Nine rules of business management

As an interest entity, the inherent nature of an enterprise is to pursue the maximization of interests. To this end, it must maximize transactions and minimize risks. Minimization, this can be said to be a central two basic points in the way of business management. Regarding the rules of the game in business management, the author has summarized them through many years of observation and thinking in business management practices, combined with daily life experience and common sense. It is easy to understand, concise and clear, easy to understand at a glance, and convenient to use. . This article will briefly elaborate on this.

1. The law of "an old horse knows the way"

The same is true in daily life. When we go to a strange place, as long as the guide leads the way, we will reach the destination quickly, eliminating the need for blindness. Chaos consumes a lot of time, energy and money.

In the business management activities, we must rely on ourselves to ponder and think about unfamiliar industries, unfamiliar fields, unfamiliar projects, unfamiliar businesses, and problems that have never been solved in the development of the enterprise. It is definitely not the best way. Not only will it affect time efficiency, it will even have a serious impact on the development of the company, its goals, and the completion of its tasks.

For example, during the transformation period of an enterprise, it often encounters many difficult operating and management problems, especially at the two turning points in the development process of the enterprise (the enterprise transforms to standardization in about 10 years, and the enterprise transforms to standardization in about 20 years). Transformation to brand management), without the help of a guide, it will be difficult for an enterprise to successfully complete the transformation on its own.

For example, Mengniu’s Niu Gensheng has been in the milk industry for more than ten years. He is a good guide in his own right. However, the reason why Mengniu has achieved rapid development in just a few years is due to his behind-the-scenes success. A large number of well-known brand experts, marketing experts and management experts helped Mengniu achieve its initial development. Although Mengniu is currently facing a winter in its development process, I believe there will still be a large group of experts behind Niu Gensheng to help it make suggestions and guide the way forward.

The well-known "Little Sheep" has considerable popularity in China and ranks second in the domestic restaurant chain industry (KFC is first and McDonald's is third). However, due to the lack of trademark awareness at the beginning, there was no recognition of "Little Sheep". ? registered a trademark. When they woke up, there were ?Little Sheeps? all over the country. No one could prove that they were the first. The trademark registration was once blocked. However, with the help of well-known domestic brand experts and legal experts, it was passed first. Certification of domestic well-known trademarks and then application for trademark registration are now available.

The same is true for the internal operation and management of enterprises. If many enterprises consult accountants, lawyers, and management consultants in the early stages of their establishment to gain an in-depth understanding of the industries and industries they are engaged in, they will not be able to If you invest rashly and lose all your money, private enterprises will not suffer from the high mortality rate of 40% in the startup period.

After an enterprise develops to a certain scale, if the internal decision-making system, financial system, business management, risk system, etc. can be consulted and guided by experts, there will not be so many low-level management mistake.

In addition, in the business management activities of the enterprise, for any project and task, the best, most capable, and most experienced people must be selected to serve as commanders or be responsible for daily business management work. Only in this way can the risk be minimized.

Don’t let people with low abilities lead people with high abilities, especially don’t let laypeople lead experts. Let people with low abilities lead people with high abilities. People with high abilities will instinctively prove their abilities everywhere and work hard to do things beyond their abilities. When the speed, scale, and height exceed their ability to bear, there will be nothing more than failure. Good results; laymen lead experts and have no choice but to torment the experts and destroy, stink or kill them. These are common phenomena for enterprises and are also the root causes of repeated risks.

2. The Law of Vaccination

According to modern medical research, the human immune system has three lines of defense: the first line of defense is composed of skin and mucous membranes. Not only can it prevent pathogens from invading the human body, but their secretions (such as lactic acid, fatty acids, gastric acid, enzymes, etc.) also have a bactericidal effect. The second line of defense is bactericidal substances and phagocytes in body fluids. These two lines of defense are natural defense functions that humans have gradually established in the process of evolution. The characteristic is that everyone is born with them. They are not specific to a specific pathogen and have a defensive effect on a variety of pathogens. Therefore, they are called non-specific immunity ( Also known as innate immunity). The third line of defense mainly consists of immune organs (thymus, lymph nodes, spleen, etc.) and immune cells (lymphocytes). The third line of defense is the acquired defense function that the human body gradually builds up after birth. It is characterized by being produced after birth and only works against a specific pathogen or foreign body, so it is called specific immunity (also called acquired immunity).

During the course of evolution, humans have instinctively responded to various natural and social risks and taken corresponding measures. However, in the process of business operation and management, not all risks are effectively managed. For stages, processes, projects and businesses that have not been experienced or experienced, the risks that may arise are often unforeseeable and unpredictable in advance. For this reason, enterprises must develop minor illnesses to prevent major illnesses, and accumulate experience through local, small-scale, and gradual methods before promoting or making large-scale investments.

