The Three Points of Organizational Growth - Mr. Bian's Speech at Sayyas 21st Anniversary "Upward Bound" Benefit Concert

Hello everyone! In addition to Sayyas employees, we have invited some media, suppliers and some of our shareholders in Harbin to join us today.

  Time flies, Sayyas has gone through 21 years of history, and on September 25, 1998, we received a license from the Bureau of Industry and Commerce, which reads "Harbin Sayyas Window Industry Co. Thus a company embarked on an extraordinary journey.

  The first 20 years of Sayyas have been a series of trials and tribulations, and can be said to be made up of numerous mistakes and failures. For example, we entered Beijing in 2001 and sold it in 2004; we entered Shanghai in 2002 and later sold it too; we entered Guangdong in 2009 and returned it too. We always wanted to go out, but the time was not ripe. 2011, we finally concentrated our firepower and entered the twin cities, and invested about 500 million one after another to build the world's largest passive factory. We must be like Huawei, according to a breakthrough constantly to attack, to be able to achieve a little success. So, these years, we do not know how to manage, do not know how to hire, do not know how to market the premise, stumbling, trying to move forward, through the first 20 years. But we also have something to show for these 20 years, we gave up wood and aluminum composite windows, focus on aluminum clad wood windows. It's aluminum clad wood. The focus has kept us alive!

  The second point is that we are willing to work hard and invest in the whole product chain, including R&D, manufacturing, supply chain selection, and service. In particular, this year we have done something that many people do not understand. We have a project in Changchun, which has been in the household for five or six years, and the glass selected at that time was two glass and one LOW-E, which fully met the standard. However, due to the temperature, indoor temperature and humidity, there is often condensation. Their boss and I said, "What should I do? Our company especially loves our customers, is there any way to solve it?" I said, "There is one way, replace all the two glass with three glass." He said, "How much money will it cost and who will get it?" I said, "It's 20 million, I'll get it." He was shocked and said, "No, you take 5 million first, and we'll take half of the rest." In the end we took out a total of 12.5 million. This project we will not earn a total of 12.5 million, but we dare to spend 12.5 million to do service. Because this customer is very good, reputable, has a great return, and has used Sayyas' aluminum clad windows for all of his projects since the company started. Over the years, there are some similar things like this, so that we are still "foolish" in products, research and development, and service, and the heart of a fool

  After 20 years of stumbling, so many mistakes and failures, God has also given us a big gift, especially in 2018, allowing us to grow 59.74%. So I've been thinking about one question: How exactly can we sustain business growth? The answer is the topic of today's talk - the three-point theory of organizational growth. The first point is mission, the second point is strategy, and the third point is system.

  People say the  I'm singing a high note again, do we have so many missions? Is it true that you have a mission? Here I want to tell you, everyone has a conscience, everyone has a mission. If you don't have a mission, you came to Sayyas to make money. Then the responsibility lies with me, the boss, for not building the platform to make everyone feel a sense of mission. The task of a leader is not to provide energy, but to release the energy of others.

  Some time ago I was in Japan, and I wrote a paragraph on the topic of mission: What is the most important thing for an organization? That is the mission. The mission is the thing or the cause that we want to do. Drucker said, "All work stems from and is closely related to the mission. I am afraid that the single most important reason for business failure is that people rarely think sufficiently about what the mission of the business is. Management is about defining the mission of the company, and motivating and organizing human resources to achieve it. Defining the mission is the task of the entrepreneur, while motivating and organizing human resources is the domain of leadership, and the combination of the two is management. In his view, mission is not only the starting point of management, but also a red line that runs through the business and management activities of an enterprise. Western companies always talk about mission, vision, values (mvv: mission, vision, values) first, then goals, strategies, profits and other things. Chinese people have the concept of family, country and world, but lack the concept of organization. In fact, the mission is the gene of the organization's longevity.

  People may not understand and think that business is to make money. But when you make money to a certain extent, you will find that making money is the most meaningless thing, not even to support your reason for living. Life three things, we have to solve it: First, where do people come from? Second, where do people go? Third, who are you? The mission is to solve the problem of "where do we come from and where do we go". If we believe that the world is not an accident, but a creation of God. Then where do we come from? We came from God; if we came from God, then what did we come for? To eat and drink and be a walking corpse? Or are we here to eat and drink and be a walking corpse? Or do we work hard to earn money and provide for our families? Is this our life? Please believe that the birds of the sky neither plow nor reap, and God still feeds them, let alone the precious human beings. We are so precious that we are not just working to earn money, support our families and live out our lives in this world. Each of us has a mission in mind, and without it, everything is meaningless.

  Sayyas' mission is to reduce consumption to the limit and live a beautiful life. The ultimate reduction of consumption means that we want to make the most heat insulation and energy-saving products, so that our earth will waste less energy and our earth will warm a little slower. At the same time, the window is a transparent wall, which connects the building and the nature, and it encloses a home space, so that we can live quietly, warmly and comfortably in it, and make our life more beautiful. This is our mission. We have to carry our God-given mission, work hard to achieve it, and finally return to God to answer to him.

