In the past few years, all of our businesses have been puzzled, the general environment is not good enough, do we still have to discuss the topic of growth? We'll talk about survival and make it a particularly critical topic, but I want to tell you all:Whether an enterprise can survive or not, the intrinsic element is whether the enterprise can maintain growth.
Therefore, the reason why I take growth strategy as the main topic today is to communicate and discuss with you that in the digital era, the most fundamental change in growth strategy is in the digital era. In this way, we can understand the basic choices for the survival and growth of the enterprise.
First, let's look at the environment. No matter how we understand the enterprise, there is no way for the company to avoid the relationship with the environment. The biggest challenge for businesses in today's environment is that there are so many factors that influence.
In the past, we could just talk about the macro environment and trends, today, there is a micro environment in the macro environment, and there is a macro environment in the micro environment, as well as policies, epidemics, digital technologies, global **, geopolitics, and so on, as well as the speed of change. I summarized three points, the superposition of various influencing factors, unprecedented complexity, and the adjustment of various dimensions.
Some people say, Mr. Chen, are we doing ascending or decreasing? I want to tell you that today there is no concept of ascending and descending dimensions, because all dimensions have to be done. So, for all of us, our biggest problem and anxiety comes from our unknowability about growth and the future.
This is our environment, so what does the reality look like? A lot of things do change, so we need to have some very important training.
It is necessary not only to link strategy with the external environment and industrial conditions, but also to link strategy with organizations and people.
Strategy is a dynamic choice in the face of continuous changes in the environment, and it is also a process of symbiotic value creation. This means that we must not only have our own business model, but also have an understanding of the ecosystem.
Core change: Data, information and knowledge, and technology have become major resources for individuals, societies, and economies.
In the past, we talked about land, capital, labor and capital, but today there are more data and knowledge on the factors of production, because there are two more factors of production, and we have produced companies with a market value of trillions. After that, we also have companies with trillions in revenue, which comes from the extensive interplay of technology. Technology, data, and knowledge themselves will break down all kinds of boundaries and barriers, and the scale of formation is enormous.
Recently, in the live broadcast room of "Walking with Hui", in just 4 hours, the transaction volume of "People's Literature" in the live broadcast room totaled 8260,000 sets, 9920,000 copies. In the past, we could not have imagined that a journal would sell tens of thousands of copies in a matter of hours, but today it is a reality.
In this reality, we are constantly thinking about how companies can grow. This is also the direction of my researchI have found that there is an effective answer to the choice of managers based on the dual perspectives of strategy formulation and organizational realization, and the answer is "growth strategy".
In other words, managers need to have both an external perspective (strategic dimension) and an internal perspective (organizational dimension) to find answers that allow growth to be independent of the environment. So, I've summarized a few strategic options to keep your organization growing.
Four forces that affect the survival and growth of enterprises
What are the forces that affect the survival and growth of businesses today? That's the first question I'm going to answer.
The reason why we say that digital technology is important is because it expands the growth space from the most primitive industrial space to customer value and organizational boundaries, so the forces that affect the growth of enterprises have changed, and I call it the four forces.
The first force, external friction, is resistance and influence on the organization. The second force, external drivers, such as the push of digital technology. The third force, organizational gravity, the force that pulls down within the enterprise, makes it impossible for us to go up. The fourth force, the organizational drive, the force that the organization pulls itself.
In the past, we talked about Michael Porter's five forces analysis model, and he talked about the five forces from the perspective of the industry, the bargaining power of the businessman, the bargaining power of the buyer, the ability of potential competitors to enter, the substitution ability of substitutes, and the current competitiveness of competitors in the industry.
Today, digital technology has broken the industrial boundary, and it is not enough for us to talk about the industrial structure, and the influencing factors that affect the strategy of enterprises have changed into four forces. Let me briefly introduce it to you.
(1) External friction
Competition stems from the competitiveness of the industry, unfamiliar markets, unfamiliar customers, and the market environment, the challenges of various macro environmental factors, and even the shortage of capital.
