FAW Xichai: Skillfully Solving Reform Equations to Drive Endogenous Motivation

As we all know, over 20 years ago in China, a drastic reform of state-owned enterprises has achieved remarkable results. Many state-owned enterprises have doubled their profits and ranked among the top companies in terms of super-profits. In 2015, the world’s public opinion gathered again on the reform of a new round of state-owned enterprises in China. Two years of “Guiding Opinions on Deepening the Reform of State-owned Enterprises” (hereinafter referred to as “Opinions”) brewing the mysterious veil in the eager expectation of the people. It also put the old state-owned enterprises such as FAW Xichai on the “new reform journey” into the cusp of prosperity.

FAW Wuxi Diesel Engine Production Line
FAW Wuxi Diesel Engine Production Line

It is reported that, as a programmatic document for guiding and advancing the reform of state-owned enterprises in the new period, the comments listed the core contents of the top-level design scheme for state-owned enterprise reform and delineated the overall objectives: by 2020, state-owned enterprise reforms will be implemented in major fields and key areas. The link achieved decisive results and strengthened the "three forces" control, influence and risk resistance of state-owned enterprises.

Aiming for lofty purposes

The goal is clear, then the problem will come. Under the new normal, how can we solve the "reform equation" skillfully? This has become a difficult problem to be solved in front of state-owned enterprises. Previously, authoritative financial experts believe that: However, based on the data currently available, the pace of development of state-owned enterprises is mixed, and the overall product sales profit return rate is generally low. It is particularly necessary to introduce reforms into deep-water areas.

In this regard, the director of the "top leader" of FAW Xichai bluntly said: "Deepen the reform of this complex attacking equation, the desire is not up to speed, must be gradual and progressive." Qian Hengrong, director of FAW Xiechai pointed out: "In previous years, We are already thinking and drawing a blueprint for the development of innovative reforms, solving the constraints of the mind, clarifying the constraints, and setting the stage goals, through the cultivation of professionals, adjustment of product structure, expansion of international market share, and enhancement of costs. Management and control, etc., to enhance the competitiveness of R&D, marketing, management, and other systems, to create a national brand, to create high-end power, and to increase the profitability of product sales.

Focus on the future, there is a lofty hope; the development process, more need to be down to earth. Under the guidance of the money factory, FAW Xichai is constantly exploring and identifying the “points of effort” to crack the reform process, looking for the optimal solution and implementing the program in an orderly manner. The branding of the company, high-end product intelligence, and stable sales growth The purpose of the goal is to continue to stimulate self-development, self-transcendence, self-improvement, and endogenous motive for independent innovation. It is intended to promote the sustainable development of the entire industry chain.

Talent magnetic field fusion advantages

Dreams set sail to drive reality; reforms and innovations lead talents. The reform is on the same engine, and each person is like a precise "part". Numerous parts are closely matched and linked together to make the whole machine run and advance. Deepening reforms and tapping potentials, FAW Xichuang pledged to create a magnetic field for talented people, nurtured professional elites, and acted as the opener and main force for reform.

Recently, in order to allow “new talents” to better understand and integrate themselves into the “Xichai family”, the FAW Xichai Administration Department has trained newly recruited students in the 2015 session. It is reported that more than 30 college students who have joined Xichai have graduated from Tsinghua University, Tianjin University, Jilin University and other domestic first-class universities, including a doctorate and 10 masters.

At the opening ceremony, the director of the company took a look at the history of Xichai, looked forward to the future development environment and prospects, analyzed and expounded the opportunities and challenges currently facing them, and hoped that they could put their attitudes and diligence into consideration and encourage them to In the process of deepening reforms, Xichai will “build meritorious service”, reflect its own value and realize its dream of life.

Today, the combat power of FAW Xichai is rising day by day, which is inseparable from the management philosophy of “people-oriented and cultural people”. A relevant person in charge of the Xichai administrative department pointed out: “In the future, we will only increase the importance of the cultivation of professionals, and we will maintain close contact with a number of key colleges. From the perspective of people and channels, we hope to attract more talents in technology, marketing, and management, and to provide fresh blood and complete human resources for Tangnan, Huishan engine base, engine remanufacturing base and modified vehicle development base.

In different positions, in the face of difficult new issues and new difficulties, the new and old Xixi Chai people's innovative ways and methods, and concentrating their efforts to maintain and expand the "talent, management" and other advantages, seek improvement on the short board, complement each other, Weaknesses and hedging have gradually brought about the integration of new advantages, laying a solid foundation for the self-development and self-transcendence of enterprises and comprehensive reform.

Adjust structure and improve quality

Li Jin, deputy chairman of the China Reform and Development Research Association, underlined in the interpretation of the comments that “under the new normal, deepening reforms and development will no longer spell scale and speed, but will focus more on quality and efficiency.” In other words, the growing importance of private power is increasingly Xiao Lan, when competition in the domestic and international markets has become increasingly fierce, and when the challenges of transformation are greater than opportunities, it is particularly important for state-owned enterprises to accelerate the adjustment of market layout and product mix.

The money factory is very much in agreement with this statement. He believes that as a state-owned enterprise, Xichai itself shoulders a major historical mission and responsibility, enhances corporate profitability in all directions, and promotes China's economy to maintain a medium-to-high-speed level. It is obligatory Realizing China’s dream of rejuvenation has contributed to its own efforts. The specific point is that in addition to cutting-edge talent reserves, we must take a good step in each step of 'addition, subtraction, division and elimination' of structural adjustment. “

In the global internal combustion engine market, “internal and external problems”, it is surely difficult to solve problems and resist risks with courage alone. FAW Xichai has established itself at the forefront of the industry, actively responding to the country’s stringent requirements for green environmental protection, eliminating products that do not meet the requirements of the market, and has continuously advanced technology research and development and high-end product research and development. Its three major product brands, Aowei, Hengwei, Conway has carried out emission upgrades, especially after the Aowei 11-liter engine and Hengwei 4/6DLD have been put into the market. The "additional operation" of new technologies and new products has inspired the source of self-improvement and independent innovation. With an orderly expansion of market share at home and abroad, the company has demonstrated excellent market competitiveness and improved brand influence. Xichai has taken a solid step toward a strategic industry that is “bigger, stronger and better”.

Secondly, Xichai made great efforts in the cost control and strengthening, creating a quality brand with confidence, implementing the “survival of the fittest”, striving for perfection in detail, quality improvement, multi-channel consumption of inventory, and invigorating stocks, “subtractive operations” also performed quite well. The ability to resist risks has been effectively improved. "Multiplication" means that Xichai dares to take the lead and plans ahead, vigorously implements an innovation-driven development strategy, and comprehensively promotes the establishment of five mechanisms for decision-making, power generation, operation, development, and evaluation. In addition, the concept of innovation of users, the future care about "value for money, high-end enjoyment" of the group will continue to expand, Xichai preemptive layout, flexible use of transfer mode, adjust the structure of the "division", will focus on creating high returns, high Value-added, high-tech profitability and special advantage projects will further enhance the competitiveness of green products and profitability, and strive to achieve both operational quality and operational efficiency.

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