This is true for industries, projects and businesses, customers, and business management. They all need to undergo experimental promotion from small to large, from point to surface, so that the business risks of the enterprise can be reduced. and manage risks to a minimum.

The immune test of vaccinia vaccination is an effective method and strategy for enterprise risk management. It gradually accumulates experience through risk event tests and stimulates enterprises to generate immune functions against specific risks.

3. The Law of Trust (Law of Authorization)

Trust creates responsibility. Trust and authorization have existed since ancient times, especially in military activities. Without trust and authorization, war cannot be carried out. In "The Art of War. Nine Changes" by Sun Tzu, Sun Tzu said: All methods of using military force will be ordered by the king and the army will be gathered together. There is no home in the vast land, all roads are connected, and there is no place to stay. When you are surrounded, you will plot, and when you are dead, you will fight. There is no choice in the way, the army will not attack, the city will not attack, the land will not fight, and the emperor's orders will not be accepted. ?. It may be the earliest origin of the law of trust or the law of authorization.

As a legal system, trust originated in the United Kingdom. The British trust system originated from the "usage design" in the Middle Ages. Utility design has been popular among British people since the 13th century. Its purpose was to avoid the restrictions and burdens imposed by British feudal laws on the transfer and disposal of land and other properties at that time. Religious beliefs were very common in Britain at that time, and believers often bequeathed land and other property to the church after their death. However, the law at the time stipulated that the church could not be taxed. Such bequests affected the income of the feudal monarch. In the 13th century, King Henry III of England promulgated the "Confiscation Act", which stipulated that whoever wanted to bequeath land to the church must obtain the permission of the monarch or princes, otherwise it would be confiscated.

In order to get rid of the restrictions of this law, landowners came up with a way to entrust the use of the land to a third party and transfer the profits from operating the land to the church. This practice gradually developed into trusts for other properties. The specific method is: A transfers his property to B, and B holds the property for the benefit of C. In this way, A can obtain the following benefits: evade tax burden, donate or bequeath property to person C who cannot receive gifts or legacies according to law, etc. At the same time, he also bears the risk of losing property, because at that time, the trustee was acting as a trustee. The legal owner of the property can legally claim it as his or her own. After a dispute occurred, the rights of the beneficiaries were not protected by law. During the reign of King Henry III of England, the Court of Chancery fairly protected the rights and interests of the parties concerned based on the principles of fairness and justice. By the 16th century, the trust system was finally formed.

However, the authorization theory of enterprise management came into being very late. In the 1950s and 1960s, based on the shortcomings of the hierarchical system and low management efficiency faced by large companies, some people proposed this management idea. . Delegation refers to the supervisor granting authority or responsibility to a subordinate and instructing him to be responsible for managerial or transactional work.

Market competition is becoming increasingly fierce. Many companies, especially large companies, need to reduce the number of intermediate management layers, simplify service procedures, and improve work efficiency in order to meet the needs of customers. Authorization is an indispensable management art. Sufficient and reasonable authorization can enable managers to devote more time and energy to the development of the enterprise without having to do it themselves, and how to lead subordinates to better operate the enterprise.

Authorization is the key to the operation of an organization. It is based on people and grants the necessary authority to complete a certain task to subordinates. That is, the supervisor transfers the decision-making power to handle employment, money, work, negotiation, coordination, etc. to subordinates, not only granting power, but also entrusting the necessary responsibilities to complete the work.

In enterprise risk management, risks are always uncertain and even unpredictable. Therefore, in addition to basic processes, systems and emergency response plans, daily risk management must also be based on trust and delegation, specifically authorize people in specific positions according to their functions and authorities, and give fiduciary responsibilities to initiate specific events. The right to risk management plans and special emergency response rights is an indispensable principle in enterprise risk management.

4. The Champion’s Rule (NO.1 Rule)

The Champion’s Rule is often used in success studies and is mostly used to stimulate people’s desire and passion for success. It is indeed unique. . The highest peak in the world is Mount Everest, the second highest peak in the world is K2, the third highest peak in the world is Kanchenjunga, the fourth highest peak in the world is Lhotse, the fifth highest peak in the world is Makalu, and the sixth highest peak in the world is Cho Oyu. The seventh highest peak in the world is Dhaulagiri, the eighth highest peak in the world is Manaslu, the ninth highest peak in the world is Nanga Parbat, and the tenth highest peak in the world is Annapurna.

