Those Years When I Was Forced to Top the Forbes List

Chapter 398 Group Management

The two talked for half an hour in the cigar room.

When he came out, Wu Guangzheng's eyes looked somewhat strange.

"Mr. Chen, are we really going to threaten him with financial information?"

Chen Xuebing's proposed plan was utterly shocking: the deputy mayor of Shenzhen would announce at the meeting that mainland financial supervision would be introduced into Hong Kong!

The key point is that he actually managed to do it!

Chen Xuebing chuckled: "Mr. Wu, this is just a pilot program for financial supervision of mainland residents. It operates under the CEPA framework. There is no need to amend the law or enact separate legislation. All that is needed is for the Hong Kong Inland Revenue Department not to object to the mainland's policy announcement. Hong Kong doesn't need to do anything. Mr. Wu doesn't need to put in any effort either. Someone will handle the arrangements. We are just announcing it at the meeting. This is also part of cross-strait internet connectivity."

His superiors tasked him with focusing his efforts on developing mainland internet access in Hong Kong, and he naturally obtained certain conditions in return.

The condition is to work with the Hong Kong Financial Services Authority and the Hong Kong Tax Authority to create a cross-border capital early warning system for mainland residents, which would require all Chinese-funded banks in Hong Kong (such as Bank of China (Hong Kong) and ICBC Asia) to report in real time any single transfer exceeding HK$5000 million. The system would focus on verifying the differences between dividends paid from the mainland to Hong Kong offshore and domestic taxes, especially for the newly emerging offshore trusts in the mainland.

This is to prevent mainland funds from arbitrarily transferring large sums of money out of the mainland through Hong Kong channels.

This was originally stipulated by national law and is an important channel for isolating foreign exchange and financial risks in mainland China. Hong Kong should cooperate unconditionally. It's just that there was no relevant internet technology support before, so it wasn't done in such detail. With the construction of Chen Xuebing's cross-strait internet system, Shenzhen and Chen Xuebing's technical team first built a pilot project, and then the mainland financial regulatory system gradually took over.

The review only covers large transactions between mainland residents. Small transfers such as normal consumption between mainland residents and Hong Kong will not trigger the review, nor will it involve foreign investment review. Therefore, it will not have any impact on Hong Kong's status as a free port.

The key point is that this mainland censorship mechanism needs to be connected to Hong Kong's internet finance system and has the right to access some Hong Kong capital turnover information.

Although it's not a direct review of Hong Kong capital, there is a review of related matters. Mainland funds that enter Hong Kong are definitely transferred around.

So, while this system doesn't have the authority to intercept most transfers, no one knows what it checks.

It cannot be blocked, but it can be seen.

We don't pursue physical presence, but rather the "presence of data".

Chen Xuebing is adept at using the power of the future. Knowing that the mainland will gradually strengthen its financial scrutiny of Hong Kong, breaking the information black box now is like creating a Damocles' sword that "traces the future back to the past".

This kind of data is not something Chen Xuebing can access at will, but the data channel is his. Some people feel the information asymmetry and become uneasy.

This matter is absolutely beneficial to the financial regulation of the mainland. It just so happens that the Ministry of Commerce is responsible for overall planning and coordination of the work, and the development and review of Hong Kong's trade is under the jurisdiction of the Ministry of Commerce. With a suggestion from the leader, this work was included in the Ministry of Commerce's work plan for this year, and this time a pilot project was launched in Shenzhen.

"Since President Chen can establish such a channel, then this thing is unnecessary, right?"

Wu Guangzheng was now clutching the information Chen Xuebing had given him tightly, and his attitude toward it was completely different from before.

The internet symposium is irreversible. The vice mayor of Shenzhen attended and announced the data supervision pilot program. He can't and shouldn't stop it, but isn't Chen Xuebing pushing him into a fire pit by doing this?
He organized the meeting, and then announced such information that was so detrimental to the Li family. Wasn't he openly standing against the Li family?

Chen Xuebing coughed lightly: "President Wu, the establishment of data channels takes time. For example, the optical cable we are going to build together, and my Qianhai Big Data Center, our pilot project will take at least two years to build. So the rent-free condition for Cyberport that I asked you for is also for two years. During the preparation period for mainland Internet companies to come to the port, we should try to reduce the costs as much as possible."

This pilot project requires a lot of technology and hardware; it can't be built in a short period of time.
He did this to intimidate Hong Kong and the Li family, so they wouldn't dare to act recklessly.

If this system is truly intended to target the Li family, that's a matter for the future. Right now, the Li family's real estate cash-out hasn't peaked yet; it's just a transfer of tens of billions of assets. In the future, it will be hundreds of billions.

“Yes, we also need to jointly build fiber optic cables,” Wu Guangzheng emphasized.

"What does Mr. Wu mean?" Chen Xuebing raised his eyebrows, already sensing a hint of something in his mind.

Wu Guangzheng waved the documents in his hand with a slightly embarrassed expression: "President Chen, you have to understand my difficulties. We don't want to break ties with the Li family. Since President Chen already has other means of deterrence, could I hand over these documents to the Li family? Otherwise, my support for you will be condemned by the people of Hong Kong. If I give him these documents, I can personally demonstrate a more neutral stance. As for other collaborations, let's keep things separate. The internet is for the development of Hong Kong, and by showing my impartiality, I can give them my full support."

Chen Xuebing confirmed his guess and raised his eyebrows.

He didn't expect Wu Guangzheng to say it so openly.

He hadn't expected the information to have such a useful purpose when he arrived.

“Mr. Wu, you’ve put me in a very difficult position.” Chen Xuebing sighed. “This information cost me hundreds of millions of Hong Kong dollars to find out; it’s an excellent opportunity.”

“Okay.” Wu Guangzheng pulled out the documents from the bag and tore the account list in half. “I’ll only give you this half. For the other half, I’ll recommend a few channels for you to check yourself.”

Chen Xuebing shook his head and smiled: "President Wu, let's stop deceiving ourselves. Once this list reaches the Li family, I won't be able to find any of the accounts. Fine, we're friends. Since you need it, I'll give it to you."

He wasn't really sure he could find anything out from this data, and without Wu Guangzheng's help, it was even less likely.

Since that's the case, let's go with the flow.

"Thank you." Wu Guangzheng showed his gratitude and extended his hand: "President Chen, thank you for informing me of this in advance, and thank you for giving me a way out, otherwise, I would have been in a very passive position."

Chen Xuebing sensed a sense of class solidification in those words, but he still smiled and said, "Since we're friends, why talk about these things? Mr. Wu, you can focus more on the mainland next. Let's work together to make money in a broader market, and you won't have so many worries."

"Of course, thank you for the gift to my wife. I will cherish it. See you in ten days."

"Goodbye."

Everything is settled.

When Chen Xuebing returned to the 24th floor of Huijin on the morning of April 6, he found that there were many more people there.

There were about ten more people on his floor alone.

I learned upon asking that the group's human resources department had been established and recruitment had begun again.

Cai Zhijian also returned. Upon hearing that he had come to the company, he immediately brought the newly appointed HR director to see him.

His name is Shao Jin. He's quite young, looking to be in his early thirties. He's capable, clean-cut, and very handsome.

Cai Zhijian introduced himself as a veteran.

Born in 74, graduated from Peking University in 92, and started working in the Human Resources Department of Procter & Gamble (P&G China) in Guangzhou in 1993. In 02, he became the head of the Organizational Development Department of P&G COE (Center for Experts). Feeling hopeless about promotion, he came to Cai Zhijian's office for an interview through Korn Ferry Executive Search.

When it comes to Procter & Gamble, it is considered the world's leading consumer goods company and the undisputed leader in the daily chemical products sector.

Founded in the 18th century, the American company established a Chinese branch in Guangzhou in 1988. In its early days, it brought brands such as Rejoice, Pantene, Safeguard, Always, Tide, and others to China. Throughout the 90s, half of the television commercials in China featured these brands.

