Strategy expert Wang Ke helps Deere Group “restructure” and achieves 100-fold growth in 26 years of cooperation
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Shandong Deere Group Co., Ltd. is a company engaged in the construction power installation business where Wang Ke has served for 26 years. In 1998, Wang Kezeng conducted cultural strategy planning for Deere. By 2008, Deere Group’s sales revenue had grown rapidly from 60 million yuan to 2.7 billion yuan, an increase of 70 times in ten years, and now has developed into a revenue scale of 10 billion.
Deere Group is located in Jining, Shandong Province. It was restructured from the Second Company of Shandong Industrial Equipment Installation Corporation. After more than sixty years of historical inheritance and innovative development, the group’s business system has been continuously optimized and has become a large-scale comprehensive group company involved in electric power, chemical industry, municipal administration, light industry, metallurgy and other industries. Deere Group is now a national high-tech enterprise, a Shandong Provincial Enterprise Technology Center, and a Shandong Provincial high-end brand cultivation enterprise. The group’s trademarks were recognized as “China’s Well-known Trademarks”, and the “Deere” brand was rated as a well-known brand in Shandong. In recent years, the group has been awarded honors such as “Jining’s Top 100 Private Enterprises” and “Jining’s Advanced Unit in the Foreign Trade and Economic Industry”.
Information shows that Liu Xiyu was born in July 1956. After graduating from university, he has been working at the Second Company of Shandong Industrial Equipment Installation Corporation. He started as an employee and rose to the company’s middle management, deputy manager, and manager. In May 1999, the company was restructured into Deere Group, and 43-year-old Liu Xiyu became the chairman. With this, he also completed his identity transformation from the head of a state-owned enterprise to a private entrepreneur.
Liu Xiyu, chairman of Deere Group, is an entrepreneur with a strong sense of social responsibility. He dreams of making Deere an “everlasting” enterprise. Since 2007, while Deere has been developing rapidly, the company’s living environment has undergone major changes. The technical and market advantages it originally had in the field of construction and installation have been lost due to policy changes such as national energy conservation and emission reduction and the strict shutdown of small thermal power plants. The market has shrunk, profits have dropped, and its glory has faded.
When the industry declines, stagnates or becomes unattractive, or the business it operates reaches the decline stage of its life cycle, companies that implement a single business strategy will find it difficult to maintain their growth. If the resources of a single operation are too concentrated in a certain industry and product, it is easy to become highly dependent on a certain industry market. Once the industry is turbulent or the competitiveness of the company’s own products weakens, the company will face huge operating risks.
Change is a difficult problem presented by the times. If an enterprise wants to go through the cycle, it must have stable operating capabilities and risk resistance capabilities, and continuously strengthen its “stamina” and “endurance” so that it can go through the economic downturn steadily. Therefore, how to get rid of the period of corporate growth and decline and achieve another leap forward for Deere through reform has become a must-answer question for the group. In January 2008, Wang Ke signed a contract with Deere Group again to launch the “New World Evergreen Enterprise Strategic Change Project” and provide strategic reconstruction training for more than 500 senior executives of Deere Group.
Wang Ke said that enterprise restructuring refers to the enterprise adapting to technological progress and cultural development, breaking the old state, and comprehensively transforming and evolving from factors such as value, structure, model, supply chain, etc. It is a successful management evolution system. Reconstruction is a revolution of deconstruction and reconstruction. The more successful a company is, the greater the obstacles will be. The obstacles do not come from the outside world, but from the conscious and unconscious resistance within the enterprise. Because reconstruction will make the original people feel very stressed or uncomfortable, they are unwilling to change their ideas, update their knowledge, and improve their abilities.
Today, more than ten years later, Deere Group has signed a contract with Wang Ke and Tomorrow Strategy Group to once again start the enterprise reconstruction project. The “Corporate Restructuring Project Launch and Militarized Reform Flag Ceremony Conference” was held to integrate corporate restructuring and militarized reform. This is a great initiative of Deere Group. It uses “total war thinking” to deeply implement the restructuring of the enterprise. Lay a solid foundation.
As Clausewitz said of “absolute war”, the core element is “a high degree of unity of the people’s spirit.” In order to win the war, the entire society, all individuals and industries must focus on the war itself. Restructuring is an “absolute war” within the enterprise initiated by Deere Group and Wang Ke, aiming to formulate an action program and spiritual plan to achieve leapfrog development of the enterprise.
Wang Ke and Deere Group hope that through similar normalized activities, they can arouse the work enthusiasm and wisdom of all employees, elevate it to a sustainable development business philosophy, and even become the basic guiding ideology for enterprises to engage in production and business activities. Only in this way can they be able to Only when corporate systems, tools and methods are most effective can we control trends and operate freely in a rapidly changing world and endless management fields. No matter how management problems change in the future, once we grasp “people and Tao” and comply with people’s hearts and human nature, thousands of methods will naturally emerge to deal with the ever-changing problems.
Wang Ke believes that the key to exploring the everlasting nature of an enterprise is to establish evergreen standards. If an enterprise uses technology as its evergreen standard, then the life cycle of the technology will be the life cycle of the enterprise; if it uses products as its evergreen standard, the life cycle of the product will be the life cycle of the enterprise. Enterprises can only use spirit as the standard, determine lofty corporate ideals, and continuously adjust and improve their flexible constitution while maintaining the spirit of the enterprise. This is the fundamental principle to ensure the longevity of the enterprise. The spiritual one is everlasting!
With 20 years of consulting and planning services from strategic expert Wang Ke, Deere Group has entered a fast lane. Wang Ke leads the team to focus on top-level design, strategic planning, corporate culture, capital operation, organizational change, project evaluation, etc. Carry out in-depth empowerment and support, and move towards an everlasting business.
In 2010, Deere Group’s main installation business was split into a subsidiary group company to complete the group’s management and control strategy; in 2012, Deere established a branch headquarters “Xingdeer Holding Co., Ltd.” in Shanghai to complete the sub-headquarters strategy; in 2014, Huayang Di Deere Chemical changed its name to Deere Chemical and successfully landed on the “New OTC Market” to complete its capital strategic layout; in 2021, Deere Group was recognized as a well-known brand in Shandong and completed its brand strategy; in 2022, the Beijing Stock Exchange “expanded capacity and improved quality”, Deere Chemical accepted Beijing Stock Exchange listing guidance. In 2023, the company completed its digital transformation and was officially listed on the Beijing Stock Exchange.
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