188bet Live Casino management decision theory?Management decision theory is the corresponding basis for making various decisions in management。The farce phenomenon of many startup companies，188bet Live Casino the result of weak management decision-making，If you have basic make sense，Some “tuition fees” do not have to be paid，Some detours are not necessary。

KPI design

Many startup companies have reached the stage of Series C and Series D，We haven’t established a complete KPI system yet。Why does 188bet Live Casino happen？I think there are three main reasons:

1、The founder’s thinking did not keep pace with the times，I don’t think 188bet Live Casino is a very important thing；

2、The founder lacked norms before、Professional career experience，Even I am a "victim" 188bet Live Casino KPI system；

3、Although the KPI system is implemented，But due to insufficient consideration or incomplete execution，Making KPI useless。

A company without KPIs may look good for a while，In fact, 188bet Live Casino just the result of receiving market dividends and being driven by potential energy to grow rapidly；Or maybe a lot of money was raised to cover up the temporary management shortcomings。Once the dividends and potential energy are gone，Can’t raise a lot of money，188bet Live Casino the enterprise resumes daily management，Various problems and contradictions begin to appear。

188bet Live Casino should KPIs be set?When a company passes the stage from 0 to 1，When corporate management forms a team，188bet Live Casino’s time to implement KPI。But when designing a complete set of KPIs，188bet Live Casino also need to pay attention to the following points:

First，All department KPIs must be unconditionally subordinate to 188bet Live Casino KPIs。Because the KPIs between departments may conflict with each other，For example, some departments are responsible for revenue and some departments are responsible for support，The support department may incur certain additional costs (such as losses) to support sales。

That for the company，What is the first indicator？Income。188bet Live Casino the income that supports the whole company，Therefore income is the first non-negotiable indicator。

In this case，The additional costs must be optimized while meeting the first indicator。In other words，The reason why the company sets cost control indicators，188bet Live Casino requires the support department to reflect its professional level while satisfying sales。

Secondly，The 188bet Live Casino’s sales targets must be included in the assessment of the business department。The role of KPI is to reasonably dismantle the entire value chain，Clear the rights, responsibilities and benefits of each chain node，Make sure there are no dead ends between departments，Supervise everyone to shoulder their responsibilities。Therefore, the KPIs between departments must be interlocking，And 188bet Live Casino must be locked from upstream to downstream。

Because KPIs do not work in parallel，188bet Live Casino works backwards，The active KPI of the upstream department cannot be completed，This will cause the downstream departments’ passive KPIs to fail to be completed，In the end, everyone passed the blame to each other。

For example, the main KPI of the customer service department is the telephone human efficiency indicator，But if the traffic/user volume/order volume is not enough，Then the volume of incoming calls will naturally decrease，The result is that one department cannot complete the KPI，As a result, the entire 188bet Live Casino cannot complete KPIs。

Finally, don’t turn KPIs into decorations.KPI 188bet Live Casino linked to rewards and punishments, and 188bet Live Casino implemented to the end.

From the perspective of assessment，KPI is divided into two types: quantitative assessment and quality assessment。

Quantitative assessment is for departments whose work results can be reflected in data，Such as promotion and customer service department；Quality assessment is for departments whose work results are difficult to evaluate quantitatively，For example, PR and BD departments，At 188bet Live Casino time, we need to introduce higher qualitative weight on the basis of quantitative，Such as media volume and cooperation quality。

From a process perspective，KPI is divided into two types: monthly settlement and continuous tracking。

In single monthly settlement，The KPI proportion accounts for more than 15% 188bet Live Casino assessee's monthly income (sales positions and positions with quantifiable work results should be higher)，Otherwise the driving force is not enough；In continuous tracking，For assessees whose KPIs continue to be excellent or low or even fail to be completed，There must be administrative rewards and punishments within a maximum of 6 months，For example, promotion and salary increase or demotion and dismissal。

Basis for decision-making

In a startup 188bet Live Casino，Even today’s successful companies have taken detours or made mistakes。Why they made incorrect decisions？There may be three reasons:

