(1) The core goal pursued by enterprises is to maximize enterprise value and make more money for shareholders.
(2) Whether an enterprise makes money for shareholders depends on whether your return on investment is high enough.
(3) Compared with absolute figures, smart shareholders pay more attention to the return level reflected by relative figures.
2. Dupont equation
Return on investment (return on assets)
= (profit/sales revenue) × (sales revenue/total assets)
= sales profit rate × asset turnover rate
(1) With the help of this decomposition, we can see at a glance whether the return on investment is high or low, whether the products sold by the enterprise are good or not, or whether the ability to sell goods is good or not.
3. Assets and liabilities
(1) Equality means that your assets are either your own or borrowed.
Return on equity
= (profit/sales revenue) × (sales revenue/total assets )× (total assets/equity)
= sales profit rate × asset turnover rate × leverage
(2) Total assets divided by shareholders' equity, also called financial leverage ratio, is how much your own money is used and how much other people's money is used to form such total assets.
(3) Expanding new markets, although it has not brought about an increase in profit rate, may help enterprises improve their asset turnover rate.
Improving the return on investment is actually increasing income and reducing expenditure.
1. gross profit
(1) is the surplus of income minus the cost of what you sell.
(2) After deducting other expenses, the final result is net profit.
(3) whether the gross profit is increasing or decreasing, managers should analyze clearly whether it is because of the development of the industry or the change of enterprise competitiveness.
(4) when the industry situation is good, we should know how to exclude the overall growth of the industry, see clearly the pace and situation of our real growth, and see whether our competitiveness has become stronger or weaker.
2. expenses
(1) Enterprises must know how to control the change of cost, and strive to increase the cost with little or no increase while increasing sales.
(2) Three major expenses: sales expenses, management expenses and financial expenses.
(3) If the growth of sales expenses is faster than the growth of income for a long time, and the speed of profit growth is not significant enough, then the enterprise may be in a moment that managers need to be extra careful.
(4) It is usually a good thing for enterprises to increase R&D expenditure. The performance result of R&D investment is the number of new products launched, the market share of new products and the number of patent applications. These inputs will eventually have very good results.
Asset turnover rate: the efficiency of obtaining income
A. Asset scale is only a means for enterprises to achieve their own goals. The value of an enterprise is not reflected in the scale of assets, but in the speed and efficiency of its income.
B The company that can make profits without assets, or the company that makes the most profits with the least assets, is the best company.
C. We often say that attaching importance to assets and neglecting assets is relative to asset turnover rate and strategy.
1. Inventory turnover rate
Inventory turnover rate is an important efficiency index, which indicates the ability of an enterprise to sell goods and how long it existed in the form of inventory before the goods were sold.
2. Payback period of accounts receivable
This payback period indicator is very important in enterprise management, because it helps enterprises to adjust and judge whether their credit status is appropriate.
3. Accounting period of accounts payable
Accounts receivable reflect your ability to collect accounts, and the account period of accounts payable reflects your degree of "default", both of which reflect the efficiency level of enterprises and are very important performance indicators.
4. Turnover rate of fixed assets
Understanding the turnover rate of fixed assets is helpful to measure the relationship between the logic of capital intensity change of an enterprise and an industry and allocate resources more effectively.
1. Lever is a double-edged sword.
(1) can maximize the number of shareholders and control the profit level of shareholders.
(2) Non-controlling shareholders are often the first lever of controlling shareholders, and creditors are the second lever.
(3) On the one hand, it can greatly improve the rate of return of shareholders; On the other hand, it does increase the risk.
2. Factors affecting the security of financial leverage
(1) How high the financial leverage is, it is mainly affected by the industry attributes and enterprise characteristics.
(2) Only when the income is very stable and very safe can we support high leverage for a long time. (Characteristics of the financial industry)
(3) The factor that can affect the level of leverage is the characteristics of the enterprise. If the income level of an enterprise is relatively stable and easy to predict, creditors can judge whether it will have a relatively stable and visible cash flow, which will also determine the leverage level of the enterprise.
3. Three risk assessment indicators
(1) Asset-liability ratio: If the debt level is already high, compare it with its historical data to see if there is any change, and see its income, expenses and profits when it was in high debt in the past.
