A boss (investor)’s response to the general manager’s (professional manager) resignation letter

Thread Content

A boss (investor’s reply to a general manager’s [professional manager’s] resignation letter) [with analysis] Part 1: The original letter. Part 2: My analysis of this letter (based on my personal views). Part 1: This is a company with 19 years of history, but it is thought-provoking to consider how professional managers and bosses view the same company when corporate development conflicts with new ideas. 　　MR. SONG: Hello! 　　After much consideration, I have decided to write you back in response to this resignation letter; it is likely to be much shorter than your lengthy one. 　　First of all, I am extremely grateful that you have joined our company on a temporary basis. On behalf of all the employees and their families in the company, I would like to express my thanks for your contributions during this time. When you insist on leaving this “soil” that isn’t suitable for your growth, I feel sorry and heartbroken. I do not deny the problems of the company mentioned in your letter, and that is precisely why I am making every effort to invite you to join us. 　　Next, I will answer the questions you raised one by one: 1. Regarding your decision to join the company, the issue of our respective roles is the root of our disagreement. What appears to be a definition of management roles is, in essence, a conflict between two different sets of values. 　　You see, this enterprise has gone through many hardships over the past 19 years, and only now has it reached where it is today. The companies around me fell one after another, and we ourselves went through several times of coming back from the dead. Without these life-threatening experiences, it would be impossible to understand what it’s like. This forces me to proceed with extreme caution, as carefully as one would drive after having spent more time behind the wheel – the longer one drives, the more cautious one becomes. Sometimes, not all experiences are a burden. 　　In fact, regarding the issues you mentioned, not only you and I, but most of the senior executives in companies also understand them deep down. A few years ago, the company also made efforts to learn from other enterprises’ advanced management practices; for this reason, our department was even set as a model. Yet the company paid a heavy price for such radical measures – how many times can a company withstand such upheavals? So I had to slow down the pace of change, while you saw it as a hindrance. 　　Deep down, I also hope that the company will grow as fast as possible, but I know that taking sharp turns can easily lead to falls, and tightening screws too much can cause them to break – and this is precisely the core of the disputes we have regarding delegation of authority. Experience tells me that while businesses should focus on growth, they must also pay attention to safety; stable development is far wiser than fluctuations up and down. Today, I dare not hope for a phoenix-like rebirth of enterprises. Given their current state, it’s better if they develop at a slower pace; at the very least, the likelihood of them going under will be much lower. 　　To be honest, it’s not that I don’t trust you; I really appreciate your character, and I also acknowledge the quality of your background checks. The fact that I chose you from over twenty candidates shows just how much trust I have in you. But the methods you employ require me to weigh things carefully, because successful experiences are necessarily based on different corporate environments; otherwise, there would be no so many successful examples of family businesses, both domestically and internationally, which are often criticized. 　　Essentially, the core of our disagreement lies in different views and positions regarding the relationship between \"enterprise security\" and \"enterprise innovation\". I focus more on the secure development of the enterprise, while you emphasize driving rapid growth in its performance; everything else can be dealt with easily. If the pursued \"reforms and innovations\" bring danger and uncertainty to businesses, I would rather choose slow improvement. After all, the company isn’t in such a chaotic state that it needs drastic reforms. 　　You might think I’m conservative in my thinking or not well-prepared mentally, but when a person goes from being surrounded by noise to suddenly facing silence, and from knowing every detail of what’s going on to only having a general idea of the company’s situation, that sense of uncertainty wakes me up from nightmares time and again. It’s easier said than done for me to let go completely; after all, I’m human, not a god. Especially when I can’t clearly sense the outcome of this change. 　　To put it bluntly, you can regard the company as a platform for a certain stage of your development, but I can’t do that; this company isn’t something that can be \"treated like one’s own child\" as you say – it is the entirety of my life! Once a company fails, you can just pack up and leave to find another employer, but what about me? It was me who jumped, not you! 　　In this society, bosses never have that many chances to just pack up and go work as a boss somewhere else; it’s useless even if their bottoms get swollen from trying! After all, there aren’t many Shi Yuzhu in China who can rise again in another place. When you become a boss someday, you might understand it. It has nothing to do with whether you join the company or not. 　　Your entry into the company is the result of both parties getting what they need. 　　II. Regarding coordination of strategic approaches The question is, what do I need you to do? 　　