For example, in the past 40 years, the home appliance industry has eliminated a lot of famous brands, why are the once brilliant brands eliminated? Because these brands are only based on their own industrial logic to develop, they do not see the great changes in the entire home appliance industry and the external environment, from home appliances to consumer electronics and digital products, all the way is changing. If we don't know about this change and just see it as a frictional force, the company will be eliminated.
(2) External driving forces
Contrary to external frictions, industrial development, technological innovation, human well-being and the birth of good, as the positive forces of the external environment, have always been the driving forces to promote the growth of enterprises. For example, companies such as Tencent, JD.com, and Tesla have grown up using Internet technology and digital technology.
(3) Tissue gravity
One of the reasons why companies can't continue to grow is organizational gravity. The inertia, slackness and complexity within the organization are actually composed of corporate culture, management system, operating mechanism and employee behavior habits. When the organizational gravity is good, it is the ballast stone of the enterprise's stability, and when it is bad, it is the internal cause of the enterprise's complacency and decline.
(4) Organizational self-drive
Organizational self-motivation is first manifested in individual entrepreneurs, and its core core is entrepreneurial spirit. The second is the core competence accumulated by the enterprise to maintain its competitive advantage in the field. Thirdly, it is the sense of crisis and the culture and ability of self-transformation that constantly break the gravity of the organization. Organizational self-motivation continues to lead companies to overcome difficulties and seek growth. 
Three growth strategies
What business leaders need to do is to make the synergy of the four forces a positive driving force, which we define as a "growth strategy".
I have established a growth strategy as three basic strategies.
1.Effective business strategy2.Customer value innovation strategy3.Synergistic symbiosis strategy
(1) Effective business strategy
In an effective business strategy, you should focus on the four basic elements of the operation, and plan management throughout the four basic elements of the operation.
For many small and medium-sized enterprises, or companies that want to grow rapidly, I recommend that they start with an effective business strategy.
For example, in the process of accompanying the company, if I want to grow, I will set the monthly business plan of the enterprise very rigidly, because only when the plan management runs through the four basic elements, can the problem of growth be solved. If you want these four basic elements to really have a business effect, you need to be effective in scale, competitive and reasonable costs, deeply humane and profitable, and continue to focus on customer value creation.
These four elements are just ideas that don't have any meaning, and we need to use the habit of plan management, do it every month, and we can get growth.
This is a company that was founded in 2011 - Wisdom Tree. In 2017, they covered 1,000 colleges and universities across the country and served more than 5 million students, but companies began to see growth bottlenecks, and more importantly, it was difficult for companies to achieve better profitability.
In 2017, Wisdom Tree determined the business strategy of "Seeing Trees into Forests, Stacking and Winning Trees", established inns in more than 100 universities, simplified products and services, focused on core products, and achieved competitive costs. At the same time, it canceled the provincial branch structure, and the business focus revolved around 500 core customers, and then the whole staff planned and managed, and continued to advance every month. By 2019, Wisdom Tree has served more than 2,000 universities and more than 10 million students taking elective courses, and more importantly, it has promoted China's best credit elective courses to become a broad technology platform to help more people access high-quality resources. Its revenue and profitability levels have risen to a new level, overcoming bottlenecks.
(2) Customer value innovation strategy
After an effective business strategy solves the problem of rapid growth, how do we acquire new value space, which we call the customer value innovation strategy.
In the customer value innovation strategy, we need to have the organizational ability to control the deterministic needs of the main business and at the same time explore the possible needs of new businesses.
In the face of such a changing and uncertain environment, any enterprise today must control these two major businesses, that is, the continuous growth of the main business and how to achieve new growth in the new business. It depends on whether our organizational capacity is actually built or not.
The core of mining certainty is to meet customer needs, there are four implementation paths:
We produce products that customers need, pay attention to the cost of customer purchase, fully consider the convenience of customer purchase, and implement effective communication with customers.
The core of exploring possibilities is to create customer needsand ask yourself four questions:
Do you know what your customers are expecting? Can you bring imagination to your customers? What technological advancements will have an impact on your field in the future? Do you have the determination and ability to break the mold and apply radical technology?
