"Furthermore, internal management will be based on the performance evaluation system. Starting next year, there will be more and more branch factories, and management will become more and more difficult. We need a strong financial system. At the same time, we will introduce a points system for factory managers, and in the future, we may even introduce a partnership system."
"We must fully mobilize everyone's enthusiasm, take charge of finances, and immediately transfer any cases of embezzlement, extortion, or bribery to the public security authorities!"
Lu Feng leaned back in his chair, looking at everyone present, his gaze falling on Da Tou, and continued, "The fate of many of you will be rewritten next year. Whether you become senior executives of a large company or leave due to insufficient ability is entirely up to you. Internal management will become increasingly strict. What I want is for this company to continue to operate on its own after I leave."
Gao Zhiwei had mixed feelings. He thought Lu Feng was suited to managing small workshops, but he didn't expect him to be so adept at managing large enterprises, as if he were a natural-born manager.
As for him becoming a hands-off manager, Gao Zhiwei still feels it's too early. Whether it will work or not depends on the specific situation after the branch factory opens next year.
Gao Zhiwei's original idea was to avoid taking too many risks, set up a pilot site first, conduct market testing, and immediately withdraw if the market did not perform well. This approach was the safest.
He hadn't expected Lu Feng to do that, after all, he was an adventurous person, but he really hadn't expected this situation.
“President Lu, if we open many factories next year, our funding will be limited. We did make money in the last few months of this year, but we used all the profits to buy factories in Baiyuan City,” Gao Zhiwei reminded him.
"Yes, Brother Feng, we don't have a million in the account right now, and we haven't paid the employees' salaries yet," Da Tou said hurriedly.
Lu Feng looked at the two men. Da Tou wasn't very bright; he just wanted to tell Lu Feng that he didn't have enough money. Gao Zhiwei was telling Lu Feng not to take too many risks.
"Building a factory requires money? Which province in the country isn't attracting investment these days? Land is given away for free. First, rent local factory buildings to produce, then take the free land, mortgage it to the bank for a loan to build the factory. After the factory produces and generates profits, then pay off the loan. Don't think about relying on the parent company for funding. Also, you need to be flexible in your thinking. Take a gamble and see if you can turn a bicycle into a motorcycle."
Those present who were familiar with the operation broke out in a cold sweat upon hearing Lu Feng's words. Just how much leverage was involved!
“You have to learn to develop with debt. What can you do with just the little money you have? Market demand is strong. By the time you've earned enough to open a factory, it will be too late. The market won't wait for you!” Lu Feng slammed his hand on the table and said, “At the same time, starting next year, I will dilute 30% of my personal shares to form a portion of phantom shares, which will be awarded to middle-level managers. The rest will be put into the partners pool. I hope everyone will work hard.”
It was already the end of the year, and the factory had not only gained a foothold but was also making a profit. Lu Feng knew a principle well: if you want a horse to run, you have to feed it well.
The majority shareholder owns 5% of the shares in this factory and receives a dividend of 100,000 yuan. Gao Zhiwei, as the general manager, receives a total of 35,000 yuan, including his annual salary and other benefits as a founding member of the factory.
Lu Feng squandered all the money in the account, except for this month's employee salaries, and then rewarded them handsomely!
However, there's a catch: to get the money, you have to wait until March of next year. If you perform well, you'll get a bonus; if you perform poorly, you'll have your pay docked or even be fired.
The entire management team was filled with excitement and worry. At the same time, Lu Feng announced that the wages of the factory's employees would always be higher than those of other factories.
High profits come with high demands. Next year, a points system will be implemented for the entire management team. Anyone who fails to meet the standards will be dismissed. It's essentially an evaluation system, only the current system is somewhat cruel.
Lu Feng knew that Gao Zhiwei was better suited for internal management and marketing than entrepreneurship; he was too timid. So he didn't mention how many factories he planned to open next year.
On the way back to the office, Gao Zhiwei said, "President Lu, how about we open two factories next year?"
Lu Feng smiled but didn't say anything.
"Where should we locate them? Once these two factories are settled, it will be very beneficial for market expansion."
"We'll talk about it later. You train a group of suitable finance personnel for me, and gradually replace the main ones next year. I require that the finance work be more refined from now on, understand?"
“I know, I’ve been doing that all along. When you’re not around, personnel transfers that require your signature are all on your desk.” Gao Zhiwei pointed to the folders in the room.
"Don't ask me about personnel transfers in the factory anymore. If the HR department changes managers, I'll sign off on everything. With so many factories going on, I won't have to do anything else but sign documents all day long." Lu Feng patted him on the shoulder and said, "You need to learn management, take responsibility, and establish a corporate system. From recruitment to appointment, performance evaluation, and resignation, every employee should be managed like an assembly line."
"I see!"
"I'll decide on the location for the factory. I'll let you know after the New Year," Lu Feng said before entering his office.
He closed the door, glanced at Gao Zhiwei discreetly, and after confirming that he had left, took out a map from under the table. If he wanted to catch up with Wahaha within a year, he would have to take some risks.
Lu Feng looked at the map. He had diluted so many shares to the management team to give them a boost next year. That was all money; it would be a lie to say he didn't feel the pinch.
However, in the long run, it's well worth it!
"I need to prepare some money next year to invest in the electronics industry. Color TVs should be booming soon. If I remember correctly, the first baby boom of the early 1990s is coming soon."
"Nowadays, one of the three major household items is a large color TV!"
Lu Feng muttered to himself, flipping through the map, "If you want to become the richest man, you still have to rely on your mother-in-law. Whatever your mother-in-law wants, your sons-in-law have to buy it like crazy."
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