I admit that, due to a severe lack of communication, there were some misunderstandings regarding the alignment of our strategic thinking. 　　When a person has 100,000 yuan, it belongs to them; when they have 1 million yuan, it still belongs to them. But when they have 10 million yuan, it no longer belongs to them—it becomes property of society. 　　I don’t deny the correctness of your forward-thinking approach, but when everyone says you’re right, being wrong becomes right as well ； When everyone says you’re wrong, being right is also wrong. 　　You put performance metrics or the company’s profitability first, but I don’t agree. My priority is to ensure that enterprises can continue to operate for as long as possible; only after that comes their development. Although I have requirements regarding performance metrics, they are actually in a secondary position. 　　You might ask, if it’s not for performance reasons, then why hire you at a high salary? Because I’m well aware that if these people continue to cause trouble, the company will soon be doomed, as analyzed in your over 100-page diagnostic report; the stagnant performance over the past three years is also evidence of this. I feel mixed feelings toward them, but love outweighs hate. 　　Next, I will explain why it is sorted in this way. I often reflect on why a boss makes money in the first place; after all, money can’t be taken with us when we die. No matter how wealthy one is, one still needs three meals a day and clothes to cover one’s body. Although everyone aspires to work for a company that has existed for a century, it’s already quite remarkable for a company to survive for 30 or 50 years! How far can our company go? 　　Whenever I go to every corner of the company, everything I see bears the traces of the hard work put in by those loyal employees over the years; the workshops and guard rooms were all built brick by brick by them in the bitter cold, and their bloodstains from frostbitten hands and faces can still be seen on those structures… Nearly a quarter of the 1,000 employees are married couples, which shows, from another perspective, that their lives are inseparably tied to this company. Once their companies go bankrupt, they will be homeless. So I must hold onto this job tightly; there is no way back anymore. I don’t have any noble purpose; that is both my original intention and my goal. Even if, as a last resort, the son takes over this family business in the future, he still needs these most basic foundations. 　　Up to this point, you might understand some of my actions a bit better. 　　But how can I tell you these things? It’s not for the sake of performance that you would walk away. After all, generating profits is proof of your capabilities as professional managers, or the very purpose of your existence; whereas providing for these employees reflects my simple-minded thinking—whether you call it peasant mentality or a narrow personal sentiment. 　　III. Regarding the advancement of work below You believe that my support for your work is not sufficient, and you see the oversight mechanism I established after you joined the company as a constraint; yet it is an important channel for me to obtain accurate information. 　　You keep demanding that the boss make changes, that things be adjusted to fit the new direction and policies, and you hope that others will also adapt around the new executives – but is that realistic? In your opinion, it’s almost impossible to build high-rise buildings by simply replacing the contractor and having the same group of masons who used to build thatched cottages do the work. 　　In fact, any management approach can lead to success; what’s needed is to combine the advanced management concepts of your external staff with the rich experience accumulated by us veteran employees to create a strong force. Yet both sides insist too much on their own approaches, leaving me in a difficult position, as if faced with my own right and left hands, unable to decide which one to choose. 　　Perhaps because we start from different points, our behaviors naturally differ. From the perspective of a professional manager, one would ruthlessly get rid of all those who are not suited for the company’s development. From a performance standpoint, this is understandable, but we are in different situations; in this regard, I need more intuition than logic. Just like when facing a child whom you have raised step by step, only to suddenly discover that they suffer from a terminal illness, what should you do? From the perspective of human development and care for human nature, a completely opposite conclusion is reached. There is no need for debate – your measures have already been proven by the law of survival of the fittest in nature. 　　However, a person lives by their reputation; a tree lives by its bark. 　　One day, when they get eliminated, how am I supposed to face these fellow villagers? Some people have gray hair by now; they have devoted the most precious years of their lives to their companies. Even if I could bear the blame, how could I face the gazes of those living under the same roof every day? Is it just that little financial compensation? 　　Besides, if I kill all those who have contributed to my success, who will be willing to trust me in the future? 　　Perhaps one day, when you feel unhappy, you’ll just walk away, just as you did by leaving today. But they will never abandon me; they will stay with the company through thick and thin until the end of their lives. Therefore, in the boss’s eyes, loyalty is more important than ability. 　　