How To Effectively Control Subsidiaries In Group Enterprises

Based on the experience of management consulting and the long-term cooperation with a large number of group enterprises, the author believes that: not only is the security industry, but for the whole enterprise group, the problem of controlling and controlling subsidiaries is common and serious.

There are two main problems in group management and control:

On the one hand, it is strategic synergy.

As a p regional and cross business group enterprise, it is very important for a large number of subordinate enterprises to keep consistent in the direction of development at the strategic level, which is also a universal problem in company management and control.

Especially when the subordinate enterprises are merged into the group system for the subsidiary with independent legal person qualification or through the merger and acquisition, the problem is more prominent. And whether the strategic coordination can be effectively achieved will also greatly affect the stable development of the group.

The other is business collaboration.

As a large cross regional operation group, its business operation Department, finance department, sales department, production department, human resources department and so on will also face the situation of p regional distribution.

Through how to ensure that the production units and sales units in different regions can cooperate with each other and cooperate with each other to promote the steady development of the business, through what means to ensure that the functional departments such as the finance department and the human resources department can maintain a high degree of consistency with the headquarters, thereby ensuring the full implementation of the headquarters management requirements, it will also be a problem for the group enterprises.

The above strategic synergy and business synergy are external representation problems. On the management level, the author thinks that the core issues are:

1. The problem of management ties.

Management ties, that is, the affiliation between headquarters and subordinate units in a group system.

Generally speaking, the simplest part is divided into branches and subsidiaries.

In terms of subsidiaries, it can be divided into different ways of holding equity, such as wholly owned, absolute holding, relative holding and equity participation.

This is the legal basis for the realization of group control and the platform foundation for operation group management and control.

Many group enterprises have such problems as fast development speed, unclear strategy and so on.

The problem of unclear ownership and unclear level of ownership has fundamentally affected the effective implementation of group control.

2.

Problem.

Generally speaking, the simplest management and control modes are divided into financial control, strategic management and operation control.

Among them, financial management and control is the most authorized mode for subordinate units, and the mode of operation is the least authorized mode.

What kind of control mode the enterprise chooses will decide how to design further management system, and many enterprises still have problems of unclear control mode.

3.

Problem.

In the process of headquarters management of subordinate units, many enterprises also have problems of unclear positioning of headquarters.

Headquarters positioning refers to the core functions of headquarters. Generally, there are strategic investment centers, capital operation centers, financial supervision centers, co-ordination centers and so on. This is the basis for the division of powers and responsibilities between future headquarters and subordinate units.

4, governance structure.

From a legal point of view, governance structure is the core basis of management and control.

On the basis of stock ownership, we can achieve standardized operation of company management through division of different roles such as board of directors, board of supervisors, special committees and managers.

Now, the vast majority of group enterprises, governance structure needs further improvement.

5, the division of powers and responsibilities.

The clear division of powers and responsibilities between headquarters and subordinate organizations can be related to the reasonable implementation of group control.

Because the contradiction between headquarters and subordinate organizations is concentrated on the decision-making power of a large number of business development and function management.

In some management contents, sometimes headquarters should be managed and sometimes authorized to subordinate organizations. If there is no definite division confirmation, then the management of headquarters and subordinate organizations will be at a loss, not only affect efficiency, but also lead to confusion in management.

6, the overall corporate culture of the group.

Group management should also strive to build a corporate culture that supports group management within the group.

Nowadays, a large number of enterprises do not have the culture of control and control, and even the most basic corporate culture is missing.

The ultimate goal of management is people. If we can establish an effective culture, let employees understand and support the group's control requirements from inside, we will achieve twice the result with half the effort.