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Creative development is the perpetual path for HOdo—— Management innovation from the 60-year development perspective of HOdo Group
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Recently, HOdo Board Chairman Zhou Haijiang published his management innovation book the Modern Enterprise System with Chinese Characteristics which was a valuable book integrating his enterprise management experience for years and this book introduced the process that HOdo probed into and established the modern enterprise system with Chinese characteristics superior to the western from the aspects of global perspective, China-oriented exploration, system structure and prospective thinking, so the book was widely praised inside and outside the industry.
Based on Zhou’s exploration and practice, more and more people get to know HOdo mode and the modern enterprise system with Chinese characteristics; moreover, his exploration and practice is an epitome that HOdo bravely made management innovations for the past 60 years to rapidly develop with these innovations and finally take qualitative changes.
Breaking the balance and jumping from “equal treatment” to “self-reliance”
HOdo founder Zhou Yaoting made an innovation to create the mechanism motivating the whole staff when he first took the office in 1983. His reform started with breaking “equal treatment”: every employee had to bear self-reliance in mind without the so-called perpetual jobs so that the enterprise would never keep the lazy workers.
The reform in place not only brought strong vitality for the factory but also significantly improved the efficiency of the whole staff. In 1987, the first office building was put into use and the output value exceeded CNY 10 million which was further quadrupled in the next four years. And in 1988, the factory shaped the 6 workshops of knitting, dyeing etc. and constructed a one-stop modern production line with nearly 1,000 workers.
Revitalize the group with abandoning the stock right restrictions and uniquely creating “the four-system linkage”
Abandoning the stock right restrictions is a big innovation for HOdo. And HOdo stockholding system first started in 1993.
The company launched the internal stockholding system of “voluntarily buying shares, sharing profits together, jointly assuming risks and enjoying the equal stock rights” to vitalize itself and become the model of “new Sunan mode”. In 2003, HOdo completed the stockholding system reform.
During this reform, HOdo also launched “profit contracting, parent-subsidiary”, “internal market” and “four-system linkage” management systems.
Democratic management from echo wall, secretary’s or president’s mailboxes to candidate election system
Every workshop of HOdo is set with “the echo wall” where the employees can write their comments, questions or complaints if any. And the factory heads must reply to and resolve such questions etc.
HOdo has insisted on the general manager’s, secretary’s and president’s mailboxes for 20 years, while such mailboxes have been expanded into a staff communication system including “echo wall”, reasonable suggestions of potential risk inspection month, the mailbox of the board of supervisors and many other channels.
Establish the modern enterprise system with Chinese characters to better the company
After years of exploration and innovation, HOdo tries to integrate “CPC construction” and “social responsibilities” into the modern enterprise management and consequentially shapes the control mode of “modern enterprise system + CPC construction + social responsibilities” to effectively break through the “ceiling” bottleneck of company management. So some experts and scholars call the mode “modern enterprise system with Chinese characteristics”. HOdo exploration gets the high appraise and recognition of the Central Organization Department which promoted HOdo mode all over China in October 2012.
The 60-year HOdo development history is also the records full of the company innovations. Therefore, Zhou Haijiang has ever repeated and emphasized that innovation is the inherent vitality of a company. And HOdo development history also embodies this viewpoint of Zhou.