Not afraid of crisis innovation services
Reporter: From 2001 to 2005, it was the founding and exploration stage of the China Petroleum and Chemical Industry Association. From 2005 to now, it is the association's innovation and development stage. It is a trial and error, and it is easy to walk through. The association is trying to lead the enterprise in exploring the industry management system. Crisis, make a difference? What are the new initiatives?
Zhao Jungui: In the face of the fierce impact of international competition and the urgent need of the in-depth development of the market economy for the public service of the industry, the association has continuously rethought and has been pondering and exploring the orientation and operation of industry associations under the socialist market economy. As early as in 2005, the association launched a big discussion on what to do, what to do, and how to do it. In 2007, under the guidance of the spirit of Document No. 36 of the General Office of the State Council, in response to outstanding issues in the performance of functions, innovation mechanisms, and standardized operation of the Association, the company carried out in-house enhancement of service, prominent main business, image enhancement, and brand building as the main line. reform. The basic content of this reform is to “strive for income generation, strengthen services, adjust functions, highlight the main business, refine teams, increase efficiency, rationalize relationships, strengthen interaction, and innovate mechanisms to regulate operations.†The main purpose is to concentrate on improving the ability and level of service for members and enterprises, strengthen the integration of the system resources of the association, and strive to form a joint force between the service industry and the service companies so as to maintain the fair status of the association.
Reporter: Since the establishment of the China Petroleum and Chemical Industry Association, it is in the transition period of the planned economy and the market economy. In addition to the current economic crisis, at this juncture, why does the association have to buck the trend and reform? What are your different feelings about this?
Zhao Jungui: The China Petroleum and Chemical Industry Association was born in April 2001. Along the way, there have been successful experiences and tortuous explorations. After the crisis swept across the globe in 2008, it focused on issues such as the low level of industrial organization in our country, poor communication of industry information, and the lack of public services in the industry. Many of my colleagues in the association and I are reconsidering that, with the end of the planned economy era, the sectoral industry management that is characterized by the direct management of enterprises adapted to the planned economic system has been unable to adapt to the development of the market economy. Because the government directly manages the company, it cannot bear the risk and responsibility for the loss of the project. This is a drawback of the planned economy's inability to adapt to the market economy.
Under the planned economy system, the administrative department must manage the subordinate state-owned enterprises and also the entire industry. It is both an athlete and a referee. This kind of management system is unfair and cannot adapt to the level of economic development. The withdrawal of industrial management departments and the formation of trade associations have taken an important step towards the transformation of the socialist market economy system. The problem is that 10 years have passed. Due to the lack of relevant laws and policies of trade associations, the construction and role of trade associations have not been adapted to the market economy. The need for rapid development, in particular, does not meet the needs of China's rapid internationalization. For example, in terms of market access, foreign markets are not entirely open, as people have imagined, and the industry threshold controlled by nongovernmental organizations plays a large role. China lacks such controlling power and initiative. For example, a group of international retail giants has occupied China's best location and the best commercial center. Such a situation is hard to imagine abroad. However, it may not be possible for us to open such a supermarket in foreign countries for several years because we have to assess and plan the control of the association. In other words, we have come to integrate industry management resources and pay attention to the role of industry associations.
Reporter: After the implementation of the new reform, how effective is it?
Zhao Jungui: After more than one year of standardized operations, our association is undergoing five changes: First, we are busy with income generation in our departments, and our efforts are not concentrated to concentrate our efforts on providing services to the industry. In the face of the impact of the financial crisis on the industry, the leaders led the team and sent them to various places for investigation and research. They held various levels of symposiums for more than 10 times, convened three meetings of foreign-funded enterprises, and based on widely drawing opinions from member companies, To the State Council and related departments, they successively submitted special reports on the current state of operation of the petroleum and chemical industries and their recommendations and the “Problems and Suggestions on the Economic Operation of the Chemical Fertilizer Industryâ€, and actively participated in the “Planning and Revitalization of the Petrochemical Industry†and related policies. Research and implementation. Second, from the relatively random nature of work, to more emphasis on standardizing and operating in accordance with the law. Third, from the decentralization of resources and poor cooperation of the departments to resource sharing and division of labor; the fourth is the decentralization of personnel management, and the transformation of full employment Management; Fifth, from the coexistence of the interests of the association and the department, it becomes a contribution to the overall interests of the association. The core cultural mechanism is being formed for the sake of the People's Association for All, and for everyone to use the association as a business. In particular, major events, happy events and difficult events continued in 2008. With the world financial crisis seriously affecting the development of the petrochemical industry, the new mechanism after the reform showed new advantages in serving the government, service industries, and service companies.
