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In the development of a company

In the development of a company

it needs to have a consensus, including a consensus on values, a consensus on strategy, and a consensus on power. In layman's terms, it's who has the final say. The founder does not need to worry about this, because he is the natural HE Tuber consensus of the organization, "He is the boss."
But when professional managers take over the authority, they need to establish a system within the scope of authorization to allow the organization to reach a consensus. In a nutshell: Founders have property rights, maximum voting rights, and Charisma-type reputation, and they can fight wherever they want; while professional managers only have authorization and rely more on the system.

Also in this year, JD began to establish a middle office. The supply chain units in technology and business were decoupled and became a middle office organization. The front office organization was a business scenario. The two parties were constantly recoupled and worked together to move forward. Since it is coupled, some external force is needed as support.
Of course, JD’s middle-end design is still relatively personalized. Generally speaking, the middle-end design of most companies is a technical middle-end and an organizational middle-end, that is,

 the middle-end design of finance, human resources and R&D departments. The reason for this is also very simple. Whether it is a company or a business unit, the three core elements are always people, money and materials. People and money are easy to understand, while things refer to the means of production. For Internet companies, their core production material is software, and the R&D department ensures the implementation and iteration of this production material.

Therefore, when the finance, human resources and R&D departments are centralized, the business units are actually more focused on execution. If he needs to expand his business, he needs to seek budget, headcount and R&D support from the middle office. In addition to good popularity, what business bosses need most is support from the CEO.

In other words, the middle office takes advantage of the egoism in human nature, which will lead to an increase in internal transaction costs and an increase in friction within the organization. This friction will of course cause some energy dissipation, but it will also cause the entire The organization moves closer to the center, and decision-making power is centralized upward.
This is why, when Liu Qiangdong returned to the business, JD began to dismantle Zhongtai again. Because the founder is the consensus of a company, he no longer has to use 

bureaucracy to pay more friction costs to manage the river of power within the company.
Similarly, when Kuaishou bid farewell to the dual-headed management model and appointed founder Cheng Yixiao as CEO, one of the first things it did was to dismantle the middle office. This company's business is not complicated at first, that is, it operates and commercializes around a content platform. But at one time, this company also had a middle office, but now, all its business units have been closed-looped into one system. In the first quarter, Kuaishou achieved its first profit after listing. I believe that the improvement of organizational efficiency should play a big role. effect.
Of course, the most thorough dismantling should be Alibaba, because with the establishment of the 1+6+N holding company structure, this company has achieved complete authorization of business lines.

After all, this is an era that no longer allows energy to be dissipated, and in addition to egotism, there is a more prominent commonality in human nature, and that is to win.
Especially when this moat is being broken one after another, if technology companies cannot break through and win, they will be in danger of survival. It is the general trend to make the decision-making chain shorter, more agile, and more equal in power and responsibility. China and Taiwan have completed the historical mission of this stage, but in the future, it may be resurrected in another form.

In the development of a company
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In the development of a company

Published: