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Han Sheng: Chinese-style Growth

2010-06-10

Following the rise of the motherland and contributing to national rejuvenation are the fundamental tenets of Hansheng; military training, arts, party building, and cultural and sports activities embody the people-oriented corporate spirit; and technological innovation, independent brands, and hard work, the "three magic weapons," have achieved a perfect combination of fundamental principles and market competition.
                             By Our Reporter, Laowan
  In the eyes of Westerners, Zhuhai Hansheng Technology is not only very Chinese, but also very red. Both its management model and corporate culture construction bear a deep "red imprint." Hansheng's approach is not only incomprehensible to foreigners, but even domestic media have expressed "bafflement."
  In the entire telecommunications cable industry, Hansheng is considered very successful. Its output value, scale, and market share have firmly established it as the number one in Asia, and it is only a step away from the global leader, Andrew. Catching up with and even surpassing Andrew by 2010 at the latest has been set as Hansheng's goal and has become the consensus of all employees.
However, in the view of Shou Weichun, chairman of Hansheng Technology, he has merely founded a Chinese-style enterprise, chosen a Chinese-style corporate culture, and accomplished the initial goal of catching up with industry leaders.
  During the red October of the 60th anniversary of the founding of the People's Republic of China, this magazine's reporter visited Zhuhai Hansheng Technology Co., Ltd. and its helmsman, Chairman Shou Weichun, gradually understanding a Chinese-style path to growth.
                     Entrepreneurship: Embarking on a Journey with Chinese Ideals
  In 1985, Shou Weichun founded Hansheng Special Wire Co., Ltd. in the Jida Nanshan Industrial Zone of Zhuhai. The factory area was only 2000 square meters, and there were only over 20 employees, but Shou Weichun put forward the slogan of "rejuvenating China's national industry and catching up with world-advanced levels" to all employees. This seemed somewhat unbelievable to outsiders, but employees familiar with Shou Weichun believed that the vision painted by Shou would eventually be realized, even if it was a long way off.
  That year, Shou Weichun was 43 years old. A 1964 graduate of Tongji University, he had become a leading domestic cable technology expert and had served as the deputy factory director of Shanghai Plastics Wire Factory for many years.
  Shou Weichun secretly set three goals for himself: to found a world-class enterprise, to build an advanced corporate culture, and to cultivate a high-quality workforce. The reason why Shou Weichun put forward this visionary goal under the conditions at that time was that during numerous overseas investigations and interactions with foreign technicians, he clearly felt that we not only had a significant gap with Western developed countries in scientific research technology and economic development, but also a considerable distance in the personal cultural cultivation of enterprise employees. Shou Weichun conducted long and in-depth reflection on this, finding two main reasons: one is historical reasons, which require us to catch up; and the other is institutional reasons, which require us to reform. Shou Weichun told the reporter that the reform and opening up thirty years ago allowed him to see that the institutional constraints had been broken, and the dream of surpassing world-advanced levels in his heart was ignited.
  Even thirty years later, when recalling the limitations of the planned economic system, Shou Weichun's insights remain extraordinary and profound. In his view, the constraints of the planned economic system on people were not only reflected in the economic field, but also in the party building, trade union, Youth League, and other employee team-building systems, and even the scientific research system, all of which completely copied this model. In the long run, this has cultivated a habit of waiting for instructions and task assignments from superior leading organs. Shou Weichun said that the harm of the old system not only limited the economic efficiency of enterprises, but also constrained the innovation ability and richness of corporate culture construction, ultimately hindering the improvement of the quality of the workforce. In Shou Weichun's conception, the economic efficiency, cultural construction, and development of people of an enterprise cannot be separated.
  Because of years of preparation, Shou Weichun set foot on this land at the beginning of Zhuhai's establishment. Looking at the simple but vibrant factory building, counting the more than 30 domestic competitors with abundant funds and advanced equipment, and looking at overseas industry giants such as Andrew, Shou Weichun encouraged himself: My goal must not be lowered. But where should I start?
                   Culture: Overflowing with the Sentiment of China's Rise
  Shou Weichun first thought of culture. "Over the years, it's more accurate to say that I've been carefully managing a culture than carefully managing a company." Shou Weichun also said: An enterprise without the nourishment of culture is like a body without a soul. Corporate culture is also a productive force.
  What is most incomprehensible to outsiders is Hansheng's corporate culture. Established in 1993, the Hansheng Art Troupe has become the messenger of Hansheng's corporate culture. It has won national dance competition awards three times, participated in the CCTV Spring Festival Gala twice, participated in a military performance in July this year and was received by President Hu Jintao, and performed in North Korea with Premier Wen Jiabao in October. This is probably unique in the whole country. Entering the garden-like Hansheng company, the large slogan "Work hard, strive for excellence, and build socialism with Chinese characteristics efficiently and economically" at the entrance of the office building often gives newcomers a sense of being from another era. The beautiful West Lake scenery in the factory's modern garden, the clean roads, the automated equipment, and the elegant employees often make visitors mistake it for being abroad. Such a huge sense of time and space juxtaposition is a perfect reality in Hansheng. How did Hansheng manage to naturally integrate China's red culture, modern management culture, high-tech production culture, and art marketing culture into one?
  All this seems very simple to Shou Weichun, who summarizes it into three main lines, the first of which is: Listen to the party, that is, red culture. But ordinary employees prefer to understand red culture as: Following the rise of the motherland, contributing to national rejuvenation. The most crucial point is that these two understandings can be completely unified. Shou Weichun said: Our party has allowed China to stand in the East of the world, embark on the road of reform and development, and achieve national rejuvenation, which is worthy of being a great party. Whether it's an enterprise or an individual, being able to rise with the motherland and contribute to the great cause of national rejuvenation means that the general direction is correct. Integrating the corporate philosophy into the national concept of national rejuvenation has created the red philosophy of Hansheng culture. Hansheng's corporate culture is established on the basis of this red philosophy; building an advanced corporate culture is another way of saying the first main line.
