When The Management Level Exceeds The Operating Level, The Company Is Not Far From The Loss

- Sep 05, 2018-

When the management level exceeds the operating level, the company is not far from the loss!


Why are many Chinese companies vulnerable to losses? It is not that the management of these enterprises is not good, but the management level of these enterprises is too high, exceeding their level of operation!

Most of our companies are still in the business level of small profits but quick turnover, but many of these companies have started the process of process reengineering, and the result must be a loss!

I started to worry about management training for many companies for the same reason, because I am often invited by companies to explain leadership or corporate strategy. I think this kind of training will be counterproductive because you have more training for employees than employees. Responsibility, such training I call "excessive training."

When a company's management level exceeds the operating level, the company is not far from the loss.

Foreign advocates for leadership as servants, management is service, but we need to confirm the management of why the service?

We know that management and management are the two capabilities that managers need to have. The ability to manage is to choose the right thing to do. The ability to manage is to do things right. In this sense, management is the first and management is the second.

Management is always a business service, which can be compared in this way:

When choosing small profits but quick turnover in management, management should choose cost management and scale management;

When choosing a penny and a share of goods in management, quality and brand management should be done in management;

If you choose "overnight service" in business operations like FedEx, management must be carried out in management;

If you use a "direct customization" strategy like Dell, management must be flexible.

Looking at Wal-Mart, Wal-Mart's strategy is the same as that of many Chinese companies. “Always sell at the lowest price,” but compared to Chinese companies, Wal-Mart has successfully become the world's largest company with the best profitability and growth. Business, and our business is not. In fact, Wal-Mart and our company have no difference in business strategy. The success is precisely the result of matching management level and business level. This is also the key to the success of many companies in the industry.

The organizational management concept determines how people conduct management activities. Only a clear management view will have clear management behavior. Management is responsible for performance, management is a kind of distribution, and management cannot be overridden by management. Management is the means, and management is the purpose. The means are for the purpose, not to show who is the master of management.

1. There is no standard answer to management. The resources and environment you face, decide what management tools you should take, face management ideas, you better not have preferences, do not deliberately design, which will lead you to not judge the situation and make opportunistic mistakes.

2. Management is dynamic. If you use it today, tomorrow is not necessarily useful; if you use it, you may not use it. Therefore, contingency is very important, and it must be contingent in time and space (for people). "

Management must be determined by management; management level can not exceed the management level!