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The real case reveals the rise of enterprises through the management of equity incentives

This article is about the case from the hot mountain city of Chongqing, in the capital almost little heard of the era of the pot is how to rise in the national market, its founder relies on the precise positioning of the blank market, while the management system of innovative food and beverage, and dared to share their own shares, after several times to experience the bottom of the new rebound from the new quickly rose.

The following is the founder of the pot era Zhao Guo oral:

2003 when I just graduated, about seven months on the class, then do sales, performance is good, a little high and mighty, because can not stand the office politics decided not to do. In the formal determination to do catering before I was idle for about a month or so, has been thinking about weighing the future of life, entrepreneurial time is relatively free, and the hottest industry in Chongqing is hot pot, and these catering enterprises in the country to do the expansion of the opportunity to rely on the chain to do great, decided to enter the catering industry.

I did a survey of hot pot and Chinese food in Chongqing, including practitioners. The results found that at that time a large number of restaurants, really do not do a good job. But by Chongqing hot pot this big wave, in the country to expand the brand effect to do well or quite a lot. At that time, Chongqing restaurant crowd: a class of workers into the city a little bright mind. Another category is some laid-off workers. Of course, there is another category, belonging to the knowledge-based in this industry has accumulated great wealth. After analyzing the situation, I felt that I should still have some advantages because I was born in marketing. After that, through my research, I invented? Dry Pot? and? The "fragrant pot".

It was around March 04 when the first wave of avian flu came, and because our main dish in the hot pot is poultry chicken, our new store was hit hard. So I started to find a way out and figure out what to do. Often when you start to resolve to solve the problem, all problems are not problems.

At that time, in order to overcome the dangerous situation, we used several effective ways:

First, we realized the horizontal development of products, improve our product line. Since there is bird flu at this time, we do horizontal development to avoid the poultry products, weaken their proportion. We will develop rabbit, fish, pork knuckle This kind of product. But product development does not mean that the guests will come. Guests only remember that your chickens do better, do not recognize and do not know how your other things. So this approach does not instantly turn the tide.

This time promotion, activities these are very important, I should say that we are more effective in these aspects of excellence. We didn't have any money at the time, and we printed 10,000 to 20,000 advertising leaflets on white paper for a couple of cents a piece. But no one wanted them even if you sent them out on the street, so I organized our staff to go door-to-door. Sweep the buildings? In 2004, Chongqing's economy is not very developed, that time in the 90's most of the buildings have no elevator, we will organize staff door to door, and then we began to sweep the building, running from upstairs to downstairs, each door to put our own flyers, and then in the district of each door handle on the side of our flyers. This proved to be very effective because the loss rate was much lower.

In addition, we also need to build their own image, tell potential customers that we are serious about security, is a responsible store. So what do I do, I came up with an idea. We will insist every day in the morning and afternoon are in the street military training running, plus our corporate slogan, plus slogans. Through two kilometers of running every day, to convey the overall brand of a corporate image. It should be said that the dynamic effect of these promotions is still quite good, coupled with our sweeping, running, the dissemination of information. Finally, the guests to pull back again.

By April of that year, the situation had improved greatly, and after May 1, it was completely triggered. At that time, our store is not big enough, only twenty tables, a lot of people line up long lines to eat. Seats are not enough we bought plastic benches and yellow canvas board tables to be added seats, the interesting thing is that whenever the city police come, customers will pick up their own benches, tables to these back to the street alley to avoid the city police, this detail proves the customer's recognition of us. After the fire, we hope to open a second store, so it is natural to open a second store, due to choose the time point is very accurate, basically did not open a will be very hot, coupled with Chongqing food media vigorously promote, many diners to food programs vigorously do recommend more and more famous. At that time there are many users to Tianya, community, forums, these portals community posting, write experience reports. Gradually bar this information to pass on. And then later in Chongqing to provide information in the form of newspapers to make columns recommended us, we instantly and completely detonated.

