With the support of Reform Bureau, SASAC and approval by SASAC and Taiwan Affairs Office of the State Council, CITS delegation conducted a study tour in Beijing and Taiwan from September 16 to 24, aiming at observing and acquiring the advanced management philosophy and experience of Formosa Plastics Group.
In recent years, SASAC have conducted tremendous efforts in management capacity building to improve the overall management level of state-owned enterprises under the direct leadership of the central government with heartening effects. Incorporating Chinese and western enterprise management cultures and implementing rationalized and delicacy management, Formosa Plastics have now become the largest manufacturer in Taiwan and a leaching multinational company on the global scale. Thanks to the facilitative efforts of Li Rongrong, former director and secretary of Party Committee of SASAC, 4 to 5 seminars on rationalized management theory and practice of Formosa Plastics have been organized on an annual level for enterprises under direct leadership of the central government since 2009 with satisfactory results.
Leadership of the Group attached great importance to the seminar with Chairman Wang Weimin as chef de mission and Director General of SASAC Research Bureau Peng Huagang and Director of SASAC Reform Bureau Li Jun as consultants. 34 meticulously selected participants included leadership of the Group, managers of certain departments in the Head Office, senior executives and managers of key departments of major subsidiaries as well as managers of enterprises incorporated into the group after restructuring. Based on the responsibilities and functions of participants, the seminar included Management and Control Group, Public Affairs Group and Strategic Structuring Group for learning and exchange with more clearly defined targets.
After 5 months of preparation, Seminar on Rationalized Management Theory and Practice of Formosa Plastics initiated by the HR Department of the Group and co-organized by CITS Head Office and China International Intellectech Corporation (CIIC) was officially opened on September 16 in Beijing. Director-General of SASAC Reform Bureau Bai Yingzi, Director-General of SASAC Research Bureau Peng Huagang, Vice Director-General of Taiwan Affairs Office of the State Council Peng Qing’en and General Manager of VIIC Wang Youzhu attended the opening ceremony. At the opening ceremony, Director-General Bai Yingzi introduced the project background and current development of the seminar on rationalized management of Formosa Plastics; Vice Director-General Peng Qing’en made a presentation on the cross-strait relations while General Manager of CIIC Wang Youzhu briefed on the current progress of the project.
Chairman Wang Weimin delivered an important speech at the opening ceremony, pointing out that the company was faced with major transformations in both internal environment and external market, as the business of the group has gradually developed from small scale and centralized model into large scale and cross-region. Meanwhile, the external market environment has also witnessed major transformations as Internet and IT application directly impact the pillar business of the company, i.e. duty free goods as well as travel agency services; hence we must strengthen our company and maintain sufficient competitive edge in the market, so that we shall “outrun competitors in profitability when market climate is good; keep the business running in the face of temporary difficulties and survive when other players in the industry cease to exist”. Enterprise management is the basis to achieve all this; therefore we must learn from Formosa Plastics in its corporate culture and business principles as well as its delicacy management and system construction. Wang stated his expectations for this training and the participants, instructing them to adopt the right attitude, be humble, concentrate on the training program, be active thinkers, follow the disciplines, obey all arrangements, apply what they have learned in practice and make good summary.
On the afternoon of September 16, Prof. Liu Qin of Sinopec Management Institute gave a lecture on Management Model of Enterprises Related to Formosa Plastics, elaborating the development trajectory of sustainable business, effective governance structure, conscientiously implemented operational model and well-accomplished management characteristics of Formosa Plastics, hence familiarizing participants with the basic facts of Formosa Plastics.
From September 17 to 24, participants visited Formosa Plastics among other enterprises for on-site survey and learning. During the week, they attended a series of lectures on Formosa Plastics group management, covering business philosophy, internal control, finances, IT application, innovation, resources and materials, etc. as well as the thematic lectures on Science, Technology and Informatization Application in Modern Service Industry by Institute for Information Industry, which shed a light on new thinking modes and exploration efforts in service model innovation in the information era. Participants have also visited Hotai Motor (Toyota) Logistics Center to learn measures of lean management. In Ever Rich Duty Free Shop, they discussed business philosophy of duty free stores. Besides the program, participants sought to maximize the use of time and conducted group discussions, sharing their opinions and leveraged on one another’s wisdom.
On the last day in Taiwan, the participants held face-to-face talks with executives of Formosa Plastics, elaborating their viewpoints and raising questions. Presentations were made by representatives from each group. Their host in Taiwan—Chang Gung University spoke highly of the summary report and discussion by participants of CITS management seminar, acknowledging that despite the differences in industry, system and location, yet the presentations and questions from the participants reflected their serious attitude and depth of thinking.
Chairman Wang Weimin pointed out at the summary of seminar that in the new environment, CITS must adapt itself to domestic and international competition, study the possibility of and engage in reforms of system and mechanism to boost the dynamism of the enterprise. Detailed analysis is necessary in duty free goods and travel agency services for a clear understanding of future direction of development, with strengthened control power of the group by internal control and centralized financial management with IT application. The study visit to Formosa Plastics shall focus on the philosophy and methodology as well as the spirit of “striving for ultimate perfection”, making every detail impeccable to build core competitiveness of the company.
The seminar came to an end on September 24. Short as it was, the 8-day seminar was recognized by participants as informative, diversified in form, encouraging in-depth thinking and sufficient interaction, which broadened their horizons and thinking, contributed to communication and hence a fruitful and rewarding experience. Knowledge and expertise acquired from the seminar shall be applied in practice as they return to their routine jobs, contributing wisdom to the rationalized management of CITS.