Digging deep into the roots of the world's top 500 companies

After years of experience in management consulting, many domestic enterprises have set entering the top 500 in the world as an important goal and mission. This should be positive, and it is also the direction we strive for. But can our enterprises really achieve a place in the top 500 globally? How much of a gap do we have compared to the global top 500? Many experts have also provided some thoughts. After setting aside our doubts, shouldn't we understand why companies like IBM, MICROSOFT, and GE are among the top 500 in the world? After years of research and consulting experience with the global top 500, I believe they all share one common thing: their roots, the key driver for their survival and development. I have summarized this into the following aspects:

1) Emphasize facts and data

Data and facts are their trump cards. This is a very important commonality. Everything must be evidence-based, and facts and data are the most critical evidence. They speak through objective facts, make decisions based on objective facts, and validate with objective facts. This includes two aspects: First, they have a method for collecting and summarizing factual data. Collection is the first step and also the most basic. It is especially prominent in monthly and annual performance.

Secondly, they have a method for analyzing these data and facts. These methods are unique to the enterprise and cannot be imitated by any other company. They are the core competitiveness of these companies.

2) Emphasize structured strategies and goals

Structured strategies and goals are the foundation of their operations. Great companies around the world focus on this type of structured planning, making the hierarchy clear and the goals explicit. Everyone in their position knows what they should do, what responsibilities they should bear, and what rights they possess... First, the clarity of the strategy, which is the future direction of enterprise development, like a ship at sea guided by a distant lighthouse, never losing its way.

Secondly, the formation of a hierarchical goal system. Goals are the key factors for each person to implement commitments. Without specific stage milestones, such a lighthouse will always remain a mirage.

3) Emphasize personal commitment plans

Once work goals are clear, one must commit to those goals. Like IBM's personal commitment plan, MICROSOFT's work plan, and GE's weekly plans, all emphasize the importance of planning. Planning plays the following roles in the entire operation process. In fact, in many companies today, plans have been adjusted to commitments: First, it is a commitment to superiors, which carries a certain binding nature. Everyone must value their commitments. Second, anyone must commit to their own goals. Through interactive communication, a unique commitment system is formed. The completion of this system represents an increase in binding force.

Finally, the plan must include several key milestones. The main reason for designing milestones is to control the entire process, rather than just focusing on results as people often say now. In fact, in the top 500 companies in the world, while focusing on results, they also emphasize process control, and this process control is actively achieved through a system.

4) Emphasize execution

The best goals and plans must be supported by a method that ensures execution. In recent years, more and more managers in China have begun to focus on execution. However, execution is not just a concept; more importantly, how to ensure execution is the truth that the global top 500 companies have taught us.

First, build a company’s procedural system around its core competitiveness. The maturity of procedural systems will determine the quality of execution. In other words, execution is guaranteed through a procedural system.

Second, procedural systems are continuously improved. Every year, the top 500 companies in the world spend a lot of time optimizing their procedural systems.

Finally, execution is also culturally guaranteed. A good corporate culture has a good promoting effect on a company's execution ability.

5) Emphasize tracking and inspection

Tracking and inspection are important responsibilities of managers. Almost all of the top 500 companies in the world have dedicated departments responsible for tracking and inspection, especially for important major projects. They follow the philosophy: people only do what you check.

6) Emphasize performance

Speaking with facts and results is an important principle they follow regarding personal commitments. Performance is an evaluation of the results of personal commitments. Summarizing the practices of great companies, we discover a truth - survival of the fittest. Moscow does not believe in tears. Without results, all efforts are but fleeting flowers. For a company to develop, it must generate profits. Therefore, it must strive to create a core capability that outperforms others. Great companies are great because they always adhere to market and management principles. Of course, these principles are not absolute, but they at least give us some insights.

Finally, I want to ask: how many of these aspects have domestic companies achieved?