Enlightenment: Why management is important

There are not that many companies in the world that can make money while sleeping, and most companies still need very good management.

Otherwise, when Buffett acquired Precison Castparts, he would not have said that the CEO decided to stay at the company for at least 20 years before firming up his determination to acquire it.

As I travel more and more over the years and meet more and more people, I suddenly realize why $InterContinental Hotels Group (IHG) Hehuazhu is better than some hotels in China. With comfortable clothes, the dining experience at Yum China (YUMC)$ is more enjoyable than so-and-so dumplings and so-and-so chicken.

Refined management and good management are of great value. It needs to find a delicate balance while improving customer experience while reducing service costs. It is not about pursuing and satisfying 100%, but finding a critical point that is conducive to the development of the company.

When I read these management books in school, I kept thinking about how the management could get millions in annual salary based on these simple dead knowledge.

Now I probably realize that what I see on paper is only shallow, and I know that I have to do it in detail.

Management is based on controlling human nature.

Human nature is the most unpredictable thing on the planet, and no science can predict the direction of human nature.

Unless AI replaces all basic jobs in the future, it will still be difficult for many Chinese companies, especially chain companies, to match the management experience of the United States.

To take the simplest example, a hotel chain requires you to clean an 18-square-meter room for 40 minutes. So how can I guarantee that in these 40 minutes, employees who are thousands of miles away and who I can’t see or touch must have cleaned every corner?

Relying solely on general reward and punishment mechanisms is unreliable. Especially for low-level employees, if they are fired, they will be fired, and what will happen if they continue with another company? Reward, what is the appropriate amount of reward?

If motivating the subjective initiative of a company's employees can only rely on simple mechanisms such as rewards and punishments, then what is the difference between training a person and training a circus dog?

For more details, service quality control and product quality control require invention and creation, and this kind of refined management innovation is no less than the product and technological innovation of any technology company.

Some American companies even regard management as intangible assets of the company. After the executive leaves, stock prices often plummet.

Once again, there are not so many companies in the world that can run perfectly even with so-called poor management.

No matter how good your fortune is if you leave it to a prodigal, he will ruin it for you. Come out of your beautiful fantasy. The final decision-making power on the success or failure of an enterprise is still people, every employee.

Why are the employees at the cashier or front desk, some excellent companies can guarantee that 99% of the time, they will greet you with a smile when you go to do things, while some inferior companies just can't do anything? How about letting the front desk inadvertently give you a bad look?

Why do the employees of this company always have loose muscles and no sense of tension?

The winning rates of $KKR & Co. (KKR)$ and TPG are so high not only because they are rich, but also because they really understand the company and how to help the management of the company improve its performance. intrinsic value.

Author: Xu Jiajie Pierre

Link: /7813497513/82676488

Source: Snowball

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