On the evening of December 21, Dong Yuhui returned to the Oriental Selection for the second time after the "Little Composition" incident (1797HK) live broadcast room, talking about specific income, Yu Minhong and personal studio and other topics.
On the 22nd, Hong Kong stocks opened, the three major indexes of Hong Kong stocks opened higher, Oriental Selection opened nearly 7% higher, and at noon, the National Press and Publication Administration issued the "Measures for the Administration of Online Games (Draft for Solicitation of Comments)", the Hang Seng Index and the Hang Seng Technology Index dived, as of press time, the Hang Seng Index fell 151%, the Hang Seng Tech Index fell 443%, Oriental Selection share price 291 Hong Kong dollar, down 051%。
Peeling off the cloak of farce, the Dongfang Selection "Small Composition" incident reflects the fact that under the boom of live broadcast e-commerce, relevant industrial companies urgently need to improve the management structure, reward mechanism, industrial chain reconstruction, social impact and other aspects, obviously, these questions have not been completely answered.
Dong Yuhui gradually revealed his future plans.
In the live broadcast room on the evening of the 21st, Dong Yuhui said that he had not made any demands on salary and income in the past year, as the founder and chairman of New Oriental, Yu Minhong had repeatedly mentioned that he wanted to give Dong Yuhui better returns, but Yu Minhong is the chairman, and there are some difficulties between (the idea landing) and the specific operation of the company. Dong Yuhui hopes that everyone will not misunderstand him again, otherwise they will feel ashamed of him.
Dong Yuhui said that in New Oriental for so many years, his experience is that in any enterprise, there are good managers, but more important than good managers are good service providers. And Yu Minhong has always been like a servant, who will put himself in your shoes, discover your potential, create a space for you to display, and respect your value and your personal personality.
Dong Yuhui's next live broadcast is expected to appear in the Oriental Selection Guangxi tour, and he revealed that the future independent studio will still insist on selling a large number of agricultural products, "In the future, I can sell what Dongfang Selection can sell." The items can coincide exactly, or they can alternate with each other. Everything is being tried. ”
In Dong Yuhui's first appearance after the turmoil on the 18th, Yu Minhong revealed that he would set up a studio with Dong Yuhui, open a separate account and live broadcast room, and the income would be included in Dongfang Selection. If Dong Yuhui wants to leave one day in the future, Yu Minhong said that the new live broadcast room will be given to Yuhui and will not let him have nothing.
This time, Dong Yuhui said that although he will set up a personal studio, he has not left Dongfang Selection. The previously announced Dong Yuhui's personal studio is 100% controlled by Dongfang Selection, and all his turnover is in the statements of this listed company. In addition, in the future, after the energy of other anchors in the live broadcast room reaches a certain level, Yu Minhong will also open a separate live broadcast room for them as appropriate.
The outside world questioned the details that Dong Yuhui's personal studio was still 100% controlled by Dongfang Selection, and Yu Minhong previously said that the original Dongfang Selection platform was unfair to Dong Yuhui, which limited Yuhui's development to a certain extent. But he wanted to arrange a guest interview for Yuhui, but he couldn't;If you want to take Yuhui for a few more days, you can't do these columns of "See the World";I hope to give Yuhui a platform with more room to play a role, but I can't do it. People will ask if you are not the chairman?"You may not be familiar with my management style or the management of Chinese enterprises," Yu said.
On the 18th, Dong Yuhui's comeback premiere after the turmoil made the number of people and sales in the Dongfang Selection live broadcast room reach a new high in the past year, and then gradually declined, and the number of fans gradually returned after the cliff of the turmoil. According to the data of Cicada Mother, a third-party short-** e-commerce digital marketing service platform, as of the 22nd, the total number of fans in the Dongfang Selection live broadcast room was 313820,000 people.
Governance crisis risks need to be addressed immediately.