  So how do you achieve the mission? By strategy. What is strategy? Strategy is to solve the problem of "who are you", and who is Sayyas, which is aluminum clad wood. We focus on aluminum clad wood, positioning passive beauty, which is my new invention, changed a word, originally called passive. We changed the word to "passive beauty" because we want to make a good product to enclose an energy-saving and environmentally friendly space, giving people health, comfort and beauty. If an organization's mission and strategy are not related, then its mission must be just hanging on the wall, just talking to people. So the second point of organizational growth is strategy, which we have insisted on for 21 years and will continue to insist on. Without the advantage in many aspects of Harbin, Sayyas has been able to get to where we are today, relying on the fact that we have a mission, and a strategy to go with it. But for an organization to be truly successful, relying on the owner alone to have a mission can only go so slightly faster. Our great leader, Chairman Mao, made the Communist Party an organization where everyone has a mission, and everyone is of one mind and one heart. He relied on the right mission and the right strategy.

  How many of our employees have a true sense of mission? How far can Laobian go with 1,500 people with a mission alone? This needs deep thinking! If you think carefully about mission and strategy, you will find that they are exactly the same thing, addressing the question of where we came from, where we are going, and who we are. This is a metaphysical issue, so important that it can be described as "the Way". In Sayyas' 21 years of experience, one of the most important things is still missing, and that is the system. For a company, if there is no system, it will be in a state of disorganization. That would be the same as the old bull pulling heavy loads, the old bull is the team headed by the old side, this team has shares and is driven by interests. We, the old cows, have a certain character and can grasp a certain strategic direction, and we are very hardworking. But if all our employees sit on the car, the car will only get heavier and heavier. We are now 1,500 people, and in the future we will grow to 2,000 people, and one day we may reach 10,000 people, and we won't be able to pull it. You can see how important the system is.

  What is a system? A system is the mechanism of an organization. If the ability to build on the boss, then this business has no future. If the ability to build on the organization, this enterprise can have a long development. Does the leader create wealth, or does the system create wealth? In those days, West Germany was rich, while East Germany was poor. It was only after the Berlin Wall came down that East Germany gradually became rich. You see, both are Germans, but the system is different, the gap is so big. Similarly, South Korea is one of the four little dragons in Asia, while North Korea is poor to the extent that everyone knows. 200 years ago, the GDP of the United States is much smaller than China; 200 years later, the wealth of the United States accounts for 1/3 of the world's wealth, China may be less than 4%. Taiwan, Hong Kong, Macau, and Singapore are all predominantly Chinese, but after decades, they are all very wealthy in Asia. Including us in China, how big is the difference between the first 30 years - 1949 to 1978, and the second 40 years - 1979 to 2018? It is there for all to see. What does a different system entail? The impact on a country is so huge, let alone a business. Some time ago, I heard a joke that when there are 100 people in a business, the boss leads the staff forward, the business is fine; when there are 1,000 people in a business, the boss stands next to the staff and says, please please please, you do a good job, I will give you a salary increase; but when there are 10,000 people in a business, the boss can only stand behind the staff and pray that this business can still grow, his finiteness is Not enough to support the growth of this business.

  We can only rely on the system, otherwise the enterprise cannot move forward. So since we entered our second 20 years, we have gone through two years of organizational change since November 2017, and I found that organizational change is so difficult. Once at the end of 2015, we started a marketing transformation and in 2016 we doubled our retail and then I said we had a successful transformation. A friend of mine said to me, was it that easy? Transformation is mostly a failure. But as we went through 2017, 2018, 2019, I realized that our marketing transformation was just beginning. And marketing transformation is much more difficult compared to organizational change. Because organizational change involves hearts and minds and human nature. A system change without interest as the basis is bullshit. A business can not solve the problem of sharing money, it is built on the ruins of all the culture. But interest alone, without spirit, is not enough either. Therefore, we will focus on building Sayyas' system in the next 20 years, including the salary system, recruitment system, training system, sales system, after-sales service system and so on. The core of all systems, in fact, is still the distribution of benefits, that is, how to build a platform, so that employees can be their own boss. There is a saying that the boss is never appraised and still works as hard as an old donkey, why? Because the boss has interests, mission and dreams. And for the employees, no interest, no mission, no dream, why should I play with you? Why should I struggle with you? This is what we want to do, to transform our salary system and equity distribution system, so that the vitality of all employees will be stimulated, and everyone will be the boss, and their own salary will be decided by themselves.

  Today, I would like to take this little time to share with you where we are going to be in the next 20 years at Sayyas. In the first 20 years, we thank God for keeping us, we thank our employees for accompanying us, and we thank our partners for fighting with us, so that we can survive in this land of Harbin. In the next 20 years, we will build our system, change our organization, and build our capacity on top of our organization while adhering to our mission and strategy, so that all of our employees can strive together with our mission in mind! Thank you all and thank God!