Wang Qunbin: High Multiplier Value Growth, Building a Better World
From 11 to 12 January 2022, Wang Qunbin, Co-Chairman of Fosun International, once again emphasized Fosun's core corporate cultural values of “Self-improvement, Teamwork, Performance, and Contribution to Society” and put forward ideas centered on “high multiplier growth” for future development at the 2022 Fosun Annual Conference.
Hello team! Although we have experienced a continuous recurrence of the pandemic and international turbulences in 2021, with the joint efforts of domestic and overseas colleagues, we still managed to achieve good results and growth in all aspects in 2021. Therefore, I would like to thank all colleagues of Fosun, especially overseas colleagues, for all their dedication and hard work in 2021 to achieve the high multiplier growth of Fosun. Thank you all!
Regarding our performance in the past year and future development, I would like to share my thoughts with you all:
Uphold Fosun's Values of “Self-improvement, Teamwork, Performance, and Contribution to Society”
Since the start of our business, we have always upheld the cultural values of“Self-improvement, Teamwork, Performance, and Contribution to Society”, insisted on doing the right things, difficult things and things that take time. I hope that all Fosuners will also keep the altruistic thinking of “Contribution to Society” in mind and practice the eight things of Fosun at all times in their daily work and life, and with the joint efforts of everyone in the Fosun family, create a healthy organizational ecosystem that will allow our company to flourish for at least another 121 years, create a brighter society with more people, and let more people to live to at least 121 years old, creating higher social value.
Looking Back on the Past, Looking Forward to the Future
Looking back on 2021, there were many innovations and highlights, but there were also some pain points to be addressed. In 2021, we continued to enhance our brand image, expand the C-end scale and enhance user satisfaction; we also continued to launch blockbuster products on the M-end, driving overall revenue growth;deepenedinvestment at home and abroad, implemented the twin-driver strategy at home and abroad; deepened the organizational capabilities and prioritized the establishment of the four major committees; upgraded intelligent technologies and bore fruit in industrial interconnection. The core pain points of 2021 mainly include the need to improve “Client-end as Top Priority”; too few industry-leading M-end products and companies; the inadequate development of the CXO configuration and the construction of the partner operation system; the insufficient multiplier value growth; the slow evolution of the operation process; the insufficient multiplier effect in the ecosystem; the need to continuously improve the risk control system. In 2022, while maintaining and expanding the highlights of last year, we must also actively address the exposed core pain points, gradually improve, and realize high multiplier growth in the company’s value.
Entering a New Era of Dynamic Internet of Everything
We are now in an era of Internet of Everything, but I think that Internet of Everything is not enough. The future will be the era of the mobile Internet of Everything. For example, the current smart car may seem to be a simple passenger carrier, but in fact, it is a mobile smart robot. The sudden emergence of the metaverse proves that the era of dynamic Internet of Everything will soon arrive. Moreover, I believe that the metaverse of fitting reality into a virtual environment is just the beginning. The future is not only the integration of virtual and reality, but also the ability to turn virtual into reality through brain-computer fusion.
It Takes One Year to grow rice,Ten Years to Grow Trees, a Hundred Years toCultivate Talents
Fosun has always adhered to the principle of 361/123 value multiplier growth. An enterprise can only create higher social value by continuously achieving multiplier growth. However, the high multiplier growth of Fosun’s value today was not achieved in one day, but from the seeds sown ten years ago. Therefore, the development direction and capabilities of the company need to be laid out in advance to achieve good returns beyond expectation. In terms of financial indicators, we plan to increase the investment in technological innovation to drive net profit and encourage enterprises in Fosun’s ecosystem to increase investment in technological innovation, so as to prepare for Fosun's harvest in the next decade.
Building Fosun's FES System of "DeepeningIndustry Operations +IndustrialInvestment"
In order to further consolidate the organization's systematic capabilities, we draw on the business management framework, organizational structure, fission co-creation mechanism and in-depth and efficient operation system of domestic and foreign leading enterprises with high multiplier growth to build Fosun's FES system as the main carrier of company’s innovation management.The FES system consists of five parts: value growth, entrepreneurial organization, multiplier growth of the ecosystem, refined operations and risk control.
In response to the goal of achieving ten-fold, hundred-fold, and thousand-fold value growth in ten years, we have formulated four indicators, and sorted out 23 major drivers for rapid and sustainable value growth based on five types of customers. Among them, there are nine major drivers in industry operations, four major drivers in investment and ten major drivers in cornerstone capabilities, which will continue to be updated and adjusted in the future.