(2) Debt service ratio: As an enterprise, if it insists on continuous operation, there is no need to consider paying debts.
(3) Liquidity ratio: Current liabilities are debts to be repaid in the near future; Current assets are assets that can be realized quickly. If the indicators are good, there is no need to be afraid of the immediate crisis.
1. Which direction the enterprise will develop is a very critical and decisive issue.
2. Opening a small shop actually pays more attention to the sales profit rate strategically, because the unique technology can get very high returns; Opening chain stores and big stores is actually an operational efficiency.
1. DuPont formula and balanced scorecard
(1) Dupont decomposition, or even more detailed decomposition, is actually the underlying logic at the financial level.
(2) Dupont decomposition helps us to think more clearly about the relationship between the financial logic of the organization and the investment return target.
2. Fishbone diagram
(1) Fishbone diagram is mainly used to analyze the causal relationship layer by layer, and then find the logic to solve the problem.
3. Integrate various management tools
The significance of (1) fishbone diagram is that we can deduce the direction and method of how to solve problems, including what kind of problems, which department should solve them, to what extent, what kind of indicators to measure them, and so on.
Jack Welch:
"Performance management is all the secrets of building a great organization." "Only participate in the most promising areas in the industry and strip off the departments that have no room for innovation."
1.KPI: key performance indicator
(1) Performance system is the clothes of opinion organization. Every joint of the body should have activity space, large and small targets and be controlled at the same time;
(2) Performance indicators must meet. Every department, every subordinate employee, where the activity space is, and how to be comfortable without wasting cloth are all carefully considered.
2. Get 2. KPI index system
(1) The performance system is determined by strategic objectives, and the indicators in the performance system must be decomposed into the whole organization in order to play a strategic traction role.
(2) Using fishbone diagram as a tool for logical analysis, you can continuously decompose financial indicators into various related non-financial indicators.
(3) It is the company's vision, direction and strategy that determines the objectives and indicators.
(4)KPI index is reflected in the performance system of the enterprise, which is not only the traction index of the whole organization's action, but also the result test index of whether the task is realized or not, and the control index of the progress.
3. Dismantle KPI system
(1)80% of the performance is actually completed by 20% of the key behaviors, and these key behaviors often occur in the "key result area".
(2) Change the result indicators into cause indicators, behavior indicators and process indicators. Then these indicators are decomposed and implemented in different organizations and departments and different people.
(3)KPI system has three stages: creation, operation and modification.
When a department is labeled as a certain kind of center, the general direction of performance setting and assessment of this department is basically determined.
1. profit center
(1) depends on business performance and return on investment.
(2) Be bigger and stronger: Being bigger is to increase the income scale; Being strong means reducing costs and speeding up capital turnover.
2. Income center
(1) Sometimes, increasing financial leverage can increase asset scale, increase sales, increase market share and improve profit rate.
(2) If the managers of income centers have no pricing power, it may not be appropriate for them to have pricing power.
3. Cost center
4. Cost center
(1) expands in turn, resulting in low process efficiency, which is the biggest headache for many enterprises to grow up.
1. "Smart" principle
Concrete, measurable, achievable, result-oriented and timely.
2. Dare to question
Drucker: "Doubt is no problem. When in doubt, you must do your own research. As long as there is research, there will be experience. "
3. Drucker's "Management by Objectives"
(1) Management by objectives is closely related to the concept of self-control.
(2) the manager must have a positive attitude, identify with the enterprise's goals, understand what the enterprise's goals are, what expectations the enterprise has for him, why the enterprise has such expectations for him, and what indicators the enterprise uses to measure his performance.
peter f. drucker
? The primary requirement for managers is to guide each manager to achieve the enterprise goals and focus his will and efforts on achieving these goals.
? Understanding of * * * can never be gained through "downward communication", but created through conversation. Can only be produced through "upward communication". It not only needs the sincerity of the boss to listen to the opinions of his subordinates, but also needs a specially designed means to reflect the opinions of his subordinates.
1. Capital asset pricing model
How much risk you take, the market will give you much return. Before you think about making money, think about how many risks you can take.