But if you ask anyone around us, there will definitely be countless people who can answer the highest peak in the world; but as for the second and third ones, there will be very few people. Almost no one can answer the fourth and fifth peaks. At the Olympic Games, the winners of gold, silver and bronze medals are very beautiful, with a steady stream of flowers and applause, while the athletes after the fourth place are all unknown, and no one seems to care about their existence.

The world is so weird. No matter what status people are in, people only value the first place, take care of the second and third place, and are indifferent to the fourth place. This is the so-called? No.1 effect?. The first place is a person who belongs to the world and is praised and respected by everyone. The second and third place are teachable people. After the fourth place, there is a possibility of being forgotten and abandoned by the world at any time. In fact, this is true in daily life and in all walks of life. NO.1 is always the coordinate and reference in people's minds.

What Professor Wang Jian of Tongji University said in his book "Transcendental Thinking" and his lectures is the "advantage enrichment effect". It is actually the No.1 effect. As long as it reaches the position of the No.1 effect, everything will change. All social resources will be tilted towards it. If it cannot reach the No. 1 position, its own resources will be in a state of dissipation, and a lot of time, energy, and money must be spent to tell others "What am I?" And No.1 doesn’t need to tell others what I am, because everyone knows it. Even if they don’t know, they soon become aware. Even if they don’t know, they have to pretend to know.

There are also sayings in the marketing world, the "two-brand phenomenon" and the "four-brand phenomenon", that is, in a monopoly industry, two brands will eventually be produced, and in an industry with free competition, four brands will eventually be produced. .

In real life, no matter the size of the enterprise, technology, management, quality of products and services, brand, etc., as long as it achieves the best or second best status in the industry or region, it is easiest to be recognized and the easiest It is protected, so the risk is relatively small, because all resources will be tilted towards it at this time, including government resources and social resources, so the risks borne by the enterprise in the process of development are always the smallest.

5. The Best Winning Law

In the book "I'm Good, So Are You", American psychologist Thomas Harris divides the team members according to the development of personality. There are four types of relationships between natural persons:

1. If I am not good, you are good; 2. If I am not good, you are not good; 3. If I am good, you are not good; 4. It's good for me and it's good for you.

It can be seen that the fourth relationship type: I am good, how are you? It is a mature adult personality and winning thinking. Relatively speaking, only when you are good and I am good, the risk will be the smallest and you will feel the most secure. However, in real life, we generally have a win-win mentality of either winning or losing. People who hold this kind of thinking only care about their own interests, only want to win and others lose, and base their success on the failures of others. Comparison, competition, status and power dominate everything for them; while people with a win-win mentality only want to get them. What they want, although they do not necessarily want the other party to lose, is that they only seek to win, regardless of the interests of others. Even in independent or interdependent situations, their consciousness and sensitivity to others are very low. In interdependent situations, Just wanting to be independent, this kind of person is self-centered, puts me first, and never cares whether the other party wins or loses.

The characteristics of win-win and win-win thinking are cooperation in competition and seeking common interests for both parties, that is, good for you and good for me. In other words, companies must be good at serving customers, shareholders, Partners and employees create value and interests, create a harmonious, harmonious and economic atmosphere and situation, do not do things that are detrimental to others and themselves, do not do things that harm others and benefit themselves, and do not put their own interests at risk. and development based on harming the interests of others, society, and the country.

In terms of dealing with relationships with investors, partners, customers, managers, operators and employees, enterprises create the most win-win situation through mechanism innovation. Only the best win-win situation can be harmonious and harmonious. Guanxi also poses minimal risks to business development.

6. The Law of the Villain

Enterprises all live in a specific environment, and there are all kinds of people in the environment. According to Jack Ma, among the five people There must be a genius among them, and there must be a bastard among the six. Therefore, you must not have the intention of harming others, and you must have the intention of guarding against others. As entrepreneurs, they often combine wealth and reputation. It is easy to become the focus of others' attention and the target of others' attacks. In this regard, the basic approach is:

1. Stay close to the gentleman and stay away from the villain. It is better to offend the gentleman than to offend the villain.

In life and work, the greater the gap between your own status, wealth, and fame, the more humble, polite, and thoughtful you must be; because these people care about how others treat them. Feelings are also easily hurt, and they are particularly aggressive and vindictive. Extreme people will quietly attack others behind their backs. No one can stand this kind of thing. The best way is to keep a distance and not communicate directly. If you must communicate, it is better to have an assistant or someone else do it for you.

7. The Law of Atavism

Atavism refers to the genetic phenomenon in which some organisms accidentally appear certain traits of their ancestors. For example, we occasionally see children with short tails, people with long hair, women with multiple nipples, etc. These phenomena indicate that the ancestors of humans may be animals with tails, long hair, and multiple nipples.