  As a modern enterprise, it must also follow the laws of the market economy. The second main line summarized by Shou Weichun is to establish a world-class enterprise, and the "three magic weapons" of technological innovation, independent brands, and hard work are another way of saying this main line. For more than 20 years, he has led the R&D team to successfully develop products such as CTA-type television cables, physically foamed coaxial cables, coaxial cables for HFC network access, 50-ohm antenna cables, and aluminum-plastic composite pipes, and has applied for more than 20 national patents, all of which have reached internationally advanced levels. Just when OEM was still very popular, Hansheng started to build its own brand. Hansheng's overcoming of the technical difficulties of physically foamed coaxial cables is a typical example of hard work. In 1998, Shou Weichun set his sights on foamed coaxial cable technology, traveling thousands of miles to learn from the industry leader, Andrew Corporation, but was turned away. Two years later, Hansheng successfully developed it independently. Only those involved know the humiliation, risk, hardship, and bitterness involved.
  The third main line of Hansheng culture is to cultivate a high-quality workforce. Hansheng employees all praise the company for its genuine people-oriented approach: not a pseudo people-oriented approach that pampers employees, but one that focuses on tapping employee potential, improving employee quality, and ultimately achieving personal development and improvement. The meticulous military training will give new employees a feeling of being reborn. The persistent party building work has given full play to the exemplary role of Party members. Long-distance bicycle outings not only tap people's potential but also cultivate teamwork. Regular cultural and sports activities such as embroidery competitions and red song festivals place all employees in a harmonious family. Organizing excellent employees to travel domestically and internationally not only cultivates employees' patriotism but also broadens their horizons. Continuous improvement of the working environment and meticulous care in life strengthen employees' sense of belonging to the company. Measures to build a learning organization, such as writing an article every month, have improved the company's innovation capabilities. Education in traditional Chinese culture, patriotism, and social morality has enabled Hansheng employees to shoulder more social responsibilities.
  With improved personnel quality, the implementation of management systems becomes transparent and simple. Huang Linghua, production department manager and Party branch secretary, and Jiang Huiming, technician and Communist Party member, told reporters that even the management of the production line only makes people feel busy, not tired. The company's ideological work for ordinary employees is not always about preaching, but is full of humanistic care. The employees' proactive attitude and good professional qualities have eliminated any potential ambiguities in management.
                     Future: Exploring a Chinese Path to Success
  Hansheng has achieved remarkable success in both international and domestic markets. Andrew, the industry leader that once occupied 95% of the Chinese market share, has been completely squeezed out of the Chinese market by Hansheng. Hansheng's sales in 2007 were 1.7 billion yuan, exceeding 2.1 billion yuan in 2008, and sales in the first half of this year increased by 38% year-on-year, with a volume increase of nearly 80%. As China entered the 3G era in 2009, the total investment of China's three major 3G operators in the next three years will be nearly 300 billion yuan. Hansheng, which prepared for the 3G market four years ago, has undoubtedly ushered in a huge growth opportunity. 70% of the growth rate in the first half of this year came from the 3G market.
  But for Shou Weichun, Hansheng's steps will not stop at 3G. Improving product structure and market structure are listed as major development issues for Hansheng. In Hansheng's "Three-Year Development Goals and Plan for New Products," various special cables used in national economic construction and people's livelihood have been included in Hansheng's R&D topics. A new factory for the research and development and production of new technological products is also under construction. Hansheng is moving towards new goals, which naturally include corporate culture building and employee quality improvement. "We are still exploring, and this exploration process will be long," Shou Weichun said seriously.
  It is a blessing to be an employee of Hansheng Company. They have won widespread praise from all sectors of society. Travel agencies say they are the best team to take on tours, not only because they are amiable and polite, but also because they would not litter, even a small piece of paper. People in the same industry say that employees who have worked at Hansheng are very welcome in the industry because they have high professional qualities. Social scientists say that if our company employees were as civilized and polite as Hansheng employees, urban civilization construction would make great progress. Partners say that Hansheng employees are trustworthy. The head of a well-known foreign company commented that Hansheng is a company with lofty aspirations, and Hansheng employees have a unique temperament.
  Employees' evaluation of Shou Weichun is: "Our President Shou is a very dedicated person. He is dedicated to everything he does and to every employee. Even on tour, he carefully observes every scene and often gives us unexpected gains."
  When asked about Hansheng's future, Shou Weichun said decisively and firmly that he would unswervingly uphold the red culture, the three magic weapons, and the improvement of personnel quality. By unifying enterprise development with national rise and national rejuvenation, we have solved the problem of direction. In terms of operation, as long as we grasp the market, we will solve the problem of development. In management, as long as we focus on improving the quality of people, we will solve the key problem. This is Hansheng's simple and effective way of thinking.
  During the interview, the reporter kept thinking about this question: What does Hansheng's model illustrate? What is its significance for domestic enterprises? The perfect combination of Hansheng's diverse cultures, the concerted efforts of the company, the happiness reflected in the employees' brows, and the harmonious management culture between people and the environment in the factory area are enough to show the world that Chinese local enterprises can achieve great success by adopting Chinese-style management models and building Chinese-style corporate cultures. In the view of Shou Weichun and the people of Hansheng, as long as they keep pace with China's rise and dedicate themselves to the great cause of national rejuvenation, both enterprises and individuals can bloom their own beauty.

  This is perhaps the enlightenment that Hansheng's experience brings to each of us.

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