I asked you to save a bankrupt factory and you became the richest man in the world.

Chapter 372 044-045: Hillhouse's Second Structural Adjustment! (5000 words today)
Gao Huaijun asked this question out of concern about Hillhouse Capital's production capacity.

Because Hillhouse Tang is a new model, and its overall size is much larger than Hillhouse Qinlai, Hillhouse needs time to adjust and optimize the production line to adapt to the production needs of the new model.

At the same time, technical or process problems may arise during the production process, which require time to resolve and improve.

And the most important thing is that as a high-end SUV, it has a lot of equipment!

Since there is no expectation of mass production for this car, and Gao Huaijun has high requirements for the quality control of parts, the price of spare parts for a single car is not low!
Just the materials cost nearly 20 to manufacture one.

Now we have just 20 units in stock, which will cost billion yuan!

If we want to increase production capacity, the current monthly output of 3000 units is not appropriate and the production line needs to be adjusted.

The four major automobile production lines are stamping, welding, painting and assembly.

Everything needs to be redeployed and increased!

"Now the first factory in Xicheng is all used to produce Gaoling Qin and Gaoling Han, and there is no room for expansion."

"The Magic City Second Factory has already built a Gaolingtang production line. If we want to add another one, it will probably take at least one to two months to complete the purchase."

Ning Yuan organized his words and spoke slowly.

His underlying meaning is that he is not in favor of directly expanding production capacity.

It seems to be very popular now, with monthly sales reaching 20,000 units.

However, neither he nor Wang Fengying had any idea what the sales would be like after the hype died down!
With a monthly production capacity of 3000 units, if we operate at the maximum limit, with people taking breaks but machines continuing, and working in three shifts, it is not impossible to increase the production capacity to 4000 units in a short period of time within a month.

With a monthly sales volume of 4000 units, it will only take a few months to digest the current sales volume.

This is definitely within the reasonable range of production capacity margin!
If we add another production line, what will we do if the products cannot be sold after Hillhouse Tang’s popularity declines?
You know, Hillhouse Tang is not Hillhouse Dolphin!

Hillhouse Dolphin has a low unit price. Although the profit per vehicle is low, the quantity is large!
Therefore, adding a production line is not difficult at all.

However, if Gaoling Tang adds a production line, the size of Gaoling Tang cannot be said to be unrelated to other models, but it can be said to be completely unrelated.

Under such a premise, if Hillhouse Tang only opens one production line, the utilization of the production line may be reasonable, and Hillhouse Tang can still make a profit from this car.

However, if you open two production lines and the sales volume cannot keep up in the later stage, you will really be asking for trouble!
By then Gao Huaijun will often look for him.

Isn't this just looking for trouble?

The butt determines the head. For management, the key point is to avoid accidents. If you ask him to think about problems anytime and anywhere like the boss, it will really make things difficult for him!

However, Gao Huaijun seemed not to understand and said casually, "Two months is two months. You guys go and prepare for me now. I need to see the commissioning of this production line completed within two months and start increasing production capacity."

Ning Yuan and Wang Fengying looked at each other and couldn't help but smile bitterly.

Hey!
Boss Gao really has too much confidence in Hillhouse Tang Ke!
This is a car worth more than 40 yuan!

As for cars in this price range, only BBA makes good products, and even the second-tier luxury brands do not perform very well!
Gao Huaijun didn't care what the two of them thought, he just wanted them to do what he asked.

He knew very well how popular the Li Xiang ONE and the later L8 would be after continuous adjustments in the future!

Now Hillhouse Capital only needs to hold on and maintain the volume-price relationship for one or two years, unless Zhongwei enters the new energy vehicle market now. In this field, it will be a battle between Hillhouse Capital and foreign automakers!

There are only BBA left, and at most a Porsche Cayenne. He is still very confident in Hillhouse.

Having given these instructions, Gao Huaijun naturally didn't need to do anything else.

Now a very complete task chain from decision-making to execution has been formed within Hillhouse.

During this stage, Gao Huaijun will focus more on the strategic development of the company and the discovery of internal problems within the company.

At present, the development of an enterprise will rely more on its own golden finger, which is a powerful weapon with the least internal friction and the clearest direction!

Such a powerful weapon has even brought Hillhouse Capital to the edge of the Fortune Global 500. Naturally, before this powerful weapon disappears, Hillhouse Capital needs to be brought to an unprecedented height.

Now, Hillhouse Capital is not allowed and cannot go back.

Tens of thousands of brothers depend on you for their livelihood?
Gao Huaijun can't do that, and there's no need to be shy about anything.
While discovering internal problems within the company, Gao Huaijun recently discovered that Hillhouse Capital has shown signs of big company disease.

The organization is bloated, with dozens of departments in the company. There is basically no communication between departments, and things that can be handled by one person have to go through a group, a department, or even multiple departments.

Apart from his instructions, decision-making is slow, there are many processes and approvals are complicated. Senior management processes information very slowly and is slow to respond to the market. They like to write plans, hold meetings to discuss, set budgets, calculate risks and benefits, and delay making decisions, or adjust decisions much slower than the speed of market changes.

At the same time, coordination became difficult, information communication between departments was poor, and each department worked independently. There were too many documents to deliver, responsibilities were unclear, and cooperation and coordination were difficult.

This is no wonder. There are two business groups within Hillhouse, Hillhouse Technology and Hillhouse Vehicle. There is a lot of business overlap between these two groups alone.

Not to mention several large BUs such as Hillhouse Artificial Intelligence, Hillhouse Chip, Hillhouse Battery, Hillhouse Derivatives, etc.!
With so many companies intertwined, it is inevitable that communication is not smooth. Even if Gao Huaijun came through, these things would have happened.

After Gao Huaijun learned about the situation and signs, he immediately made a decision and asked Ning Yuan to directly issue a red-headed document from the company with the group's name on it!
The first is that the use of PPT for reporting is not allowed within the company.

He likes to use PPT to give presentations to the audience in order to sell cars.

A huge amount of money was spent to invite you to the management so that you could coordinate relationships well, but you ended up spending a lot of time on PPT. What a waste of time!

Isn’t it great to use an Excel spreadsheet to communicate simply and crudely?
The management team that exposed their management shortcomings were also taken away by this wave.

Therefore, starting with the issuance of an official company document, PPT meetings are prohibited. Anyone who is found or reported to have done so will be subject to zero tolerance and the person making the report and his or her supervisor will be fired directly.

The second is to establish a sound meeting system. Starting from the issuance of the document, chairs are prohibited in the meeting room. Except for the special executive meeting in which Gao Huaijun participates, there are no chairs in other meetings!
Look at you guys still holding meetings to brag, waste time, and pretend to be working hard by having mountains of documents and endless meetings.

Take it away in one go!
Generally speaking, thirty minutes is enough for sufficient communication in a meeting. Most of the extra time is actually useless nonsense.

Letting them stand while holding meetings actually greatly increases work efficiency.

The third one is a bit harsh. There are too many non-technical middle managers in Hillhouse now!
Various totals.

Does Hillhouse really need so many non-professional management talents?

So in addition to the official document, he secretly asked Ning Yuan to prepare a new personnel elimination plan for him.

Except for the R&D section which will remain unchanged, other functional teams will carry out a large-scale layoff targeting the M level (non-technical management).

Hillhouse has more than 3 employees outside the R&D team, while the management ratio is more than 1:10 and now has reached 1:9, which is obviously higher than the level of an ordinary large company.

Gao Huaijun’s requirement is that the personnel ratio of management must be reduced to 2014:1 in 11 and to 2015:1 in 13.

Finally, in 2016, it was fixed within the range of 1:15!

Ning Yuan was stunned when he heard Gao Huaijun's request. "Boss Gao, this is asking me to reduce the management level outside the R&D department by about 40% in just three years!"

