Adjustment Of Jingdong: A Thorough Organizational Change From Top To Bottom

Jingdong used to focus on Taiwan business, making it seem a bit neglected.

With its functional departments supporting the business, Jingdong has made it seem that people pay special attention to it.

From the end of 2018, Jingdong's personnel adjustment has seen that the core position of the company is still business first.

Even if the Jingdong is determined to "abolish 10% executives", the leaders of the major business lines who remain are all experienced veterans of more than 10 years.

Xu Lei (Jingdong mall CEO) and Wang Xiaosong, Hu Shengli and other business leaders are not the ones who are airborne professional managers.

Once in the Jingdong category expansion, to the United States listing and several rounds of business upgrading stage, has successively joined the resumes of fresh professional managers, are slowly leaving the Chinese leading B2C business company.

The company spent a day announcing the restructuring of its restructuring business, but spent nearly half a year promoting human adjustment and is still in progress.

If this is the biggest upheaval since the Jingdong was founded, it can only show that the Jingdong of the past two years has indeed experienced the biggest challenge ever since its founding.

Whether it comes from external competition or internal problems.

This makes the internal adjustment of Jingdong today being increasingly outspoken by the outside world.

Until a few days ago, "one day left nearly 400 people" rumors, Jingdong finally finally can not bear, then issued a statement, said it would use all means to investigate rumor's legal responsibility.

10% of executives, group CHO, long rain, CTO Zhang Chen have left, and grassroots employees have been optimized.

Since the establishment of the organizational structure of the former, the middle and the backstage, the "big news" from Jingdong has not stopped.

CEO Zhang Yong of Alibaba Group recently said that the business model innovation is to create productive forces, and organizational capability innovation is to create new production relations.

This is not only a request and admonition of CEO to its own company, but also verified by business management science, and it also applies to all the common knowledge of changing business organizations with organizational capabilities.

Yes, the adjustment of Jingdong's organizational structure is actually the adjustment of the organizational relationship of the company and the adjustment made in order to create new production relations.

And the fundamental reason for the reconstruction of organizational relations is to continue to increase productivity.

It can be said that the two depend on each other and cannot be neglected.

Jingdong has indeed reached the key node of productivity improvement.

Although the 2018 financial report delivered good financial data, the continued growth of financial data can not conceal the short board of business data: Jingdong's revenue growth continues to slow down, and new users are no longer strong.

In fact, Liu Qiangdong should have realized these problems early.

Almost no sign is that in the evening of December 21, 2018, Jingdong suddenly announced the announcement of organizational adjustment of Jingdong mall.

Compared to the three major business groups set up in early 2018, the structural adjustment can be said to be subversive. The whole Jingdong mall is divided into the front, middle and back stages.

Jingdong's purchase, Jingdong's new access, 7Fresh and other close business are officially pushed to the front desk.

The 3C electronics, fashion home and other business groups that have accumulated the core competence of Jingdong have been put into the middle stage.

Internet Co highlighted Zhongtai and became the common knowledge of the organizational structure of China's Internet industry in the past two years.

In order to refine the common requirements of various business lines, Taiwan and Taiwan build them into component-based resource bundles.

In the form of interface, it can be used to use the front business departments to minimize the "duplication of labor".

It is noteworthy that Jingdong's backstage, that is, the structure of a partial functional department, focuses on the Ministry of human resources and finance in Jingdong notices.

To manage people and manage money becomes the core of Jingdong's backstage work.

This core has also become Liu Qiangdong's two major starting point for Jingdong's organizational change.

Why is Jingdong announces the "small group and big business" today? That's why.

Big business, let Xu Lei and other veteran soldiers do it.

Small group, Liu Qiangdong himself came to catch.

Group (functional departments) to serve the business, this is probably Jingdong will never change the enterprise purpose.

However, the practice that the group used to rely on professional managers to support has also been broken.

Therefore, after Jingdong released the news of layoffs of 10% executives, the first adjustment was CHO, and former Jingdong CHO Long Yu quit, and Yu Rui took over.

The latter grew up from the grassroots level and rolled to the Jingdong gene "mud land", and the "seasoned" Jingdong second pipe pat Sheng.

Immediately after leaving CTO Zhang Chen, CXO level executives lost two instantly, and the adjustment was not too big.