Let’s use the “story of the bicycle” that you often tell people during your training to explain the difficulties in driving work forward: “It is said that the first person in China to introduce bicycles was a wealthy student abroad. Seeing how popular bicycles were overseas, he paid a high price to acquire one. His family strongly opposed this foreign invention: Haven’t we been able to get by on our own feet for thousands of years? Isn’t that good enough?” Fast if you want, slow if you want; there’s no need for any balance or anything like that! 　　“The international student kept explaining that everyone, including himself, had tried riding it several times; its unsteady ride simply couldn’t compare to the way he was used to walking, so the bicycle was put away. Half a year later, a relative who was a teenager came to visit. Out of curiosity, he pulled the dusty bicycle out from the corner and spent the whole morning fiddling with it in the yard, ignoring even meals; the family members didn’t take it seriously either. In the afternoon, it was suddenly noticed that a group of children were chasing after the child on the bicycle but couldn’t catch up with him, which surprised everyone; later on, bicycles gradually became more common. ” 　　There’s nothing wrong with this story, but I’ve been wondering what would happen if a bicycle were placed in a nursing home where no one rides bicycles? It is often some “new forces” that drive rapid change, whereas we are dealing with nothing but “old hands”. In general, since China began its reform and opening-up, we have been moving outward and bringing in foreign elements, but why is the gap between us and advanced foreign companies still so large? Because it is a matter of culture, a process of integration is required. 　　You say I’m too casual about organizational ethics and interfere in every detail, but actually that’s precisely because problems have arisen. As professional managers, you focus on the big picture while neglecting the details, which can make your work superficial. Of course, I also admit that it takes time to get things working together, and using the right people is key. But the waste right before our eyes makes it impossible for me to remain indifferent, both emotionally and logically. Perhaps my approach is open to debate. 　　IV. On the evaluation of professional managers
The topic of evaluating the relationship between professional managers and their employers is far too broad; I dare not make any hasty judgments on it. However, the influence of centuries-old mindsets among the Chinese people, cultural traditions, mutual trust, and so forth may ensure that this predicament persists for a long time to come. 　　Like all business owners, I hope that this company will thrive for a long time; that was also the reason I brought you and other executives on board. However, in practice, there is a huge gap between what I had envisioned and what actually happens. My ears are filled every day with various opinions, many of which are complaints and criticisms. Along with the instability in the attitudes of the employees, I can’t help but feel puzzled. 　　The emergence of these problems is, to some extent, also the responsibility of professional managers, indicating that there are still certain issues in the communication process. For companies of similar size, aren’t there many that have successfully embarked on a second entrepreneurial venture and become brands, thanks to the efforts of professional managers? 　　When evaluating specific matters, you *tend to care only about the results. But while I value the results, I also pay attention to the process. There are two ways to manage: one is through “relaxation,” and the other through “restriction.” Perhaps in the end both approaches can lead to the same results, but the cost incurred by the organization differs greatly. I don’t want you to, like the current place**, achieve so-called results by killing the goose that lays the eggs, borrowing against future resources, and plundering resources. 　　Yet you claim that it is a boss’s vision and character that determine how far a company can go, and you believe that it is the fate of most people in China that their families will not remain wealthy for more than three generations; this idea has even influenced national education systems ； But I know that one cannot go a day without food. 　　To persuade me, you told the story of \"Sun Wu’s concubines\" and repeatedly emphasized Sun Wu’s wisdom and decisiveness – it was precisely by killing the two favorite concubines of King Helü of Wu that military discipline was restored. I don’t know how these concubines performed on the battlefield, but I do have a story for you: During the Spring and Autumn period, Sun Shu’ao, the governor of the State of Chu, built a large canal running from north to south in the Goupi area. This canal was sufficient to irrigate tens of thousands of acres of farmland along its course. However, during droughts, the farmers living along the canal would plant crops on the banks where the water receded; some even planted their crops right in the middle of the canal banks. 　　When rainfall increases and water levels rise, these farmers, in order to save their crops and irrigation fields, secretly make openings in the dikes to release water, which leads to frequent breaches. Over time, the situation became increasingly severe, making it impossible to control or prevent. Faced with such a situation, the administrative officials of Goupi County throughout the ages were helpless. 　　