The One Behind It All Chapter 58

Therefore, the product line still needs to be assessed and calculated, but don't say which product is profitable and which product is not profitable. Those who make money will be arrogant, and those who do not make money will be dejected. In this way, the company will collapse soon.

Just like the example of Company N, when I went to Company N a few years ago, I invited the manager of the mobile phone department, the manager of the base station department and the manager of the system department to communicate. The manager of the mobile phone department was very arrogant, the manager of the base station was also in high spirits, but the manager of the system department was not. The reason why they are dejected is because they implemented product line assessments, and as a result, their core network and optical network collapsed. We can't assess it like this. Today it's your contribution, tomorrow it's his contribution, everyone is contributing, we have to assess it this way.

The company's assessment of the entire R&D process is first to assess potential growth, and secondly to assess contribution to the company. The growth of potential is the contribution to the future, and the current contribution is the income. The assessment of the entire large team (TEAM) must take both aspects into account. It is up to you to consider the assessment of each product line. Don't place too much emphasis on profit margins. You must be clear about what goals the company gives you and what kind of resources it will give you. The assessment must be based on the goals. If optical networks are no longer profitable today, and optical networks are no longer needed, the result will be that switches cannot be improved. The company will draw a big pie for you for 10 consecutive years, and it must ensure that this pie exists for 10 years.

We need to achieve balanced development. We must increase investment in projects that are not profitable today, and increase contributions in projects that are profitable today. We hope to survive in the long term, and short-term survival is no problem for us. Therefore, evaluation must be considered from a long-term perspective.

Huawei's financial department has been involved in cost accounting since 2000, but the company still lacks forward-looking budget management - it is difficult for most Chinese companies to do this, but this is a multinational enterprise. good at. If you pay attention to the expectations of future financial indicators of major international companies such as IBM and Cisco, you will find that the financial expectations of these companies will be very accurate. This is because the financial systems of these major international companies are involved in the entire business process. For example, each product has a complete set of systems and operating procedures for pricing and cost accounting to ensure that costs and profits can be clearly calculated for every bid.