Zoomlion: Leading the Construction Machinery Industry and Building a Leading Brand

2013-12-30 732 0人评论
       Among numerous construction machinery enterprises, Zoomlion ranks first in profit among the Top 100 Chinese Machinery Industry Enterprises of 2012 with its outstanding performance; its brand image of “professional focus, leading technology, and sincere responsibility” has been widely accepted and highly recognized by the industry and the public.

As a world-renowned and outstanding domestic national brand, Zoomlion has its own unique “corporate culture” of the golden mean, along with strong capabilities in scientific research and development and market expansion. It promptly aligns its products with industry needs and environmental changes, and actively practices and participates in public welfare activities.

Corporate Culture: “Broad, Profound, and Enduring”

In terms of industry standards, Zoomlion has always maintained a leading position in industry technology and has thus become a major formulator of international and domestic industry standards. In terms of product quality, the company introduced “zero-defect quality management” in 2007. Quality and technical supervision departments conduct regular supervisory inspections of the company's products every year, and the pass rate of sampled products has been 100% over the past three years.

The genes of persistent innovation, pursuit of excellence, and outstanding brand quality are among the main factors enabling it to achieve success in the blue ocean of the machinery industry.

World-record-setting globally leading products——the world's longest 101-meter carbon fiber boom concrete pump truck, the world's largest tonnage all-terrain crane QAY2000, the world's largest working-radius tower crane, and so on——these series of “world bests” represent Zoomlion standing at the forefront of global construction machinery technology. In the future, on the basis of substantially enhancing corporate visibility, Zoomlion will further strengthen brand individuality and differentiation, striving to enter the top three global construction machinery brands within three to five years; through an internationalization development path centered on cross-border mergers and acquisitions and technology buyouts, it will promote Zoomlion's rapid realization of brand internationalization.

The most prominent manifestation of Zoomlion's brand influence is its unique and historic corporate cultural connotation.

The core concept of Zoomlion's corporate culture is “utmost sincerity without end, broad and profound and enduring,” and this “eight-character” concept can still be seen in Zoomlion's old factory area. It is understood as “integrity as the foundation, ceaselessness as the essence, daily renewal as the way; broadly embracing all things, with great virtue carrying all things, enduringly accomplishing all things, and building a lasting foundation.” At a recent leadership study session, Chairman Zhan Chunxin further interpreted it comprehensively as: “integrity, persistence, inclusiveness, and responsibility.”

This corporate cultural thought was formally proposed in 2002, drawing meaning from Chapter 26 of The Doctrine of the Mean: “Utmost sincerity is ceaseless; ceaselessness leads to endurance; endurance leads to manifestation; manifestation leads to enduring reach; enduring reach leads to breadth and profundity; breadth and profundity lead to height and brightness. Breadth and profundity are what carry things; height and brightness are what cover things; enduring reach is what completes things. Breadth and profundity match the earth; height and brightness match heaven; enduring reach is boundless. The way of heaven and earth is broad, profound, high, bright, enduring, and infinite.”

Its meaning is: “Utmost sincerity is ceaseless; ceaselessness leads to endurance; endurance can produce characteristics; with characteristics it can endure and reach far; only enduring infinity can become broad and profound; broad and profound leads to height and brightness. Therefore, breadth and profundity carry all things, and height and brightness can cover all things; breadth and profundity match the earth, height and brightness match heaven, and enduring reach is boundless. The way of heaven and earth is broad, profound, high, bright, enduring, and infinite!”

Zoomlion's corporate culture is also embodied in the value system of “one principle, two dimensions, three fairnesses, four virtues, five hearts, six diligences, seven capabilities, and eight qualities,” which is a concentrated expression of Zoomlion's value standards, moral standards, capability standards, and corporate character. On this basis, the concepts of “trust management and layered management” were further developed, emphasizing self-discipline and professional dedication. While advocating conducting oneself according to the standards esteemed in traditional Chinese culture, it also requires doing things according to the rules advocated by Western management concepts, thereby better achieving inclusiveness and integration of Chinese and Western approaches and realizing the goal of Chinese people building a world-class enterprise. “Trust management” and “professional dedication” are further excavation and development of Zoomlion's values.

Among Zoomlion's value standards, the “one principle” is the “utmost sincerity” in “utmost sincerity without end, broad and profound and enduring.” As a value, “sincerity” has profound life connotations. “Sincerity” includes three realms: “truth, reality, and trust.” For Zoomlion, “utmost sincerity” means “persistence in integrity” and “persistence in pursuing ideals and achieving undertakings.”