Whenever the canal waters rose to catastrophic levels, troops were deployed to arrest people while simultaneously building dams. Later, when Li Ruogu served as the county magistrate during the Song Dynasty, he too faced the troublesome issue of dam breaches and repairs. He then posted a notice stating that: \"From now on, whenever a canal breaks, troops will no longer be deployed to repair it; instead, the local residents living along the canal will be mobilized to carry out the repairs themselves.\" ”After this notice was posted, no one ever went and deliberately broke the dam to release water secretly anymore... Do these two methods offer any insights for evaluating our managers? 　　After you left, I also thought deeply about it. In my opinion, given that the professional market is still not mature enough at present, it might be more suitable for small and medium-sized enterprises to have professional managers serve as general managers, with the owners acting as assistant general managers, for the better development of the company. The owner steps back from the front line to the background; while the executive general manager makes decisions, he or she can keep track of progress and manage certain relationships. This could serve as a model worth considering for private enterprises, though it should not lead to the creation of a second power center. 　　Leadership insights: As corporate managers who are brought in from outside have not grown alongside the company, this means that in certain aspects they are unable to share the company’s fortunes through thick and thin. A manager who fails to understand the difficulties faced by the company in its development is an unprofessional one; addressing the root causes of the company’s problems from a fundamental perspective is what truly matters for fostering its growth. Part Two: Why did such an outcome occur? First, this is because at present, most professional managers bring with them to companies an attitude of overconfidence and a desire to prove themselves, characterized by the mindset that \"a newborn calf isn’t afraid of tigers, and there’s no company that I can’t manage well.\" Why is that? During the initial meetings with the boss (the investor), one might have made grand promises and talked about various advanced corporate management ideas and concepts; perhaps by catering to the boss’s expectations, one managed to get into the company and become part of its decision-making team. But once inside, it became clear that the actual situation of the company wasn’t as ideal as imagined. The production areas were in disarray, the equipment was dirty, and neither the factory buildings nor the office spaces, or the overall working environment, reflected the culture of a successful company. What’s more, the professional skills, capabilities, and awareness of the company’s employees were also unsatisfactory. In short, everything about the company left me dissatisfied. In 2004, I worked with a beer bottle and glass manufacturing company with a staff of over 4,000 people. The vice president of the company’s management department had an MBA from Sun Yat-sen University (he had been at the company for not long) and was a very energetic person. Before I arrived to provide guidance, he had already dismissed several management consultants, all of whom were more well-known than me. During our first meeting, we discussed potential cooperation strategies for the project, and we both had a good impression of each other. On our second meeting, he told me about many of the problems within the company. I could only nod from time to time to show my agreement. After he finished speaking, I calmly asked him, “What is your own vision for this company?” What is your own mission? ”Perhaps he didn’t fully understand what I meant at that time, so I emphasized that \"what we’re discussing today is your own vision and mission for joining this company, not the vision and mission that the company imposes on you. Think about it again: if the company didn’t have so many problems, would the boss pay you a high salary to work there?\" Do you think any boss would keep someone who doesn’t work for the company’s benefit? ”He thought it over carefully and didn’t answer me right away; perhaps the question was difficult to answer, or maybe he hadn’t considered it. During the third coaching session, it was necessary to organize a meeting for middle and senior management, which he was responsible for coordinating. More than half of the attendees were late, and he was very angry (it could be seen from his expression). Just as he was about to lose his temper, I tapped his hand to signal that he should hold back and wait and see what would happen. As a result, the general manager didn’t get angry during the meeting and remained calm. After the meeting, in his office, I talked to him again. He said, “I really don’t understand how the boss could tolerate so many people being late at such an important meeting.” How could the boss not get angry? I really don’t understand how this company has been able to survive and thrive for so many years Can this company still make money? What about work efficiency? ”I smiled at that time and said, “I really agree with your views and opinions. You just said you really don’t understand it; if you don’t understand something, you need to conduct a thorough investigation to find out the root cause. I believe such phenomena definitely don’t occur by chance in this company. You’re angry today partly because you feel you’ve lost face, because it seems like no one is giving you respect, and because you’re upset that the general manager isn’t supporting your work, right? Since we know each other well, I speak frankly – I hope you won’t mind?” ”He smiled and said, \"Teacher Zhao, if we both didn’t have straightforward personalities, I wouldn’t have chosen you as a management consultant.