A special story about a business leader who shared his experience from an extremely difficult situation, in an extremely complex business: selling projects.
Mr. Dang The Tai, CMC SISG General Director together with his partners have shared secrets that drive their business from zero to 2,000 billion VND revenue and it is still rapidly increasing.
Mr. Dang The Tai took the responsibility of steering CMC SISG boat in an extremely tough time: sales director left the position while technical team did not know how to do business. The company did not have much capital, was newly established and operating at loss. Mr. Tai at that time did not know much about business management as he is pure technical person. Back then CMC SISG was in hardware business and provided software solutions for university and banking industry.
In 12 years from 2006 to 2018, Mr. Tai and 70 partners have driven the revenue growth from 44 billion dong to 2,000 billion dong (expected) with the number of human resources up to 330 people.
Revenue has grown 50 times and Personnel resources has nearly expanded 7 times. How did CMC SISG achieve that?
According to Mr. Tai, trust and right thinking will help orient the long-term development strategy.
Encouragement vision starts from customer understanding
Enterprises need to orient for long-term vision. Having a long-term vision keeps you follow the path that you chose. Mr. Tai and partners have chosen the most thorny path, kept their enthusiasm in the most difficult circumstances to overcome challenges and catched up with the trend of rapid development. In hard times, employees support company, including payroll loans. When successful, company shares benefits for the employees. First of all, it is necessary to understand customers to build company’s products and services that well fit for customer demand and able to adjust system and working methods to serve customers in a better way. In parallel with that, company is willing to get rid of easy-to-sell but competitive products and services, choose a breakthrough products and services to connect customers with our businesses. All comes from customers.
Strong business culture to connect every individual
Mr. Tai implied that business culture must start from mission, vision, core values, and this is far more important than strategy. Strategy can change over time, according to your capabilities. However culture needs to be adjusted from the smallest behaviours to be able to grow in the long run. All activities are closely linked with culture and strategy. A company with good culture still need a good strategy to accompany and learn, continuously adjust on each step due to the constant change. Capacity and business resources also change constantly. We will develop much faster, if we get it right from the beginning.
Not afraid of failure, dare to think and dare to do, not only at the board of directors but also built to every employee. If the employees fail to do something, the system, their leaders, the company will support them. Only with the encouragement of the whole system, they will dare to innovate and dare to change. If we punish employees for what they did wrong, they will not dare to change. At CMC SISG, leaders believe in teammates and delegate effectively to develop employees . With this, the new team will quickly adapt and understand what we need to do to achieve the common goal and coordinate smoothly. Culture and system need to be transparent to every detail. The analysis of finding the truth will be the key point to adjust the continuous way to adapt to constant change. Being afraid not to look at the truth in some other businesses can lead to illusions about the capabilities of the team or the market situation. They are slow-explosive bombs, invisible vaults that can destroy a system that has existed for years at any time.
Mr. Tai and CMC SISG team have built a strong system. That is an important foundation for their success today. In the company, training and encouragement of self-study are unified in the policy.
Transparent analysis system starts from transparent culture
Business must have a measure system to analyze and adjust continuously. Measurement should be up to 0.01% to adjust when needed. The analysis of measurement is extremely important for large business. For high level analys such as financial analysis, operational efficiency, detailed measurement then analyze individual performance, each ongoing project. An impressive example is the average working capital turnover of CMC SISG from 137 days (2009) to 23 days in 2017.
Waste reduction shoud be well managed to every action and individual for them to know which is the right thing to do. CMC SISG has adjusted those activities and is becoming more effective to bring more value to customers, deploy on schedule and quality goes up, costs go down .
Interestingly, the CMC SISG system is built to be independent. Employees must constantly demonstrate that they add value to the company. Employee income is divided on performance. There is no design of any income restriction laws. Measuring efficiency is clear and employees are able know what to fix and how to upgrade themselves to gain efficiency.
Culture, strategy and system are like bricks to build everything. ” How we want to mix and how big we want to build are developed from those bricks,” Mr. Dang The Tai shared.
Most business owners and managers are bogged down in daily tasks. We are busy with one thing after another, and do not prioritize things that is important in a long run such as mission, vision, culture, people, system. Nor do we pay any attention to our beliefs, ways of thinking, and actions that need to change.
Is skipping important things and thinking we can do it tomorrow is the main reason why businesses nowadays have too little trillion in revenue?