1. Misjudgment of unknown future dynamics;

2. Only see the surface of things but not the essence;

3. Decision makers act based on their personal preferences.

Give me an example of making incorrect decisions but ultimately making amends:

JD once stopped cooperation with the CPS advertising alliance，The reason is that at that 188bet Live Casino Lao Liu (Entrepreneurship Dark Horse Academy Note: Liu Qiangdong，The same below) I personally don’t like advertising，And believe that the essence of advertising alliance is to retain old customers，No value to e-commerce。

Lao Liu is a strong person，His personal decisions have always been implemented without hindrance in JD，And in this matter，Xu Lei, the market VP at the time, disagreed，But 188bet Live Casino’s not easy to object openly。

The result was less than a month after execution，Lao Liu asked me what I thought of 188bet Live Casino decision at noon。I expressed my opinion:

On the surface，CPS Alliance does have limited contribution to new customers of e-commerce，After all, 188bet Live Casino channel accounts for more than 10% of the sales contribution of various e-commerce companies。If we stop 188bet Live Casino channel cooperation at 188bet Live Casino time，Where to make up for the missing amount？What is the cost？

At that time, our friend Newegg was also chasing us，If we give up 188bet Live Casino part，Will be sucked directly by the new egg，Resulting in competition，Not good for us。

Lao Liu asked me to do a data analysis after hearing 188bet Live Casino，That afternoon，I got the data curves of JD and Newegg for that month from major CPS alliances to compare，Facts proved。When the JD Alliance sales curve declines，Newegg is soaring。

See 188bet Live Casino data，After discussion with me and Xu Lei，Lao Liu made a decisive decision: to restore the cooperative relationship with the advertising alliance。Finally in 188bet Live Casino channel，JD curbs Newegg’s growth，Retained leading position。

In 188bet Live Casino event，Lao Liu’s initial decision was related to the three reasons mentioned above。But the great thing about Lao Liu is:He can actively seek the facts，Can also listen to other people’s opinions based on reality，Quickly adjust previous decisions 188bet Live Casino face of objective data。

The role of processes and mechanisms

The success of all enterprises is reflected in the victory of business capabilities，The role of processes and mechanisms in it，188bet Live Casino the fruit of continuing to consolidate and protect victory，188bet Live Casino a management tool，But 188bet Live Casino not applicable to every enterprise at any time。Give two examples:

1. Can’t 188bet Live Casino connect to the ERP system?

JD has been considering for some time whether to adopt an ERP system from a famous foreign manufacturer，When Lao Liu asked for my opinion，188bet Live Casino is my answer:

I don’t recommend 188bet Live Casino. There are 4 reasons:

First，These ERP design ideas are aimed at mature industries，The entire architecture pursues strict control but is not flexible enough。And JD’s current business has not yet been completely finalized，With the continuous addition of new business and new functions，188bet Live Casino not appropriate to go to ERP。

Secondly，The user interface of the ERP backend is complicated，According to the overall level of JD’s current employees，The operation will be acclimatized，On the contrary, 188bet Live Casino will reduce efficiency；

Again,JD’s current business volume is compared to ERP vendors，Maybe not even a medium-sized customer，So they 188bet Live Casino not do large custom development for JD；

Last，If 188bet Live Casino completely switch the system now，Then all new business functions that are scheduled need to stop and wait，In fact, JD can’t afford to wait。

Old Liu also agrees with 188bet Live Casino I said，Finally adopted my opinion。

2. Do 188bet Live Casino want process or efficiency?

When I was working as COO of a certain 188bet Live Casino，They introduced a strategic VP from a famous consulting 188bet Live Casino，She is a little acclimated in the 188bet Live Casino，Typical foreign 188bet Live Casino style，I can’t share the joys and sorrows with everyone。

I was in charge of online sales at that time，Because the BI system is relatively weak，I will let the following data analysts write SQL，Calling some 188bet Live Casino and order analysis from the database。

One day the VP said that he wanted to build data security，Therefore, the database permissions 188bet Live Casino data analyst must be blocked。I said yes，But give me a solution。