After two years I opened eighteen stores, but from 06 to 09 years, the growth has been small has been maintained in ten stores, no way to grow I also tried the paratroopers, imported learning training, but really see the results of very little. It can be said that I encountered the second hurdle.

At that time, I encountered a few headaches in the management of the problem: First, the implementation of the staff is relatively low: basically rely on the boss to supervise, implementation, implementation, the overall combat ability has been greatly affected.

And this greatly affects profitability. I analyze the reason is: the first two stores are basically my own personal follow-up. The scene to the staff to think of ways, basic training, hand in hand with, and then basically is the manager to do these things, so the overall quality of personnel and ability to greatly reduced, the customer experience and satisfaction is reduced, in addition, we unified decision-making implementation to the operational level, the grass-roots level of the staff to implement the efficiency of the time is low.

Another reason is that the early corporate culture is the boss's culture, the boss's charisma and execution in the store to inherit and implement. After the store opened more I basically implement the store manager responsibility system. But the ability level of the store manager, the speed of expansion, there may be a problem, there is no systematic training or cultural inculcation, a lot of nodes or ideological things and I can not maintain consistency in the process of inheritance there will be a lot of problems, which led to the result because of the speed of running too fast, the enterprise's cultural atmosphere has not been effective in the formation and inheritance of the problem of faults. During this long period of confusion, I also did some thinking and attempts, such as looking for paratroopers, but many of them left and could not be integrated. As a result of this long period of wandering, I paid a big price, a lot of open stores closed.

In the face of such a predicament and situation, I made a series of changes to the management system:

The first method is to transfer the shares to the employees: The initial management of the single store to implement the store manager responsibility system. It is also often referred to as equity incentives. The store manager in the enterprise work for a long time, after we The whole of his work, management, product output basic evaluation process and a series of process is very familiar with, and then let him in the process of shareholding. Only when he feels that he is working for himself will he have a more responsible attitude. At the same time, we have absorbed the grassroots and middle level of the more outstanding employees, but also to them to transfer the store's shares, to get the store's shares. They pay money to buy shares, shareholding according to the position is not the same, the highest proportion of not more than 10%, as long as the implementation of good results at the same time can be in the company's good times to get a lot of dividends dividends, these are immediate results. But initially, many people are still relatively resistant, questioning whether they will be cheated, so they will not be willing to pay. So we designed a similar option play, such as a post subscription 5%, rich first to give money, no money to the company to put this part of the dividends in a pool exclusively for him, dividends enough to the time of the share capital, the share capital is yours, the results prove that this demonstration effect is very meaningful. After the change of ownership was completed, the staff's work attitude and mental state had a great change, and the staff's work motivation was activated at once.

Secondly, we adopted our own system of contractual responsibility, which is designed to completely raise the standard of service. For example, each person service area five, eight countertops reported to you, as long as the completion of the basic tasks, the extra ` on the performance part, which belongs to their own income. Equivalent to each person has a self-reserved land, responsible for the field. As long as you put the customer service is good, then the income will be high, I just want to let this kind of employees to earn money.

As a result, we have finished the implementation of this thing when everyone's thinking, the way of life was opened at once, taking this opportunity we began to write standards, write norms. What should be done and what effect should be achieved. The company at that time on the completion of a standardized process of drafting and basic implementation. The implementation of our system and model can be said to be relatively comfortable, basically without any problems. After the completion of the model of transferring shares and transforming employment into entrepreneurship, the employees all took the initiative to start their own businesses. Employees have taken the initiative to buy gloves, masks, etc., and have thought about and implemented a lot of things on their own initiative to give customers a safer and cleaner impression. Of course, there will be some weakness after a long time, but through the power of soft culture and role model, the overall implantation and introduction, the effect is quite good. Overall, the change in ownership has brought a lot of benefits to the growth of the company.

Of course, there is a third step in this change, which is standardization from the bottom up: after the model change, we developed manuals for service, marketing, technology, financial management, etc.

