The seminar was hosted by the Jiangsu Digital Economy Federation and the Nanjing Enterprise Digital Transformation Research Association, co-organized by Daren Think Tank and Transparent Digital Technology, and supported by Jiangsu Open University.
More than 20 digital leaders from more than 14 institutes, Sugon, State Grid Nanjing Power Supply Company, Xingong Group, China Automobile Chuangzhi, Nanjing Public Security Research Institute, Guoxin Group Finance Company, Glass Fiber Institute, Nanjing Advanced Computing Industry Development and other enterprises participated in the seminar.
Wang Haiwen, a partner of Daren Think Tank and general manager of Nanjing Hexian Yundao Information Technology, shared the transparent performance platform of "Driving Enterprises to Reduce Costs and Increase Efficiency with Transparent Performance" at the meeting.
The following is a transcript ——— the speech
Good afternoon, dear guests!
In April this year, I suddenly received a WeChat message: "Mr. Wang, is your company doing work on performance?""I thought to myself, who is this?After a brief exchange, it turned out to be a domestic power equipment manufacturing enterprise, he said that this year is very stressful, the company's revenue target is to double the performance in three years, and the profit to quadruple.
As the chairman of 2 companies, he is very busy and hardworking. The responsibility of the LLC falls entirely on the chairman alone.
So, he wondered, is there a performance method that breaks down the responsibility to each shop floor director and team leader?The small leaders of each department complete the corresponding small goals, and the big goals of the whole company are also achieved.
Later, I attended one of their seminars, and there were other very well-known consulting company teachers on site. I introduced them to the solution of transparent performance, and their leaders were very interested. So, in July of this year, they finally decided to use the transparent performance solution of Daren Think Tank to help them solve this problem.
Not only this chairman, but also some entrepreneurs, who are all facing similar puzzles, share with you a few customer cases:
The first one was a customer in Changzhou who shared an experience with me. The chairman of the company, which is an auto parts and accessories manufacturer, told me that all the KPIs are set by the finance department. Although he believes that there is no problem with this indicator, there seems to be a certain problem. As a listed company, it has a profit of more than 30 million yuan in its annual report, but at the end of each year, the boss has to go to the bank to take out a loan to pay wages and bonuses. He asked me, Mr. Wang, how should this be handled?
The second is our customer in Sichuan, which is a group enterprise with a turnover of more than 10 billion private enterprises. Their boss told me that we have more than 400 responsible organizations and a whole set of KPI systems. By the end of the year, when reporting on KPIs, the reporting of each department and organization was very good, some said that the cost reduction and efficiency increase saved millions, and some said that the savings were hundreds of thousands.
But in fact, by the end of the year, the group had lost 200 million yuan when it checked the statementsWhat does it have to do with the group?
The third customer is a large enterprise in Changzhou, mainly engaged in the production of automotive fabrics, and their boss wants to set some indicators and performance for the middle and senior management of his subordinates, but how to set the indicators?Who is actually generating these profits?
The company's production starts with the first granular raw material drawn into silk, woven into cloth, dyed, then made into fabrics, and then made into car seats, which is a long production chain involving multiple companies, factories and workshops. The profitability of the business is very good, but the boss is confused, who earns these profits?Who should be rewarded?It is not clear how to design performance.
The fourth customer is a very well-known enterprise in Nanjing. They divided the company into hundreds of business units, and the chairman was very concerned about reducing costs and increasing efficiency of the enterprise, but the indicators that the subordinate workshop directors, team leaders and process leaders paid attention to every day had nothing to do with money, but more numbers. How to achieve full management, how to combine corporate goals with employee performance, so they asked us to solve this problem.
I believe that the indicators of state-owned enterprises may be a little different from theirs, and state-owned enterprises also have some social responsibilities. But private enterprises are very direct, and indicators determine the life and death of enterprises.
What value can transparent performance bring?I think the first step is the fine accounting of the responsible units (organizations and individuals), that is, the calculation is accurate, and the responsible units and subjects of each indicator system need to be accurately calculated to ensure that the figures are accurateThese data downsizing can be used for AI business analysisAt the same time, it can be used as the basis for our quantitative performance appraisal;Ultimately, transparent performance is designed to underpin strategic and organizational change across the company.
There are four core systems for transparent performance solutions. The first system is objective transparency, which includes a performance organizational structure, performance indicators, and performance goalsThe second system is rule transparency, so that everyone understands how the rules are made, covering all logic. The third system is performance transparency, which means that all data is traceable. The last system is to encourage transparency.