She said she made a process，Every time we want to extract some data，Fill in the application form，Signing at all levels until the CEO，Then the BI department will reply with the result within 5 working days。I will discuss with her whether I can reserve permissions for my data analysts，I am responsible for any problems。She said no，If 188bet Live Casino want special approval, 188bet Live Casino have to ask the CEO。

What matters in strategy is helping and not causing trouble，When others build a house, you hand over the bricks。If we talk about data security with a very low probability of current leakage，In fact, 188bet Live Casino reduces the efficiency of internal communication，I just can’t tell the priorities。

People who do strategy in enterprises，If the starting point does not fall on the actual results，I cannot be responsible for the results，And only dig holes for others，Then his career life in the 188bet Live Casino will not be too long。

Avoid path dependencies

The success of any enterprise is often due to the excellence of the enterprise or its founder，However, when the 188bet Live Casino reaches a new stage，When starting something new，The abilities you were good at before may become obstacles in the new stage。

The new stage requires new capabilities，If 188bet Live Casino still use your old ability，Only going in the opposite direction。188bet Live Casino is often something that successful companies and founders do not realize。So we see many companies failing across borders、Transformation failed、Upgrade failed。So，Neither the founder nor the executives nor the team can be path dependent。

For old executives，Ability and ideas need to be upgraded with the times；And for new executives，Ability and thinking need to be appropriately "downgraded" based on the situation and situation，The purpose is to match the current stage 188bet Live Casino enterprise。

When a company invites paratroopers to join，Need to understand the ability training this paratrooper received in the previous company，Whether 188bet Live Casino suitable for the current company’s current situation and needs，Whether it can help the company’s development at the current stage。

188bet Live Casino is the example of the strategic VP I mentioned earlier:

Her previous international consulting 188bet Live Casino，Services are all large and mature enterprises that have passed the barbaric growth period，Many standardizations and refinements including data security，Nature has become the current demand of enterprises，Problems with data security may become a 188bet Live Casino scandal or even a market crisis。

But her capabilities did not match our development needs (growth and loss reduction) at that time，And she did not take the initiative to "downgrade her capabilities" to meet the needs，I don’t know when to give in to something，When to be particular about 188bet Live Casino?，Subconsciously depend on the path，The tragic ending has become inevitable。

Controllable and uncontrollable

Enterprises must distinguish 188bet Live Casino controllable，188bet Live Casino uncontrollable。The controllable parts can be based on your own standards，But the uncontrollable parts must be based on market pricing or industry standards。For example:

Warehouse rent is determined by the market，However, the usage area determined by operating efficiency and turnover is relatively controllable by the enterprise；

Employee compensation is determined by the market，But the average labor efficiency and overall management cost are relatively controllable by the enterprise；

Traffic costs are priced by the market，But the conversion rate and conversion ARPU are relatively controllable by the enterprise；

The sales price is determined by the market，But the gross profit margin is relatively controllable by the 188bet Live Casino。

The most common mistakes that startups make are going too far and under: uncontrollable disrespect for market pricing，For example, the salary does not meet industry standards，Sales pricing does not refer to the competitive environment；Controllable but not controlled, there is waste，For example, the human efficiency is low and unsaturated or there is no output，Gross profit margin is abnormally low。

Squeezing water out of places that shouldn’t be squeezed，What is squeezed out is blood；Let the water flow where 188bet Live Casino should be squeezed out，What grows is a pustule。To give an extreme example:

Since the capital winter last year，A certain 188bet Live Casino’s income has a compound monthly growth rate of 10%、E-commerce 188bet Live Casino with 50% loss，Reduce and stop losses as required by investors，Loss reduced to 20% after adjustment，But the income dropped by 70%。Why？

Because the previous high losses were mainly due to the low gross profit margin (the corresponding sales price was too high)、Personnel redundancy、Low human efficiency，Resulting in excessive management costs，Logistics fulfillment costs are too high，Market fees and ROI are industry-leading。

As a result, the loss was reduced with a big knife，Completely cut off market fees。Optimizers are also one size fits all，All departments 188bet Live Casino be laid off in equal proportions。However, the gross profit margin has not been structurally improved，Logistics fulfillment costs have not dropped to a reasonable value。

Looks like the loss rate has decreased，In fact, 188bet Live Casino led to a cliff-like negative growth and structural recession。Because what is subtracted is the cost of creating growth and the people who create income；What remains are costs that are irrelevant to growth and people who do not create revenue。

Therefore，188bet Live Casino process of reducing losses, we need to consider which part to reduce:

Is 188bet Live Casino the cost of creating value or the cost of not creating value?

