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This is the case. At the Gree Electric EGM held on October 28, more than half of the proposals were rejected by the shareholders. Chairman Dong Mingzhu said to the small and medium-sized shareholders of the meeting: "Gree does not treat you badly. What are the listed companies?" Does this give you dividends? I will not pay you dividends in 5 years. How can you treat me? I have given you 18 billion yuan in two years. Which company gives you so much?"
Indeed, Gree Electric has grown from a loss-making company to a star company, and Dong Mingzhu has contributed. Dong Mingzhu ranked 8th in the "China's Top 100 CEOs" list in the Chinese version of Harvard Business Review. The “China Top 100 CEO†rankings mainly examines the two major indicators of shareholder returns and market value changes. The data shows that from the appointment of Dong Mingzhu to the present, Gree Electric's shareholder return is 1926%, which ranks among the top listed companies in China.
The numbers illustrate everything. Since its listing, Gree Electric has been “generous and generous†to small and medium shareholders, which may be the reason why Dong Mingzhu is angry. However, whether it is anger or grievances, how the top management of the company communicates with shareholders is definitely a matter of learning. After all, "shareholder supremacy" has always been the law of the market economy.
What kind of person is Dong Mingzhu, and what is her management style? The Chinese version of Harvard Business Review had an exclusive interview with it in 2013, and we may find the answer in the article.
HBR Chinese version: In the development process of Gree Electric, which management link is more important?
Dong Mingzhu: What is the development of the company? By technology? By marketing? No, I think it is management ability. No management talks about innovation, what technology to talk about, what quality to talk about? Without management ability, how to control quality? How to improve the quality level? These must be achieved by excellent management. Technological innovation requires a good environment. Without such a complete management system, giving them a relaxed and respected environment, what technological innovations can they make? Therefore, I believe that management is a very comprehensive ability, and every point of the enterprise cannot be separated from management. 
Dong Mingzhu: It is not like this. What centralized management and decentralized management do not recognize such division. If a business leader does not have the ability to centralize, what should such a leader do? Simply don't. Leaders must understand under what conditions they need to be centralized and under what conditions they need to be decentralized. This is very important. I also advocate the construction of the entire cadre team of the company to create a fair and equitable, public and private, open and transparent environment.
Fairness and justice are the first. Our cadre team has nearly 200 people, and their behavior has to stand up to the supervision of 80,000 employees, which is itself a self-challenge. In the process of doing things, if we can be fair and fair, it will enhance employee confidence, and vice versa will cause dissatisfaction and resentment among other employees of the company.
Second, we must be clear about public and private. If a leader has a lot of power, even if he claims to implement decentralization management, it is actually a centralized approach, because no matter what he says, the people below will not dare to oppose it in principle. So more often, the top leader is paying instead of asking for it. The only thing he can get is the return from the ultimate benefit of the company. The board determines the income you should earn based on the value you create for the company. Except for this, you have no rights, you must be public and private. This is the pay, you have to establish a righteousness.
In addition, companies must be open and transparent. Only when it is open and transparent can the centralized power be centralized, and the decentralization is decentralized. Someone once said to me that to your Gree Electric Appliances, I feel that the air is different. In fact, what he feels is this culture. Openness and transparency are actually very simple. They are all things that employees can do, and there is a standard that can be supervised and quantifiable.
HBR Chinese version: You once said that you are a person who never makes mistakes. Why is there such confidence?
Dong Mingzhu: This is what I said. This is not self-confidence, but a request for myself. For example, if a mistake is made in investment, billions of dollars are gone, and it is extremely harmful to the whole enterprise, to the shareholders, and to the employees of the company, so I feel that we should not make mistakes. As a leader, you have a lot of space and decision time. Why can't you conduct a complete assessment beforehand? You just shouldn't make a mistake.
So how can you make mistakes? In my opinion, as long as it is selfless, it will not make mistakes. The paranoia must be paranoid, and the things must be paranoid. In fact, I am not smarter than others, but I am more persistent than others. Under what circumstances will you make mistakes? When we give up the principle, we may make mistakes; when we have selfishness, we may make mistakes.
When I was the marketing director of the company, my brother brought a dealer to come to me to get the goods. Such a transaction would not bring any losses to the company, and he could earn one or two million at a time. But I refused. Because I know very well, if you give him goods, it seems to be a win-win situation, but in fact there will be many negative effects: all businesses will lose confidence in you, and believe that Gree can only do business through relationships in the future. It is impossible to talk about cooperation, and it is easy to talk about the quality of products. Therefore, I feel that we must be selfless and unable to make mistakes. As long as you persist, you will be able to do it.
HBR Chinese version: As a manager, it is impossible to make various decisions every day. It is not possible to make any mistakes. How do you do it?
Dong Mingzhu: There are some situations that cannot be mistaken. For example, we have made a marketing strategy, but suddenly we found deviations during the implementation process. If you can adjust in time, this is not a mistake or a mistake, because some cases are There is no way to estimate it. For example, if you go abroad to invest, there are too many things to estimate. It is not the same thing to invest in Vietnam and invest in the United States. No one knows what kind of results. It is only possible to evaluate the possibilities as much as possible, because it can be done at a glance, and it is important to judge the right and wrong through the data.