2. For enterprises, only when the people who provide resources get the normal reports they expect will they have a surplus, then this performance can be said to be outstanding, and enterprises will have a chance to achieve greater development in the long run.
3. Managers must be able to distinguish the nature of performance and know what kind of performance is outstanding.
Performance management is a main line and a basic starting point for managers to lead teams.
1. Swing head four-step method
Is to think clearly about "every soldier under his command", his abilities, the tasks he may undertake, the cooperation he needs, the abilities he needs, and what abilities need to be improved.
(1) Plan which team will accomplish what performance tasks.
(2) find a way to arrange the head.
(3) Performance planning based on core personnel.
(4) Think about whether there is a mismatch.
Are we willing to send the best person to do the most difficult thing instead of letting him do the most important thing at the moment?
2. Add a time dimension
Because only by subdividing according to the dimension of time can it be possible to manage the opportunity well.
3. Line drawing
Communicate with employees
Whether you use hard power or negotiation, it is important to communicate with employees in a timely and effective manner.
1. Sense of fairness
There is no absolute fairness in this world. Fairness is essentially a feeling.
2. The evaluation deviation of managers
(1) Leaders always look at their subordinates with colored glasses.
(2) In the performance evaluation, managers must strive to eliminate the inherent inner prejudice when posing their heads, treat the current performance of the assessed as objectively as possible, and especially try to eliminate the influence of ability.
3. Four common evaluation errors
(1) Evaluation of attribution bias
The man may work hard, but because of bad luck, he didn't show any effect. This is to avoid being killed by a stick.
(2) recency effect
Because deeply remembering a person's recent performance will affect his long-term evaluation and overall evaluation.
(3) Halo effect
We sometimes have a preference for some people, so you will have an upward tendency to evaluate them.
(4) the trend of centralization
I'm not familiar with the next number, and I don't want to give too low a score when evaluating and scoring.
1. Assess responsibility
(1) In the whole performance evaluation process, only the evaluator is responsible for the evaluation results, and the performance evaluation really forms a closed loop.
(2) Whoever is responsible for the team's performance results has the right to employ people.
(3) The purpose of performance evaluation is to better adjust the team and bring out a better team.
2. How to really take responsibility
(1) Performance appraisal is not only a management job, but also an opportunity to build leadership and influence.
(2) You should be able to explain your evaluation method.
(3) Performance evaluation is not for evaluation, but for bringing people.
Two working lines led by 1.
What managers need to do is to play the role of a good navigator, and performance feedback is equivalent to the navigator's tips.
The first is the work line of subordinates. For him, there are both prescribed routes and local decision-making power.
The second is the manager's work clues.
2. Instant management
In order to operate effectively, except in specific business operations, navigators can effectively authorize subordinates through immediate guidance.
Being a leader is tiring.
(1) Everyone's work, what to do, what to do and how to do it should be kept in his mind;
(2) Be quick and agile enough, that is, on the basis of insight into the overall situation, he wants to be ahead of you in everything you want to do. As soon as you open your mouth, he knows what you want to say, and his thinking and judgment are in front of you;
(3) For complicated and intractable problems, he has the means to guide you, instruct you and do things well.
The use of management tools is to make up for the lack of managers' psychological reaction and judgment ability.
Instruct subordinates
First of all, we should consider whether there is a problem with the incentive factors.
Play-Your performance feedback is to tell him very clearly that you can do well as long as you keep working hard.
Problem-based-Your performance feedback should be detailed to the solution of the problem.
The navigator is broken-we should mobilize our strength and lend a helping hand.
1. Performance is the key variable of management activities.
(1) The ultimate goal of all leadership activities and management work is to achieve ideal performance goals.
(2) Basically, it is to find the best customers, guide effective actions through your strategy, defeat competitors, and provide customers with the most valuable products and services.
(3) However, the improvement of this index is closely related to the product quality of the enterprise and the work quality of the after-sales service team.
2. The four steps of performance management
(1) Set clear performance indicators, and then make performance planning.
(2) Timely and continuous performance communication and improvement.
(3) Performance interview. If you can't master people's personality characteristics, sometimes the results of performance talk will be counterproductive.
3. Bring out an excellent team
(1) Performance audit is nothing more than a helper for every grass-roots manager to "self-control and achieve goals".