The structure of the human brain also tells us that lower-level thinking is always activated. Autonomic thinking is activated first in a non-stressful environment, and instinctively in stressful and dangerous environments. The reptilian mind and the mammalian mind, the reptilian mind tends to be defensive while the mammalian mind is inclined to attack.

This can be known from very simple common sense in life. A person walks very fast when walking alone at night. The timid should prepare some self-defense guys. If you don’t have a knife, you need a stick. If you don’t have a stick, At least find a brick and stone to take with you, just in case. And if you carry valuables with you, you will feel like you are facing a powerful enemy. There are many such examples in life, such as: 1. After a person suddenly gets money or power, he will become particularly insecure. He will either become extremely gentle or extremely violent. In short, it is difficult to be like before. One faces crowds and social relationships. 2. Thousands of years after slavery was abolished, the market economy began by treating people as slaves and could be bought and sold; business management began by treating people as cattle and horses. 3. The management of private enterprises always starts from the most primitive model. Nowadays, most private enterprises prefer family management and autocratic management. This is because we have never been educated in modern business civilization and business culture, so we instinctively choose the most suitable model. Management is far away from the ancient ways of modern civilization. The management systems and models of most private enterprises today are derived from the ruling model of the Three Sovereigns and Five Emperors era.

When people face unfamiliar fields, unfamiliar environments, unfamiliar businesses, and unfamiliar people, team members instinctively start from their personal interests and safety needs and instinctively adopt the most primitive and extreme methods. Resolve crises and fears.

Similarly, when a group of people face a strange crisis, they will show collective panic. At this time, the sum of the collective IQ is 0, which is also called collective unconsciousness. In the management of enterprises, there will be such a situation. As long as the team is not specially trained, when encountering new situations and new problems, they will often become a mess and go their own way, reducing the team's combat effectiveness to zero. In response to such a situation, people with special authorization and special responsibilities must be randomly dealt with in enterprise management. Even if the punishment is wrong, they should not be held responsible.

We must have a clear understanding of the corporate governance structure and management model, and use this as a starting point to get out of the encirclement of traditional culture and systems as soon as possible and move towards modern civilization and modern management.

8. The Law of Viruses

Chinese people often say: A good man cannot stand up to three waves. The disease comes like a mountain falling, and the disease goes away like a string. If a small hole is not repaired, a big hole will suffer. Embankments, collapse in ant nests, etc. This phenomenon often occurs in life: a building is destroyed by a match; a business is destroyed by an accident; a healthy person is destroyed by an infection. The meaning is very simple. Especially small viral events can often cause huge losses or even devastating blows. For enterprises, any small mistakes and accidents may cause huge losses. No matter how small the problem is, it should be dealt with promptly like a virus.

In January 1986, a major air disaster occurred in the world’s aerospace history. The U.S. Space Shuttle Challenger exploded 73 seconds after launch. After the disaster, the cause was analyzed and it was found that the culprit of this tragedy turned out to be a small child. The seemingly insignificant sealing rubber ring! In fact, this problem has been noticed before, but everyone is taking a chance. After all, the Challenger has safely launched nine times. A fluke turned into the biggest misfortune! Just because of the neglect of a small detail, the souls of seven astronauts in their prime were tied to the sky, leaving the most embarrassing mark in the history of aviation.

Such risks must be scientifically calculated and carefully arranged to take precautions and nip them in the bud. At the same time, we must also rely on the power of immunity law and guidance law to formulate various plans to minimize possible risks once the risk becomes a reality.

9. The Law of Mischief

As the saying goes, a lot of words make gold, but accumulation destroys bones. For people and things, the greater the resistance to success due to controversy and criticism, the greater the need for external support to succeed.

When the power of support cannot exceed the power of controversy and criticism, no one or anything can succeed. Among them, spoofing is the most typical way of expression.

When it comes to pranks, Chinese people are all too familiar with them. Someone once said, "The more knowledge you have, the more reactionary you are." It is true at this time. The more educated people are, the more knowledgeable they are. The higher the person's level of spoofing. The "gentle" trolls start with rumors, tarnish other people's reputations, and then show their ability to confuse right and wrong. The evil ones go out on the streets first, killing people with knives, and the "ferocious" trolls go out on dark and windy nights. Shooting in the back, throwing bricks, even poisoning, setting fires...

No matter whether inside or outside a company, as long as someone is playing pranks, they will inevitably suffer disasters and losses, and it is almost impossible to prevent them. , therefore, enterprises must have preparations, response measures, and emergency plans to minimize the impact and losses; at the same time, they must use the power of justice and fairness to bring them to justice. ;