Millet Promotes Hierarchy and Establishes KPI: Graduates Enrolled in Level 13 Lei Army have no Level

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Millet Promotes Hierarchy and Establishes KPI: Graduates Enrolled in Level 13 Lei Army have no Level

2019-02-18 18:31:55 31 ℃

Millet Group (01810.HK), known for its flattened management, is gradually diluting its early governance magic weapon, which stems from its transformation from an efficiency-oriented start-up company to a mature, standardized large enterprise. Especially after the IPO on July 9, 2018, the management transformation of millet has become a top priority.

millet has promoted gradation. "Finance and Economics" learned that the internal titles of millet are generally divided into Commissioner-Manager-Director and Vice President and above, with a total of 10 levels, from 13 to 22. Commissioner level is about 13, manager level is about 16 to 17, director level is about 19 to 20, vice president level is 22. A millet director told Caijing that his rank was 20. Minmi founder, chairman and CEO Lei Jun is not in this level system, so there is no level.

A millet employee told Caijing that the millet level of the new graduates is about 13, the three-year working experience is about 15, and the senior manager should be 18.

According to the understanding of Finance and Economics, millet hierarchy has been gradually piloted since 2016 and 2017, and was first implemented in MIUI department. At that time, millet was at its lowest ebb. Established in 2010, Millet was in crisis in 2016 after five years of vigorous progress in Gaoge. Domestic sales of millet in this year were only 41.5 million, down 36% from 64.9 million in the same period last year. "Once the mobile phone company declines, it's a no-return road." Lei Jun once confessed to the media.

"Some attempts at normalization were made at that time." A person who had been in charge of overseas business in Millet told Caijing, "We think there must be some problems in the performance of the whole company. No one knows where the problems are, so let's change it."

Hierarchy was implemented in MIUI department, and it has been piloted in millet TV department, and now it has basically expanded to the whole company. In addition, some millet employees told "Finance and Economics" reporters that millet currently has to punch in at work, and in this Spring Festival logistical attendance is particularly strict, the Department also has KPI. Millet was once the most advocated "flat management" enterprise in China's science and technology circle, emphasizing flat organization, minimal management and no punching or KPI for employees. There are only three layers of millet architecture: co-founder-department head-staff.

This is a highly human-governed architecture, with eight co-founders each in charge of several businesses. In the early days, Lin Bin was in charge of strategic cooperation, Wang Chuan was in charge of millet TV and boxes, Liu De was in charge of ecological chain, Li Wanqiang was in charge of market and millet network (later returned to Lin Bin), Hong Feng was in charge of MIUI, Huang Jiangji was in charge of routers, cloud services and Michao, and Zhou Guangping was in charge of mobile phone development (later returned to Lin Bin). Every business development depends on the personal ability of the leader. "We need people who can do business on their own." Those who have been in charge of millet's overseas business think that this loose management is very similar to VC's management mode. It has the advantage of flexibility. The company is composed of numerous small guerrillas. How well each guerrilla team plays is closely related to the guerrilla captain. Traditional enterprises, such as Lenovo, are more like square arrays of Governance -- "All people stand in a row and go forward, no one is allowed to retreat." The loose and people-centered management mode of

also has its drawbacks. The first is the hilltop, which leads to strong departments and difficult inter-departmental collaboration and communication. The second is that once the leader leaves, his position may not necessarily be able to stand up immediately.

"We are afraid to say that we are a start-up company now." A person who joined millet in 2012 told Caijing. According to the prospectus submitted by millet to Hong Kong in May 2018, there are more than 14,000 full-time millet employees. It is reported that millet currently employs about 20,000 people. Xiaomi is in the process of transforming from a start-up company to a large company. Lei Jun has realized the urgency of organizational transformation. After landing on the Hong Kong Stock Exchange in the middle of last year, millet has made three successive structural adjustments in the second half of the year. The intention of the transformation from rule by man to standardized organization governance is obvious. Among the three organizational adjustments of

, there are two points that deserve most attention. First, millet set up the organizational department and the staff department. Co-founder and senior vice president Liu De and Wang Chuan served as chief of staff respectively. Second, they redesigned the sales structure of China, and co-founder and senior vice president Wang Chuan served as president of China.

The above-mentioned millet director-level personage told Caijing that the millet organization department specializes in managing cadres above 19 levels. The two structural changes of

mean that, firstly, the millet co-founders who were in charge of a business pool concentrate on the head of the group and transform from "big department" to "big group"; secondly, the co-founders leave their actual business to various departments, and their concessions make room for the excellent employees to rise and stimulate the vitality of the organization. Hong Bo, a well-known Internet commentator, told Caijing that Wang Chuan took over the domestic business of millet in an all-round way and that the stage of exploring and testing water for several lines of business was over. Among the partners

, besides Wang Chuan and Liu De, Zhou Guangping and Huang Jiangji left their posts before the listing. Hong Feng was no longer in charge of MIUI and turned to be in charge of millet finance business. Li Wanqiang, as chief brand officer, also took a step backwards. An investor who closely monitors the dynamics of millet told Caijing that the co-founder's transfer of the original responsibility to external professional managers or decomposition to internal senior and middle managers is conducive to the healthy development of the company in the mature period. However, it is not easy for millet employees who have adapted to the flat and loose management mode to explore this transformation. Many employees interviewed by Caijing reporters are vague about their hierarchy.

"Honest employees don't care about this level." An employee who joined millet for a year and a half said that although the level is linked to salary, it has little impact at present, so the employee's perception is not high. The

< p> hierarchy seems to be a void for corporate governance, but it is the guarantee of employees'promotion path for a long time. If the company does not have a clear growth path, many people's goal is to study hard to go to other companies, and brain drain is very harmful to the company, the employees said. "Employees don't know how to go up, and the motivation to go up may not be so great." He said. As of press release, millet shares were HK$11.14 and the company's market value was HK$266.175 billion.