New Trends in SOE Reform: Focusing on Five Values to Build a "Living Organism"

Tech 2024-11-14 11:19:26 Source: Network

New Trends in SOE Reform: Focusing on Five Values to Build a "Living Organism"Against the backdrop of China's rapid economic development, state-owned enterprises (SOEs) have always played a crucial role as the mainstay of the national economy. In recent years, with the constant evolution of the economic environment and social demands, the State-owned Assets Supervision and Administration Commission (SASAC) has actively adjusted and optimized the performance indicators of SOEs to adapt to the needs of high-quality development under the new circumstances

New Trends in SOE Reform: Focusing on Five Values to Build a "Living Organism"

Against the backdrop of China's rapid economic development, state-owned enterprises (SOEs) have always played a crucial role as the mainstay of the national economy. In recent years, with the constant evolution of the economic environment and social demands, the State-owned Assets Supervision and Administration Commission (SASAC) has actively adjusted and optimized the performance indicators of SOEs to adapt to the needs of high-quality development under the new circumstances. In 2024, SASAC maintained the "one profit and five rates" target management system for central enterprises, while also introducing the concept of "Five Values", emphasizing the fulfillment of SOEs' functional missions. These five values encompass: enhancing enterprise added value, functional value, economic added value, the proportion of strategic emerging industry revenue and added value, and brand value.

The introduction of the "Five Values" signifies the establishment of a comprehensive evaluation system for SOEs. This system comprehensively evaluates the development level and contributions of SOEs from multiple dimensions, reflecting the pursuit of their multifaceted and multi-level values. It promotes comprehensive and scientific development, achieving multi-dimensional assessments. SASAC emphasizes that performance assessment and allocation should focus on the primary task of high-quality development, further emphasizing value creation orientation, and enhancing the accuracy, standardization, and effectiveness of performance assessment and allocation.

In response to the call of SASAC, to deepen SOE reform, State Grid Wuhan Power Supply Company (hereinafter referred to as Wuhan Company), based on State Grid Hubei Electric Power, in accordance with the guiding principles of "strategic orientation, classification assessment, highlighting key areas, and strengthening application", focuses on five aspects, namely organization, scope, indicators, proportions, and application, to reshape the company-wide performance management system, helping to build an "organic living organism" and provide strong support for the construction of a "State Grid Advanced, Large Supply First-Class" power supply company.

Wuhan Company adheres to the theme and main tone of "working practically and staying ahead", aiming for the strategic goal of State Grid Advanced, Large Supply First-Class. The company comprehensively introduces the Excellence Performance Management System. Through in-depth analysis of strategic implementation, value evaluation, and value distribution models, the company adheres to the guiding principles of "strategic orientation, classification assessment, highlighting key areas, and strengthening application". It focuses on building an "Four Tracks, Two Cycles" intrinsic performance incentive model, increasing the proportion of incentive components, matching the performance management system, reasonably widening the allocation gap, deepening the innovation of talent selection, training, and utilization mechanisms, improving the performance assessment and income distribution system, and perfecting the PDCA full process of "identifying problems, analyzing problems, and improving", achieving a dual promotion of performance management and work quality and efficiency, and forming a self-circulating performance management system.

By optimizing its performance incentive system, Wuhan Company effectively addresses issues such as inadequate integration of performance management with strategy, unclear focus, weak incentives, and insufficient perception. It strengthens organizational system synergy, comprehensively stimulates the company's intrinsic driving force, and promotes the construction of a "State Grid Advanced, Large Supply First-Class" enterprise to a new level. The performance assessment level of the company's enterprise leaders has been upgraded to the A category, the company-wide labor productivity has improved to 9.31 million yuan per person-year, and the A-level employee performance salary ratio has reached 1.24.

At the same time, Wuhan Company continues to cultivate a first-class team, comprehensively promoting the construction of a cadre team with "four haves and three serves". It adheres to the correct orientation to "select the right people", emphasizes the right people for the right position, and deepens the analysis of people-post matching. The company makes every effort to achieve "strong, refined, practical, and excellent" employee team building, guiding employees at all levels to strive to be "pragmatists" and "doers", and focusing on building a team of employees who are "politically strong, professionally proficient, practically diligent, and performant".

Since the implementation of enterprise operation mechanism reform, Wuhan Company has formed a set of enterprise governance systems based on an "organic living organism", that is, under the strategic guidance of State Grid, achieving decentralized enterprise organization, flexible coordination, and agile response; a symbiotic ecological governance system with organic integration of production factors, autonomous optimization, and value sharing. Based on the construction concept of "intrinsic drive, flexible efficiency, and value symbiosis", the company firmly establishes "five pillars" of organizational transformation, platform empowerment, innovation drive, incentive reshaping, and cultural soul, comprehensively strengthens organizational innovation, technological innovation, and management innovation, forming a highly efficient closed-loop management system while building an open and collaborative ecological system.

The construction of an "organic living organism" effectively stimulates the intrinsic development drive of the grassroots level, contributing to improved operating quality and efficiency, promoting the full implementation of the central enterprises' social responsibilities, promoting the green and low-carbon transformation of energy, and ultimately forming a set of modern governance paradigms, driving the high-quality development of the enterprise.

The changes in SOE performance assessment indicators in recent years reflect not only the direction of SOE reform but also have a profound impact on the development of SOEs. These changes will continue to drive the comprehensive improvement of SOEs in terms of economic efficiency, social responsibility, and innovation capability. Looking ahead, SOE reform will continue to deepen. Under a new performance assessment system, enterprises will take on greater social responsibilities while pursuing economic benefits, achieving sustainable development.

As an important pillar of the national economy, SOEs need to fully implement the new development philosophy, better serve the national strategy, and optimize the layout of major productive forces. Going forward, Wuhan Company will adhere to the general work principle of pursuing progress while ensuring stability under the strong leadership of the State Grid Corporation Party Committee and the provincial party committee and government. It will focus on the high-quality development of the company and the power grid, permeate the deepening of style construction throughout, focusing on optimizing organizational structure, highlighting digital (intelligent) transformation and company-wide capability enhancement as the main line, and taking the "six battles" as the breakthrough point, striving to comprehensively build an internationally leading energy internet enterprise with Chinese characteristics, and making new and greater contributions to the Hubei practice of Chinese-style modernization.

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