In January 1995, after the annual meeting of Xinchuang Electronics Group. In view of the increasing scale of the new venture electronics group, even if it is delegated to a subsidiary, it still brings a huge management burden to the group headquarters. Therefore, Lin Qi put forward his own opinions on the future management mechanism of the group company at the headquarters of the group.

The traditional management model is not applicable to a company as large as ours, and our senior management will not have so much energy and wisdom to solve the events and decisions of different subsidiaries in all aspects. Therefore, we have to be decentralized, and the top level will become more and more inactive, and the bottom will use their brains to do things. If our top management gives more orders, the people below will not take the initiative to do things. This leaves a lot of our brains idle and less efficient!

The main difference between humans and animals and machines is the uniqueness of their mental resources. Even with the continuous development of computer technology, it is still far from the complexity of the human brain. The essence of decentralization is not to let a few minds think about decision-making, but to let more brains be used to avoid idle and wasteful resources.

Decentralized management is just a thought, and there is no fixed routine for what the specific model is. However, let me give you a few examples.

One is similar to Warren Buffett, as the controlling shareholder of many listed and unlisted companies, but he stays out of the way, only evaluating the operation and valuation of these companies, and deciding whether to buy, hold or sell. Because, he basically does not participate in management, and if he does not manage, there is naturally no problem of low management efficiency. Of course, Berkshire is also smart because it is only an investment company and does not have the experience to manage and operate specific industries. Therefore, how to manage and operate, continue to follow the old method of the company it acquires or shares in, as long as the old method is always effective, it will never interfere or change, which also avoids the layman from commanding the insider. If a company's past advantages fade into obscurity, and it takes a lot of cost and uncertainty to restore it, Berkshire will most likely choose to sell its assets and exit easily, rather than choose a difficult model to improve a company that has lost its competitiveness and regain market competitiveness.

Of course, Warren Buffett's decentralization is not for us, we are an innovative company, not a company whose main business is financial investment. This is destined to be more complex than Warren Buffett's Berkshire model, and not as streamlined as his model!"

Lin Qi said with emotion: "Therefore, I prefer a decentralized management model that relies on the Internet...... For example, Tesco is a typical decentralized management, and the operation team mainly operates and maintains the stability of the platform, that is, the website. In fact, the process of purchasing and delivering goods is done by the merchant himself, no one tells him how to do business, and there is no KPI, so if he wants to make money, he has to do more business. The same is true for logistics companies, the contracted couriers, receiving, delivery will not have strict task assessment goals, but how much money to complete a single order, so as to prompt the couriers to decide whether to do more tasks according to their own ability and will......"

"In addition, small commodity markets, farmers' markets and the like, operators provide places, will not interfere with the operation and pricing of specific stalls, which is also one of the decentralized management, so the farmers' markets, small commodity wholesale and retail markets, in fact, are very dynamic, can not survive in the market stall owners, soon closed, replaced by more suitable for the market stall owners to operate. Market managers only need to collect rent, and are not afraid that the profits of the business will be let others do it, in fact, those who take the initiative to do business are at the risk of losing money. In essence, the managers of the shops and stalls rented out in these markets pay far lower management costs than department stores, the risks are lower, and the profit stability is higher and more certain...... Of course, the market cost of this kind of entity is very high, and there are geographical limitations, and the limitations are extremely high, so it is far less decentralized than Tesco. Because, the decentralization of Tesco is based on the decentralization of the Internet, the scale can be infinitely expanded, and the cost will be lower and lower with the growth of the scale! Now Tesco has sales of less than 20 billion US dollars a year and more than 5,000 employees. In the future, 100 billion US dollars will be needed, and it is estimated that 10,000 people will be needed. I think 20,000 people can sustain the annual commodity transaction scale of 1 trillion yuan, and even if the scale is larger in the future, the cost will not increase much. Becoming larger will not become a management burden, but a huge platform advantage, which is the decentralization of the Internet era, or the decentralization of setting up a platform and allowing others to make money on the platform. ”

In addition, the creation of films, music, comics and other entertainment products is actually decentralized, and there is no high-level instruction for these creators to create what themes. It's about the creators themselves researching the market and deciding what they want to create. If anyone can completely monopolize the entertainment distribution market, then they will basically be invincible. ”

"Why do we want to decentralize management? Because, after decentralization, we senior management only need to think about whether to invest in Tesco and whether to invest in any new field. As for how to run these projects, this is a matter for the team of the specific project, not a matter of high-level thinking. There are fewer and fewer issues to consider at the top, and more and more directional, strategic, and looking at the future, rather than wrestling with a group of pig-like opponents in the quagmire of the present, and getting themselves covered in mud. ”

After the end of the speech on what management model the group company will use in the future, the new venture electronics group has caused a great shock.

Of course, Lin Qi did not suddenly propose a management model that was completely different from the company's past management mechanism, but upgraded it on the basis of the past management model of the new entrepreneurship department.

In the past, the management model has been referenced from Warren Buffett's Berkshire. However, the Berkshire model is more suitable for traditional industries and pure investment. It is not suitable for the innovation of the future, a lot of innovation, it needs additional investment, it needs more professional research, so the complexity will be far more than that of Berkshire countless times.

However, there is no problem with directionality, decentralization is a very popular and fashionable trend in enterprise management in the future, and many innovative enterprises and Internet companies, to a certain extent, will most likely explore decentralization.

Alibaba, for example, and Tencent, are actually decentralized. Running a good platform is the core interest, as for the platform is used to do e-commerce, games, videos, live broadcasts, and financial management, this is not the most important. The key is that after establishing an advantageous platform, countless projects can be incubated and business opportunities can be explored in the platform traffic and user ecology. The specific project team, how to position, how to market, and who will succeed is not what the platform cares about. As long as the traffic and user base of these platforms are not shaken, then no matter who makes more money on the platform, the platform is the biggest beneficiary.

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