Newly emerging beauty brands include OLAY and SK-II, while baby and maternity products include Pampers.

This company has developed very rapidly in China, and their human resources system is also very well-known in the Chinese business community.

Shao Jin shared his understanding of the company over the past few days, noting that the current personnel structure of the group's subsidiaries is severely lacking and that Procter & Gamble's HR Business Partner (HRBP) model is highly suitable. He then made a simple comparison.

The traditional human resources model used to be like "registering for medical treatment". When business departments encountered HR-related issues, such as recruiting, someone leaving, conducting training, or someone having emotional problems, they would go to the HR department to "register".

Procter & Gamble's embedded HRBP is like a family doctor, putting different HR partners into each business team, making them part of their team, working together, and spending time with them day and night.

Chen Xuebing frowned upon hearing this: "How do they work?"

"Working in the same place, having meetings, eating, and chatting together."

Shao Jin noticed Chen Xuebing's dissatisfaction and said, "This HRBP is not just a figurehead. He has to spend a lot of time understanding what this business unit does, how it makes money, what challenges it faces, who its competitors are, what the situation of each person in the department is, what its goals are, and where the difficulties are. He must understand the business better than a traditional HR, and even be able to participate in the core strategic meetings of the business unit. Whenever the business unit needs manpower, he must come up with the best solution and never work around aimlessly."

“We have a technology company under our umbrella, where the work is highly professional. How do we cultivate HR talents like this?” Chen Xuebing asked with some curiosity.

"We use a funnel-style screening mechanism to select people with the same professional background and HR industry characteristics for training. For example, HRBPs in the programming department should at least understand the basics of programming and be able to assess the true level of programming engineers. Then we will provide them with targeted training to help them interpret financial statements, understand market trends, use professional software proficiently, and rotate through different positions."

"What about management? These people are so scattered, how can we manage them?"

“Our human resources department will be divided into three important departments. The HRBP department will be decentralized; there is also the COE (Center of Excellence) expert center, which is responsible for compensation and training systems; and the SSC (Shared Service Center), which is responsible for transactional processes, such as payroll lists and social security. The decentralized HRBPs will report to both business unit heads and HR functional lines, hold quarterly business meetings, and conduct organizational performance evaluations. The COE and SSC will be located at headquarters and managed routinely.”

"With such a large HR department, wouldn't the subsidiaries also need HR departments? Isn't that redundant?"

"The HR function of the subsidiary will not disappear, but will be scaled down and restructured. It will mainly be responsible for compliance supervision, arranging local interviews, mediating internal team conflicts and emergencies. The subsidiary only needs to retain an HR department of 5-10 people per thousand employees. We will handle professional HR issues, cooperate with high-end headhunters, attend industry summits, integrate talent from mergers and acquisitions, and conduct online recruitment at universities. This will greatly improve work efficiency and reduce the energy that the subsidiary invests in the HR field. To a certain extent, it can also prevent ordinary leaders from using their authority to insert people."

"I don't think so." Chen Xuebing crossed his arms and said, "Under normal management models, it's really impossible for a junior manager to greet the HR director of a subsidiary. Only senior management can do that. Now that HRBPs have been moved to the department offices, they are at a lower level, and everyone sees each other all the time. When recruiting, we have to consider the opinions of those junior managers."

He realized that Cai Zhijian had brought in this person to compete with his subordinates for personnel control.

Personnel issues are a major problem, directly determining what kind of people will remain in the group ten or twenty years from now.

"That's easy to solve; just set up a good management mechanism," Shao Jin replied briefly.

"How exactly do you plan to solve this?" Chen Xuebing asked sharply, pressing for details.

Shao Jin sensed that this person was difficult to get along with, and after a moment's thought, he said:

"HRBP salaries are directly approved by the VP (Deputy Director) of the Group's HR department. The VP is required to conduct regular on-site inspections, and business leaders only provide 30% of the performance recommendations. Promotions require review by the business line, and HRBPs change service departments every 18 months. The reporting channel is independent, and reports of violations and interference are sent directly to the Group's email address. New HRBPs sign an 'Anti-Interference Commitment' upon joining the company, and violators are permanently banned and publicly announced on the official website."

