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The goal of the German Würth Group

The Würth Group's goals have always been clear and manifested in a long-term cycle, which of course is not just from one quarter to the next. Unprofitable development is fatal. This is one of the iron laws of successful family businesses. But how do people achieve this requirement continuously and successfully for half a century? It’s certainly not about blindly admiring and desperately trying to increase shareholder value. The Würth Group is not interested in it at all, even if it is related to Würth's personal property. No, if that were the case, he would never have risen to become one of the richest men in Germany. The business works well because he adheres to the principles he learned as an apprentice in a screw factory. "That was when I was 16 years old. My father asked me to go to Dusseldorf for 14 days and said, 'Now, you can go sell things.'" To this day, he still remembers this experience. It was during these 14 days in Dusseldorf that he realized the importance of customers to a company. Since then, the customer has always been at the center of the Würth Group. At Reinhard Würth's request, more than 20,000 field sales employees sold all kinds of goods in handicraft factories, from screws, nuts and workbenches, angle grinders to construction equipment during the winter. Cold weather clothing to be worn on the job site, etc. – it should be more than just the salesperson. They must follow Würth's tenets in his leading ideas of "The Secret of Success in the Art of Management." The first one is "Never deceive customers." Then there are "Don't sign any orders based on lies" or "Provide customers with absolutely fair guarantees" and directly success-oriented creeds - "Visit customers once a week." The few stories Würth himself told the media reflect where customer focus stood in his mind, and how it is expressed today. "Manager" magazine reported that the boss will also be responsible for employee training if necessary. Because when he found that the employees at the headquarters were too complacent, he would without hesitation go to the municipal council in Kinzelso to apply for a parade and personally push the trolley back to the company's old site. The purpose of this is to recreate the history of the company's fortune in front of employees. Reinhard Würth used such a cart to supply screw products when he was an apprentice under his father. Today, he has become a flying enthusiast flying private jets. In an interview with Der Spiegel, the entrepreneur once again emerged as a computer opponent. He said that after taking away the salesmen's laptops, their sales actually increased. This is an interesting story, and it definitely sounds reasonable. Because after taking away the computer, the importance of customers is raised to the forefront. "It's extremely rude for a salesperson to be immersed in tinkering with his little box instead of looking at the customer and chatting with him about the weather, vacation, or travel. In addition, we know from the survey that every salesperson The average time spent with customers is no more than 19 minutes. If in winter, just starting up the computer consumes a precious minute, which is 5% of the sales time, we cannot afford such a loss. "Sales staff must be polite and friendly. Treat customers respectfully and build good relationships with them. They also need to be reliable, fair and honest, which will be of great benefit to the business. In fact, the most important thing for a company is to convince as many potential customers as possible that they are willing to pay for its products. Even if you treat customers fairly and reasonably, as warm as spring, if you cannot produce corresponding products, your hospitality will be in vain and you will not be able to succeed in the market. Customers ultimately want value for their money, not just a pleasant atmosphere. Developing more competitive products can almost be said to be the weight of a company's success. The Würth Group also values ??innovation. There are about two hundred engineering and technical personnel in the company who are responsible for new product development. If you think that screws and assembly tools are simple things and there is no room for development of new products, you are totally wrong. Würth holds numerous patents, and innovation is a prerequisite for another company principle: "Quality determines price." The family entrepreneur has never entered into price wars on the building materials market. On the contrary, he chose a relatively more expensive sales channel and put the Würth trademark on each packaging box, so that the construction personnel could immediately identify that they were using high-quality products. In order to guarantee profits under this business strategy, he adopted the smallest possible vertical production scope, as many successful companies in the automobile manufacturing industry (including Porsche) have long implemented.

He outsources production of almost all components according to his own designs, patents and presets. 80% of his suppliers are from Germany, and only 4% of his products are produced by the company itself. Years of continuous decline in the construction industry and a wave of bankruptcies in the craft industry forced him to cut costs, but there was one thing he never considered: laying off employees. Although many booming companies now fire employees without thinking twice, to him it was a departure from corporate culture. Half a century later, Reinhard Würth's impressive achievements have surprised many experts who believe in shareholder values. This is an incredible achievement. As in the past, the company's founders are planning for the future in a very different way than the trendy, trendy management pundits. Würth claimed that his company can survive for at least 500 years, because 60 years later, it is still in the beginning stage and is still a vibrant young man. Wuerth has laid a good foundation for the company's development. He believes that the art of management and motivating employees are the company's strategic competitive advantages in the future. Although he retired from the company's leadership team in 1994, he will spare no effort to maintain this characteristic as long as he is still alive. There are also ways to contribute to the long-term stability and future competitiveness of the Würth Group, such as its social positioning in the minds of the people in the region and where the company is located. Reinhard Wurth's contribution to the development of his hometown of Heilbronn-Franckland is unparalleled. He not only serves as the chairman of the "Regional Citizens' Voluntary Organization", a professor of youth training in Karlsruhe, but also a patron of two museums. At the Kinzelsau Screw and Thread Museum he displays technical exhibits directly relevant to the company. In the Würth Museum's Kinzelsau and Swabia Hall, he constantly changes the cultural themes of the provincial exhibitions. Exhibitions are also held out of consideration for the cultural needs of employees. During this period, Würth's collection had grown to nearly 8,000 pieces, including paintings by famous artists Eduardo Chillida, Max Ernst, David Hockney and Pablo Picasso. Over the past 40 years, Reinhard Würth has acquired 200 works per year – an average of one every two days! Even a hundred years after Reinhard Würth, these collections and the magnificent modern museum building will continue to exist. These can be said to be commemorations of him. One can also see through it that successful family entrepreneurs and employees follow the same principle: material success is very important. For employees, it's expensive cars; for bosses, it's private jets, yachts or works of art. Social recognition is equally important. For bosses, social recognition refers to public reaction. If you only have money but no public recognition, it is not worth the gain. This was the motivation for Reinhard Würth's actions. When the company patriarch passes away, people will continue to talk about the museum he left behind. The museum became a permanent mark of recognition.