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Why“change”issocritical?“Change”Mechanism–Organizationmodeldriver–Corporategovernancestructure–Centralize-Decentralizemanagement–Competencymanagementcycle–InternalHRMarketCreationImplicationofchangemanagementforChinesecompanies3Why“change”?Whatissame,anddifferentintermsofcauseofcrash?–ENRON–Japanesecompanies4Thedifference–Managementstyle–Valuepropositionoftheorganization–MarketpressureThesame–Trapofsuccess(tobetoosuccessfultochange=arrogance)–Notenoughlevelofdisclosure–HRMsystemfailure5TrapofsuccessCSPerformanceIndexInnovationBreakpointIndifferentzoneQualityZoneImpactZone6ChangemechanismOrganizationmodeldriverGovernancestructureCentralize-DecentralizemanagementCompetencymanagementcycleInternalHRMarketcreation7CurrentWinningOrganizationSelf-directedTeam(Soccerteam)SystemBuilderSelf-OrganizingAmoebaTop-down(Pyramidstructure)CoreModelManagementPeopleDriver(90%)Specialized＋EntrepreneurialManager＋SystemUp-grader(90%)AutonomousProfessional＋EntrepreneurialProfessionalEfficiency/CostControlInnovation/CreationExamples•McDonald•SVVentures8StrongestOrganizationModelExpandedGEModel...ManagementTeamTeamBizLeaderTraineeProfessionalPro9GovernanceasachangedeviceClearresponsibilityshareamong“CEO”,“COO”and“CFO”,thenmake“managementcycle”atworkRealissuelieson“CFO”function(Verificationprocess)inmanagementcycle–Disclosureprocedure?–NominationofreliableCFO?10DirectionSetting（CEO)Execution（COO)FinancialVerification（CFO)Judgment（Board)GovernancestructuremodelGovernancemeans“ManagementCycle”HypothesisExpansion（Advisory)11Corporatevalue/brandHumancapital(competencyplatform)Financial(verification)Technology&KMOperational(SCM,CRM)Biz.ABCDCompetitivenessBreakPointLineGroup/corporateplatformWinningBusinessModelBusinessportfolioRedesigncoreplatformCoverageCompeti-tiveness12YearDecentralizeCentralizeSelf-directedHumanresourcedevelopmentEnvironmentalChangeCentralize-DecentralizeManagementCentralizeCentralizeDecentralizeDecentralize13SSCPlatformBuz.ABuz.BBuz.Z...Corporate（HoldingCompany）Multi-layerGovernanceBuz.C14RedesignOrganizationStructureAdapt“Winningorganizationmodel”Startingpointissethypothesisof“Integration-Decentralization”status–Sourceofcompetitivenessshouldbetranslatedinto“Coreplatform”Design“Corporateplatform”Design“Governancestructure”15CompetencyFunctionAction/Results/OutcomeThinking/BehaviorTraitsAssessment(Verification)Prediction(Hypothesis)Input（field）Output16Hypothesis（Assignment)Delegation&Support（Development)Verification（Evaluation&Assessment)Judgment（Exitmanagement）HypothesisExpansion(WW)CompetencymanagementcycleCompetencyPlatform17Corporatevalue/brandHumancapital(competencyplatform)Financial(verification)Technology&KMOperational(SCM,CRM)Operational(SCM,CRM)ABCDHCpool……In-houseOutsidemarketInternalHRMarketcreation