Road to Revival

They've finally arrived. Li Luo didn't look at Tao Tang, nor at the other members of the team. He knew everyone's eyes were on him.

Li Luo slowly opened his notebook. "President Tao, I've read the marketing department's report and realized some problems, which is why I didn't have them report it directly to you. The responsibility for the delayed reporting lies with me. What are the problems? As for the content of the report, the marketing department stated the facts without any concealment. The decline in order share is an undeniable fact, mainly due to the sluggish performance of our key markets. I think everyone here, except President Tao, is aware of this situation. Where does the problem lie? I believe it's the marketing department's lack of effort. I've already criticized them; under the current circumstances, they need to put in even more effort. President Tao, is that alright? Perhaps I could take some time to give you a detailed report on the problems in marketing?"

Li Luo's attitude surprised Liu Shulin. He thought Li Luo would argue his case forcefully at this meeting, just like before. But Li Luo backed down and blamed himself for not making enough effort.

"Alright. Then, could you make a basic assessment of the annual revenue targets?" Tao Tang asked.

"75 to 80 billion. It won't exceed 80 billion."

"That means the revenue target is at least 40 billion short. Right?"

"That's right."

"So, Mr. Han, based on Vice President Li's assessment of the annual scale, what are the key financial indicators? Which can be achieved? Which are definitely unachievable?"

"It's basically impossible to complete them all." Han Zhiyong, the chief accountant with a lisp, mumbled. "If it's a scale of 100 billion, I can guarantee the profit, EVA and other indicators, and I can also strive to achieve the labor productivity and added value, but a scale of 80 billion is out of the question." He had been under pressure from Li Luo for a long time, and finally had a chance to fight back, so he naturally wouldn't let it go.

"Understood. Comrades, let's not even talk about how much our salaries will be affected if we don't meet the targets; the key issue is how to ensure the livelihoods of the company's 20,000 to 30,000 employees. Furthermore, how will the company survive? This isn't empty talk, but a harsh reality. To be frank, the organization placed us in our current positions to solve problems, not just raise them. I believe that before the product structure undergoes a fundamental change, scale is the key factor determining our survival. Do you all agree with my assessment?"

"I completely agree with President Tao's assessment. The relevant indicators are based on a scale of 120 billion. A difference of 40 billion makes the accounts impossible to follow," Han Zhiyong responded immediately.

"President Tao, I must state that I disagreed with the initial target of 120 billion, and there is verifiable evidence of that. But the main leaders at the time insisted on it, so what could I do?" Li Luo immediately countered Han Zhiyong's probing.

"As Comrade Li Luo said, there were some subjective assumptions at the time, and the assessment of the situation was too optimistic. Moreover, the main person in charge at the time wouldn't listen to different opinions. Headquarters had requirements for increasing scale and efficiency, but our situation was rather special... President Tao, I suggest we formally report to headquarters. It's not that everyone isn't working hard, but we should always be realistic," Chairman Guo Tao continued.

"Hmm, who else wants to speak?" Tao Tang glanced around at the company leaders sitting in the front row, but didn't look at his assistants and deputy chief engineers.

"I agree with President Tao's opinion. Revenue is the most crucial indicator. Labor productivity is linked to me, but without revenue, there's no added value, and it's difficult to achieve the labor productivity target," Liu Xiuyun said, which was essentially meaningless. Tao Tang noticed Li Luo's disdainful look.

Tao Tang cleared his throat. "So, the key issue is the revenue targets. Some leaders have suggested submitting a report to the group to adjust the targets, which I understand. After all, it concerns everyone's salary. But I'm in a dilemma. It's inappropriate to immediately submit a report requesting target adjustments right after we get off the bus, especially with two-thirds of the time remaining. However, the principle of seeking truth from facts should always be followed. If the situation remains the same by the end of September, then we'll consider the report issue. Until then, the targets will remain unchanged, and the performance evaluation will proceed as usual. Does everyone agree?"

"Agreed." No one had any reason to object to Tao Tang's decision.

"Waiting passively won't work. We still need to talk about proactive effort. I'm going to talk about the marketing department's report again; it's entirely a matter of attitude. If our managers lose their belief in success in the face of difficulties, the targets won't be met. There's no such thing as a free lunch; that's probably a truism. Assistant Xinjun, besides the large part for the marketing department, how are the secondary targets allocated?"

"There is a secondary plan. The total amount is 1.2 million yuan. It's meant to supplement sales revenue," replied Liu Xinjun, director of the Development and Planning Department.

"How much was it last year? I'm referring to the actual amount completed."

"1.65 million." Liu Xinjun rattled off the numbers without hesitation.

Why were the secondary indicators downgraded this year?

"The main consideration is the workload..." Liu Xinjun had entered a dead end, easily outmaneuvered by Tao Tang. Realizing there was a problem with his report, Liu Xinjun looked to Chief Economist Luo Chong for help.