How to ensure that 188bet Live Casino lose fat instead of muscle?

How can enterprises continue to develop healthily after stopping losses in a healthy manner？Instead of leaving a pile of pustules，Continue to uselessly consume a dying enterprise。

Investors only care about the number of results，Entrepreneurs 188bet Live Casino able to calculate structural accounts。

188bet Live Casino "false proposition"

If an entrepreneur talks about industry competition or corporate competitiveness，Always mention “good user experience”，188bet Live Casino can basically be judged that this person does not understand business。

I said something when I was doing internal training for my colleagues in many previous companies: Don’t do 188bet Live Casino in the name of user experience，Concealing the lack of core capabilities or out-of-control costs。We must survive first，Solve questions below 60 points，After solving the problem, we will consider the questions with more than 60 points。

So what is 188bet Live Casino? I have three insights:

First，188bet Live Casino has a cost，The cost must be reasonable and scientific；

Secondly，User experience is a long-term and continuous investment，Don’t expect 188bet Live Casino to have immediate results；

Last，To know what is happening, you must also know why 188bet Live Casino happening，Don’t use myths about user experience and don’t quote classics。

Amazon’s Bezos once said that 188bet Live Casino comes first，But you have to know，Amazon raised a huge amount of money before the Nasdaq bubble burst，To support N years of losses before and after listing。And those similar companies that also value 188bet Live Casino at the same time as Amazon，But they all quit the game because they ran out of money。

Amazon has many popular stories，For example, a consumer wants to return a product，As a result, the customer service refunded him and told him that he did not need to send the items back，You can keep 188bet Live Casino for yourself。

But does Amazon’s success depend on these magical stories？Definitely not，Amazon’s success is because 188bet Live Casino created and proved a new distribution model that benefits consumers more。The reason why the new circulation model can be established，Because its business model is consistent with lower costs、The nature of more efficient retail。

And those dead companies，Although the model is the same as Amazon，But supply chain and cost control, the essence of retail, are obviously not as good as Amazon，Business model does not work，So they can’t raise more money，Even its superficial 188bet Live Casino，Doing as good as Amazon or even better than Amazon。

Good company，While solving your own problems，Kill two birds with one stone to improve user experience。For example, JD built hundreds of warehouses，What benefits consumers is that many cities have achieved same-day or next-day delivery，The original purpose of building these warehouses，In fact, 188bet Live Casino to solve the problem of high main line cost and loss of large items。

Today’s JD system is countless times more advanced and complex than it was then，Today’s Liu Yan must talk about user experience，Today’s JD’s slogan is how fast and economical 188bet Live Casino。Of course these are correct for JD。

But，The Long March starts from the first step，The foundation of the Great Wall started with the first brick。The one who allowed JD to break out of the siege and come from behind，A sales team that is far stronger than our friends；What makes JD grow 300% every year，188bet Live Casino the supply chain capability with low price and reasonable gross profit；Let JD establish the competitive threshold，188bet Live Casino 211 with reasonable cost and two frees per day。

If you divide JD’s more than ten years into two stages，How quickly can we continue to invest in construction in the second half，Inseparable from the first half 188bet Live Casino process, focusing on getting rid 188bet Live Casino provincial characters。

In short,The decision-making theory of management is based on the time, situation and circumstances，Look to the future，Start 188bet Live Casino present。Vision is not the foundation of the future，The ability to solve current problems is。Short-sighted companies cannot see the future，Naturally there is no future；A 188bet Live Casino that is not doing well even now，Not even qualified to have a future。

*Source of 188bet Live Casino article: WeChat public account "Entrepreneur" (ID: chuangyejia)，MadeAuthor: Liu Shuang, original title: "Why do companies that value 188bet Live Casino die in the end? 》.