Case on controlling management in one paper making company

1. Background

It’s a big company about paper water, Pulp & Paper, product, energy sources, and paper machine. It was developed very fast through adjusting structure, and controlled so many sub companies through re-organizing asset. But with the developing of company, there occurred some problems on harmonization, communication, and control among headquarters and sub companies. The leader team finally made a decision to make control design, to promote group efficiency by getting help.

2. Diagnosis

Through two week’s investigation, raise find although they used plat management model, they also have strategy lost, bad organization, out of control and so on. Here is:

  1. There is not a team, no organization. Lack of harmony.
  2. There hasn’t a clearly position of group. What should HQ do? What level should do?
  3. HQ don’t have a control ability on sub companies, led out of control. Here is the result: HQ have all power, get all power of sub companies to HQ. In fact, this is totally wrong.
  4. The wrong position HQ get led the inactive of sub companies directly. All sub companies lack of the ability of management and they couldn’t fit the marketing.
  5. The sub companies couldn’t be integrated and generated the power of team.

3. Solution

Raise deem company should resolve those following problem:

  1. What for? Clarify the value and management concept.
  2. What should be managed? Clarify the main factors company should manage. (asset, property right, benefit, strategy, culture, and leader)
  3. What management level should we get? How to make sure the models(U type, M type, H type) about sub companies? How to make it easy to adjust and not easy to out of control?
  4. How to manage? How to manage the people, asset, stuff, plan and information of sub company?

The solution is:

  1. To select the control model which fits company.
  2. Separate privilege from HQ and sub company.
  3. Group organize structure optimization and plan the development.
  4. Clarify the HQ and sub company’s responsibility.
  5. System process optimization. To clear the key options about how to manage, especially in person, money, and asset.
  6. To build a business monitor system based on performance manage, and build a monitor system based on inner controlling system

4.The project result

  1. Through investigation of case, we defined a manage model about group, group leader could understand the concept and ideal of system.
  2. To build a privilege set to manage financial privilege, human privilege and business privilege.
  3. With bringing other company’s experience, we designed a structure to fit the group structure, and clear all privilege among each layer, and we also could clear the responsibility about human resource, financial, and other stuff.
  4. Build a manage system and process system, to instruct group and sub company to finish the design of decision process, manage support process, and business process. We also finished process handbook with so many times communication
  5. To encourage stuff and promote the ability, to ensure group and sub company to touch the goal, help staff promote them ability. We design a examination that include salary and performance based on the balance, open, communication award and punished. To build staff examination system and department KPI system.
  6. To build the inner manage system, to audit and monitor group’s operation system; ensure the available of group’s operation.