(2) In short, performance management activities are not only to improve performance, but more importantly, to bring out a team and a group of outstanding subordinates by improving performance.
(3) Through active adjustment, our organizational ability can be improved and evolved.
In China, when it comes to incentives, people naturally think of material incentives such as bonuses, wages, stocks and options, which is a misunderstanding.
1. Three typical motives
(1) From your own motivation, since God has given talents, let them find jobs! ;
(2) Motivation from others, not wanting to disappoint others;
(3) Incentives from high returns, such as higher wages than other places.
In short, all people are motivated by some kind of motivation, and the most fundamental factor behind motivation is motivation.
2. Understand the psychological state of subordinates
(1) Motivation is a state of mind, which can be stimulated by internal or external factors, and it can keep people working towards their goals.
(2) To be an effective manager, we must understand the motivation of every employee and urge them to work hard with the most appropriate incentive methods.
(3) If a person wants to work hard, he must have benefits other than money.
3. Three typical incentives
(1) Trust of leaders.
(2) Work content and organizational environment: employees can solve problems in innovative ways according to their own judgments, and their investment in work is relatively high.
(3) Material incentives
When managers set specific and difficult goals for employees, but employees are willing to accept them, this will have an incentive effect and produce high performance results.
This result has two premises:
(1) employees have the ability to achieve the goal;
(2) Employees can receive feedback on the completion of objectives.
1. Example
(1) If the boss adopts the thinking mode of "Great Leap Forward" and decomposes the performance objectives within the organization, it will be counterproductive and the basic rhythm of organizational development will be disrupted.
2. Goal setting theory
(1) With appropriate high goals, there will be high performance.
(2) Goal setting-encouragement and encouragement-performance achievement
3. Application of theory
(1) Goals must be specific.
(2) The goal must not be too difficult to make employees feel unattainable.
(1) When the executor is personally committed to difficult goals, the incentive factors are more likely to play a role and can overcome the frustration caused by failure.
② The value of employee participation is more cognitive, which is conducive to information sharing and information exchange. However, employee participation does not necessarily lead to commitment.
If the difficulty of a job exceeds the industry benchmark and there is a big gap with the historical performance, it may be too difficult.
1
(1) Promise that you will closely relate yourself to a thing and the expected goal of doing it.
(2) One track-minded, in fact, is the highest state of power.
2. escalation of commitment
We often think that many decision-making mistakes, the problem lies in the initial decision-making mistakes, and escalation of commitment in the process of behavior is the real motivation.
3. The most powerful internal motivation
(1) is the result of people's strong pursuit, reflecting their preferences and making their identity recognized by all parties.
(2) maintaining the motivation of previous decisions will greatly form a commitment in the course of action, thus arousing extremely strong psychological motivation and forming a strong commitment.
1. The importance of work
(1) The secret of transforming an enterprise is to push the enterprise and employees as a whole to the front line of the battlefield: only by making every employee face the murderous look on the front line will all kinds of wrangling and slacking be stopped, internal motivation be formed to the greatest extent, and material incentives be more effective.
(2) to mobilize others, the most important thing is to conquer the heart, and one way to conquer the heart is to make him realize the importance of the work he faces.
2. job enrichment, fine division of labor.
Jobenrichment is to make employees' work more interesting and inspiring, because the scope involved has expanded.
3. Theory of working characteristics
(1) The diversity of skills, the integrity of tasks and the importance of tasks will affect a person's perception of the meaning of work.
(2) The fourth dimension is the autonomy of work, which will affect a person's perception of job responsibilities.
(3) The last dimension is workflow, which enables employees to get feedback.
? If the two characteristics of "autonomy" and "feedback" are poor, the overall incentive level will definitely be discounted.
1. Rotate
(1) A person working in different positions can gain more experience, work pleasure and growth opportunities than working in a fixed position.
(2) Promotion depends not only on whether you can manage a certain field well, but also on whether you can adapt to more management scenarios and manage your work more comprehensively. Rotation is a good way to exercise.
(3) The most important thing is that employees can feel the exponential improvement of their abilities.
2. From "scientific management" to "job redesign"
(1) Although the specialization, standardization and simplification of work have greatly improved the output and quality, such work design results have also led to the boredom of work and even the failure of employees' creativity.