Dongpeng Beverage has done a good exploration in this regard, its main business is energy water, everyone is familiar with "sleepy and tired, drink Dongpeng special drink!" "This main product contributed almost 10 billion yuan, but it will not stop at 10 billion yuan, so we started to explore new business. This year, Dongpeng Beverage announced a 1+6 multi-category strategy, such as the electrolyte drink "Dongpeng Hydration", oolong tea, and VIVI cocktail. In less than a year after its listing, "Dongpeng Hydration" has reached a scale of 500 million. Why Dongpeng Beverage's 1+6 multi-category strategy will be well implemented is because it has strong organizational capabilities. Dongpeng Beverage's continuous building of organizational capabilities allows it to do a good job in short-term service business and long-term service capabilities, and revolves around the value symbiosis of individuals and organizations, turning the organization from individual heroes to a platform for combining wisdom.
(3) Synergistic symbiosis strategy
The synergistic symbiosis strategy refers to the transformation of an enterprise from the sole carrier of providing customer value to the co-creation of value between the enterprise, industrial partners, and customers at multiple customer value connection nodes. In the process, the strategic space becomes larger and larger.
In the three-dimensional model of the ecological space, in addition to the main business and new business mentioned in the customer value innovation strategy, the synergistic symbiosis strategy has a new model innovation.
Domain (Broad): Outside the main channel, explore new business organizations; Bitfield (depth): online and offline are connected, and the integration of "real" and "virtual" generates new value; Time domain (length): Updating the business model and spanning discontinuous changes.
We're seeing the whole ecosystem grow, and we're also getting room for growth through the operational efficiencies of the entire organization. Efficiency refers to the point where you reach customers, and whether you can reach customers faster with industry partners and business partners. When you complete the three-dimensional structure of the organization, we originally only had the customer value of one business, but now we have the customer value generated by digital operations and the customer value of industrial activities, and our value space is growing.
From the expansion of ecological space to the three-dimensional space of the organization, how do we do it? We need an organizational culture, which we call a symbiotic culture. Symbiotic belief requires us to strive for growth in self-restraint and altruism.
This is the case of the House of Fact. In the past few years, we all know that the challenge of large-scale building materials stores is very huge, and the offline customer flow has been very small, so the home knows that it must expand its space. In the main business, the home has done an online and offline action, called "Dongwo", which provides a larger building materials store for everyone. Then, the home began to do an industrial service platform, so that more first-class merchants are with it, so that customers are more willing to be here, and it has changed from a value of operating "field" to two new value spaces of operating "people" and "goods". Then, it also changed the organizational structure and built the organizational structure around the three aspects of "B", "C" and "S" of the "S2B2C" model, that is, the three-dimensional structure of the organization. In all the large-scale building materials stores, the home has gone out of its own way, and its growth is also very clear.
Conclusion: Only growth can cope with changeFinally, I would like to tell you that only growth can cope with change. Because growth can help us solve these three problems, 1) solve the problem of survival with an effective business strategy, 2) gain growth through customer value innovation strategy, and 3) obtain the value space for sustainable growth through synergy and symbiosis.
So, I've always said to our partners, we have to face uncertainty with certainty, and certainty is your own ability and belief in growth.
Today we discuss the concept of growthWhat runs through it is the efficient alignment of the organization and the strategy
An effective business strategy requires program management; The customer value innovation strategy requires organizational capabilities; The synergistic symbiosis strategy requires the ability to organize a three-dimensional structure and a symbiotic culture.
Therefore, growth is not as difficult as imagined, if we grasp the effective management strategy and customer value innovation strategy, there is no problem for the survival and growth of the enterprise, and if we join the synergistic symbiosis strategy, the enterprise can continue to grow.
Today,Strategy is no longer a resource model, but a capability model。In the past, we could have money, resources, and a bunch of people, but today, the times have changed, and enterprises with growth capabilities will gain room for sustainable growth. I think that's why HR has become so important today, and it's all about whether you're really aligned with the strategy effectively. (End of this article).