\" I smiled and replied, \"Thank you. In fact, in management it’s not necessary to worry too much about face; that way, management becomes much easier. You’re angry today, but the general manager isn’t angry – where lies the disagreement?\" Your idea is to address problems as they arise, even in a decisive manner, for the benefit of the company ； The general manager is certainly aware of these problems; he definitely sees them. It’s not that he doesn’t want to manage – in fact, he thinks day and night about how to manage things smoothly and effectively. But how can things be managed smoothly? How can it be managed well? Perhaps the general manager has not found or thought of a proper strategy; he is focused on the survival of the company, and that’s why disagreements have arisen. Corporate management innovation must be approached from the perspective of the company’s viability – what do you think? ”At 12 o’clock at night, the deputy head of the corporate management department called me and said, “Teacher Zhao, have you gone to rest?” ”I said “No,” and he said, “I’ll wait for you downstairs at the hotel where you’re staying. How about we go out for a drink and talk?” ”I said, “Sure (he’s in a good mood; how could I ruin it?)” We went to an informal food stall together, found a relatively quiet spot, and ate, drank, and chatted. The topics of conversation were not limited; it was a casual talk. During that time, he asked me, \"Teacher Zhao, you said that corporate management innovation must start from the perspective of the company’s survival. Which company isn’t like that, anyway?\" ”I said, “Tell me what is the life of a company?” What does it mean to approach things from the perspective of a company’s vitality?” he asked. “If a company has problems or shortcomings, it needs to be changed, it needs to have those issues removed. If they aren’t removed, how can it be considered to be properly managed? ”I said, “You’re absolutely right; I agree. The key is how to make the changes?” How to remove it? What if, after removal, it results in the loss of life? ”We had a great time drinking and chatting this time, and before we knew it it was 3 a.m., so we went back to bed each. Unfortunately, he eventually resigned from this company; it seemed that he couldn’t demonstrate his achievements in terms of management innovation there. Before he left, I said to him, \"It takes time (not just a day or two, or even half a year) to achieve significant results in management; moreover, there must be some reason behind his actions, as he isn’t completely useless.\" ； Third: Every company has its own problems, though the proportion and severity of these problems vary. I wish you success in finding a platform that suits you; once you become the owner of a company, you will understand everything. ” As an investor, one puts in a great deal of effort to establish a company – something that a professional manager cannot possibly understand. Therefore, investors value such companies very much, sometimes even more than their own lives. As the market expands, customer demands increase, competition intensifies, there are changes within the industry, and customer priorities evolve, these factors inevitably expose management shortcomings in the company. Investors are aware of this, which is why they pay high salaries to hire professional managers. But once those professional managers arrive at the company, how do they go about addressing these issues? Where to make the cut? When to perform the surgery? Is it with small pliers? Should we just use a scalpel right away? This requires more communication and discussions with investors, as well as in-depth investigations at the company’s grassroots level through various interviews and careful inquiries. It’s like a doctor (a professional manager) examining a patient, using methods such as observation, questioning, palpation, and other techniques, including medical equipment; yet sometimes it’s not possible to accurately identify the patient’s condition. Before performing surgery, it’s necessary to hold pre-operative discussion meetings to analyze the chances of success and the associated risks. If needed, the surgical plan must be adjusted, and the patient may even need to stay in the hospital for monitoring of their health status so as to determine whether they are suitable for surgery. There are many such complicated steps involved. During this process, some of the patients’ family members (investors) may express dissatisfaction and complaints, leading to conflicts (medical disputes). But as professional managers who are responsible for managing corporate reforms, don’t we also need to follow such procedures? Can it be removed directly with surgery? If it is removed, the company loses its existence – what’s there to talk about then? In simple terms, the viability of a company means that it must first survive before it can thrive; to put it more plainly, only by ensuring its survival can one consider whether it is better to settle for simple meals or to enjoy delicacies like sea cucumbers and squid ； As a professional manager, it’s a great fortune to encounter, throughout one’s career, a boss who does not place too much emphasis on short-term management results and performance. One should then commit fully to that company and work together with the boss to find ways for its long-term development. One must not let their own desire for quick short-term gains ruin their career. Management, in essence, is about changing people, and it’s impossible to change how people work in just a day or two