The flowers in the factory of rebirth are too fierce

Li Zhenshan is really not humble, let alone polite. The new unit, new position, and new challenges really make him feel a little tricky.

The predecessor of the large-scale working committee is the State-owned Assets Supervision and Administration Bureau, which is under the jurisdiction of the Ministry of Finance. Its main function is to exercise the rights of representation, supervision and management of state-owned asset owners, state investment and income rights, and asset disposal rights on behalf of the state.

In March this year, the State-owned Assets Supervision and Administration Bureau was abolished. In July, a large-scale working committee was established. This is an organization with much higher standards than the original State-owned Assets Supervision and Administration Bureau. Wu Dingguo is appointed as secretary, and Li Zhenshan is appointed as director and deputy secretary.

The reason why the top management made such an organizational adjustment decision is that for a long time, although the State-owned Assets Administration was responsible for formulating regulatory policies, it did not have the institutional basis to implement its policies. In fact, multiple administrative departments still perform their functions as investors separately.

For example, the basic management functions of state-owned capital are exercised by the Ministry of Finance, the investment functions are exercised by the State Planning Commission, the supervision functions of state-owned enterprises are exercised by the State Economic and Trade Commission, and the appointment, removal and assessment of the main operators of state-owned enterprises are responsible for the Organization Department of the Central Committee and the Personnel Department. The salary distribution of state-owned enterprises is supervised by the Ministry of Labor, and the financial inspection and supervision of state-owned enterprises is the responsibility of the supervisory board dispatched by the Government Affairs Council. This multi-headed management structure is called "Kowloon Water Control".

The management of assets and the management of people and affairs are disconnected, and rights, obligations and responsibilities are not unified, resulting in a situation where no one is truly responsible for state-owned assets and government departments directly intervene in enterprise operations, making it difficult to truly implement enterprise operational autonomy.

Under this institutional structure, the strategic adjustment of the state-owned economy lacks unified planning, coordination, and organizational implementation, and business operators lack effective incentives and constraints. As a result, many state-owned enterprises have chaotic management, wanton expansion, and difficulty adapting to the market economy. The demand, coupled with the impact of private enterprises and foreign-funded enterprises, caused the state-owned enterprises at that time to fall into unprecedented difficulties.

Since the 1996s, state-owned enterprises have been in trouble. Northeast China, where most state-owned enterprises are concentrated, was the first to experience a wave of bankruptcies and layoffs, which later spread across the country. In 39, more than 18 state-owned enterprises went bankrupt. Among the 1997 major industries, 428 are experiencing industry-wide losses. In , the profits of state-owned enterprises across the country were only billion yuan. A considerable number of them were unable to pay wages and pensions normally, and unstable events continued to occur.

Faced with the increasingly serious problem of losses among state-owned enterprises, the central government launched a tough reform campaign to get out of trouble in three years, and at the same time began to adjust the state-owned assets management system.

This is why this year, nine specialized ministries and commissions such as metallurgy and machinery were reorganized into national bureaus and no longer manage enterprises. In a few years, these bureaus will be completely abolished. State-owned enterprises have basically bid farewell to the era of management by industry authorities.

In this context, the heavy responsibility of state-owned enterprise reform is placed on Li Zhenshan's shoulders. How can he sleep peacefully? These days I have been thinking day and night, thinking about how to carry out the work smoothly.

"Huaying, Zhiyuan, I brought you two here today because I want you to help me come up with ideas to see how I should burn my first fire? Where should I burn it?" Li Zhenshan's attitude was very sincere, "I will continue to After thinking about it for a few days, I have some ideas, but they are not complete yet. Now I need someone to give me some tips. Both of you have experience in managing large enterprises and help me come up with ideas. If the first step is not done well, I can’t explain it to the central government and Secretary Wu.”

Jin Huaying slowly shook his head, "Director, it's not that I won't help you. I've never been to such a big stall before. There really is no way. Why not let Zhiyuan help you analyze it? He is young, has a broad vision, a big structure, and a flexible mind. Maybe I can help you find a good entry point.”

In fact, Li Zhenshan was looking for Lin Zhiyuan. Over the years, he had become accustomed to Lin Zhiyuan making suggestions for him.

Li Zhenshan looked at Lin Zhiyuan.

"Zhiyuan, help me analyze it." His eyes were full of expectation.

Lin Zhiyuan thought for a moment, "Director, the establishment of the large-scale working committee came about in the context of the current general downturn in state-owned enterprises. In the first half of the year, nine ministries and commissions, including the Ministry of Metallurgy and the Ministry of Machinery, were canceled and reorganized. Such a large institutional reform shows that high-level officials have The current state-owned enterprises are very dissatisfied with their jobs and want to eliminate old shortcomings.”

"Zhiyuan, you are right. This is the starting point for such a big institutional reform this year."

"Well, the reason has been found, and the focus of our work has also been found. Director, I think the function of large-scale working committees is to maintain and increase the value of state-owned assets. So what we should do most at present is to first remove the impact The old system for the development of state-owned enterprises, secondly, establish an effective new system to promote the development of state-owned enterprises, destroy the old and establish the new."

"Old old and new!" Li Zhenshan nodded repeatedly, "Zhiyuan, you are right. This is consistent with the spirit of the central government, but it is not so easy to do. Large working committees currently manage 163 large national enterprises. You Do you know who are the managers of these 163 companies? What are the intricate and complex relationships behind them?"

This is the real reason why Li Zhenshan is worried. How come he can't think of the methods Lin Zhiyuan just mentioned when he sits in his position, but he comes from a poor family and has a very weak political foundation, which is incomparable to the Tan family and the Li family.

This job is very offending, especially because the first step is shabby. Once the investigation is carried out, there may not be any trouble.

"Director, the arrow has to be fired when the arrow is on the string. Just go and investigate. As for how to deal with it in the end, you can report to Secretary Wu. I suggest you make two preparations. First, immediately send working groups to major enterprises to conduct internal investigations. Second, You can select some good examples of institutional norms from these large state-owned enterprises..."

Lin Zhiyuan was talking eloquently, and Luo Lang, who was sitting aside, was entranced.

His senior really had a lot of talent. No wonder he was able to take charge of a large state-owned enterprise alone at such a young age. He saw problems so thoroughly that he was far from being able to follow others' example.

Li Zhenshan actually lacked determination. After listening to Lin Zhiyuan's analysis, he figured it out, "Indeed, now that I have sat in this position, I can't have too many worries. I will report to Secretary Wu tomorrow to form a team as soon as possible." We will set up inspection teams to go deep into enterprises with serious problems. In addition, we will set up a few examples and copy their successful experiences across the country."

They chatted while eating, and before they knew it, more than three hours had passed.

Lin Zhiyuan gave Li Zhenshan some more ideas, "Director, since the central agencies can be adjusted and reorganized, the same can be done for state-owned enterprises. I suggest that enterprises in the same industry should be merged and integrated as much as possible. This will not only facilitate management, but also enhance strength. The benefits are obvious. Just like a while ago, our steel industry association united to negotiate with foreign mining companies and successfully brought down the price of iron ore. If this work is accomplished, it will definitely be a great achievement."