What to Learn from Wolves - (Wolf-like Management Upgrade Edition)

Author: Ruo Mu, Zheng Zhong / Country: Mainland China
Publisher:
Publish Date: 2006-07-01
Features: Wolf packs have a strong and stable leadership core, and a modern company also needs this. If the top leadership is in constant conflict and at odds with each other, the entire company will inevitably become a disorganized mess, with declining economic performance and financial instability. To change this situation, it must first start with a large-scale overhaul of the leadership structure. In 1978, the world-famous Chrysler Corporation was on the brink of bankruptcy. At this critical moment, Lee Iacocca took over as the company's president. Iacocca was astonished to find that the company had 35 deputy general managers—not only was there an excess of personnel, but more seriously, these top leaders were in constant competition with each other, passing the buck, which severely impacted the company's business. Acting decisively, he immediately dismissed 33 deputy general managers, leaving only two capable and responsible ones in his leadership team. At the same time, he vigorously promoted talent. For example, financial expert Steve Miller, within just six months, brought the company's chaotic accounts into order, naturally earning a place in his leadership structure. Another example is automotive design expert Hal Sperocchi, who had an extraordinary sense of the market, was also incorporated into the core leadership. If problems arose in production or operations, he promptly called a meeting with the company's top executives to gather everyone's wisdom, enhancing the targetedness and decisiveness of solutions. He also intentionally invited department managers to participate in major company decisions, strengthening their sense of belonging and responsibility to the company. He called this approach "consensus management." Iacocca's series of reforms completely transformed the company's previous disorganized state. All employees worked diligently to help the company climb out of the slump. By 1983, the company miraculously turned around and achieved substantial profits. In 1985, many considered him one of the best candidates for president, even former U.S. Vice President Bush acknowledged that Iacocca was a "strong competitor" for the presidency. However, he abandoned this opportunity and further restructured Chrysler into four divisions to strengthen its competitiveness in the more intense market. As the saying goes, "A bearish leader leads a bearish pack." If the leadership is weak and ineffective, slow to act, or even engages in internal strife, such a company will inevitably collapse in no time. Chrysler, on the brink of bankruptcy, was a prime example of this. This painful lesson should be etched in the minds of everyone in the market. Some might say, "I'm running a small business, I don't need all this leadership—I make all the decisions, so what does the leadership structure have to do with me?" If you truly hold such a mindset, that would be extremely dangerous. Napoleon once said, "A soldier who doesn't aspire to be a general is no good soldier." If you truly don't want to grow your business and remain stuck in a small-scale operation, then your business philosophy and capabilities will be pitiful, and you will be vulnerable to collapse at any moment. It is well-known that small businesses have extremely low risk tolerance and must rely on others, always playing it safe. A slight tremor in the market could easily bring them down, leaving no chance for recovery. While large companies also face significant risks, at least they have the potential to capsize in storms, but they generally handle minor market fluctuations with ease, without much danger. Growing your business not only brings you more money but also significantly enhances your social status and fully realizes your life's value. Therefore, once we immerse ourselves in the market's ecosystem, we must shed the weak mindset of being a "sheep" and strive to become a "wolf," and even further, develop the ambition and psychological readiness to become a "wolf king."
At the beginning, your company will undoubtedly be small, perhaps with only three or four people, but this does not hinder your efforts to establish a leadership structure. Even with just three or four people, you must be selective. Understand that these individuals will become the core figures in the leadership structure of your future, larger company. Only by forming a leadership team centered around you, composed of capable and like-minded individuals, can your company have the strength to stand firm in the fierce market competition.
When selecting talent, use scientific methods to avoid factors that may harm the company. It is good and feasible to work with friends and family to start a business, but before doing so, you must consider whether they can genuinely help your cause, whether they can stand together and build the company. Starting a company in the form of a family has both advantages and disadvantages. The advantage is that everyone feels like family, with no hidden agendas, making it easier to communicate and reach agreements, which should theoretically lead to faster growth. The disadvantage is that you may overemphasize blood ties and exclude talented individuals, filling the leadership with mediocrities and hindering the company's development. Worse still, sometimes relatives and friends may fight for power, becoming even more ruthless than outsiders. Comparing the two, we believe it is best not to include friends and family in the leadership structure.
There is also a danger in overvaluing talent. Without assessing their character, you might bring in individuals who don't share your vision at the very beginning of your venture due to some unavoidable circumstances. In this case, you will be forced to face the dilemma: your conflicts and coordination with them will not only cause you to miss many opportunities for growth but also leave the company in a bind. Therefore, if you are determined to start a company and want to compete fiercely in the market, you must position yourself as a "wolf king" and then use scientific methods to promote talented and like-minded individuals into your leadership structure, forming a strong and united team centered around you. Only in this way can your business ride the waves and overcome any difficulties and obstacles. P4-6