Lining's Internal "Big Knife" Change

Recently, Li Ning Co announced that it was ready to abandon the "functional oriented" organizational structure in the past, and was about to pform into a "business oriented, core business driven" category business structure.

The specific way is that

The company will vertically integrate its departments to create five core clusters.

And take this as the leader to form vertical management, which is composed of seven systems, namely, market analysis, commodity planning, product planning, product design, listing planning, sales channels, consumer communication and so on.

This means that at present, the five major categories of the Li Ning Co's key categories - basketball, running, comprehensive training, badminton and sports life - will be planned by a cluster of business departments. Before the market analysis, product design, channel sales, promotion and promotion, the practice of doing basketball series and other series of running, badminton and other products will be the history.

Li Ning Co believes that the five main categories of business clusters are designed to integrate the two systems of the company's products and markets, and integrate the two functions of the products and the market.

By adopting the development mode of product and business, it is beneficial for the company to complete the change plan as soon as possible, and then realize it to become the profit center driving the development of the company.

Since 2012, the sporting goods industry has entered.

After the period, Lining's performance even lost three years.

Recently, when other sports brands such as Anta, 31st degree, China trend and other sports brands have issued a notice that they will make profits in 2014, the announcement issued by Li Ning Co shows that it will continue to lose 820 million yuan in 2014.

Against this background, the market value of Li Ning Co has also dropped out of the top spot of the industry. The past industry "younger brother" has taken the lead. The market capitalization of Anta sports and China has taken the first place and the second place with HK $33 billion 960 million and 73.6 billion respectively, while Li Ning Co ranked third in the market value of HK $6 billion 700 million.

After Lining himself rejoined the company, he organized the core business from the organizational structure. He thought that it could inspire the enthusiasm and creativity of the Li Ning Co team, and simplify the process of the company to the greatest extent and reduce the cost of communication and management in the process of operation.

Li Ning Co responsible person said, under the leadership of the five core categories, the company will fully cultivate the major categories, and then accurately capture consumer demand, respond to the market's every move and react promptly, so as to effectively enhance the overall efficiency of the five core categories of the company.

For the adjustment of Li Ning Co's organizational structure, the key way is CEO Zhang Qing, a sports consultancy company, told the China Commercial Daily reporter, "at the moment, Lining needs such a" wolf sex ", which can be said to be a reshaping of entrepreneurial culture.

The launch of the category business department has the opportunity to stimulate this competitive, business oriented "wolf temperament".

The management system of the Division has been used more frequently in the Internet Co, such as Baidu, Alibaba and Tencent.

Faced with the difficulties of the market environment, learning from the Internet enterprises, and moving the knife from the internal organizational structure, and stimulating the enthusiasm of the staff, this is a way to reverse the situation for the Li Ning Co nowadays.

But reform must be carried out from top to bottom, or else it will be just a change.

In fact, as early as in 2001, Li Ning Co launched the product manager system, which is similar to the current category business cluster, but it has not been implemented very well for various reasons.

Because, according to the development of the category business department, the comprehensive ability of the core management personnel is relatively high, and higher requirements for the integration efficiency of the five major departments can be shared.

For example, for the channel, it used to face a brand, but now the brand needs five terminal space.

Therefore, if there is no efficient inter agency coordination mechanism, Li Ning Co's category business department will be unable to play its role.