The epidemic has not subsided. Recently, due to the sudden cases in Beijing Xinfadi Market, many companies have to adjust their annual plans for this year, including the budget, projects, and expenditures in the second half of the year. They all have to adjust to adapt to the situation.

I have also been participating in the formulation of some plans recently, and I have seen some phenomena that have given me some feelings and thoughts about current business management, and I will share them for your reference.

The logic of a company’s annual budget is generally to give a company-wide performance growth target and profit target, and then break down the target into various markets and product lines. Then each molecular company and department decomposes the task into various teams and individuals.

Simultaneously with this decomposition goal, it is led by the finance and operation planning department, which calculates the changing relationship between revenue and cost according to the previous operation data, and finally sets the cost bottom line to ensure the realisation of the profit target.

If the company’s characteristics are human-intensive, then an important budgeting task is manpower budgeting, using cost targets and performance targets to calculate the number of jobs.

The budget meeting often becomes a bargaining meeting between the finance department, the human resources department and the functional department.

Moreover, the larger the company, the more data and various codes corresponding to employees in different positions are the subject of bargaining in the meeting, which has nothing to do with the specific person.

The historical data referred to are often average wages, per capita performance-such as per capita income, per capita profit, etc., as well as the annual salary increase rate, the ratio of officers and soldiers, and so on.

Behind this management method are some fundamental assumptions. These assumptions may seem unreasonable or even unacceptable at first glance, but our management method is justified because of such assumptions:

1) The operating system is a stable machine system. As long as the design is good and the calculation is done, one side of the input will have a correspondingly predictable output on the other side. Just like a chariot, you can expect it to run as far as you put in it.

2) People are the business element, just like the parts on the machine, there are different categories. But the input-output ratio of people in the same category is the same. The more subdivided the positions, the closer their output.

3) People work for money. As long as the salary system and commission are designed well, he will give you performance close to the historical average.

Such assumptions and management design are all in pursuit of certainty. It is understandable that companies hope to obtain certainty plans, guide and monitor development, so that investors can feel at ease.

But as long as we look at the challenges we face today from the epidemic, customers, and competitors, and then take a closer look at the mental state of employees, we can understand that everyone's inner needs in life and work are becoming more and more diversified. Even under the same goal of earning more money, the purpose of earning money has been varied. 

Therefore, this deterministic planning system is becoming more and more uncertain and inaccurate, and the guiding role of planning is becoming more and more limited. If you still cling to this kind of business ideas and tools, it is possible to cutting a mark on the boat to find the sword. The biggest problem with this approach is that it does not solve the problem of the company's development motivation, and this motivation must come from people, from the internal desire of the company's employees to be stimulated, and this desire is connected with the company's desire for development.

Therefore, the company must not neglect this work when making annual plans, and even the following tasks are more important than financial planning.

One thing we must face up is:

An enterprise is not a chariot driven by a central engine and composed of inanimate standardized, delicate and rigid parts, but a living body composed of countless living cells that can form a whole. You must pay attention to the life logic and state of the cell itself, so that you can have a well-organized body to deal with the harsh environment outside and realize the grand ideal of the organization.

To this end, there are at least the following tasks to be done:

1. Meaning connection-after the company goal is put forward, let as many employees as possible participate in the discussion of the value and significance of this goal to the company, to all teams and individuals, and to participate in the discussion of how to achieve this goal.

2. Understanding and inspiring: Leaders at all levels should actively understand the personal development needs and desires of their subordinates, and find the "switch" that inspires kinetic energy in them. Some want to have a sense of security and belonging, some want to be respected and being affirmed, some people hope to improve their abilities and satisfy their sense of accomplishment. These needs are not all met by money. Leaders should also take this opportunity to find their real focus.

3. Kinetic energy planning-starting from the top leader, we must go down, and we must develop a team development plan layer by layer.

Finally, a few questions to ask yourself are:

1) How high is your team’s current morale level, compared to previous years, and why? How big is the room for improvement and how will you improve?

2) What are the major unstable factors in your team and how will you solve them?

3) Where is the current ability level of your team, why, how much room for improvement, and how will you improve?

4) In the coming year, what more valuable human resources will your team contribute to the company?

5) What kind of culture (ecological climate) do you and your team hope that the company will build is the most suitable for everyone to grow and develop?

6) If important employees leave the company, will the business still operate normally?

I don’t know what readers and friends have done and planned for the above preparations?