The “two dimensions” are “virtue” and “talent.” If a person lacks noble virtue, it is impossible to establish the belief in “sincerity”; if people lack outstanding talent, it is also impossible to realize the goal of “sincerity.” “Virtue” and “talent” are two inseparable parts; they are both cause and effect and premise for each other, jointly safeguarding, maintaining, and sustaining “sincerity,” Zoomlion's “principle.”

Zoomlion's moral standard of the “three fairnesses” means that at all levels of enterprise production, operation, and management, fairness, justice, and openness must be achieved.

“Fairness” means the reasonable distribution of rights and interests. The basic principle is that “the basic rights enjoyed by everyone should be completely equal; the non-basic rights enjoyed by everyone should be proportionally equal.” “Justice” is a correct attitude and reasonable behavior based on the principle of fairness. Fairness is often realized through justice as an effective means; without justice as support, fairness can only ever be a beautiful wish or ideal.

“Openness” means the public's right to know. It refers to the fact that relevant functional departments, in the process of exercising power or performing duties, must, through certain procedures and in accordance with relevant company rules and regulations, explain necessary matters to the broad employee body or specific parties concerned, so that they can understand and grasp the causes, process, and results of events in a timely, accurate, and objective manner.

A senior executive of Zoomlion's Global Marketing Department told reporters that Zoomlion's “three fairnesses” have always run through many aspects such as talent training and competition. For example, the information level reflects openness and avoids corruption of power. “For instance, in sales policies and distribution policies, this content reaches every salesperson in a timely manner, enabling them to be very clear about the policies for the current period and avoiding barriers at different levels. We have done this quite prominently.” In addition, fairness is also achieved in rules, mainly through technical means. “For example, on the issue of order shipment queuing, it is impossible for all products to simultaneously meet the requirements of all regions, so salespeople all need to queue. If goods are ordered at 8:05 and 8:06 respectively, through information technology we can see who was earlier and ship to that person in a timely manner.” In terms of corresponding policy guidance such as “fairness, justice, and openness,” the company has also done much thinking and work. “For example, in personnel promotion, all distribution is based on data. It is not that if you give gifts to the marketing general manager, you get more commission or promotion. All of this is based on performance, and it also depends on the support of your sales back office.” He also said that in management promotions, the company also adheres to an open competitive recruitment system. “We have quarterly assessments and annual assessments every year, and of course there are some adaptive indicators. Suppose some colleagues are responsible for sales in Ningxia, while others are responsible for sales in Shanghai; the colleague in Ningxia focuses on risk control, while the Shanghai region focuses on market expansion. There will be corresponding indicators, and combined with these indicators we select the best among the best. In addition, in the competitive recruitment process, we also select suitable colleagues based on individual circumstances and in combination with recommendations from the supervision department.”

The so-called “four virtues” refer to “propriety, righteousness, integrity, and shame,” which are basic behavioral norms known as the “four pillars of the state.” Zoomlion has innovated in light of its own reality and injected unique Zoomlion meaning into them. The company requires employees to “observe propriety, uphold righteousness, practice integrity, and know shame.” “Propriety” refers to a well-ordered attitude and square and upright order. It requires finding one's own position, neither absent nor overstepping, being in one's position, fulfilling one's duties, bearing one's responsibilities, and giving one's best; treating others with humility and sincerity, without cunning, hypocrisy, self-deception, or deceiving others, with propriety and restraint. “Righteousness” refers to an open and frank mind and proper behavior. It requires gratitude and loyalty to the enterprise; understanding the big picture, considering the overall situation, and fulfilling one's own role. “Integrity” refers to pure character and clean conduct. It requires maintaining an honest heart, practicing honest conduct, engaging in honest administration, fostering an honest style, promoting honest virtue, and leaving an honest name. “Shame” refers to constant reflection and genuine awareness, requiring adherence to the socialist concept of honor and disgrace, diligent reflection, and courage after knowing shame.

The “five hearts” require always harboring a heart of gratitude, a heart of humility, a heart of altruism, a heart of selflessness, and a heart of diligence. These are the five mindsets that one must continuously cultivate to become a Zoomlion employee.

The “six diligences” refer to “diligent learning, diligent thinking, diligence, hard work, thrift, and diligence.”

The “seven capabilities” include social credibility, cultural inclusiveness, organizational cohesion, overall control, team driving force, independent innovation, and brand leadership.

The “eight qualities” are the eight qualities that Zoomlion people should possess, namely: “loyalty, righteousness, humility, perseverance, open-mindedness, self-discipline, diligence, and refinement.” This comes from the collective tempering and elevation of the enterprise's character. Zoomlion hopes to use a modern spirit grounded in and supported by socialist core values and traditional culture to achieve the perfected character of being inwardly sage-like and outwardly kingly within the enterprise.

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