Goal transparency
First of all,Define performance teams。For example, a group has dozens of factories under it, and these factories are divided into 4 business divisions. The original performance indicators were subdivided into four business divisions, each of which may have a scale of tens of billions, and the refinement of cost reduction and efficiency increase was insufficient. So they split each business unit into hundreds of small business units, each unit may have only a dozen or a few people, divided into 3, 4, 5 levels, and the largest organization reached 7 levels.
The organization of the enterprise is assigned to the workshop, but the fine indicators should be delegated to the process and team. This is the mapping logic of our performance organization team, which can divide the organization step by step, and connect and map with existing information tools such as ERP, MES, etc.
We support multi-tiered, multi-dimensional and virtualized performance teams, for example, we have 20 companies in our group, and the group aggregates all the financial departments into a virtual financial settlement center to observe the performance indicators of the financial settlement center, which involves the organizational mapping modeling of our performance team.
The second isDefine metrics, which is actually quite simple. As Mr. Bu shared, if it is a simple repetition of the original overall indicators, this is not very significant, and now it is necessary to decompose the performance indicators, not only to achieve the result indicators, but also to have process control. For example, if a company has 200 departments, it is no problem for the finance department to issue a set of reports for the company every month. But if the finance department publishes an operating statement for each of the 200 departments every day, the financial boss is expected to go crazy. They will ask for 200 more people, otherwise the job will not be done. In fact, with our AI and transparent performance indicator system, we can easily do this through modeling. We have served clients who can issue daily operating statements for more than 800 organizations, with a daily calculation time of only one hour and no human intervention.
The definition of indicator elements is involved in the daily report, including revenue, cost, marginal benefit, gross profit margin, etc., so is it useful for us to calculate so many organizational performance indicators?
One of the customer's chairmen gave the answer, and this is like a matter like, we care about saving water, electricity and gas, but in the whole factory, there is only one electricity meter and one water meter. If someone wants to save electricity, they may become a nameless Lei Feng, in order to save electricity, they don't turn on the air conditioner in winter and summer, but others don't know that he saves. Someone wasted it, and no one knows.
And now doing such a fine indicator system is actually installing water, electricity and gas meters for each organization to monitor their water and electricity usage.
The third,Define your goals。We have a clear budget and target value for each year. So how to set the target value of the indicator system?
For example, some departments want to achieve PDCA cycle improvement, and they can see the process data every day, because the financial data can only be seen at the end of the month and the end of the year, and if you see two projects and three departments have incurred losses, this is the data after the fact, even if it is found at the end of the month or the end of the year, it is already a fact and cannot be changed. Can we find problems in the process?For example, if you suddenly find that the day's profits are abnormally reduced, expenses are greatly increased, and indicators are abnormal, you can take measures in time, so that you can find and solve the problem in the process.
The rules are transparent
Building a performance model is a complex process. To put it simply, at present, the indicators of all organizations are the most original documents and fields of which business systems, without the need to write statements, they can be achieved through modeling, front-end configuration, and batch import, that is to say, it supports the import of quantitative performance indicator system with arbitrary logic, as well as the construction of performance indicator models.
Some companies will ask, assuming that the enterprise has 400 organizations, each organization has 400 indicators, how long does it take to import once?At present, many of the AI projects we have come into contact with take about three months or more, and we can only implement them in one or two weeks under the premise of sorting out the requirements.
I'm going to focus on how transparent performance is calculated. First, the transparent performance system can realize the two-way virtual income and expenditure settlement inside and outside, and secondly, the internal settlement price list can be set separately.
For example, when we need a virtual internal profit, there is a virtual internal transaction. However, our documents may not have these, including transfer orders, picking orders, and operation completion orders, which are not transaction documents. In our transparent performance, it is possible to convert existing documents into logical documents. When a transfer order is transferred from warehouse A to workshop B, we can understand it as workshop B purchasing a batch of goods from warehouse A. Based on the ** of these products, we will define an internal settlement**. Including buying and selling logic, service logic and commission logic, etc. All of this logic can be implemented in a transparent performance platform.
So, what about management's expenses?That's where it involves:Thirdly, these costs should be shared equally and compensatedAllocate to each day, so that we can check the daily report data, and then allocate these expenses to the corresponding front-line performance organizations, we need to clarify the allocation goal, the allocation object, and the allocation method. If you have this kind of work on hand, the system will help you save a lot of time.