The outside world said that the restructuring of the organization is Liu Qiangdong's return.

On the face of it, executives reporting directly to Liu Qiangdong have decreased.

But in essence, Liu Qiangdong truly recognizes that the strength of Jingdong must be based on the improvement of organizational capability.

It is not surprising that he began to devote himself to the organizational and cultural development of Jingdong.

Presumably, the next Jingdong business layout is also closely related to its new organizational structure.

-1 - big changes in functional departments

Today, Jingdong's functional departments almost experienced a complete self reversal process.

The organizational system of Jingdong is divided into business system and function system.

The business system includes the "three carriages" established by Jingdong, Jingdong mall, Jingdong logistics and Jingdong number section. The leaders of these three groups are all the backbone of the business. The functional system mainly provides infrastructure, service support and risk control for the whole group.

Prior to these departments, Jingdong has been "relying on" seemingly very reliable professional managers.

Around 2012, Jingdong recruited a large number of CXO level executives with brilliant resume. They led Jingdong's functional departments for a long time.

Back in 2007, 12 years ago, it was time for Jingdong to introduce the first executives.

Because in that year, Jingdong completed the $10 million A round of capital investment today, and Liu Qiangdong realized that Jingdong needs to be normalized.

Before that, the state of the Jingdong was described by an investor as Liu Qiangdong: this lion led a group of sheep to fight.

At this stage, Jingdong is in the early eve of rapid development, and business is far ahead of the organizational construction.

At this stage, the definition of business side talents by Jingdong lays a great deal of emphasis on practical business capability.

During this period, Xu Lei, Wang Xiaosong, Chen Shengqiang and Xiao Jun were recruited into the Jingdong.

It is worth noting that the backbone of this group of business has not only experienced all the adjustments and adjustments made by Jingdong since then, but also enhanced its capability with the growth of Jingdong.

Around 2012, Jingdong introduced the second batch of professional managers.

In August 2011, Shen Haoyu was formally recruited into the Jingdong. He was also the first CXO executive executive introduced by Jingdong.

Since then, chief public affairs officer LAN ye, chief technology officer Wang Yaqing, chief human resources officer, long Yu, chief financial officer Huang Xuande and others have joined Jingdong.

This is a group of professional managers with bright resume and strong professional quality.

Take Shen Haoyu, his public information is like this: 1992 graduated from Renmin University.

In 1997, he received a master's degree in Business Administration from University of Iowa, joined Baidu in June 2007 and vice president of business operations; in January 8, 2010, Shen Haoyu was promoted to senior vice president of Baidu; in August 2011, Shen Haoyu formally joined Jingdong mall as COO; in April 2014, Shen Haoyu became the CEO of Jingdong mall.

If we say that in 2007 or so, Jingdong can still run reckless.

After 2012, the Jingdong quickly had to focus on organizational development.

Statistics show that by the end of 2010, Jingdong had fewer than 8000 employees.

But by 2014, this figure had surged to 70 thousand.

In addition, Jingdong should prepare for listing, so at this stage, professional managers with strong professional ability will become the first choice.

The professional manager's resume is beautiful, but the problem is also obvious. Because of the whole group's "survival safety" functional departments, Jingdong basically uses "airborne troops".

Compared with ALI and Tencent, the way of appointing talents is quite different.

For example, the mainstay of Ali's functional affairs is mostly from eighteen arhat, who accompanied Ma Yun to establish Alibaba in the early days.

Such as Cai Chongxin, Peng Lei, Jiang Fang and so on.

And Ma Yun personally invited Mr. Zeng Ming and Shao Xiaofeng, who were "the most comprehensive" of Ali.

Later, a number of professional managers recruited, such as Zhang Yong, Jing Xiandong, Wan Lin, Jiang Fan and so on, are mainly placed on the "front desk" core business line.

This difference also laid the foreshadowing for today's Jingdong reform.

By 2016, Shen Haoyu and Wang Yaqing had already left.

Today, long rain has officially left, and LAN Ye has been pferred to CPO from CMO.

It can be said that the number of professional managers recruited in 2012 is now very weak in Jingdong.

-2 - reuse core business backbone

As stated in the foregoing, the organizational change of Jingdong should first catch people.

