Text/Zhuifeng
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On July 2, the results of the referendum on Russian constitutional amendments (including lifting presidential term limits, increasing pensions, and setting minimum wages, etc.) that were postponed due to the COVID-19 epidemic were released: 77.92 % of voters are in favor, and 21.27% of voters are against it. This means that the 67-year-old Putin will be able to continue to run for office in 2024, and after being elected, he can be re-elected until 2036, facing retirement at the age of 83.
The author believes that for the Russian people, if Putin is successfully re-elected, it will be both a good thing and a bad thing. It is a good thing because Putin is capable and responsible, and has led the Russian people to gradually become a strong country and the people through 20 years of "iron-fist rule"; it is a bad thing because the Russian people have pinned the rise and fall of the entire country on one person. It's a bit sad.
On July 1, the board of directors of Ping An announced that 65-year-old Ma Mingzhe resigned as CEO of Ping An and continued to serve as chairman. This means the implementation of Ping An’s “Chairman + Three Co-CEOs” management structure.
In the author's opinion, compared with Russia, which may still rely on Putin's leadership in 2024, China Ping An's reduction of dependence on its iron-fisted founder Ma Mingzhe is a better move than Alibaba. There is a certain gap compared to Baba's top leadership change last year, when Jack Ma stepped down as chairman of the board of directors.
From this, the author naturally thought that succession is a lingering confusion for Chinese private enterprises.
Economic Observer Network once reported that more than 80% of China's private enterprises exist in the form of family businesses. Many second-generation family businesses do not intend to inherit their father's business: "Hu The "Run Bai Rich List" survey found that Nearly 50% or even higher proportion of the second generation of family businesses are not willing to inherit their father's business; China A survey by the Academy of Social Sciences found that82% of the second generation of family businesses are "unwilling and unwilling to take over".The first "Development of Chinese Family Businesses" released by the All-China Federation of Industry and Commerce Research Office and relevant units after a survey The report shows that only 35% of the second generation of family businesses are willing to take over.
What is the succession situation of private ceramic enterprises as the main body of the building ceramics industry?
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Speaking of succession in the construction and ceramics industry, I believe the first reaction of many people in the industry is that "it is difficult for the second generation of ceramics to take over."
This year, Huang Jianping, the head of Weimei Group (Marco Polo Ceramics), is 57 years old, Ye Delin, the head of Xinmingzhu Group (Guanzhu Ceramics), is 64 years old, Dongpeng Holdings (Dongpeng Ceramics, He Xinming, chairman of the board of directors of Sanitary Ware), is 65 years old, and Luo Shuigen, the head of Nobel Group (Nobel Ceramics), is 67 years old... However, they still stick to front-line leadership positions and control the core decision-making power of their respective companies: Luo Shuigen has always been the company's leader Chairman; Although He Xinming resigned as president in 2012, he still serves as the company's chairman; Huang Jianping and Ye Delin have always served as the company's chairman and president.
Only Liang Deyun, president of Shuncheng Group (Shunhui Ceramics), Xiao Libiao, president of Mona Lisa Group (Mona Lisa Ceramics), and others are among the few leading ceramic companies who hold senior positions. The "Second Generation Tao" who hold important positions have not yet truly taken over the power baton from their fathers.
Up to now, the outstanding representatives of the once all-powerful "Tao Generation" are still the focus of the ceramics industry, and their every word and deed has attracted much attention. In comparison, the "Second Generation Tao" who have taken over initially are full of vigor, but to some extent their stars are dim.
Why is it difficult for ceramic enterprises to succeed?
First, the "Second Generation Tao" is unwilling to take over. As mentioned above, only 35% of the second generation of Chinese family businesses are willing to take over. This situation is particularly serious in the construction and ceramics industry, which is dominated by private enterprises. Like most of the "rich second generation", most of the "Tao second generation" have the experience of studying abroad. They have studied advanced majors and are well-informed and have a broad vision. They are generally worried that their self-worth and personality will be constrained by their parents after taking over, and they just want to do what they want. What I like and am good at, and I don't want to repeat the old way of "moving bricks" of my father's generation.
