Management Principles
“Management principles” are a reflection of a company's management style, embodying the perspectives, methods, and standards through which a company thinks and handles issues. They also provide a code of conduct for the company's cadres and employees. Culture belongs to the macro level, while systems belong to the micro level. “Management principles” fill the gap at the meso level, serving as the concretization of culture and providing guiding principles for system construction. When cadres manage and lead based on “management principles,” they can improve individual management efficiency and enhance the overall level of organizational management.
Business and Development – Part I
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Enterprise and Cause
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Yuyue is a world filled with humanistic care, holding reverence and gratitude for nature and society.
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We are engaged in a cause that promotes personal growth and social progress.
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We aim not only to create profit but also to create value.
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We strive for the harmonious integration of economic, social, and ecological values.
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The prerequisite for creating value is to survive. Only by surviving can we help more people.
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We coexist with stakeholders through cooperation and achieve mutual benefits through coexistence.
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Only by adhering to the principle of long-termism in dealing with people and matters can we continuously create value.
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We also follow the principles of coexistence and long-termism in collaborating with partners such as outsourcing and suppliers, carrying out resource integration and coordinated planning.
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Entrepreneurship and Innovation
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Innovation requires the entrepreneurial spirit of personal involvement and perseverance.
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The risk of innovation is high, but the risk of not innovating is even higher.
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Technological innovation needs a cultural and systemic foundation.
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Changes in business models and organizational structures make the emergence of new technologies possible.
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Without improvement, there is no progress; without progress, there is no future.
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Innovation should break the routine, and hiring should not be limited by conventions.
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Innovation should dare to tackle tough challenges.
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Tolerance for failure encourages innovation.
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Innovation should be within our capabilities and must not undermine the foundation of the company's survival.
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Innovation can be a process of recombination, resulting in new combinations.
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Innovation is market demand-oriented and measured by market success.
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Strategy and Development
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Strategy should not only study what we will do in the future but also what we should do to have a future.
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Strategic planning follows the principles of understanding the way, seizing the trend, and optimizing tactics.
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One cannot find new continents with old maps; to pioneer blue oceans, one must first overcome cognitive barriers.
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Group strategy should be dynamically adjusted, with orderly entry and exit in industries.
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The group implements a related diversification strategy, encouraging subsidiaries to develop products and services that are interrelated.
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Starting from major issues such as society, ecology, and resources, we discover significant development opportunities.
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Only large markets can support large enterprises; choosing large markets is the basic principle of our industry selection.
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Establish development goals based on long-termism.
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Think big and start small, accumulating small victories into big ones.
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Customers and Market
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Customer-centricity is the starting point and foundation of all our work.
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Products are the carriers of services; we should move from selling products to selling services.
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Customers need not only products but also services for product innovation.
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Strive to exceed customer expectations, aiming to move and surprise them.
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Customer satisfaction is the shared responsibility of all employees, activated through market pressure.
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Establish an internal customer mindset; the next process node and all collaborating departments are customers.
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Achieving customer satisfaction is the shared responsibility of the company and external suppliers.
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Building a strong team of application engineers is key to our core competitiveness.
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Focus high-quality resources on major customers or those with potential for growth.
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View customer complaints as opportunities for improvement.
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No detail is too small on the front line of the market; managers must serve the front line quickly and efficiently.
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Systems and Management
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Only by standardizing all work can we eliminate arbitrary and disorderly management.
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System construction should focus on systematicness, relevance, and necessity. Good systems are essential, while bad ones should be eliminated.
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The criteria for establishing systems are: when the same problem occurs twice in a row; when tasks cannot be done well without systems.
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When making systems, consider benevolence; when enforcing them, be strict.
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Unreasonable systems should be revised, but not as an excuse for non-compliance.
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Standardized operations require established standards, which are the foundation and starting point for continuous improvement.
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Process operations should be simple and effective, even “foolproof,” to avoid confusion or misunderstanding.