Listing so many points in one go is almost harsh.

Chen Xuebing shook his head: "Too much of a good thing is bad."

Shao Jin, however, said, "The ability to withstand pressure is also an important quality for HR positions."

Chen Xuebing's expression relaxed slightly.

This is a relatively modern human resources management solution that may truly achieve micro-management of recruitment, eliminating the need for repeated recruitment rounds and the resulting waste in personnel management.

If he hadn't been tempted, he wouldn't have been listening all this time.

"Let's get started. Begin with the head office and Changzheng. We're short quite a few people right now. We'll see how it goes in three months. If it goes well, I'll gradually delegate personnel authority for Qidian and Gu'an Construction to you."

Chen Xuebing gave the final approval, and Shao Jin officially passed the test.

Shao Jin gave a professional smile: "Yes, Chairman, would you like to see the plan once it's finished?"

"I don't care about the plan, I want the results. I have my own way of evaluating things." Chen Xuebing still had a somewhat cold expression.

Shao Jin seemed quite used to it, nodding and saying, "Then I'll take care of it. However, many departments are newly established, so it might be necessary for the leaders of each department to hold a meeting together."

"Go to my office and wait for me. I'll take care of it in a bit," Cai Zhijian said.

"it is good."

Shao Jin went out.

"Don't rush things. Don't change the existing campus recruitment plan rashly. Communicate with the subsidiaries first and give everyone some time to adapt," Chen Xuebing said leisurely.

“I understand. I think this kind of personnel system is worth trying for a young company. Qidian has too much centralized power. President Lu’s management has a certain mindset. Don’t you feel that Qidian’s work atmosphere is like a state-owned enterprise? A technology company needs some fresh air.”

Cai Zhijian naturally knew how to communicate with Chen Xuebing, and after this description, Chen Xuebing also felt the difference between Singularity and Spreadtrum.

The management chain is a bit too long. I didn't realize it when Singularity was smaller, but when I visited Singularity last time, I felt that many approvals required me to personally go through Lu Weibing and the Singularity board of directors for confirmation.

During meetings, opinions are expressed from top to bottom, without the "challenge to authority" that Spreadtrum had where someone could interrupt the CEO's speech at any time.

The communication of matters has also started to involve formal letters and official seals, unlike before when a shout or a QQ message could solve a problem. Although large companies do keep records of processes, overemphasizing this can lead to a formulaic approach.

It has a bit of the atmosphere of a state-owned enterprise.

Fortunately, Chen Xuebing in the R&D department always attaches great importance to it, and Lu Weibing never slacks off. Whatever is needed is always handled specially, so they still have the drive.

However, now that the problem has been identified, it must be addressed.

Management, management.

The company has reached a new level, and it's time to focus on management again.

Chen Xuebing raised his hand and glanced at the time.

"I've been at the company these past few days. If you discover any management issues, report them all to me so I can take a look."

"Oh?" Cai Zhijian was slightly surprised: "The Nokia N95 has entered the market and is selling very well. In just a few days, more than 100,000 units have been sold, and the price has been increased to 7000 yuan. I never knew there were so many rich people in mainland China. Qidian is also integrating orders from Huaqiangbei and sending them to contract manufacturers. At this time, why don't you go to Shenzhen to personally oversee things?"

"Add more if you want," Chen Xuebing chuckled. "Whom the gods would destroy, they first make arrogant. China Post Putai has already sold 30 units to them and is even going to partner with Huawei to get orders from China Mobile for the Chinese TD version. Zhao Kelin (Nokia's new president of China) has achieved such great results so soon after taking office. He's probably already arrogant. I've been quite busy lately and don't have time to deal with them. I have a meeting today about the JD.com investment case. The investors will be in Shanghai tonight. Why don't you come to dinner with me and we can get to know each other?"

"Don't panic, it seems you have a plan."

"Hehe, Qilin will be online for another month. Let him be arrogant for a while and make our allies panic first."

(End of this chapter)