"That doesn't make sense, does it? Last year's actual revenue was 96.5 billion." Before Luo Chong could speak, Tao Tang astutely pointed out the logical errors in Liu Xinjun's report.

"That's right," Luo Chong explained, "because the total budget at the beginning of the year was 120 billion, the secondary plan was downgraded."

"Isn't that a bit odd? Shouldn't the secondary indicators be aligned with actual performance? The first quarter is over, and the situation is becoming clearer. Why not adjust the secondary indicators? In terms of production capacity, no one in Pingquan has surpassed us. I estimate that we probably account for half of Pingquan's CNC machine tool production. If we're talking about casting and forging, if we say we're second, probably no one in Pingquan would dare to say they're first. Under these circumstances, it would be a huge mistake not to unleash the enthusiasm of the grassroots."

"President Tao's criticism is valid; we will immediately study and adjust accordingly." Luo Chong's attitude was quite positive.

Li Luo remained silent. Tao Tang's arrangement to postpone the deadline to the end of the third quarter prevented him from raising any objections. He noticed the difference between Tao Tang and Song Yue; he actually preferred Tao Tang to be bogged down in tedious and mundane business matters. Although Tao Tang also served as general manager and was primarily responsible for the operational targets, for a company the size of Hongxing, getting bogged down in trivial matters would inevitably affect the company's control over the overall situation. Song Yue, on the other hand, never paid attention to specific numbers. With a chief accountant, a chief economist, and a group of deputy general managers, assistants, deputy chief engineers, and department heads specifically in charge of business, what was the top leader doing managing all the specifics? Actually, that was quite good…

"Secretary Zhao, what are your instructions?" Tao Tang turned to look at Zhao Qingmin.

"I agree with General Manager Tao's arrangements regarding the three tasks, especially the target issue. Comrades, given the company's current situation, we must pay special attention to unity, for unity brings strength. I work in Party affairs and am not so familiar with the business operations, but I have one request: everyone must unite around General Manager Tao, uphold the General Manager's authority in business matters, and do our utmost to achieve this year's targets."

"Chairman Guo?"

"I have no other opinions." Guo Tao's face had been gloomy since the meeting began.

"Alright. Finally, a few minor matters. First, the issue of employment for workers' children. On my first day at the factory, I received a complaint from two workers who raised some issues with the company's recruitment of college graduates..." Tao Tang briefly explained the problems raised by Zhang Rong and Wu Guisheng. "Because I haven't investigated, I can't express an opinion, much less make any decisions. But personnel issues concern public sentiment and cannot be taken lightly. I already discussed this with Vice President Liu last week, and my opinion is that those two workers must receive a response. If the company has strictly implemented the policy, then we should explain it clearly to them. If the company has indeed deviated from the policy, we must be willing to admit our mistakes and come up with a concrete solution as soon as possible. I promised to give those two workers a responsible response by this Friday. Vice President Liu, I instructed you to organize the relevant departments to study this matter; have there been any results?"

"Yes, I was supposed to report to you as soon as I got to work this afternoon, but you went to the workshop."

"Alright, we'll talk about that after the meeting. Comrades, the issue of children of college graduates returning to factory employment is a matter of concern. Every year, six to seven million college students graduate nationwide. Some say that graduation means unemployment, which may be a bit extreme, but it reflects the severity of the employment situation. What about us? On the one hand, we recruit a large number of temporary workers, while on the other hand, we keep a large number of college graduates' children out of the job market. Isn't this somewhat unreasonable? Can we change some of the old methods? Can college graduates go to the front line? For example, CNC machine tool operation. They are definitely better at learning than migrant workers and technical school students, right? The key is the issue of compensation. If you don't adjust the compensation, some positions will not be attractive. This issue needs to be studied urgently. I ask Vice President Liu to take the lead and come up with something as soon as possible."

"I agree in principle. This is a good idea," Zhao Qingmin nodded.

"Another issue is the death of a plumber from the power company last week due to a demolition dispute. This incident doesn't really have much to do with the company's operations, and the man died outside the factory. However, the deceased was a full-time employee of the company and was in a vulnerable position in the incident, so we must show concern; otherwise, how can we demonstrate the company's existence? My opinion is that the legal office should intervene and provide his widow with full legal assistance. I met with Mr. Tang Yikun from Donghu on Saturday and discussed this matter with him; he said he would pay attention. The legal office should send someone to contact Donghu to try and resolve the issue properly. If it involves legal disputes, the legal office should actively intervene. Does everyone agree?"

"Mr. Tao, now that we've opened this door, will there be any negative consequences?" Guo Tao asked. "I personally sympathize with the deceased, but there are so many individual cases involving property disputes. What if they all come to the company for help?"

"Secretary Zhao, what do you think?" Tao Tang asked Zhao Qingmin.

"In principle, I agree to the legal office's intervention. But what Chairman Guo said is also true, and we can't ignore the follow-up issues. Could the labor union step in and provide the family with a one-time subsidy?" Zhao Qingmin said.