In terms of industry operations, “Client-end as Top Priority” is one of the core concepts, and customer satisfaction is an important indicator to measure “Client-end as Top Priority”.Therefore, while pursuing high growth, we must also pay attention to the systematic construction of customer satisfaction, vigorously develop the mystery client system to test products and services, and efficiently make use of the C-end data.In terms of the organization, we have established a Chief Customer Experience Officer to ensure user experience. In 2021, we set up a Technological Innovation Committee to help improve the M-end. Focusing on good products, we not only have clear quantitative indicators of "1+2+7", but also evolved the chief product officer system. Our supply chain-end has also achieved good results in 2021, but some problems have also been exposed. Therefore, we have optimized and adjusted the organizational structure of the supply chain, prioritized the Chief Supply Chain Officer (CSCO). The entire supply chain organization is divided into three centers, each of which has a Co-CSCO in charge. In the future, we will continue to evolve the organizational structure of industry operations to improve operational efficiency.
Regarding investment and financing, future investments must be based on Fosun's ecosystem and industry operations, not only focusing on projects, but strengthening investment and operation capabilities through systematic construction. In terms of financing, it is necessary to enhance the construction of the financing team and introduce more external high-quality funds.
In 2021, we have also established an Overseas Operation Committee to strengthen our globalization capabilities. In the future, I hope that the organizational structure of the Overseas Operation Committee will be enhanced comprehensively, and there will also be sub-committees at the PL level, and dedicated personnel and teams to be responsible for the globalization of each PL. In terms of organizational operation, we can learn from the development model of Fosun Hive overseas to further deepen the globalization capability of the entire group.
Regarding FES management empowerment, we have set up the FES committee to promote the full implementation of FES, empowered various enterprises of Fosun in the ecosystem with the FES toolbox, expert database and case library, and promoted the value growth of the entire group.
The "1+2+7" ultimate thinking of the strategic line has been deeply rooted in the hearts of the people. In 2022, there will be two tasks for the strategic line:first, strengthen the decoding of the strategy, so that the strategy and operations can be in sync on a weekly and daily basis. Second, the Group Strategy Department must think from the standpoint of prioritizing the group to systematically determine future important fields and promote the establishment in these fields.
Regarding digital intelligentization, it is necessary to continue to strengthen the construction of talent organizations, accelerate the multiplier growth of digital intelligence, and build a digitaland intelligent Fosun. If we use the nine major systems of the human body to describe an enterprise, I think digital intelligent operation resembles the nervous system of the human body. It must grow together with the enterprise to transmit information to all parts of the enterprise in a timely manner. The financial system resembles the blood of the human body, the risk control resembles the immune system of the human body, and the human resources line resembles the stem cells and reproductive system of the human body. Therefore, in the future, we can strengthen organizational construction by sorting out the operation of the human body system to promote the longevity of an enterprises, extending the lifespan to over 121 years.
In 2022, we will build a balanced, proactive, robustand prudent financial system in terms of assets, liabilities and equity, organization, and financial compliance. Regarding strategic empowerment, we must prepare wellto achieve ten times, hundred times and thousand timesmultiplier growth of Fosun in ten years.
Fosun's high multiplier value growth ultimately depends on each Fosun partner. Therefore, we will continue to strengthen the construction of the partner organization comprehensively, and fully build the fission mechanism of partners. We must not only incentivize partners, but also incentivize partners who introduce and nurture partners. With at least three levels of incentive fission, we will attract more high-potential talents around the world to join Fosun and achieve co-entrepreneurship.In terms of the organization, we must also uphold the basic rule of “three begets all things, coopetition of multiple teams”, three or more dedicated personnel and dedicated teams to be responsible for important matters, create a problem-based value-oriented battle mechanism, and encourage cross-level communications, so that the enterprise will be filled with different voices. In addition, we will further improve the blue army mechanism to drive organizational evolution and innovation.
Multiplier Growth of the Ecosystem
In terms of growth in the ecosystem, in addition to establishing a dedicated ecosystem committee, the organizational structure of the committee must also be organized completely. We must not only have a dedicated team for the ecosystem, but also appoint dedicated personnel to the front-line team to promote innovation in the ecosystem, so that we can achieve high multiplier synergy growth in the ecosystem.
We hope to optimize the business value process in 2022, accelerate the implementation of strategies, and strengthen organizational operation capabilities through the operation model of three purposes, four actions, four roles, and three types of work. However, the high-quality operation of an organization cannot be achieved overnight. We need to take one step at a time, take the OC daily meeting system as the starting point, and evolve every day to ultimately achieve the goal of refined operation.
Risk control is very important to Fosun. It is our immune system and bottom line. Our risk control CRO mechanism should be optimized all the way, and supplemented with the corresponding risk control incentive mechanism and there should be more innovations in the construction of the risk control system.
Wishing everyone good luck in 2022!
Towards a Brighter Life
May the new year bless you with health, wealth, and happiness! Thank you all!