We noticed that Yu Rui, the successor to Jingdong's CHO long rain, is an interesting phenomenon because Yu Rui has three labels: Guan Peisheng, a prominent business, well tested and internally grown.

These three tags are basically equivalent to two words in the Jingdong.

And the position of such a "confidant" in CHO can be seen that Liu Qiangdong's position on the functional departments is changing.

From then on, a group of experienced CXO executives showed that Liu Qiangdong was more qualified for the background and professionalism of talents.

Because of the rapid growth of Jingdong, the organizational system is also expanding rapidly. At this time, Jingdong is too late to train.

As for the role that can promote this work, Liu Qiangdong chose airborne professional managers.

The introduction of CXO level executives brought obvious personnel changes to the Jingdong, such as Xu Lei, who had reported to Liu Qiangdong directly, a large number of vice presidents, who were reporting to CXO.

In addition, the CXO executives are also responsible for capacity evaluation of these business line executives.

Looking back today, it is regrettable that the paratroopers did not help Jingdong greatly improve organizational efficiency, and even to a certain extent, become a drag.

This contradiction occurred in 2018.

"Customer first values are diluted, only KPI theory and" intersection "culture prevails, Department walls are getting higher and higher, self talk, no unified business logic, slower response to external changes, and arrogance to customers.

Xu Lei spoke hard at the annual meeting of Jingdong mall.

In addition, according to 36 krypton previously reported, Liu Qiangdong at the recent internal meeting denounced executives "overstaffing, gangs."

A big company has been overstaffed and ganged up. It has been denounced by the whole company when the founder is unsympathetic. It can be seen that the problem is serious and the phenomenon is rampant.

Such a flood of problems is obviously far from the value of the professional managers of Jingdong.

Recently, Jingdong also asked all staff to carve out kinship relations, including: 1, spouses, including lovers and engagement relations; 2, direct blood relatives; 3 and three generations of collateral relatives and spouses; 4, near affinity; 5 students (from primary school).

Some people in the industry believe that this way of combing kinship may be related to the serious nepotism in the Jingdong.

Now, Yu Rui has taken the position of CHO to show Liu Qiangdong's change in the way of thinking of functional departments, that is, from the appointment of "airborne troops" to the "old man" who has thoroughly accepted the culture and business logic of Jingdong.

This train of thought has begun to have something in common with ALI and Tencent.

At the same time, the head of the line of business who once needed to report to CXO began to play a more important role in the group.

For example, Xu Lei was promoted to Jingdong mall CEO, Hu Shengli, Wang Xiaosong, Yan Xiaobing served as head of various business lines, and his position was stable.

Some other business leaders grew up very quickly. For example, Xiao Jun, President of X business department, was promoted to vice president of the group from the middle duty when he first entered.

-3 - "human" logic and challenges

On the other hand, the withdrawal of paratroopers, the other side is a more arduous task for the business backbone to be appointed, and the logic of Liu Qiangdong's employment and logic of organizational change is very clear.

The reuse of business backbone, on the one hand, stems from the urgent demand of Jingdong for the current business development. On the other hand, the functional departments of Jingdong are also looking for highly coupled talents with Jingdong culture and business.

As mentioned above, Jingdong needs to make business breakthroughs in order to reverse the slowdown.

In the 2018 earnings analysts conference call, Liu Qiangdong made a clear exposition of the innovative points of Jingdong's business model: "in 2019, we focused on three things, first of all, three or four line cities. We were concerned about the three or four line cities for several years. The good news last year is that the three or four line cities have exceeded the first tier market for the first time. This year, we will invest more products in the three or four tier cities to attract customers.

The second is digitization. We will use big data and digitalization to help the management team work more efficiently, cooperate with partners better, and make the platform grow better.

Third, we will introduce more offline business models, such as 7Fresh.

We will continue to test and improve and replicate the offline business models.

The Jingdong's imagination, or financial indicators, largely depends on the penetration of the three or four line cities.

In 2018, Taobao's demographic dividend in China's Internet population is still at its peak. It is still enviable that 120 million new members will be expanded in the year.

The continuous promotion of Jingdong's new channel, 7FRESH, Jingdong's purchase and other front office business, to a large extent, is also verifying the ability of Jingdong to sink the low line market.

