Management innovation introduces another new initiative.
Release Date:
2017-03-15 09:08
Management innovation unveils another new initiative.
Over the past few years, Zhejiang Company has achieved significant improvements in both the quality and scale of its self‑operated engineering projects, with new projects commencing each year. However, due to various factors, numerous challenges remain in areas such as product design, component fabrication, quality management, and on‑site installation. Internal coordination also faces certain shortcomings, resulting in low customer satisfaction and financial performance that falls short of expectations. These issues have imposed notable constraints on the company’s development.
To address these issues, we have conducted thorough internal analysis and research. Guided by Chairman Chen’s remarks at the Group’s 2017 Work Conference—“Pursue development through innovation and strive to prevent risks”—we remain committed to reform and innovation, as well as transformation and upgrading, making efficiency and profitability our top priorities for this year. Following extensive deliberations, Zhejiang Company has recently introduced a new internal management initiative: it will reorganize its self-operated projects into… Internal engineering contracting: We will broadly mobilize and encourage all company employees to actively participate in the internal engineering contracting of the company’s self‑operated projects. By adopting a capital‑investment model in which the company and the contracted operators each contribute funds, we will establish a shareholding‑based operating structure on a per‑project basis, with risks borne and profits shared in proportion to each party’s investment. This transformation will shift employees from being mere “wage earners” to “shareholders,” closely linking their personal interests with those of the company and creating a situation where they advance and retreat together with the enterprise.
To ensure the effective implementation of this plan, under the meticulous organization and coordination of the General Manager in China, an extensive consultation process was first conducted internally, carefully soliciting opinions and suggestions from all relevant parties. On this basis, a draft was formulated. « Internal Performance Evaluation Guidelines for the Company’s Self-Operated Engineering Projects » It has established strict regulations governing the responsibilities, rights, and interests of investors. As a first step, personnel at the level of department manager assistant and above are invited to participate in equity‑based contracting, while other employees are also welcome to invest. Investment amounts are determined according to each individual’s position and rank. Department heads have launched extensive outreach and mobilization efforts within their respective units, and employee response has been highly positive.
2 On the 25th of the month, a brief signing ceremony was held in the company’s conference room, attended by all management personnel. General Manager Hua once again emphasized and explained the objectives and significance of the contracting arrangement, and attendees expressed their understanding and support. With the exception of a few employees, all signed the investment‑commitment form to indicate their approval.
In this round of capital contribution, the Engineering Department carried out meticulous and effective mobilization efforts, with employees demonstrating strong enthusiasm and active participation. All members of the Engineering Department took part in the capital‑contribution scheme, while a portion of staff from the Marketing and Commercial Departments also voluntarily joined.
Based on the company’s operational realities, the capital‑investment contracting model will be piloted on three of the company’s self‑operated projects—Huaruida Project, Supor Project, and Ningbo Suning Project—with an initial total investment exceeding RMB 150,000. To date, several employees have already contributed funds.
We sincerely hope that, through this innovative management model, Further motivate and harness the sense of responsibility and enthusiasm of all employees, fostering a spirit of ownership and accountability. By working diligently in their respective roles, they will advance and grow alongside the company, ultimately achieving a win-win outcome for both the enterprise and the individual.
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