Inertia Differences in Business Markets and Corporate Culture

The story of "warming boiled frogs" is actually about the role of inertia. The market is made by people. People's understanding of the market and consistent practices will form the inertia of understanding. The inertia of understanding will lead to the inertia of behavior. The inertia of behavior will play a very positive role on the one hand, that is, it will achieve long-term stability of the market. Especially for a mature industry with stable stability, but for a company that pursues excellence, for a growing company, it is precisely because of the inertia of the operating market that it is unresponsive and the market is declining.

A company with a strong culture will form a strong behavior. Under the guidance of strong behavior, it will form a strong market share, and those who operate the market will make a judgment of super confidence and super strength. The repeated continuation of this judgment has resulted in a more deadly market inertia, which I call "self-important disease." Under this condition, I will always think that my market is always ahead, my behavior pattern and market operation mode have no big problems, my team has no problems, and the reason for the problem is that I have not completely implemented my own values ​​and behaviors. Mode, and the market is always changing. When your product has problems in quality or is not sensitive to consumer demand, or when competitors are improving, this kind of autism caused by arrogance will become a kind of The stumbling block of progress, and the continuous stabilization of its strong mentality, the market error caused by this inertia will become larger and larger, and all views, behaviors and people who are different from the original way will be rejected, hindering truth and innovation.

The market is different. Different people's different ideas and different behavior patterns in different regions have different needs, which will result in different markets, different market operation routines, and a kind of elimination in the context of strong inertia. Differences in thought and behavior patterns, and the power of inertia can also lead to the simplification of market operation patterns. For example: XX enterprises, the markets faced by each branch are actually very different, different regions have different competitors, have different market operation ideas, and the actual market position is different, but the decisions and operations of each branch Routines are consistent, a common compensation system, a common market share, a common strong operational thinking and behavioral model, and the result of the inertia of this operation is that a strong place may be smooth, and a weakened region will fall into The vicious circle is getting bigger and bigger.

When Mao Zedong was asked how to solve the problem of corruption and historical decline, Chairman Mao said that he relied on democracy; there was no perpetual motion in science, and there was no immortality; but we have seen many centuries-old enterprises and elderly people with a permanent mentality. How should this be? Explain that the enterprises with long-term success have two forms: Evergreen and Wannian turtles represent a method that is stable and has a very simple physiological system, and inertia exists for a long time; the other is similar to TCL. The practice of "the rebirth of the eagle" is that the phoenix nirvana needs to be sueded and self-renewed, and it needs to be continuously rebuilt. Perhaps Siemens is more like a million-year-old turtle, and GE and most of the Chinese companies in the future are more likely to choose the latter method.

There may be two ways to solve the market inertia and difference. One is a long-term institutional arrangement, similar to the three-power separation system advocated by the Western political system or some arrangements in the enterprise; the other is continuous innovation. Constantly experiencing the threshold test, constantly struggling on the verge of dying, and constantly reborn. But the premise of any two of these solutions is the values, whether they form the values ​​of the enterprises corresponding to the above methods. The success of GE Welch lies in the values ​​of a capable system that they insist on and advocate. Wang Shiwanke The success also depends on the professional manager culture that is guided by the values ​​and values ​​of the “Shekou Gene”.

"Warm boiled frog" is a kind of inertia. The inertia will ignore the variability and difference of the market. The solution to inertia is to have zero distance from the market at all times, and the enterprise system can have a rapid response to the flexible market. Institutional arrangements, and the key to success of all this is that the enterprise has a corporate culture that is coordinated and promoted with it. The corporate culture should not be a culture of inertia, and the culture must have a certain geographical and market under the unified values. Differences must also keep pace with the times. All of these preconditions have a corporate culture system that is inclusive and flexible.

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