MCC ranked 25th among the largest enterprise groups in 2005 1000, up 10 from the first place in 2003. It ranks 39th among the top 500 Chinese enterprises, which is a great leap from the 55th in 2002. Although the top companies are enterprises with state monopoly such as oil, electricity and finance, it is more and more difficult to move forward, and every time a position is promoted, it is necessary to climb a mountain, but Yang is full of confidence and confidence. Because after six years of hard struggle from 65438 to 0999, MCC has begun a strategic transformation from translation-extension development to innovation-propulsion development, and the enterprise has accumulated enough energy and explosive power. Compared with six years ago, the development foundation of the enterprise has undergone earth-shaking changes, and the development of MCC has experienced explosive growth. In Yang's view, we must now set up a banner under the guidance of Scientific Outlook on Development to inspire and inspire all MCC people to forge ahead and launch an impact on higher goals and pursuits, instead of sleeping on the credit book. This is to advance into the world's top 500 companies and build MCC into a world-class multinational company. But this is not so much a goal as an incentive for the sustainable development of enterprises. 1At the end of 1998, Yang, former vice chairman of Shanghai Baosteel and executive deputy commander of Baosteel Construction Command of Ministry of Metallurgy, was sent to MCC as chairman and party secretary. MCC was in crisis at that time. Enterprises are burdened with heavy historical burdens and social burdens, and need more than 3 billion yuan every year to maintain normal operation. Only 1.998 is a loss1.200 million yuan. Previously, there were many incidents of workers' groups petitioning for trouble caused by unpaid wages, which made MCC a "powder magazine" that frightened all parties. Yang still remembers what the leader said when he talked with him-"Lao Yang, this team is in your hands, with great difficulties and heavy burdens. Find a way to kill a bloody road and take the team out. "
The "triple" situation of MCC's serious debts, serious losses and serious instability not only did not make Yang hesitate, but also inspired his strong fighting spirit. Because in Yang's view, the immediate difficulties are much smaller than those during the construction of Panzhihua. After graduation, Yang University was assigned to Pangang construction site and worked in Panzhihua for six years. At that time, Panzhihua had no food, no shelter and even no roads. In this deserted and densely populated mountain, the builders built a "micro-carved steel city" by their own efforts, and 100% designed, manufactured and installed by themselves. In the eyes of Yang who has experienced the construction of Panzhihua, there is no insurmountable difficulty. * * * Can people build a new world under poor conditions, and will they be intimidated by the market economy? In view of the view that some people generally felt that MCC was not competitive in the market at that time, Yang believed that state-owned enterprises could not simply say that they were not competitive, but that they had the best resources in the national enterprises. The reason why state-owned enterprises seem to be less competitive is because they are restricted and cannot play out. In the face of MCC's predicament, we should not blame others, but solve the competitiveness problem from the internal factors.
The internal cause discovered by Yang is the responsibility of cadres. Therefore, when China Metallurgical Group cultivates its competitiveness, the first thing to do is to establish the sense of responsibility of cadres. Yang told everyone earnestly: "I think responsibility management is the core of enterprise management. Only when our sense of responsibility is stronger than others can our enterprise be stronger than other enterprises. What is the core of core competitiveness? I don't think it's about technology or anything. The core issue is that leading bodies should have advantages. If the leading group has no advantages, its competitiveness is not better than others, and its strategic decision-making ability, execution ability and decision-making ability are not better than others. Even if the enterprise has realistic core competitiveness, the leading group cannot give full play to it. The masses are the main body of competition in the true sense, but if someone wants to lead, the most basic competitiveness of the leading group is responsibility. Generally speaking, the leading group is the core of core competitiveness, and the responsibility is whether the leading group is competitive or not. We are responsible for the country and cannot let MCC fall into our hands; We should be responsible to the broad masses of workers, and 300 thousand workers and nearly one million family members should have food. It is necessary to strengthen the sense of responsibility of the two-level team, promote the restoration of the confidence of the workers and the masses, and finally realize the situation of unity of mind. In addition, we have no choice. "
The enhancement of leading cadres' sense of responsibility has greatly enhanced the competitiveness of MCC, which has undergone remarkable and tremendous changes. In just six years, MCC not only basically solved the historical problems left over by an old state-owned enterprise, but also increased its annual operating scale from165438+ 1247 billion yuan in 1998 to 53.7 billion yuan in 2004, an increase of more than four times in six years. Ranked 27th among the top 225 global contracting enterprises. In the past six years, it has made up for the previous losses of about 4 billion yuan, paid taxes and fees of about 6.5 billion yuan, and made a profit of more than 800 million yuan in 2004. The rate of maintaining and increasing the value of state-owned assets has reached the excellent level of the industry. Yang takes entering the world's top 500 as a goal, as an honor and as an incentive. He believes that an enterprise should constantly challenge new goals, especially large enterprises must have a sense of purpose and responsibility.