Putting aside the cloak of the farce-like "small composition" incident, the Dongfang selection incident should trigger thinking about how enterprise managers should adjust the internal reward mechanism and management issues under the new business model of live broadcast e-commerce.
Zheng Zhigang, a professor of finance at Renmin University of Chinese, told reporters that the controversy caused by the "small composition" incident of Oriental selection is first of all an issue of internal incentives within the enterprise, but at a deeper level, it can be understood as a governance crisis problem, what is a governance crisis?Zheng Zhigang cited the previous OpenAI infighting as an example, saying that both have similarities, although one is a non-profit organization and the other is a commercial organization, but what they have in common is that the main employees or core backbones face the risk of being fired or voluntarily leaving, which will lead to the normal operation of a company being affected, and even facing the risk of dissolution. The crisis faced by Dongfang Selection this time is that once Dong Yuhui leaves, Dongfang Selection will no longer be the original Dongfang Selection.
Although Dong Yuhui is currently appointed as a senior partner, the relevant policies may still be in the stage of going through the board process in the future, and it will take a time process. Zheng Zhigang believes that the senior partner is only a phased attempt, and the more significance lies in the thinking of the business model reward mechanism of the live broadcast e-commerce platform in the Internet era, which is also a major challenge for Dongfang Selection and Yu Minhong.
It remains to be seen what the final outcome of this event will be in the future, but Adrian Cheng believes that the current efforts of the management of Oriental Selection are in the right direction - to establish a win-win situation by transforming the past short-term employment relationship into a long-term relationship.
Adrian Cheng said that in the past Internet era, investors played a heavier role within the company, and consumers were more of a distant stakeholder. However, in the era of live streaming e-commerce, consumers can directly intervene within the company, making the governance of an e-commerce live streaming platform extremely fragile and sensitive, and the possibility of a governance crisis breaking out is greatly increased. The views and behaviors of one consumer can immediately influence similar views and behaviors of other consumers and lead consumers to take "collective action". This makes many conflicts of ideas and interests that were very normal in a company in the past easily evolve into public events through live broadcast and the Internet, inducing the outbreak of a governance crisis. It can be said that this is the objective reason for the outbreak of the crisis in the selection and governance of the East.
In addition, Adrian Cheng said that in the Internet era, the importance of human capital has changed, and some core technical personnel are even more important than the management team. If according to the traditional enterprise organization and management, Dong Yuhui is actually only one of the many project or business department managers selected by Dongfang, there are many managers, but there is only one CEO who manages the project or business department manager.
However, for the live broadcast e-commerce platform, a new business format in the Internet era, Dong Yuhui, who is the king of traffic IP and even traffic, seems to have become "irreplaceable", and his stay affects the conversion of a large number of consumers, and then consumer behavior, which is directly related to the normal operation of the live broadcast e-commerce platform, and even life and death. In contrast, the role of CEO has declined.
This is similar to the governance crisis that happened in OpenAI not long ago. In this nonprofit with a vision of public welfare, it is not uncommon for a charter-mandated board to fire a CEO who is considered "incompetent" by most board members. But what makes it special is that this CEO is not an ordinary CEO, but the founder and initiator of OpenAI. His departure could directly lead to the resignation of most of the employees and the dissolution of the organization.
Yu Minhong previously said, "Now, Dong Yuhui has hundreds of thousands of people in the same period, and it is in such a (Internet celebrity) model, when relying on employees with huge ability to build your business model and development, the boss must be willing to work for employees, and the two sides become a cooperative relationship."
Zheng Zhigang believes that Yu Minhong's above-mentioned remarks clearly show that he has a full understanding of these issues, but he has not yet made full preparations for them.
In Zheng Zhigang's view, the first is that in the era of highly developed Internet information, when the governance crisis appears, it is necessary to have the courage of a strong man to break his wrist, cut through the chaos quickly, and deal with the crisis with a knife. Second, in view of the increasing importance of human capital in the Internet era, it has become more important to strive to transform the short-term employment relationship between enterprises and core employees into long-term partnerships through equity incentives and other institutional innovations.
