Core tip:

Since XCMG Foundation Company implemented the "four-in-one" management model four years ago, it has continuously innovated various management tasks. Its business performance has increased at an annual rate of no less than 40%, with operating revenue growing from 510 million yuan in 2010 to 1.68 billion yuan in 2013, and profit growing from 12.03 million yuan in 2010 to 118 million yuan in 2013. Since 2011, its market share of horizontal directional drilling rigs has ranked first in the industry, and in 2013, its market share of rotary drilling rigs jumped to first in the industry. 

XCMG Foundation Company established a "four-in-one" management model covering value win-win, value-added services, talent cultivation, and performance management from the perspectives of "promoting win-win cooperation, meeting value-added needs, improving talent quality, and ensuring efficient operation." This model has served as a reference and demonstration for the industry. The paper on this topic won the "Second Prize of the 20th National Enterprise Management Modernization Innovation Achievement" and the "First Prize of the 20th Jiangsu Provincial Enterprise Management Modernization Innovation Achievement."

Setting sail together

Cooperation: The "four-in-one" business chain system promotes win-win cooperation

Under economic globalization, modern enterprise competition is no longer just competition in a certain link, but competition in the entire value chain. As a manufacturer, the foundation company has built a "four-in-one" value system of "manufacturer, supplier, distributor, and user," changing the traditional linear management in which parties upstream and downstream of the business chain lacked sharing and communication and were independent of each other. It integrates resources such as talent, technology, information, and culture in the supply chain. While continuously reforming and innovating itself, it effectively drives the common improvement of competitiveness and collaborative win-win among upstream and downstream enterprises in the business chain. It gives full play to the manufacturer's core role as a link and its role as the main body of profit distribution, effectively driving the sound operation of the value management system.

XCMG Foundation Company selects industry experts and practical experts from suppliers and major customers to build a technical expert database. It implements an employment system, issues letters of appointment, and signs service agreements. Currently, more than 50 people have become members of the foundation company's "expert database." It pays attention to distributors with high loyalty and strong willingness to invest, providing them with technical training and support and information resource sharing, responding quickly to the market, and striving to promote the improvement of distributors' strength. It shares information with suppliers and indirectly grasps industry development trends by searching for information on peers through suppliers' sales directions for core components such as drilling tools. It regularly holds user and expert symposiums to discuss and demonstrate enterprise product development plans, new product design schemes, and industry trends, so as to grasp industry frontier trends faster and more extensively, respond quickly to user needs, and work together to develop the market, making products closer to the market and users and achieving common progress and improvement of the business chain oriented by user needs. At present, the foundation company has developed 75 distributors, including 6 with a scale of over 100 million yuan; more than 500 suppliers; and its own economic benefits are also growing at an annual rate of no less than 40%, achieving common improvement in quality and efficiency. 

Fearless of hardships

Users: The "four-in-one" service system meets users' value-added needs

Guided by market demand, XCMG Foundation Company has built a "four-in-one" service system of excellent products, construction method support, operators, and maintenance. While providing users with high-quality and highly reliable products, it provides value-added product services through complete construction solutions and on-site operator training, expanding brand influence and enhancing product image.

In implementing the "four-in-one" service system, the foundation company, from the user's perspective, trains "five-skilled" operators who understand product principles, can operate skillfully, can perform maintenance, can provide on-site training, and are good at construction methods. While selling products, it recommends skilled operators to users. Over the past four years, it has successfully held training courses for rotary drilling rig and directional drilling rig operators, training more than 70 operators and supplying a large number of capable personnel to the market, creating a "Whampoa Military Academy" for domestic drilling rig operators. At the same time, when users purchase machines, it trains their operators, with cumulative training for more than 600 people, solving problems for new users such as on-site machine acceptance, maintenance, and minor fault handling, greatly improving user satisfaction.

It promptly grasps industry and market trends and user needs through market visits, questionnaire surveys, and meetings and discussions. Over the four years, it organized 10 "Service Ten Thousand Miles" user visit activities, dispatched 48 teams, traveled more than 500,000 kilometers, and visited more than 1,250 users, promptly grasping user needs, helping users solve problems on site, and improving user satisfaction.

With the evolution of specialized competition, single-product sales of foundation construction machinery can no longer meet user needs. Comprehensive marketing services based on engineering, skills, and construction methods have become favored. Adhering to the concept of guaranteeing service with construction methods and promoting sales with services, the foundation company appointed academic experts, practical construction method experts, and highly skilled operators from the industry to establish a "Construction Method Committee." It also established a "Construction Method Research Institute," a construction method club, and a construction method case microblog, among other methods, to conduct research, analysis, and customized complete construction solutions for user needs and complex strata. In 2012, in the Qaidam Salt Lake project, the company hired construction method experts for on-site guidance and formulated construction techniques, achieving good results and promoting the sale of 6 rotary drilling rigs. 

Fresh water comes from the source

Talent: The "four-in-one" training system opens up multi-dimensional career paths

In response to problems such as short establishment time, young personnel, and relative lack of experience, a "four-in-one" 1+X talent training model was established. For each key position (A role), a B role is set. Based on the actual situation of the A and B roles, a mentoring X variable (X≤3) is set. The A role drives the B role, and together with the B role, they respectively mentor X1, X2, and X3. The A and B roles form an axis, which together with any "X" forms a plane, creating a mentoring team that drives lines with points and areas with axes. This gives full play to the mainstay role of the A and B roles and achieves the systematic goals of specialized training, rapid growth, high-quality performance, and comprehensive improvement of talent.