Therefore, for Jingdong's self operated e-commerce platform, business promotion is still the top priority.

For a long time, Jingdong's business always seems to be in front of organizational construction.

When the external competition is not so fierce, the definition of backstage talents in the Jingdong is partial to professional talents, and there is no strong demand for Jingdong business, especially the familiarity of "genes".

The "first development and post governance" conventions are also staged in Jingdong.

Now, Liu Qiang's organizational system, which is dominated by the east side, is more like a missed lesson for the previous development.

When Jingdong needs to find new incremental markets, core businesses need to pursue "quality growth".

Liu Qiangdong found that Jingdong needs those who are "hardworking" and "understand their own logic".

This logic of organizational change is exactly the same as Jingdong's strategic conception of "small group and big business".

The so-called "small group" means the high efficiency of the internal organization and the high coupling between the former, the middle and the backstage.

Because with the growth of enterprises, it is easy to organize duplication of construction and waste of resources, so that the group organization is huge, redundant and inefficient.

Between departments, they do not support each other, nor do they infringe upon each other. The functional departments have become the burden of business departments and become common problems of many large enterprises.

Even HUAWEI, known for its organizational talent, has seen Ren Zhengfei scolding the financial department of his daughter, Meng Hong boat, and why it is "wasting money" for employees to work overtime for meal reimbursement approval.

Liu Qiangdong's return will largely focus on "small groups".

"Big business" is more let go of business leaders to take care of, for example, Jingdong mall business line leaders all report to Xu Lei.

After changing the practices of the three major business groups and reporting directly to Liu Qiangdong, the whole group business is more focused, and the three sub groups are set up, namely Jingdong mall, Jingdong number division and Jingdong logistics.

Each sub group has set up a CEO position to build a dominant moat while continuing to sink the low line market.

This sort of organizational relationship is not only in the middle and upper levels, but also in the grass-roots workers.

Previously, there was a rumor that the Jingdong would be 995 (5 days a week to work, 9 in the morning and 9 in the evening).

In this regard, the Jingdong reply: will not force the staff to work overtime, but encourage people to be full of investment, efficient output.

The meaning of this plation is that no matter whether or not overtime is required, the company must resume its early stage of struggle.

Jingdong, on the other hand, has also announced that it will recruit more than 15 thousand employees in the future.

On the one hand, employees who fail to meet the standards and who do not agree with the culture should be eliminated. On the one hand, new blood will be injected into the group.

The fundamental purpose is to let grassroots employees regain their morale in early business and enhance their combat effectiveness.

The Jingdong in 2019 carried out a thorough organizational pformation from top to bottom.

However, the retention rate of imported talents is also a key issue that Jingdong needs to consider.

After all, the outcome of most CXO level executives cannot be rooted in Jingdong, which is not a good thing for Jingdong.

Generally speaking, a good organizational culture system should not only have the talent to give full play to the energy of the soil, but also enable them to achieve self value sublimation.

Talents are all talents.

Xu Lei's business backbone was not brought out of the Zhongguancun counter by Liu Qiangdong.

Not because he is a veteran of internal growth, the elite of external recruitment have the essential difference of talents.

Why should a company emphasize values and sense of mission? It is to give people the ability to give full play to the system of protection; there are rules for public promotion on the desktop; there are guidelines for what to do, what to do and how to do things.

In the recent internal communication meeting of the box office, Zhang Yong's reflection on the organizational capability of the enterprise has aroused widespread communication and reflection in the industry.

He believes that disruptive innovation comes from people outside the industry, and he does not agree with the phrase "one will make a million bones".

Because a person can not decide everything, but depends on the organization, in turn, everyone in the organization should grow from the process.

"Our train keeps moving forward, and there are new people coming in. There is a slight carelessness. The old man may fly out of the train, so there is no way to precipitate the core capability."

The future of Jingdong is obviously not dependent on Guan Pai Sheng, or a veteran soldier who relies on internal growth, or an external professional manager who is leaving today.

The source of talent is extensive, and the new person is a necessary source for the continuous progress of an old company.

How to make new people quickly adapt to organizational culture, play an important role in the organizational system, and grow more from the organizational relationship is an important topic before Liu Qiang.

The adjustment of Jingdong is still in progress.