"If we do this, it will easily lead to turmoil in the company."

Li Yinxin on the side also looked at Gao Huaijun with surprise.

In Han Country, an employee will basically work in a company for a long time.

In this regard, the shadow of the island country's lifetime employment system can be seen.

More often than not, apart from the chaebols, the salaries offered to fresh university graduates by both large and small companies are not much different.

But as you get older, your income will increase.

But China won’t do that.

As one of the largest companies in China, Hillhouse has a lot of people who want to join it.

“As a company, it’s natural to constantly adjust and optimize.”

“We need to keep Hillhouse in a state of hunger at all times.”

“Gao Ling has achieved certain results, but it is far from enough!”

“But the optimization targets are mainly low-level employees, which is problematic!”

"If one general fails, the whole army will starve to death!"

"You should understand the principle that one is born in adversity and dies in comfort, right?"

Gao Huaijun frowned and shouted. He also knew that most of the management in the company were actually outstanding talents promoted from within Hillhouse.

However, there are problems with the company's internal management optimization system, especially as Hillhouse has been expanding recently and now even has an entertainment sector, so it is natural to speed up the recruitment process.

It is normal for there to be more and more management levels.

Wang Fengying, who was standing by, wanted to say something, but after Min Weiguo touched her arm, she held back.

Min Weiguo and Gao Huaijun have worked together for so long that he naturally understands his personality.

Whatever you want to do, you will definitely do it!
Especially when it involves a major adjustment with so many middle-level managers, it will naturally be pushed with even stronger force.

He is a president who is strictly responsible for the matter and not the person.

And you want a dynamic work environment where people are moving around, thinking about problems, and focusing on exciting things.

They either write or draw on the whiteboard, or type code in front of the computer. He doesn't like stagnant water or a lifeless office.

So... I guess he had wanted to perform surgery on Gao Ling for a long time!

It was only because of the high expansion that he endured it.

Now, before Hillhouse Technologies goes public, making this controversial decision should be his most critical action at this stage.

“Hillhouse must have an effective tracking system for managers.”

"Your current management is too extensive!"

"There are so many meetings and so many documents that even I feel annoyed, let alone the ordinary employees."

"That's it for now!"

Gao Huaijun waved his hand and served tea to see the guest off.

Ning Yuan nodded. "I will discuss this matter with Mr. Min and others and draw up a charter. I will give you a special report in a week."

Gao Huaijun nodded.

Now is the best time to take action against the middle management while the company is not big and has not formed factionalism like Alibaba.

In Ali Baba, many of the Eighteen Arhats are not very good, and some like Jiang Fang are still in office.

Are these eighteen people who just got together randomly all masters?
That is impossible!

A team of amateurs is the eternal theme of this world!

Moreover, there is an office inside Alibaba called Peach Blossom Island. Only the Eighteen Arhats or dignitaries at home and abroad can enter. Even the then CEO Zhang Yong could not enter. This shows how much power Zhang Yong had when he was in office.

The corporate culture is so rotten and never refuses to be rejuvenated. Even Liu Bang knew to kill or retire a group of meritorious officials after founding the country, while the Eighteen Arhats ascended to heaven and sat firmly on the Diaoyutai.

The company has become so rotten that it is almost impossible to recover.

What is the most important thing about blood transfusion?
The essence is actually the constant replacement of blood within the company and the emergence of power space.

In this regard, Gao Huaijun is very enterprising.

Li Xinyin, who was standing by, looked at Gao Huaijun in shock, "Boss Gao, are you going to reduce the number of managers just by saying a few words?"

The feeling of seeing masts and oars reduced to ashes with a wave of the hand really overturned her understanding.

In Sansang, no one dares to play like this.

"It's hard for me to believe that 30 years from now, China's technology industry will still be dominated by these big players."

"The overlord of the new world is never the same as the overlord of the old world."