"Four-in-one" training system

The "four-in-one" training model horizontally fully integrates four types of talent: marketing, technology, skills, and management, and vertically sets four levels. At the same time, it organically integrates multiple tasks such as "A/B roles," "reserve talent training," "one guides two project," and "Tomorrow's Star section chief quality improvement," forming a situation in which the Party committee conducts training, the administration issues topics (projects), the labor union implements care, and the Youth League committee serves talent development, all under unified management. Centering on difficult problems in enterprise operation and management, it set goals, formed 130 topics, and trained 170 mentoring targets.

After the model was set, with the help of various carriers, it built unique platforms such as chief technician studios, model worker studios, and technological innovation teams, giving play to the demonstration role of "drill-level market elites," "drill-level technical pacesetters," "drill-level management engines," and "drill-level skilled blue-collar workers" and other "drill-level talents." It opened training corners and built training resources such as various product trial training centers and product virtual simulation training systems. It regularly holds skill discussion and exchange meetings, skill achievement naming activities, and other forms, summarizes and refines advanced operation methods, unique skills, and skill innovations, and produces them into booklets for promotion and application. It implements both mentoring training for key positions and cross-position (functional) mentoring training. During this period, more than 20 employees in technology, management, and other fields grew rapidly during project implementation and successively took up positions as product supervisors or middle-level cadres. With abundant achievements and a steady stream of talent, the implementation of the "four-in-one 1+X" training model was rated by XCMG Group as a "Model Enterprise for Employee Development." Young employee Wu Dong, after winning the Xuzhou Model Worker and Jiangsu Provincial Chief Technician titles, won the championship in the finals of the 9th "Revitalization Cup" National Youth Vocational Skills Competition.

Gold appears only after blowing away the sand

Incentives: Building a "four-in-one" performance system to ensure efficient enterprise operation

Guided by "focusing on results, implementing responsibilities, data-based decision-making, and comprehensive incentives," XCMG Foundation Company innovates and improves performance assessment and evaluation methods. Through the four dimensions of the SMART principle, monthly assessment, quarterly evaluation, and annual selection, it incentivizes and assesses individuals in the "four-in-one" management system, including distributors, suppliers, operators, and employees, and builds a "four-in-one" performance system, promoting the effective connection and efficient operation of various business links.

"Four-in-one" performance system

In order to fully mobilize the enthusiasm of distributors, suppliers, operators, and internal employees, the company has increased the scientific nature and standardization of assessment work, improved the synergy of the business chain and personnel performance, and built a complete business chain performance assessment incentive mechanism. It has formed supplier and distributor assessment mechanisms with 8 modules, including basic entry conditions, reward and punishment management regulations, performance evaluation management measures, and quality claim measures.

Only from afar can one know the height of the source

Sidelights on the "four-in-one"

Distributor representative: Xie Zhixia, General Manager of Jiaxing Gangning Engineering Equipment Co., Ltd.

Jiaxing Gangning Engineering Equipment Co., Ltd. chose XCMG products at its inception. With the support of XCMG Foundation, it developed rapidly, established a complete parts center, and built a professional service team. In 2013, it received the Risk Control Award from XCMG Foundation Company and became an authorized special distributor of XCMG Foundation. Looking back on the development of Gangning Company, it can be said that it originated from our choice of XCMG and from the win-win cooperation of XCMG Foundation's "four-in-one" business chain system. It was XCMG that helped us move toward success. I also hope that XCMG will continue to accompany us on the new journey and help us go further!

Skilled worker representative: Wu Dong, champion of the "Revitalization Cup" National Youth Vocational Skills Competition

When I first joined the company, I was just an ordinary intern. Later, the company's various training programs and platforms enabled me to quickly master various skills and soon become a backbone among frontline employees. The company's "four-in-one 1+X talent training" model allowed me to learn the strengths and advantages of my mentors and also share my good experience with everyone, greatly improving my skill level. In the "Tomorrow's Star Section Chief" training, I quickly learned the qualities and abilities required of a section chief and became one. Last year, Xuzhou held the selection competition for the 9th "Revitalization Cup" National Youth Vocational Skills Competition. Company leaders attached great importance to it, encouraged us to actively participate, and created the best preparation environment for us. After rounds of selection, I ultimately won the championship in the finals of the 9th "Revitalization Cup" National Youth Vocational Skills Competition. Along the way, behind the honors and applause is the growth platform built by the company. In my future work, I will do my utmost to repay the company's cultivation with practical actions!

Supplier representative: He Wei, Chairman of Xuzhou Huawei

In 2010, Xuzhou Huawei Company, with sales of less than 200,000 yuan, began cooperation with XCMG Foundation. In just over three years, the rapid development of XCMG Foundation showed us business opportunities and hope. Starting in 2012, Huawei increased investment and focused on key areas, investing more than 1 million yuan to purchase imported equipment and establish a hose assembly production line to meet the emergency needs of the main engine plant; the supply cycle was shortened from 45 days to about 15 days; and experienced service personnel were allocated to respond 24 hours a day to meet production needs. Driven by the "four-in-one" business chain system, we actively visited procurement, production, technology, and other departments, went deep into assembly and commissioning sites, listened to opinions and suggestions, comprehensively improved service quality, and won the title of "Top Ten Supplier." May our cooperation with XCMG Foundation last long and may we move together toward a more brilliant tomorrow!