Luan Runfeng: Be happy and be efficient

In an enterprise, efficiency and happiness are always opposites, depending on which one you choose. Luan does not believe this evil, and his answer is "both."

From the first college student after the Cultural Revolution to the first computer lecturer in Changzhou, from the first batch of Mbas in China to the president of Jinhe Software and the founder of precise management ideas, Luan Runfeng is constantly changing. Today, he has exported his idea of precise management to major enterprises, and the sales of gold and management software have exceeded 100 million.

"Precision management isn't about killing people, it's about making people happy and productive." Luan said that mastering every minute, controlling every penny, and making the company more efficient while making employees happier is the essence of "precise management".

In the 1980s, an ordinary PC costing tens of thousands of yuan, with all the supporting facilities, was undoubtedly a big expense. One of Mr. Luan's large state-owned enterprises bought such computers in an effort to make the company more efficient, but it backfired. Luan Runfeng came to a conclusion: for an enterprise, capital and technology are not the key to management, but talent is the most critical factor. When people become part of the machine, they will certainly feel unhappy and not free, and the weaknesses of human nature will be exposed one by one, and the efficiency of the enterprise will become lower and lower.

But many managers turn a blind eye.

"The owners of small and medium-sized enterprises in China are often busy with business, but lose management, and catch management, and lose business." Luan Runfeng, who majored in computer science, is more like a "doctor" who feels the pulse and treats diseases for enterprises, focusing on the health of Chinese enterprises.

"In traditional management, management is' card '. In many cases, employees need to change certain aspects of their personality and personal goals to achieve the boss's goals. On the surface, employees are obedient, but on the inside, they are not happy, which results in less effort and less efficiency." Luan Runfeng said: "Management is to manage people and people, but people can't be managed by brainwashing." Can not change others, but can achieve twice the result with half the effort? The best way to do this is to let employees manage themselves.

For example, when driving, people will always look at the dashboard or mirror consciously or unconsciously in order to constantly adjust their speed and position and avoid possible dangers. And "precise management" is to let the enterprise put a "mirror" in front of every employee. With a precise "cockpit", employees can drive in a clear mind, some small problems can be avoided in advance, and the feeling of "everything is in control" arises, which is the premise of happiness and efficiency.

In 1996, Luan Runfeng visited IBM headquarters in the United States. After getting in touch with the Internet and learning about its use in local enterprises, he suddenly realized that if he combined the management model he had studied with the Internet technology, it would be an epoch-making transcendence.

After more than a year of research and development with the entrepreneurial team, in 1997, Jinhe produced its first management software.

But this "magical" management model is not viewed favourably. Over the next few years, Mr. Luan began a difficult lobbying campaign. In order to let more people know the beauty of precision management, he looked for opportunities to give lectures everywhere, and even promised that any business executive who came to listen to "precision management" for three hours would be given 200 yuan as a loss fee if he felt it was not worth it.

It wasn't until March 2001 that Jinhe broke through to zero, but it took more than four years for the company to turn a profit from selling its first set of software.

In Luan's view, management is cultural, and his "precision management" is tailored to the Chinese. Luan Runfeng said that the core of Chinese culture is the accurate analysis of human nature and the importance of human management. "Chinese people have a flexible mind, but the differences in national character cannot be evaluated by good or bad."

"Three years old, seven years old", said that people are unchangeable, "face, tree bark", said to make employees aware of their own problems, so as to take the initiative to self-avoidance. "These old sayings are actually very practical management philosophies, and the ancestor's 'do nothing' is the goal of 'precision management'." Luan Runfeng said.

Based on the concept of hands-off and self-management, in 2009, Jinhe Software's performance management gave up the traditional assessment method, and carried out a very bold attempt -- employee self-evaluation, and the supervisor no longer participated in the rating. In the beginning, some employees will overestimate their performance, and some employees will underestimate their performance, which will be brought up and corrected during HR review. However, after a year of implementation, the data became more accurate and the work plan became more complete.

'Jinhe Software has more than 1,500 employees,' Mr. Luan said. 'According to normal calculations, there should be at least 100 managers, and we only have 10.' The use of accurate management ideas and their tools and carriers can not only greatly save management costs, but also greatly improve enterprise organizational performance.

Today, "precise management" has been widely spread and applied in the industry. It is understood that there are nearly 20,000 enterprises and public institutions in dozens of industries using precision management software every day, including China Telecom, Panasonic and other well-known enterprises, "precision management" has also made Jinhe software become a well-known enterprise in the industry.