Fosun Investment Philosophy

Guo Guangchang:  The Distance Between Success and Failure is 0.01 Second

Resource:

Chairman Guo Guangchang shared the Group’s talent recruitment criteria and Fosun global partner model for creating an elite organization at Fosun Global Annual Conference on January 15, 2017. How and what are the criteria that “makes the world different because of Fosun”? Let’s take a look at his presentation.

 

  Fosun Elite 0.01 Criteria

 

  The world is different because of Fosun and you, thus we ought to be an elite organization. In other words, we should be an organization of elites. All of us here are different from others. So, what are Fosun’s criteria for elites? As Wang Qunbin (Fosun’s President) and Kang Lan (Fosun’s Chief Human Resources Officer) said, we can sum up Fosun’s elite criteria with three “0.01” seconds:

 

  ①We must find people who are faster than the fastest person by 0.01 second; this is the requirement for competence.

 

  Things are changing quickly, and the difference between you and the “winner” is no longer one day or one minute or even one second; the difference is 0.01 second.

 

  Fosun needs to find those “0.01-second” people: those who are faster than the fastest person by 0.01 second, who has the potential to win others by 0.01 second, and who can help others become the person faster than the fastest person by 0.01 second. Fosun aims to help entrepreneurs and innovators become 0.01 second faster than others.

 

  On the other hand, what Fosun wants to avoid the most are those who are mediocre, especially those who have a tedious resume without any highlighted achievements, who have experience but lack of innovation, and who are not willing to learn and grow. This type of people must be eliminated. The elite are the ones ahead of their peers, those who can excel beyond others in professional capabilities, and those who can innovate.

 

  ②We must find those 0.01 people who are more passionate about learning than others.

 

  Likewise, because the world is changing, if you do not learn, as this era continues to change as quickly as ever before, no matter how experienced you are, you are going to fall behind and be eliminated. We believe that as long as you continue to learn, you will always have the opportunities. Therefore, in selecting talent, Fosun must give opportunities to those people who insist and are eager to learn, and who learn better and faster than others.

 

③We must find those 0.01 people who can accumulate more than others.

 

  We talk about the speed of 0.01 second and how important it is; if all you can do only hit the 0.01-second speed but never accumulate of anything, that is useless. Therefore, the 0.01 also represents perseverance and accumulation in daily life. We have high standards both on loyalty and toughness. In addition to being faster than the others and more proficient in learning, we also demand our fellow Fosun classmates to be persevered to accumulate the extra 0.01.

 

  Liang Xinjun, Wang Qunbin, myself, and Fosun’s global partners are not fools, but none of us could be considered smart. In fact, we are just persevering in learning day by day and continue to improve. To be a great enterprise, you have to take action and practice.

 

  Putting the Right People in the Right Places

 

  To this end, it is imperative that all entrepreneurs and managers are the primary responsible persons for human resources. Our most important task is to put the right people in the right positions. After all these years, I would like to share a few points:

 

  ①Young people are the future of Fosun and the fresh blood that invigorates our organization. We must recruit more young people, and give more opportunities to those who have leadership skills and innovation spirits, and willing to work hard. However, we must also spend more time and effort to attract leaders who can be independent.

 

  ②We place a special emphasis on introducing teams across institutions to encourage and support teams as they do business with Fosun.

 

  Take IDERA, Resolution Property, and Rio Bravo, as examples. They are all important forces for Fosun to strengthen its “Glocal” strategy. This is a crucial business development model for Fosun, and we hope everyone should think about it and put it into practice.

 

  Whether you are a scientist of other enterprise or fellow classmates of Fosun, we strongly encourage and support you with great ideas and entrepreneurial spirit to do business together with Fosun. This is especially true in technological research and innovation, because these efforts require the patience of continuous investment, and that should be encouraged. However, your team must be world class, highly efficient, and on par with Fosun.

 

  ③Dare to trust others and (more importantly) replace unsuitable persons with suitable ones promptly.

 

  Fosun’s past experience shows that our greatest losses are not the failure in one or two deal, but rather on not eliminating the unsuitable persons who fail to meet our requirements, or who lack of entrepreneurial spirit and replacing them decisively. Those who do not fit must be replaced immediately. The only outcome when we “spare the rat to save the dishes” is that we will wantonly waste resources.

 

  The case similar to elimination is the “Carry” issue. Fosun has a clear system of reward and penalty, and we never treat our fellow classmates with great contributions shabbily. I believe that if you are an innovator or a person with an entrepreneurial spirit, you must have persistence and a focus on long run rather than placing an emphasis on momentary gains and losses. It is my hope all Fosun classmates have an entrepreneurial spirit. It would not be such a bad thing to lose those people who cannot withstand short-term hardship and who are unwilling to work together with the team for the long run because, after all, they do not fit into our elite culture.

 

  Fosun Global Partners Model

 

  In Fosun’s elite organization, I feel the best recognition is to become a global partner. Although Fosun global partners have incentives, more importantly, they have a kind of honor, a duty, a strong recognition of Fosun’s culture, mission, and strategy.

 

  Fosun partners must have a “self-driven” spirit. As the Chinese saying goes, “you need not spur a willing horse”. They must have the awareness of self-motivation and take initiatives to reinforce “closed-loop” of Fosun’s businesses; they should be learning proactively, integrating and leveraging Fosun resources to promote collaborative growth. If, as a global partner, you still do not have the clue what kind of resources Fosun has, then he/she is certainly a unsuitable person.

 

  Fosun partners must understand Fosun’s culture, thoroughly consider the big picture from Fosun’s perspective to maximize collective interests. Our global partners must begin from Fosun’s big perspective. On the one hand they should have a profound understanding of Fosun’s culture and strategies; on the other hand, rather than standing alone, they must consider the group’s interest at the first place, to link up and integrate the internal and external resources within the group, and deeply develop Fosun ecosystem.

 

  Fosun partners absolutely don’t last for a lifetime; they will be in and out every year. We hope two types of people can become Fosun global partners: those who can stand alone and make great contributions to Fosun, and those fellow classmates who deeply understand Fosun’s culture and strategy who are in the prime of their lives with great potential for growth. They should be willing to continue to climb towards greater heights. We must encourage and attach great importance to these two types of people.