(2) Employees not only implement, but also increase their own responsibilities and rights, that is to say, they emphasize the extension to the depth direction in the dimension.
(3) job redesign's goal is to make his work more interesting, substantial, diversified, responsible, meaningful and challenging.
3. job redesign's guiding ideology
(1) Encourage employees to feel the meaning of work through two factors: "skill diversity" and "task integrity".
(2) Let employees see the fruits of their efforts in time, thus enhancing employees' sense of ownership of their work.
(3) When the organization representing yourself is in contact with the outside world, you can realize your responsibility in this process.
(4) See if the work can be expanded vertically, so that employees have the responsibility of making decisions independently, thus improving their autonomy in work.
(5) How to arrange work can let employees know their performance at work and feel the relationship between efforts and improvement.
1. Why do you want to pay high?
(1) At present, the outstanding problem is that the salary of managers is too low.
(2) The consumption and management expenses of public funds remain high, because it has nothing to do with me in the end, so I might as well just spend it.
(3) Sufficient material incentives should be given and horizontal comparability should be achieved.
2. What is "high"
(1) Find a suitable reference, and then the total salary level should be close to it.
(2) Then, according to the position and other factors, the salary of employees is linked to the salary level of these people.
1. Efficiency salary and failure cost
(1) Normal salary level is not easy to produce strong incentive effect.
(2) Wage doubling is an incentive from money and a high-quality incentive from internal psychological constraints.
(3) "Efficiency Wage" can bring high-quality jobs through this arrangement of remuneration levels.
(4) Because of the fear of high failure cost, employees will make their performance better and perform better, which is the internal incentive source.
2. When should we give efficient wages?
(1) Every manager should always consider: What is the failure cost of your subordinates?
(2) The harder it is for employees to be supervised by outsiders in the process, and the more they rely on workers' sense of responsibility and self-motivation, the more they should be paid.
(3) Incentive compensation is very important for solving problems from the incentive level.
(4) Evaluation and elimination are the keys to the whole logic chain.
(5) Every highland with a relatively good salary level pays special attention to retaining it. This is the "failure cost" in the work.
3. Which positions need more money?
(1) Anyone who is not good at monitoring the operation process, efforts, or even simple and immediate judgment of performance results needs to pay more money, and needs to make personal motivation more abundant through incentive pay.
(2) More important than the salary structure is the level of the total amount, which is the most important.
When it comes to incentives, first, we must consider the total amount; Secondly, we need to consider the structure.
1. Salary structure
(1) We generally divide the salary structure into two parts: basic salary and performance salary.
(2) The determination of the proportion of the two parts mainly depends on:
A. the degree of correlation between performance and effort;
B. Observability of performance;
C. management level;
D. your ability to observe performance, and so on.
2. How to determine the proportion of salary structure
(1) If you can easily observe your achievements and efforts, you really don't need to pay more, and you don't need to set up an incentive and reward section.
(2) Many times, you may not be able to check your performance in this way. The remuneration for this kind of work must have a large proportion and be linked to performance.
(3) The salary of managers should be linked not only to short-term performance, but also to long-term performance.
3. Know people through reward structure
? Let the salespeople who come to apply for the job choose their own salary methods and "disclose" their information.
1. Set the economic conditions of incentives.
(1) In the case of asymmetric information, the party with information will bully the party without information.
(2) The three criteria look at the relationship involved within the enterprise.
A. Information asymmetry
B. Inconsistent interests
C. Monitoring difficulties
According to modern economics, as long as these three conditions are met, it is necessary to design an effective incentive mechanism.
2. Four ways of remuneration
(1) If the superior of the "fixed salary contract" can observe the efforts of his subordinates, he can also observe the performance results and know to what extent the performance results are brought about by the efforts of his subordinates. In this case, the risk is mainly borne by the superior.
(2) The risks and benefits of the Lease Contract are at a low level.
(3) Piece-by-piece contract can clearly observe the industries and enterprises of employee productivity, and it needs to be able to control the quality of a single product well.
(4) The "share contract" uses part of the performance as the remuneration of employees. The biggest problem of sharing contract is risk sharing.