Although it is not clear from the current limited information disclosure that the rights and obligations of the "senior partner" in the selection of Dongfang, and the specific details of the relevant system design, Zheng Zhigang said that he understands that the governance logic of the selection of senior partners in Dongfang and the launch of the partnership system by Alibaba are the same. That is, in the future, by granting equity incentives to Dong Yuhui, Dong Yuhui will hold a larger proportion of Dongfang Selection's shares, and then have a greater right to speak, so as to strive to transform the short-term employment relationship between Dongfang Selection and Dong Yuhui into a long-term partnership.
There is no doubt that as a senior partner selected by the Shares*** Oriental Selection is obviously different from the partner under the partnership system registered by the law firm. Therefore, it remains to be seen whether the senior partner system can become a human resource system innovation for Dongfang to select, attract and retain core backbones.
Neglected Vendor and Consumer Roles.
The era of live streaming e-commerce is the background of this discussion, which directly changes the importance of each role in it.
Bao Yongjian, a distinguished professor of the EMBA program of the School of Management of Fudan University, put forward when thinking about this topic: What problem did Dong Yu and the two encounter?Is it a problem with the incentive mechanism within the organization?Corporate Governance Structure Issues?Fraud or hijacking in the case of incomplete contractsOr is it the deep-seated social monopoly and unfair distribution of social power in the phenomenon of platform economy?
Bao Yongjian told reporters that if it comes down to the issue of corporate governance structure, that is, whether the relationship between key stakeholders can serve the strategic direction of the organization. The current arrangement is basically based on the interests of investors and avoids a large impact on the stock price and the company's economic performance. However, can a model that uses live streaming platforms to promote goods only look at the problem from the perspective of investors? The theory of stakeholder and social externality is the new global consensus. In this debate, two important stakeholders have been overlooked – one is the economic contractual relationship between the manufacturer providing the goods and the livestreaming platform;The other is the consumer who is curated by the live streaming platform and has a strong desire to buy.
After years of practice, if the form of live broadcast is no longer a socio-economic activity that transforms uncertainty into certainty, it will become a part of the normal management of social economy. It no longer has the attributes of innovation. So how should we look at the "value" added by Dong Yuhui's "mouth spitting lotus" for the goods with goods?
Bao Yongjian believes that Dong Yuhui provided a part of the entertainment knowledge in the process of bringing goods, and some consumers paid for it, which is justified. However, live streaming is a kind of commercial curatorial activity, in which curators create a targeted "seeing" and promote the psychology and emotions of provocative consumption. This is a new social phenomenon. Are business curators held accountable for the consequences of aggressive consumption?If the behavior of the live broadcast curator creates a lot of excessive consumption, it is creating a negative externality in society. Theoretically, this is a failure of the market that requires ** intervention.
He believes that what really deserves social attention is the monopoly of social power in the platform economy and the unfair distribution arising therefrom. Bao Yongjian believes that we should not forget the overlooked stakeholders: manufacturers and consumers. The platform uses the network effect of network technology to amplify its own value. Consumers are contributors with great network effects, but instead of receiving the corresponding contribution reward, they are also re-harmed by their own provocative consumption impulses. What do you think about this?How to find the balance between the economic and social interests of the platform that is growing by leaps and bounds?
In addition, the commercial contract between the vendor and the platform has a great socio-economic power asymmetry. Manufacturers accept a very small percentage of profits in live broadcast transactions, and live broadcast spokespersons get super profits, which is not the result of fair market economic transactions. It is the result of the unfair distribution of social power in the platform economy.
The platform economy is part of the social infrastructure. It is partially public. Platforms use the power of technology to gain a monopoly on power in economic activities, and accordingly obtain super-profits. Manufacturers and consumers are in a position of being monopolized and curated in the game of the new economy, which is also a social phenomenon worthy of attention in this incident.