Yang said that according to the international and domestic macro-economic development trends, combined with the development status of MCC itself, the development strategy of MCC has entered the third stage. He summed it up with the word 16: innovation and upgrading, becoming stronger and bigger, sustainable development and long-term prosperity. The first sentence covers the soul and strategic objectives of the whole strategy. Innovation is the soul and will continue to innovate in the future. Innovation is the engine and promotion is the development goal, including quantitative change and qualitative change. The quality is the whole development mode, and the development goal should be improved. The top 500 in China should become the top 500 in the world, and the quantified operating income should reach more than 654.38+03 billion yuan to 654.38+06 billion yuan. The task is to turn MCC, which has a single structure and focuses on general project contracting, into an international comprehensive large-scale enterprise group with diversified structures of general project contracting, resource development, equipment manufacturing and real estate development. In the last three sentences, making it bigger and stronger and developing continuously is not only the fundamental measure to implement the strategy, but also the specific goal pursued by the enterprise; Long-term prosperity and stability, and building a harmonious MCC Group are the common vision of all employees and the highest realm of enterprise development. In Yang's view, sustainable development and long-term prosperity are not unattainable as long as we are based on the new main business structure, unswervingly attack the goal of the world's top 500, and constantly increase our own goals.
In order to hit the world's top 500 companies and turn incentives into lasting competitiveness, Yang made a systematic planning and scientific decision on the industrial structure of MCC. The so-called four main businesses, that is, the four industries established by MCC according to the future development of the enterprise, are EPC general contracting, resources, manufacturing and real estate. He believes that the development mode of an enterprise at a certain stage does not mean that it must be adhered to in the future, but it must be constantly adjusted and changed. For example, while the scale of engineering contracting departments continues to grow, the proportion should be reduced to about 50% of the total; The other three sectors, resources, manufacturing, real estate to account for about half. The resource development sector will become an important flagship industry of MCC in the future, which is also a part of sustainable development. At present, we should focus on developing three kinds of resources. The first kind of resources are metal mines, including ferrous and non-ferrous metals. MCC has certain advantages at home and abroad. The second resource is nonmetal, mainly papermaking. In Myanmar, the pulp project has been put into production with good results. It needs expansion and construction, with an annual output of 300,000 tons. In addition, a wood pulp factory with an annual output of 300,000 tons will be built in the Russian Far East, with an investment of about 2 billion yuan. The third resource is coal-based energy. The equipment manufacturing sector is based on the core technology industrialization of independent intellectual property rights to strengthen equipment manufacturing. We should give priority to steel mill equipment and do some metal processing of non-standard equipment at the same time. Equipment manufacturing only does two things-the manufacture and assembly of core components. Yang knows that equipment manufacturing can make money at both ends, one is the core technology developed in the early stage, and the other is the service in the later stage, forming the whole supply chain and increasing the economic added value. Yang is still optimistic about the real estate industry, which can also drive the construction industry and related service industries. Yang is an entrepreneur with strong strategic awareness. He believes that the competition between enterprises is always strategic competition, especially long-term competition, which is definitely a strategy, not a tactic. According to Yang's thinking, from 1999 to 2000, the strategic goal of MCC is to extricate itself from difficulties, and from 200/kloc-0 to 2004, the strategic goal is to revitalize itself. At present, China Metallurgical Group is in a strategic transition period, that is, from translational extension development mode to innovation and upgrading development, and by 20 10, China Metallurgical Group will be built into a world-class multinational company.
