parties to set up a 'process design company', which will be responsible for the production design work in the future, and take over the work of the current hardware engineers to take over the work, and also be responsible for optimizing the production line process and process, and forming a special process document preparation.

I hope that the process flow documents produced by this process design company can be standardized, and in the future, no matter which foundry in the cooperation system is used to OEM, the workshop director of the foundry can thoroughly understand the process documents without ambiguity and construct them as soon as possible. In this way, the quality control risk caused by the introduction of new suppliers is minimized.

What's more, this is just to add a little competitive element to activate this pool of living water, the vast majority of our production capacity, in the future will still be made by Hanle Electronics, after all, today's monthly output of 300,000 handheld manufacturers, in East Asia in addition to the region, but there are only a handful. ”

"Wonderful! The current process design of the production line is all Tiankun came to the hardware engineer, communicated with the person in charge of our production line, and then set a process. If the product design and process design are separated in the future. The process design is completed independently by a third party, and the compatibility, versatility and quality stability will not come up!" Guo Taiming's eyes lit up and applauded from the bottom of his heart.

He is fully aware that Gu Biao's suggestion is also very beneficial for him to do Hon Hai Precision.

It can only be said that Boss Gu's consciousness is too advanced.

In the end, it is a tycoon who is thriving in the United States, and the height of his opinion is different.

Han Ting has also been working in the management of the electronics factory for two or three years, and she is also aware of the mystery here, so she echoed without hesitation: "I also agree." I don't know what you think, how to set up this process design company?"

Gu Biao: "I plan to wait for the end of an important project here next year, and send one of the current main leaders of the hardware department, Lu Yunda, to a new process design company." After that, he was no longer in charge of circuit research and development, but in charge of process implementation.

He has followed me to do two big projects and several small arcade projects, and so far he has gone to the production and line, and he is absolutely experienced in the whole process. I believe that he is competent enough to be the future president of the 'Han Kun Electronic Process Design Company', do you have no opinion?"

Han Ting: "I have no opinion on the candidate, Hanle can produce two workshop directors with the most experience in dealing with process improvement and investigation, and go to be a technical deputy." The key is how to invest in equity? Whoever completely controls this company will inevitably make the employees below unconvinced. ”

Gu Biao: "Then we will invest 40%, 30%, and 30% of the tripartite, so that any two parties can combine to exceed 50%, so as to prevent everyone from feeling that the pricing after the process design is biased."

I think this company needs certain electronic process testing equipment, the hardware cost is still relatively high, and it is impossible to make a profit in the short term. A total share capital of $2 million is needed to ensure a steady sufficiency. Tiankun Entertainment will contribute $800,000, and Hanle and Hon Hai will each contribute $600,000. ”

"I agree, it's settled. Han Ting agreed.