We took the whole standardization process to the next level. Later on, it was extended, from site selection to decoration to the training process to the pre-opening and feedback, comprehensive adjustment and a series of all standardized. The implementation of the effect is not bad. There are a lot of catering companies, often borrowing or looking for masters, masters, from the top down, is to stand in the manager's point of view, consider how to do things and how to achieve the results. But we are the opposite, we have entered the training state from the time we set the standard, and everyone has to participate in the standard-setting process. What they do, how they do it, and what results they achieve, the employees can write, and they can write it very plainly. Management then follows up with the positions, processes, and responsibilities of each position. After we use a more written language summarized, made into a ppt. we form this specification is equivalent to everyone involved. At the same time as the development of the staff have been trained. Every month, we then consolidate the standardized process, and then conduct an assessment.

After these big steps of change, we are now close to two hundred stores across the country (part of the franchise). Sales reached about more than six billion. This proves that our series of changes is successful.

The catering industry is considered a zero-threshold red sea market. See the various shopping centers in the catering floor, like a walking light to change a variety of signs, we know how difficult it is to survive here. The case of wow wow dry pot era is a successful case of opening a new category in the catering industry, but also a successful case of flanking war.

First of all, it created a new category. The author wrote in another catering business review, ? Differentiated survival? is all businesses? only? way to survive, not? one. Traditional hot pots come with soup, dry pots don't. This sharp opposition is different enough to attract curiosity, cause trial consumption, and then bring in a wave of diners through free word-of-mouth communication, which is why it? Not much promotion is very hot? Accumulated to a certain stage, a never heard of dry pot restaurant fire, than a traditional hot pot restaurant fire, more topical, more attractive to the media eyeballs (the media is always new and old, preferring to report on new and peculiar topics), which in turn brings a greater range of free public relations communication, attracting a greater wave of diners.

Secondly, we chose a good source market. Chongqing people spicy, heavy taste, known throughout the country, the enterprise started here, survival is not in danger. Chongqing people on the band? spicy? The taste of food, so they are absolutely dry pot dishes suitable for the crowd, in the assessment of such dishes have a high authority and persuasive; at the same time, Chongqing as the only municipality in the southwest, is a high potential market, its consumer fashion in the southwest region of the consumer population with demonstrative and influential, conducive to the spread and expansion of brand awareness, for its entry into the region to other cities to do a good job of spreading and paving the way.

Finally, the implementation of the regional focus strategy. Regional focus strategy makes it possible for companies to utilize the existing brand potential, making the brand reputation like water from the source market to the surrounding areas of the natural spread of low-cost, good results; the second is to narrow the management radius of the enterprise, reducing the cost of operation and management and risk. These two points for the start-up business, is crucial.

This case, although only said the catering business, but its embodiment of the basic methods and principles of conducting flanking war, in fact, all enterprises are applicable. Of course, to open a new category, requires entrepreneurial intuition and courage, sometimes with the element of gambling. However, successful companies, such as McDonald's and Zenkungfu, are the pioneers of new categories. All entrepreneurs who want to achieve a brilliant victory need to think about how to start a flanking war; and in business history, all flanking wars need to create new categories.

Going back to the second question of what businesses are experiencing? The second? The second? This is a problem that most restaurant companies face. At the startup stage, entrepreneurs do most of the work themselves and don't focus on team and system building. When the scale of the expansion of the problem, only to find that the team did not train, the system is not perfect. The new store will not be able to get the same amount of energy and resources from the entrepreneurs, which will inevitably lead to difficulties for the new store. Entrepreneurs should not expect business employees are like entrepreneurs general smart, willing to work, factory as a home, rich in ideals; more realistic situation is, ? This is just a job? So entrepreneurs need to establish a set of management systems and processes, as long as our employees can act according to the standard to complete the task, we can achieve a high probability of success. Of course, if you can moderate the use of incentives to give employees more motivation to work, it is possible to get better business performance.