Yang has an image metaphor for the extended mode of translation. He said that this model mainly does not rely on improving the ability and level to make the scale bigger, just like spreading a big cake, the bigger it gets, but just a spoonful of noodles, which will break when spread to a certain extent. Translation and extension have innovation and reform, but its main purpose is to liberate productive forces, not to maximize them. In the past, state-owned enterprises had rigid institutional mechanisms and extensive management. There are many things that limit the productivity of enterprises and the enthusiasm of employees, resulting in their inability to play their original abilities. Therefore, the focus of reform and innovation at that time was mainly to loosen up, let everyone emancipate their minds and give play to their original ability. However, the original ability is limited, and it must be transformed from translation extension to innovation promotion, that is, innovation is the fundamental force and development ability is the fundamental purpose.
Yang's innovation, upgrading and development is to practice unique skills and do things that others can't do.
Yang's first move is to establish technical barriers and form a technical monopoly. Yang believes that enterprises must form a monopoly in technology and control the market through technology, otherwise it will be difficult to hold the market. By making full use of the technological progress of China iron and steel industry in the past 20 years, digesting and introducing foreign advanced technologies, and combining with self-developed technologies, MCC has formed an unbreakable advantage in the metallurgical industry, and actively expanded outward by taking advantage of the advanced nature, diversity and versatility of metallurgical technology. Generally speaking, 30%-50% of the market share in a certain field basically forms a monopoly, and MCC's share in the domestic steel engineering construction market exceeds 70%. In the field of steel structure exhibition center, only a subsidiary of MCC in Shanghai occupies 40% of the national market share. There is no government protection or industry protection here, relying on the technical advantages of MCC.
Yang's second move is to change the mode of production and operation, improve the function, and vigorously promote the design-oriented general contracting. 1998, the total output value of more than a dozen design institutes of MCC was only 600 million yuan. Now, by connecting scientific research and design, survey and measurement, complete sets of equipment, construction organization, trial operation of equipment until the turnkey, the annual operating income is tens of billions of yuan, nearly 20 times that of the past. Because the work that originally required many units to complete can now be contracted by a company of MCC, the owner saves effort and effort, so it is very popular. Although the competition in the general contracting market is fierce, because MCC has formed something that others can't imitate, it has a decisive competitive advantage and ordinary enterprises can't enter.
Yang's third move is to make a big structural adjustment, keep the high-tech part and divert the low-tech part from the market. In the past two or three years, all the labor-intensive activities of MCC have been subcontracted, focusing on the parts with high technical content and high added value. At the same time, reform the structure of human resources, focusing on reducing staff and increasing efficiency, focusing on increasing efficiency and retaining people, and divesting redundant personnel and general services. At present, among the 93,000 employees, more than 50% are managers and technicians, and most of the remaining half are senior technicians. The structure of human resources has been improved and promoted as never before. As the head coach of a large multinational company like MCC, Yang focused on using domestic and foreign resources to occupy two markets and gradually increase overseas income. Combining with the national resource strategy, actively participating in international resource development and focusing on exploring overseas markets of developing countries and neighboring countries is a key step for Yang to accelerate the implementation of the "going out" strategy and realize global management as soon as possible.
There are two kinds of MCC's "going out" projects, one is EPC general contracting, which is MCC's traditional advantage project; In contrast, when the shortage of resources, especially the shortage of large-scale strategic resources, has gradually become a bottleneck affecting China's economic development, another resource development project is more important and urgent.
Yang summarized the advantages of MCC's overseas resources development as 5+2: advantages of MCC's talents, technology, management, capital and domestic market, as well as external advantages of the support of the state and financial institutions and the resources of the host country. Combine them together, and the stone that was sleeping in the ground will become a usable treasure.
Investing and leasing the Sandak copper and gold mine in Pakistan is a "test field" for MCC to "go out" and develop overseas resources in response to the call of the state. The annual output of crude copper10.6 million tons is praised by Bayou as "starting from scratch and opening a new era of non-ferrous metal industrial production". This also makes MCC the first state-owned enterprise in China to successfully operate strategic non-ferrous metal resources overseas, which is a response to the national "going global" strategy.
It is estimated that the Ramu Nickel Cobalt Project in Papua New Guinea, with a total investment of US$ 680 million and 85% equity held by MCC, will become the largest overseas investment project in China.
In addition, MCC has invested 76 million US dollars in Pakistan to build a lead-zinc mine project in Duda. The Pilbara iron mine project in Australia, which is jointly built with two other central enterprises and has an annual output of 4,500 tons, is being actively promoted. The completion and commissioning of these projects will help to establish a stable resource supply channel.
