Yu Minhong: The Way To Set Up A Core Entrepreneurial Team

In recent days, Hui Zhi Tian held "changing the fate of the enterprise". business model On open class, New Oriental Yu Minhong, founder and chairman of the education technology group, discussed his views on how to form a core team at the beginning of his career. He analyzed from the earliest core members of New Oriental joined the process. He analyzed that it is very difficult to attract interests, and values and entrepreneurial vision, and respect for each other is the biggest attraction.

　 Below is Yu Min Hong Wonderful Narration:

From production to households to ambition

I like to work with a group of people, but I don't like to do it alone. At the beginning of the business, looking around the teachers and staff members, I could hardly become my collaborators. I went to the United States to chat with them. At first, they didn't want to come back. At that time, Wang Qiang worked in the Baer laboratory, earning 80 thousand dollars a year. He asked me a question: "Lao Yu, I am now equivalent to 600 thousand yuan. If you go back, can you give me a salary of RMB 600 thousand? In addition, you give me 600 thousand, like the money earned in the United States. Is it worth my return? " At that time, the profit of New Oriental was about one million in one year, and it was impossible for him to give it to him.

Two factors led them all to come back. First, when I was in Peking University, I was one of the most successful boys in Peking University. I haven't seen anything in Peking University in the past four years. I can't speak Putonghua, nor do I have a good exam. I also got tuberculosis. Many girls didn't know my name until graduation. It was not until twenty years later in 2000 that the whole class gathered again. The girls in the class suddenly discovered that I was one of the talented men in my class. They came to hold my hand and regretted not having started. When I went to the United States, China did not have credit cards, and it brought large sums of US dollars in cash. I sneaked around, and it was 2000 dollars, and I brought 8000 dollars in separate bags. I only had cash in the US. This cash will give them a shocking effect. To spend one hundred or one hundred dollars in the US is a sign of super money. Do you think Yu Minhong is so hopeless in our class that he can spend a lot of money in the US? Because they all feel more powerful than me.

The second way I used it was to tell them: "if I go back, I will never hire you. I am not qualified either, because you are my class leader and my secretary of the League branch in University. China's education market is very large. Let's make a piece of it by ourselves. Depending on the New Oriental, I will not pay a penny for everything you made. You don't need a school license to start the fund. I'll provide the house. I'll rent it for you. As long as the teacher's salary and rent are paid, and the rest of the money is taken away, I will not pay a cent. " They asked, "how much income do you have in a year?" "5 million." They said, "if you can do 5 million, we will go back to 10 million." I said, "you must be more than 10 million, your talent is ten times more than mine." I wondered who could make 10 million of the money in the end. I still fooled them back. Until 2003, before the New Oriental stock structure changed, everyone was riding a bicycle.

In the first year, only 50 thousand or 100 thousand came back. By 2000, everyone would have millions or millions of income. So everyone came back very well and very happy. Because we are friends, we must work together, or else we will come up with a very good modern structure. But I didn't understand it at that time. I am the most reluctant to have conflicts of interest, so there is a mode of "production to households". Friends are partners and cost is shared. The rest is yours.

The three connotations of the company's development are: first, the governance structure; when the company develops, there must be a good governance structure; the second is to build the brand; if the brand building is not in place, it is impossible for the company to continue to develop; third, it is necessary to make sure that the profit distribution mechanism must not be allocated to the third step.

　　 Reform is not structural but mentality.

Before the implementation of joint-stock system, everyone in New Orient went to work by bike. The shares were divided into second days, one person matched one car, and 11 cars at once. It was very interesting.

Reform is not structural but psychological. It is useless to have a good attitude and no good structure. This is why the democratic system in the United States can not be completely moved to China. The system can move, but people's mentality does not go up.

After the New Oriental equity reform, two problems emerged. First, the original profits were taken home. New Oriental accounts at the end of the year, and a penny does not stay. Now the corporatization, the future going public, we must leave the profits, everyone's psychology will be out of balance immediately: the original year can take home 1 million, now only 200 thousand, 800 thousand must stay in the company, and the company can not work well, do not know whether the future can be listed or do not know. The immediate income is reduced by 80%. What should I do? Unwilling. Second, after working together, I was 100% to me, and now 80% is not mine. It is necessary to set up a company, share shares and remain reluctant to keep shares. What is the absurdity of the New Oriental?