"What about the other comrades?" Tao Tang asked.

Seemingly sensing the disagreement between the top two executives, the vice presidents remained silent.

"I agree with President Tao's opinion." Qiu Lin, who was ranked last, spoke up when he saw that the vice presidents were silent. "Only when we treat our employees like family will they treat the company like their own home."

"That's exactly what I meant. Actually, I was talking about attitude. This matter is more of a technical issue. The legal office is for legal research, and all we can offer our employees is legal assistance. We still have to rely on the law. If Donghu Industry can appease the deceased's family, that would be great, then there would be no need for a lawsuit."

"I agree with General Manager Tao's opinion," Zhao Qingmin said to Chang Wenhai. "Chairman Chang, the Legal Affairs Office is under your jurisdiction. After the meeting, arrange and implement General Manager Tao's instructions immediately."

Chang Wenhai nodded.

Tao Tang cleared his throat. "Comrades, that concludes today's meeting agenda. The General Manager's Office will prepare a summary and distribute it." Turning to Zhang Xingwu, who was sitting behind him, Tao Tang instructed him, then said seriously, "Aside from the performance indicators, which are relatively important, the other matters, including the launch of the Ancuo Plan, are not of paramount importance. The reason we invited comrades from the Organization Department to attend today is to strengthen the management and assessment of middle-level cadres. Based on my personal experience, the middle management level is crucial in any organization, especially in enterprises. Particularly important are the top party and government leaders at the middle level..." The success or failure of a business can be determined by its middle management. The problem often lies with the middle management, specifically their lack of effective execution, when some decisions made at the top fail to be implemented. Given the severity of the situation we face, we must maximize our execution capabilities. The other day, I visited several factories that were operating overtime: Factory 3, Factory 7, Factory 9, and Factory 13. I noticed that only a few factories had middle-level managers supervising the work; in most factories, the middle managers were not present. "How can this be allowed?" Tao Tang asked Ma Guangming, who is in charge of production. "Does the company allow this?"

"There are indeed regulations regarding shift leaders..." Ma Guangming said in a low voice, "If they aren't implemented well, I'll take responsibility..."

"How can we get the work done if the masses are working overtime while the leaders are slacking off? This morning, I reviewed the responsibility agreements signed with the top Party and government officials at the beginning of the year from the Development and Planning Department, and I believe there are shortcomings in terms of accountability. We placed them in their current positions so that they could complete tasks creatively, not act as peacemakers or simply complain about difficulties. Otherwise, what are we supposed to do? Be their mouthpieces? Therefore, I propose that the Organization Department study this issue and come up with a few measures to strictly link the completion of targets with the salaries and positions of middle-level officials. Secretary Zhao, Chairman Guo, and other leaders, what do you all think?"

"I think it's a good idea. Let's do it this way. Strengthening the management of the middle-level team is absolutely necessary, and President Tao's judgment is very accurate. However, this is a matter of great importance, so let's wait for the organization department to form an opinion, then have it discussed and approved at the meeting before issuing it in writing," Zhao Qingmin said.

"Of course, it must be discussed by the team, and we must keep our word." Tao Tang nodded.

"Let me say a few words," Li Luo began. "I completely agree with President Tao's idea of ​​strengthening the management and development of the middle-level team, especially under the current circumstances, it is very necessary. Last night I heard something, and I'm sure other leaders have heard it too, of course, just heard about it, but it involves the image of middle-level cadres, and I think I should mention it here..."

"What is it?" Zhao Qingmin asked, frowning.

"Han Ruilin, deputy director of the legal office, was caught having an affair yesterday. Many employees' families were present..." Li Luo said calmly. "It's a very bad influence, even though the other party is a widow. Doesn't this tarnish the image of the middle management team?"

"Is that so?" Zhao Qingmin raised his voice, turning his gaze to Chang Wenhai.

Chang Wenhai cursed Li Luo under his breath, "You don't need to drag me into your power struggle with Tao Tang, do you? I didn't provoke you! Besides, when has this kind of petty stuff ever been discussed in a meeting? I'm too busy with important matters to worry about this kind of thing in my crotch." While inwardly grumbling, he still had to respond verbally, "I've heard about it too, but I didn't have time to verify it, so I didn't bring it up in the meeting. Also, today is the general manager's office meeting, and the topics were somewhat different, so I didn't discuss it..."

"Let's put this aside for now. Deputy Secretary Chang, let's get the facts straight first, what exactly happened, and then we'll discuss how to handle it," Tao Tang said calmly. "Vice President Li is right. If the situation is true, it's a disgrace to the company. If there's nothing else, the meeting is adjourned. Oh, by the way, Vice President Liu and Director Pan, please stay behind. We need to discuss the issue of recruiting college graduates."

Tao Tang's first general manager's office meeting lasted one hour and fifty minutes and finally came to an end.