“The new generation is better than the old, and the waves behind push the waves ahead.”

"I also need to be prepared for the challenges that Hillhouse Group will face in the future."

Gao Huaijun sighed and said something vaguely.

As long as Gao Ling still had the golden finger, things would have been extremely smooth for him.

However, as Hillhouse becomes more and more powerful, the strength of Golden Finger will inevitably be limited.

And will the beautiful country give Hillhouse a blow before 2019?
This all needs to be prepared in advance!
But he won't tell these to anyone.

Moreover, in his previous life, Twitter laid off 90% of its employees at once, which really shocked him.

What?

After laying off 90% of the company's employees, it can still operate normally and not be paralyzed?
This shows that if each company reduces its staff, especially management personnel, there will naturally not be any big problems.

This is also the fundamental reason why he needed to make the second major change to Hillhouse’s corporate framework since its establishment after Hillhouse Tang’s successful listing.

Li Yinxin nodded silently.

The problems that Sansang is facing now are no smaller than those of Hillhouse.

In comparison, Hillhouse’s momentum is even more amazing!

Two companies in different sectors, with dual core drivers of electronic technology and automotive industry, can actually find time to perform major surgery on the company's internal structure.

This kind of self-confidence and execution ability is really amazing!
Not to mention the chaebol successor who is twice as young as Han Guo, even among the second and first generation of Lee Jae-hee's generation, there are very few who can have such ruthless decisiveness!
However, when she thought of her former secretary Shang Yayan, she couldn't help feeling a little jealous.

Gao Huaijun would rather touch a little girl with no background than touch her, the little princess of the Sansang Group.

This is really unreasonable!
Am I not pretty enough?

Thinking of this, the beautiful girl from Han Country, which is famous for its developed plastic surgery industry, felt a little insecure about her appearance.

"Yin Xin, you have been at Hillhouse for more than a year, right?" Gao Huaijun asked casually while signing documents.

"Yes, Mr. Gao!" Li Yinxin nodded and said.

"I'm taking you to a dinner tonight hosted by the leaders of Xicheng. You should dress formally." Gao Huaijun said expressionlessly.

When Li Yinxin heard this, even though she had attended many such dinners in Han Country, she couldn't help but feel her heart beating like a deer.

After all, in Han Country, she is a woman.

In a place like Han Country with strict hierarchy, the status of women is much worse than that in China!
In the past, Gao Huaijun was always accompanied by Shang Yayan when attending such formal dinners.

Now that Shang Yayan is pregnant and has become a secretary, Gao Huaijun travels alone most of the time.

What does Gao Huaijun mean by this sentence?
Thinking of this, Li Yinxin blushed slightly and nodded slightly, "Just follow Mr. Gao's orders!"

Gao Huaijun smiled slightly and didn't say anything more.

As a core chess piece, Li Yinxin is responsible for his strategic deployment.

Very important!
. . . . . .

After Hillhouse finished handling official business, it was already past 3 o'clock in the afternoon.

Gao Huaijun usually spends half a day on Hillhouse Technology, half a day on Hillhouse Vehicle, and finally two and a half days on other BUs.

The rest of the time, he is either socializing or dealing with the progress of Hillhouse Technology's listing.

Just as he got into his own private Gaolingtang car, director Guo Fan, who had not been in touch for a long time, contacted him.

Hillhouse Group has many subsidiaries. If Guo Fan had not contacted him this time, he would probably have forgotten that he has Hillhouse Entertainment, a subsidiary that specializes in investing in the entertainment industry.

"Mr. Gao, in the past few months, I received the first batch of funds you sent me, contacted a few friends and Mr. Liu Cixin, and produced the first draft of "The Wandering Earth". Would you like to take a look at it?" Guo Fan asked cautiously on the phone.

Gao Huaijun is the boss of a large company, and also the boss of Hillhouse Capital, which has been in the limelight recently.

This made him cautious even when he was making a phone call.

(End of this chapter)