The second is that it is subject to the private ceramic enterprise system. Most of the ceramic enterprises are private enterprises, and most of them are sole proprietorships or absolute control by individual shareholders. This determines that the "Tao generation" can only choose successors among their own children and other direct relatives, even if they are successors. If you have no talent or morality, you will not hand over the power to a professional manager who has talent and morality. If the "Second Generation Tao" is unwilling to take over, the "First Generation Tao" will not be able to stay at the head of the company until they are 60, 70 or even older.
Because of this, the professional managers or "Tao Erdai" of Tao enterprises can become the top administrative leaders of the company such as president and general manager or the top person in charge of a certain business sector. , and does not have the final decision-making power on major matters. Because of this, it is difficult for professional managers to play their due role, and it is even more difficult for them to cultivate a sense of ownership that is with their bosses through thick and thin. As a result, important positions at all levels other than the company's chairman are always changing like a revolving door. As a result, the company's strategy changed day by day.
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Of course, the power system of private ceramic enterprises is not without its advantages.
In the early and intermediate stages of enterprise development, the boss has the final say, which can greatly improve the efficiency of decision-making and lead by example.All the staff of the company are working together to develop. However, the premise of this situation is that the boss must have a more accurate vision and a broad mind, otherwise personal decision-making will become the biggest obstacle to development.
Judging from the situation of some pottery companies that have been partially inherited and succeeded, the "second generation of pottery" is in very good condition in the position of "quasi-head", which not only avoids the need for professional managers He has the reputation of being a leader but has no real ability to make decisions. He is timid and cannot let go of his hands and feet. He may be killed at any time, resulting in inconsistent strategies. However, he can boldly move forward with the full trust of "Tao Daidai", even if he makes a mistake. Will be fired, but it will not damage the glorious image of "Tao Daidai" in the minds of employees.
As mentioned above, Liang Deyun, the president of Shuncheng Group, has greatly improved his business since 2018 through a series of actions such as inviting film and television star Li Bingbing to speak for him and investing heavily in the introduction of slate production lines. The popularity and influence of many brands represented by Shunhui Ceramics; as well as Luo Qun, chairman of Roosevelt Ceramics, Hu Yao, chairman of Sun Ceramics and other "second generation ceramics" young entrepreneurs in Jiangxi Gao'an production area, have inherited the building ceramics industry He has set a good example and made a positive contribution to the improvement of the brand of the production area, becoming a powerful force in Gao'an Ceramics' "car replacement and overtaking" after the COVID-19 epidemic...
However, it is undeniable that some ceramic companies that have been partially inherited and succeeded have certain drawbacks.
For example, the "Second Generation" successors designated by some ceramic companies have limited vision and low ambitions. Even if they have the experience of studying abroad, they are seriously out of touch with what they have learned and done; some ceramic companies Thinking about succession matters is too simple, focusing only on the inheritance of tangible assets, but ignoring the inheritance of intangible assets such as entrepreneurship, family culture, and corporate culture; some ceramic companies engage in family-style management, which seriously limits the access to outstanding talents. Absorb, cultivate and use...
Why is China's building ceramics industry highly decentralized and too low-concentrated? Why has no one ever dared to propose the goal of building “100 billion ceramic enterprises”? Why has there not been a “10 billion ceramic enterprise” after so many years of development?
This may have something to do with the succession system of private ceramic enterprises, which relies too much on the founder’s personal ability and ambition. Unable to give full play to the talents of outstanding talents inside and outside the industry. Perhaps in view of this, some leading ceramic companies have introduced high-end talents within the industry or across industries to make up for the shortcomings of the backward successor system.
For example, in 2016, Dongpeng Holdings appointed Gong Zhiyun, the former general manager of the marketing center of Weimei Group and the general manager of Marco Polo tile brand, as the group president. In 2019, he appointed the former vice president of Midea Group and the home air-conditioning division President and Shengxiang Mudi’s former president Wu Wenxin serves as president of Dongpeng Ceramics Division...
Currently, the building and ceramics industry is in the "cold winter" stage of consumption upgrading, channel fission, overcapacity, and has just suffered a violent impact from the COVID-19 epidemic. The more critical the period is, the more important it is for inheritance and succession and the introduction, training and use of talents.
How to effectively stimulate the subjective initiative and potential of outstanding talents through active measures such as implementing equity incentives and establishing a business partner system , minimizing the shortcomings of the "Second Generation Ceramics" succession and seizing opportunities such as rock slabs to break through is a top priority for many ceramics companies.
Author: Chai Feng
