On November 10, 20 top decision makers and founders from different industries in Fujian Province participated in the private board of directors activity sponsored by EMBA program of NBS. The event was held at Fuzhou Wanda Westin Hotel. Dr.Wu lejin, Director of Fuzhou Centre and Entrepreneurship Incubation Center of NBS, hosted the meeting. Professor He Zhiyi, President of NBS Council, “The first case-teaching person in China” and Jin Zhiguo, Professor of management practice of NBS, former Chairman of Tsingtao Brewery Co., Ltd were specially invited to be the head coaches.
The theme of the meeting “How to scientifically set benefit-sharing mechanisms such as stock-based incentive in the core team management of an enterprise?” was decided upon on the voting of the entrepreneurs on site. As the saying goes, "Two heads are always better than one". The more you speak, the less you get. The more you ask, the more you get. In the light of the principle of mutual trust, mutual care, combined with the theme of the meeting, entrepreneurs asked questions to the "issue owners" one and again and then made careful and detailed analysis to dig out the details behind the problems. After several rounds of sharp questions, the "issue owners" gradually began to fix their problems which made the issue clearer and more focused.
Under the careful and tactical catalysis of the two head coaches, the entrepreneurs at the meeting shared their experiences, ideas, offered their opinions one by one. The wonderful statements of "Motivate employees and offer them with an ongoing incentive” and "Is the core team management raising pigs or sons? Raising pigs is a matter of a year’s time but raising sons is a life project” and so on sounded very rewarding to the participants.
Before the end of the activity, the two coaches summarized the issue of this meeting. Professor He Zhiyi says, to give or not the stock-based incentive to the employees actually reflects the ideas and values of the business leaders. In the beginning stage, especially when the rules, procedures and others are not specified, the entrepreneurs should be cautious with the equity incentives. Instead, they should use performance-related incentives more so as to avoid complicating the decision-making. Professor Jin vividly compares the enterprise to a machine and the incentive is the engine. He believes that many of the existing corporate incentive mechanisms are poorly matched, either with big horse pulling small cart or small horse driving big cart. Incentive is a kind of mean and an approach which is designed for people belonging to the business. Usually an enterprise has protective, incentive, growth and strategic four platforms which determine the needs of enterprises in different stages of development. At different stages of platform development, there should be equipped with a variety of incentives and that is the way to gain good incentive effects.
Entrepreneurship EMBA private board of directors activity is a high-end activity to effectively help businesses growth by introducing the foreign mature patterns and combining with practical needs in China. Such events have been successfully held across the country for many times. This event in NBS Fuzhou Center is designed to provide participants with professional think tank services and to create service platform of capturing new opportunities and resources for enterprises’ development. Entrepreneurs have expressed their satisfactions for such forms of activities and their hope for joining in the future.