Transparency of performance
Here we will focus on the performance systemPerformance Indicator Breakdownfeatures, first of all, for our customers, every organization canView team performance metrics data at any time, including daily, monthly, and yearly
Secondly, the reports of all team performance indicators can be combined and penetrated. What is Merge?Similar to the consolidated group statement, the profit of a single organization affects the profit of the entire group and can be entered into the daily, monthly, and annual statement. What is Penetration?Transparent detailed data, based on the verification summary and detailed data of internal transactions in management accounting. Performance data does not have to be given to taxation, because taxation focuses on the logical report of financial accounting, while performance report is more for the achievement of goals. It can even penetrate the performance report to each original document, realizing the purpose of clear accounting. These indicators are related to everyone's income and job promotion, and the members of each performance organization will pay great attention to them, including the analysis of the company's business performance indicators, including not only income indicators, cost indicators, expense indicators, but also other types of indicators.
At the same time, the system is also set upDynamic analysis of the cost table of 10,000 yuan output value.
Channel dataIt can also be presented in real time, such as understanding the channel's revenue, cost, profit change, fixed expenses and gross return difference and other indicators for this month, which can be designed in a targeted manner.
In addition to detailed performance indicators, the transparent performance system enables business analysis functions, including:Performance trend analysis and performance comparison analysis。Performance trend analysis analyzes the daily and monthly data trends of an organization.
Performance comparison, for example, if there are several similar processes or teams, you can compare them side-by-side to see who performs better.
Another important analytical feature is:Performance Rankingto directly present the performance ranking table (daily sales, daily profit, monthly sales, monthly profit). In the past, we needed to spend a lot of effort to read the meter and enter the data when making the ranking list, but now it can be presented directly in the system.
Incentives are transparent
First of all, the system will recommend and display honor lists based on performance data, including elite lists, comprehensive excellent lists, etc.
Second, the system issues special rewards based on performance data measurement. In short, we can calculate bonuses and calculate performance through modeling.
Third, the system can be based on the equal amount of performance data empowerment to achieve performance ranking, that is, to achieve the corresponding goals to obtain the corresponding points reward, employee points can be exchanged for various goods in the company's internal welfare supermarket, and can be exchanged with relevant e-commerce platforms.
Subsequently, we can also carry out personalized configuration according to the individual needs of different enterprises.
Technical implementation
Here is a popularization of the core technology of the system: digital reengineering technology.
The first is to recreate business data into operational data。Enterprise business data systems include: ERP, MES, metering, energy management and other tens of millions and millions of data, these scattered in various systems of isolated data for reengineering, the formation of business operators, business owners concerned about the business data, which requires the use of digital reengineering logic.
The second is to restructure accounting accounting into management accounting。As I said earlier, accounting mainly deals with matters of external legitimacy, such as tax filing. However, the focus of enterprise management accounting is to achieve goals, reduce costs and increase efficiency, which is internal, and more emphasis is on rationality.
The third is to reorganize the functional organization into a responsible organization。For example, there may be only a few dozen functional organizations in an enterprise, but the responsible organizations can be divided into hundreds, and they need to refine their responsibilities. Establish an internal responsibility-driven mechanism of the enterprise, realize the change of thinking from what I want to do to what I want to do, stimulate the unlimited potential of people, and refer to the fair market mechanism to conduct a fine digital assessment of the responsible organization.
The last one is to transform results management into process management. It is the default for everyone to issue financial statements every month, but many bosses ask whether they can check the ** table, of course, yes. This is the fourth core technology, which helps business operators to focus on the achievement of goals, not only post-accounting, and provides process data support for the improvement of PDCA of enterprises.
At this point, one might ask, how is the data processed in the transparent performance system?Do you need to enter and maintain it?The transparent performance system itself does not produce data, nor does it require a large amount of data entry, and all data is based on the system data of enterprise informatization, such as chain, ERP, finance, and human resources. Of course, there may also be a small amount of manual intervention, for example, the leader said that a certain department is an innovation department, this year is particularly difficult, the loss is serious, to give encouragement, give specific performance, this is the part of manual intervention.
At the same time, the transparent performance system will capture all the data of the business system to the data center. If the enterprise has a data middle platform, make full use of the existing data middle platform, if not, we can also provide basic data middle platform functions. These business data are captured, modeled, and formed into enterprise analysis reports and indicators.
Of course, in terms of application architecture, mobile apps are already in use now. The chairman of the company is often absent from the company and does not have a computer, but he can see the indicators and KPIs of each department with his mobile phone. The reason why it is transparent performance is because it can be penetrated, he can immediately view the data of the current day, yesterday's link in the report, etc., and can even automatically generate a business briefing, including revenue, profit gap, etc., the boss only needs to like it. But if a record is abnormal, the boss needs to check carefully, it turns out that the indicator has not been completed more than 80, which may affect the company's overall performance completion rate, at this time the boss can ask why the income is so low and the cost is so high.
Finally, the transparent performance system can realize the application of large-screen display, and there will also be a touch screen in the office, and you can see the real-time numbers when you click in.
Thank you, that's all for me to share.