In 2011, almost all enterprises faced the test of inflation. In June, CPI-6.4% and PPI-7.1%. Although the relevant departments predict that they may turn back in the second half of the year, moderate inflation will be a long-term trend. Raw material costs, labor costs, energy costs, transportation costs, management costs... Almost all costs are upswing, profitability is difficult, and profits are thinning. For industrial companies, the days are very bad. In the face of rising costs and trends, traditional cost management thinking is somewhat outdated, and we must have new thinking. Cost management is not about looking at financial statements, not counting dead accounts. It should be a height, a perspective. In general, companies will always underestimate market expectations and increase cost expectations to offset the potential losses. The most fundamental thing to overcome is the release of various cyclical constraints. The release of the company's growth potential depends on the interaction process between internal resources, management capabilities and entrepreneurial development planning. On the cost issue, I think three sentences are very important. First, the biggest cost is wrong. The biggest mistake of a company is a strategic mistake. If the direction is not right, it will cost a lot of opportunity. The more complex and uncertain the environment, the more you have to calm down and think about whether we are on the road. Many small and medium-sized enterprises lack strategic management. They still make head-to-head, passionate, and hypothetical decisions. As a result, they have successfully done many things that they should not do, or they could not do. The key to choosing a strategic direction is the customer's demand orientation. There are no products and services that customers recognize, and there is no model for creating value for customers. Everything you do becomes cost, not profit. Therefore, in a sense, the customer decides your cost, and the company must not make a mistake in the choice of this problem. Second, the cost of the reduction is waste. The idea of ​​cost control is not wrong, but there are some costs that you can't control. Can you cut corners and shoddy? Can you lower the salary for employees? Can you manage the power transportation price? This is where the enterprise is entangled in cost. What should we do? There is only one way to maximize cost utility or reduce waste. It is a waste of cost to spend more than one. Nobody should brag, any company has a waste problem, and Toyota’s standard of “zero waste†is just an idea. Who can use all the resources to the extreme, who can make everyone create value every minute, who can make the company operate efficiently and accurately, it is difficult! Process costs, quality costs, supply chain costs, poor information costs, human resource costs... There are too many goals that can be optimized, and we are working hard, especially the waste of human resources. Most companies are amazing. Third, the added cost is value. The more "comprehensive action", the higher the comprehensive cost, the more meager profit period, the more the cost will increase. Drucker pointed out that the biggest opportunity to improve economic performance is the enthusiasm and effectiveness of employees. In 1993, the economic crisis spread in the United States, and the Harrison Textile Company was ashamed by a violent fire. 3,000 employees pessimistically returned home to wait for the company to declare bankruptcy. The notice they received was to continue to pay one month's salary, and one month later the company decided to send another month's salary. The employees were very grateful, they took the initiative to go to the company, clean up the ruins, scrub the machine, and contact the interrupted supply. Three months later, the company re-operated. Now Harrison is the largest textile company in the United States, with branches in more than 60 countries around the world. This case shows that in the most valuable talents and employees, companies should never be reluctant to spend money. Of course, it also includes the cost of determining the fate of the company in other aspects. For any enterprise, the biggest problem is not the environmental problem, nor the cost problem, but the growth problem, the manager's own willpower and ability to solve problems. The ability to create growth is the basis for resolving the high cost pressure. If we can stick to our mission and values, under the guidance of core values, do the right thing, eliminate all kinds of waste, increase investment in supporting the value of growth, we will find our own living space, and even get unexpected The harvest. Inflation can't be avoided, high costs can't be circumvented, and you don't have to worry about high costs every day. If you want to think about this flaming mountain, go find a banana fan. This fan is a new concept of low cost under the inflation situation. A new kind of thinking will bring a new world, making us a company that is not afraid of high cost challenges.
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