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Management should be data-driven, letting numbers speak for themselves.
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Meetings should be brief and effective, with preparation before, focus during, and follow-up after. Don't forget PDCA (Plan-Do-Check-Act).
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Operations and Control
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Safety is the fundamental guarantee of the business.
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Fully understand risks and ensure overall safety.
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Risk management starts with contingency plans.
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Cash flow is the lifeline of the enterprise.
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National security, social responsibility, and low-carbon economy are significant risks and opportunities for enterprises.
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Everyone, at all times, in all matters, and in all places, should have a cost-conscious mindset.
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Quality is the standard for measuring the level of products and services. When quality conflicts with cost, quality comes first.
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Pay attention to every detail; local crises can lead to overall collapse.
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Focus on both results and processes, using process control to prevent risks.
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Neither trust should replace control (which leads to chaos), nor control replace trust (which stifles flexibility).
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The more significant the decision, the stricter the decision-making process. Never bypass procedures just because an opportunity seems rare.
People and Organization – Part II
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Cultural Construction
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Corporate culture is a value system that all employees consistently recognize and follow.
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Running a business accumulates not only products but also ideas and culture.
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Corporate culture should keep pace with the times and adapt to the needs of social development.
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We use corporate culture to guide all the company's actions, including strategy, operations, management, and investment.
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Culture is our standard for measuring people, finding, cultivating, and achieving success for them.
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Culture is our internal driving force.
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Make culture “visible, audible, tangible, and usable,” overcoming the separation between cultural construction and business operations.
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Building a healthy corporate culture is always the top priority for cadres; employees with ambiguous cultural values cannot be promoted.
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Only by combining corporate culture with employees' direct feelings can we actively involve them in cultural construction.
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The “Yuyue Cultural Platform” is the unbreakable behavioral boundary for the company and its employees.
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Organizational Construction
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Organizational structure should follow the strategy while maintaining relative stability.
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The group should establish a highly centralized yet extremely flexible command system, cultivating management cadres who are both highly qualified and willing to take responsibility.
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Functional departments should delve into industries and processes, serving and empowering business operations.
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The goal of subsidiary organizational construction is first to create value for customers, with organizational structures changing promptly according to customer and market changes.
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We honor struggle and value those who strive; only struggle that creates value for customers is true struggle.
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Never let those who create value through struggle suffer.
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Human resource construction follows the development policy of responsibility as the benchmark, capability building as the main line, leading compensation as the guarantee, and sharing mechanism as the driving force.
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Open different career paths for various talents, letting professionals do professional work.
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Be good at discovering talents through major tasks.
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Cultivate teaching-oriented cadres and build a learning organization.
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Team Building
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One hero needs three helpers; a fence needs three stakes. Unity is strength.
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With the same heart, we go further; with the same virtue, we go closer.
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Only by integrating individuals, teams, and the enterprise can we create value.
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One bad soldier spoils the whole team; the success or failure of a team lies in its leader.
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Newcomers and veterans are like “paratroopers” and “ground troops”; only by working together can they achieve great things.
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Form a cadre echelon and strengthen cadre reserves.
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Be good at discovering and daring to promote young people.
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Leaders should be good at using excellent talents.
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Trust is a form of respect; being trusted is a responsibility. We must respect the trust others place in us.
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Empathetic thinking is the key to resolving conflicts and forming consensus.
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Respect and uphold the spirit of contract.
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Interpersonal Communication
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The three steps of communication: listen, ask questions, and give feedback.
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Most management problems stem from a lack of good communication.
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Put issues on the table.
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Pay attention to tone and wording in written communication. When problems are complex and hard to explain in writing, communicate face-to-face.
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Communication language should be sincere and clear, without “hidden meanings” or leaving things half-said.
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A sincere apology can reduce half the conflict.
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When repeated arguments are needed, stop using emails and communicate face