We feel that shares are not valuable, take 10% of the shares, do not know how much red at the end of the year, began to make trouble. I will set the price for shares: "if you really feel that it is not worth the money, when I get the shares back, the shares are free, and now every share is returned, one hundred million shares are worth one hundred million yuan, and I will take back your 45% share." I said they would not return me. I also suggested: "I run to my hometown to open a small school." When I quit, they did not dare to answer. Finally, I said, "I will give you the shares, and I will not leave 55% of the shares. As a result, they did not discuss it. They thought, "we are now united to fight you, but when you leave, we fight each other."

I take stock from them, but they do not want to sell, but this brings two advantages. One is to show that I am sincere, and more importantly, to set a real price for the stock. They thought that it would be false to set a dollar. "You decide a piece of money, the stock value is not worth the money." now I really propose to buy a piece of money and buy it back. They find the stock is worth, because the maximum is 10%, 10% is 10 million shares, if 10% buys, it is equivalent to 10 million cash, they feel valuable. {page_break}

　 Shares have the right to speak than leadership.

Everyone did not want to sell the shares to me, so I came to a conclusion: New Oriental is so chaotic, Yu Minhong lacks leadership, the best way is Yu Minhong you do not lead, we choose our own leadership. When I say "OK", I retire from the position of chairman and president. They started to pick, everyone wanted to do it. They thought it was very simple. If Yu Minhong left, he could clean up as soon as he got there.

They began to lead, and I backed them out. I have the title of founder of New Oriental, and have 55% shares, so the board of directors refused to let me take part. If you say this to us, we don't know how to hold a meeting. We don't know how to criticize you. President of the office will not allow me to participate, the New Oriental Association will not be able to attend the meeting, I became the New Oriental ordinary teacher, carrying a bag to class. From the end of 01 to the 04 October, each of them had been chairman and CEO. As a result, those who went up were poorly organized. Finally, I called back: "the position of chairman and CEO is not done by people, or you do it." I returned to the position of president in September 04 years ago.

This is a little bit like a child's home. In fact, the main mistake lies in me. If I manage the New Oriental with my current skills, I will be able to manage it in two days. At that time, I didn't even know the limited company and the unlimited company. I couldn't make myself clear and invited several consulting companies. We first asked the Chinese consulting company to consult us for a long time, and said, "New Oriental people can't do this. When you first talk, you will talk about how deep your feelings are, and don't talk about management. Forget it!" We think the domestic consulting company can not do it, and have invited the international consulting company to invite PWC to give them 3 million. They said "too simple" and made countless reports, but no one did it. 11 people in New Oriental are all board members? That's fine, too. According to the rules, 11 board members will solve a certain problem. If only 6 people agree, even if they pass, 5 objections will be useless. In practice, it is a one vote veto system. We are all brothers. As long as one person says this thing can not be done, the other 10 agree. Nothing can be done. The board opened from 2 o'clock in the morning to 2 o'clock in the evening without solving a problem. PWC adjusted for three months and said, "we don't want any money. Let's go. Your New Oriental is impossible to do business. You are all the nerds in Peking University. Personal feelings are very easy to affect your emotions, and your feelings are afraid of being hurt. You can't do things. If we don't care, we won't have any money. "

In fact, I owned 45% of New Oriental's shares and did not reach 55%, because I left the 10% as a joint stock fund for developing talents. After that, I diluted the share in three years and diluted the capital. When New Oriental was listed, there was only 20% of the shares.

After 05 years of integration into new international capital, New Oriental began to prepare for listing. After the implementation of the shareholding system, the original personnel from the cashier, the accountant to the financial manager all shine, and one does not stay. This is not a distrust of me. They think I have too much foundation with these financial staff, and my business starts to follow me. Yu Minhong's next order is to corrupt $2 million, and they will not take it out. Therefore, Yu Minhong's financial personnel must not be allowed to control the New Oriental. Since 2001, the New Oriental financial personnel have become the financial personnel of the field. And from then on, I was not chairman of the board. The advantage is that the financial structure of New Oriental will be normalized. I am not chairman of the board, I also want to look at accounts, they want to see accounts, accounts must be kept public forever, always can only do a set of accounts, can not do two sets of accounts. When New Oriental was listed, its financial structure was quite complete. But at that time I was angry and wanted to commit suicide: I have been doing this for a long time to bring you guys back, and finally came to have a strong distrust of me. Would you like to kill me or a man? They also feel that I am not a human being. After seeing the later New Oriental, I know that these people really bring new development to New Oriental.

If your people quarrel with you, you must calm down and think about it. If he quarrels with you at a higher height or at a more correct angle, you should accept this quarrel, otherwise you will be angry all the time and say, "you all go back, I'll do the New Oriental!" they must have left with their bags.