Background

Group A have 1800 employees and 12 sub companies, there has a 70 percent contribution rate from company to group.

The two major customers of Group A have self-electric Company, this problem not only decrease 30 percent benefit in recent years, at the same time, they but also hired nearly thirty manage and technology key person in company. This accident make others have a big puzzled. Because of this, leader team deem there must have a innovation on it.

Diagnose

1. Problem on group management model
   There have so many unavailable positions, especially in HQ. Through this make structure become plat, but this defect decreased management and position is unavailable. Sub Company’s power is lower. In fact this problem is a communication problem between HQ and Sub Company. Firstly the HQ doesn’t know what they should do. At this time, they adopt a wrong method- high collection of power, misunderstand the concept of plat. Collect all of power of sub Company to HQ, order the all of them directly. The result is, The HQ can’t afford the raise of management cost and can’t provide good services to sub company, In fact, and this is a totally wrong way, wrong position and misunderstands position. This misunderstand lead to inactive and decreasing the ability.
2. The problem on salary system
   Group A have 23 types of salary options. It’s too difficult. There has a max relation on working age and salary are 87 percent and 94 percent. It presents a point that just care about working age but not position and performance. The concept baffles the employee’s enthusiasm very much. It seriously affect the development of group A.
3. Performance examination problem
   Group A has a basement about examination, But just to Production Company only. There has not a examination system for government department.

Solution

1. Management model solution
   Raise project team position the HQ’s responsibility on strategy direction, resource distribution, operation and risk controlling based on the experience raise had and the potential of the leader in group A. On the other said, The HQ must cooperate with sub Company, and present the best performance. It should optimize business combination, rise up new point, and hold the resource on strategy direction. Finally we will get the most benefit through monitor operation and decrease the risk.
2.  Salary system solution
   

   Based on analysis, Raise has a strategy on it. That is the more you contribute the more money you will get. And the strategy must better than 80 percent satisfaction among employee.

   After that, raise also have provide detailed plan to operate the strategy. It separates the salary model into nine layer

   More higher you are in more money you will get. Raise also separates original salary model into four layer: position salary, performance salary, year salary and bonus. Make sure the plan basically fit the strategy we defined, and buy the working age from old employee, above of that, the customer is very satisfied. But there also has a bad aspect reached 29 percent, customer has no idea about it. How to resolve it?

   For that, raise provide six solutions on time, customer finally choice the “special working age method” through adopt and analyze many advices. This method reduces the bad factor to 17 percent. The employee that just could simple work will reduce 50 Yuan from his salary but not 120 Yuan. This basically affect the goal of out strategy.

3. Performance examination system solution
   

   To complete the goal of performance examination: we must build a management plan to fit HQ of group A strategy. To build the interface well that integrating performance and salary.

   The content of examination must based on strategy goal and customer requirement, it’s a process about distribute the strategy goal to department, finally through examination, lead employee to our HQ’s strategy goal.

   The project team designed a solution that building a KPI committee which member must include over middle layer’s leader based on the not enough mature status of group A. On this committee, all members define the lie, define, formula, and data source of HQ, department and sub Company. The most important is, under instruction of consultant, they found and understand the short of company, and promoted their management concept. Clear the foal and make a sense about management’s value.

The consultant impression

Above of all, We cleared group management model, department responsibility, and position responsibility, we also build a award and punish system to give employee promotion and decrease the structure. But the most important is, through the innovation, the employee’s mind is totally changed; also reduced the resistance of this innovation to lower level.