In March, 2005, during the visit of China Metallurgical Group to Papua New Guinea and the signing of a contract with the local government, Chairman Yang met with Papua New Guinea Prime Minister Mike? During Jazz's visit, Prime Minister Papua New Guinea was one step ahead of him, waiting for the arrival of Yang and his party, who were regarded as special guests of Papua New Guinea.
In the process of implementing the "going out" strategy and expanding overseas resources, Yang identified four development ideas, namely: based on the inherent advantages of MCC; Take the technical association as the link; Pay attention to the development of overseas resources; Take mutual benefit as the goal. Whether in Pakistan or Papua New Guinea, MCC's development projects have played a positive role in promoting the economic, trade and social development of the host country. As far as the Murray Nickel Cobalt Project invested by MCC in Papua New Guinea is concerned, the gross domestic product of Papua New Guinea will double after the project is completed. In these countries and places, MCC people are not only builders and investors, but also messengers of friendship. "You do what you do today, and I want you to do it tomorrow." This is what Yang Chu said to the general manager when he joined MCC. That's what he said and did. In his view, as the top leader, the main experience should focus on grasping the strategy, and the implementation can be handed over to others, otherwise what should the team do? The responsibility of the top leader is mainly to grasp the overall operation of the enterprise, so he spends almost half of his working time every year on strategic thinking.
Regarding the relationship between strategy and reform, Yang has a philosophical thinking. He believes that strategy and reform are interdependent. Strategy is the foundation, and reform is the skill. The strategy provides for reforms that support the strategy; Strategy guides reform and realizes strategy through reform. In fact, the reform is endless, and the relative stage strategy is stable, but we must also keep pace with the times.
He used this management philosophy to guide and solve various problems of enterprises. During the period of extricating MCC from difficulties, he successfully explained the dependence of "strategy and reform", that is, first, we should rely on economies of scale to make the scale bigger and turn losses into profits; Second, we must rely on lean teams to improve labor productivity and ensure that excellent human resources can stay. This strategy should be realized through reform. Around this strategic goal, a series of policies such as reforming the system, changing the mechanism, strengthening marketing, opening up the market, reducing staff and increasing efficiency, diverting laid-off workers and invigorating distribution are adopted, which is reform. However, this reform is subordinate to getting rid of the predicament. After the strategy is clear, all reforms should focus on this goal. If a lot of work had to be done at that time, such as developing the four main businesses, improving efficiency and attracting talents, it would not work. First, no money; There are many people in the second place, and the concept can't keep up. There is a process to achieve strategic goals, such as annual salary. At the end of 1990s, it was already high to get more than 100,000 yuan by implementing the annual salary system. Now, the highest annual salary of a leading group of a subsidiary can reach nearly one million yuan.
Yang also has his unique way to implement the strategic goals of the enterprise. He believes that to formulate a strategy, we must first mobilize the masses. After a period of strategic thinking is basically formed, he usually goes to various places to hold symposiums or listen to opinions in other forms. This is not only a process of soliciting opinions to improve strategic thinking, but also a process of publicizing strategic thinking, and it is also a process of unifying thoughts and implementing them. This approach ensures that after the strategy is formulated, enterprises speak with one voice, and the implementation of the strategy has a good foundation guarantee. Yang has a unique view on the war. He said that there are two books, one is about details and the other is about strategy. Both of these statements are one-sided and have prepositions. Strategy determines success or failure, and we must determine the details of science; Details determine success or failure, so we must make sure the strategy is correct. So the scientific combination of strategy and details will determine success or failure.
The responsibility of the top leader is to think about tomorrow's things and lead employees to forge ahead towards clear goals. To do this, there is no common culture and values. Six years ago, MCC was in a mess and was in trouble, which had a lot to do with it.
Yang believes that the combination of culture and interests is effective. Only culture, no interest guarantee, that's fantasy. In terms of hard constraints, MCC pays attention to three things. The first is to establish a parent-subsidiary company system and clarify the relationship between assets and bonds; The second is to establish a responsibility system, an index system, an assessment system, an evaluation system and a restraint system with the preservation and appreciation of state-owned assets as the core; The third thing is to choose a complete set of standards and methods for enterprise managers and enterprise incentive mechanisms. Yang used these three methods to implement the responsibility from the chairman to the grass-roots level and to every employee-the responsibility of having a post, standards and assessment. This system is tight and closed.