HBR Chinese version: In your opinion, to ensure sustainable development, is it a person or a team? What is the basic trait that this person or team needs to have?
Dong Mingzhu: The team is a must, but the team must have a core person. The squad leader can't, this team doesn't exist. I have always believed that as a leader, we must have certain qualities, including insight, judgment, and the style of doing things. Of course, management styles can be varied, but the realm of thought is the same. I think that as an entrepreneur, the most necessary quality is the spirit of sacrificing oneself, that is, dedication, because dedication requires sacrificing a lot of things of its own.
HBR Chinese version: Dedication is also part of Gree's corporate culture?
Dong Mingzhu: What is culture? It is our behavior that forms a law, which is culture. Within the company, the values ​​advocated by Gree Electric are dedication. Among my employees, no one will tell me, I am here to work on how much money you give me. They came to talk to me about what they want to do and what our company should develop. As a company, the purpose of development is to make everyone happier, employees are good and bad, what kind of treatment should be enjoyed, this is what leaders must consider, and should not wait for employees to recover from you, then come back to talk This question, or use it as a condition, I think that is wrong.
On the other hand, I hope that our employees are based on the principle of good faith. Each of us is not afraid to make mistakes when we perform our duties. We are afraid that we will not admit mistakes or correct mistakes. This is a matter of good faith. The word "integrity" is very general, but to implement it to each of our employees, we must rely on various systems to protect. At the same time, in the process of detail management, we must constantly strengthen the self-discipline of our employees, and insist that the company is responsible to employees, and employees will naturally be responsible for the company. Integrity is not a simple slogan, but the behavior of each of us. It’s not a concept. If you say a story, you think you have a corporate culture. This kind of understanding is wrong. Through the behavior of employees, you can basically see what the culture of this company has accumulated.
HBR Chinese version: How is this corporate culture formed?
Dong Mingzhu: Gree influences them in a subtle way. I told our cadres that if an employee makes a mistake, I don't think it is an employee's mistake, but a cadre's mistake. Because the employee is always in a passive position, as long as the job is done well and there is no mistake, I think he is a good employee. The cadres are guiding, what are the cadres, and what the employees are. Therefore, the construction of the cadre team is very important. The way of thinking in management and their behavior can determine the culture of a company. When some related habitual actions are formed, it will become a corporate culture. Take a lane as an example, and then a wide lane. At any time, with or without a car, my employees will not walk on this wide road, but walk on a pedestrian path where he should go. This is a habit. After getting used to it, it becomes a culture.
HBR Chinese version: Is this habit developed because of the constraints of the punishment system or the self-discipline of employees after the relevant education?
Dong Mingzhu: The lane can't leave, the humanity can't take the car. This is the rule. With such rules and environment, everyone follows the rules. This does not require coordination, because it is the most basic, if there is still coordination, there is no system. You can't treat an employee as a machine. He has emotions. Why does he work here? He wants to live a better life. Therefore, as a company, it is necessary to make reasonable and legal profits in the process of serving the society as much as possible, and then convert some of the employees to your employees and convert some of them to your investors. The enterprise is a lubrication machine, which is an important part of lubrication in the process of social development.
Therefore, as Gree Electric Appliances, corporate culture is actually not complicated. To some extent, it is very simple. One is mutual respect and the second is dedication. Everyone enters Gree Electric and is willing to share the same pains. I give our employees the highest treatment, and should not wait for the staff to ask you. If the employees come, it is a trading relationship. What are the requirements of the company for employees? It is to get the job done. Understand that employees are not dedicated to me, but actually serve a business and serve the society.
HBR Chinese version: In your opinion, will strengthen the corporate culture and various system construction, will it restrict the way of thinking and behavior of employees? How to cultivate employees' self-challenge awareness?
Dong Mingzhu: I am not alone to challenge myself. The thing I have to do is to make every employee willing to challenge themselves. If the company's 80,000 employees are working with their own mentality, they will definitely be invincible. This requires starting with technology, quality, talent innovation, management, accelerating the construction of management systems, and strengthening existing management so that everyone knows what they should do.
In fact, the direction has long been in the clear, 5 years, 200 billion scale, you need to do what you want to be clear. If you let me push, I am very tired. Therefore, the culture of the company is very important. Without the discipline of iron, there is no iron team. The only thing I have to do is to establish a good system and create a fair, equitable and transparent environment and system, especially for the construction of the cadre team.
Deng Yongbing|Wen Li Quanwei|Editor This article has abridged. The original text is in the Chinese version of Harvard Business Review. February 2013, "Dong Mingzhu: Never Make a mistake."
Summary In the past few days, everyone has been screened by Dong Mingzhu’s news. This is the case. At the Gree Electric EGM held on October 28, more than half of the proposals were rejected by the shareholders. Chairman Dong Mingzhu screamed at the small and medium shareholders of the meeting: "Gree has no ill-treatment...
In the past few days, everyone has been screened by the news of Dong Mingzhu. Chairman of Gree Electric Appliances Dong Mingzhu
HBR Chinese version: When it comes to management, you are now also the chairman and general manager of Gree Electric Appliances. Will this lead to excessive centralized management? How would you consider decentralization?