Polishing soft power
Reporter: Good service has always been your goal. From the Ministry of Chemical Industry, the State Petroleum and Chemical Industry Bureau to the China Petroleum and Chemical Industry Association, the nature has undergone great changes. The most fundamental change has been the change from management to service. From the government to the association reform, not only the change of the management department, but also a change of management functions. How did you change this function?
Zhao Jungui: From the management to the service, the fundamental starting point and the end result are to serve the industry and enterprises. The Association defined the service, strengthened the monitoring and in-depth analysis of key industries and hot products, conducted in-depth investigations and studies on new energy, chemical fertilizers, and small refineries, and strived to grasp the new dynamics of the industry's economic operations. Strengthen coordination between enterprises and government, solve problems for enterprises, strengthen international communication, and conduct international trade coordination services. Under the market economy, enterprises are both competitors and common interests of the industry. Especially in today's increasingly internationalized industry, trade associations are often the forerunners of international negotiations and representatives of international industry interests. Today, any international negotiation has an international The background of the organization is also an important reason why international industry organizations are enduring.
Reporter: The function change is intended to promote the soft power of the industry and improve the overall competitiveness of enterprises. What do you think of this issue?
Zhao Jungui: The government, enterprises, and associations are the three pillars of the market economy and are determined by the nature of the market economy. The market economy is a free economy and a competitive economy. It requires the free circulation of human, financial and material factors of production. Like any form of democracy, freedom and self-regulation are the body and shadow of the market economic order; no industry or enterprise exists in isolation. The more fierce competition is, the higher the demand for public information, public policies, and public services for the industry, which is exactly the reason why the industry associations have developed as well as the blowouts in recent years.
China's petroleum and chemical industries are in a critical period of major changes. With the continuous enhancement of China's economic strength and industry strength, the construction of national and industrial soft power has become a major issue for us to build a world power and a strong petrochemical country. The construction of industry soft power cannot be separated from the industry and professional organizations that are in line with the international status of the industry. Otherwise, we will not have the right to speak, price, and rules in the world market, which will ultimately damage the long-term interests of our country and industry.
Reporter: Through the reform, the association has entered a new management system and has played a role as a bridge and link. How to enhance the cohesion of the association?
Zhao Jungui: As a bridge and tie between the government and the enterprises in the work of matchmaking, the association can neither issue orders with the government, nor can it do business with the purpose of making profits, and the government and the enterprises cannot do anything. This determines Our work must be integrated with the government, with companies, and with society. We must use all available resources to create the most popular platforms at the lowest cost. We must learn to integrate resources and learn to work together. However, the association is not an appendage of a government agency, but is a public platform for enterprise service. This requires industry and companies to actively participate in supervision.
The survival and development of the association cannot be separated from a certain material basis. Training talents and retaining talents is also inseparable from economic conditions. The nature of the association's non-profit organization determines the direction of the association's behavior. We cannot engage in the industry that competes with the member companies for the benefit of the market, but it does not interfere with the service projects that are consistent with the purpose of the association and with the needs of the company, for the long-term development of the association. We have to continuously strengthen the hematopoietic function of the association and accumulate energy for the sustainable development of the association.
Break through the financial difficulties
Reporter: Conducting in-depth industry research is a required course for building enterprise soft power. How do you think that you should improve the research and research level of industry associations?
Zhao Jungui: Our association is strengthening research on major issues and strategic issues in the development of the industry, striving to safeguard the public interests of the industry and establishing a good social image of the industry. Raising the research level of the association and soft science research in the industry is very important, but the premise is that the association must be large enough to be able to sit down and engage in research; it is necessary to solve the association’s survival before it is able to strengthen its own construction.
The Association’s service is not simply a matter of the next executive order. The association must do what the company and the market needs. It will be a matter of interest to the industry and will have vitality. With the expansion of the industry scale and the increase in the degree of internationalization, the industry Public construction investment should also increase year-on-year. But this point, we just did not do it. What was the size of China's industry ten years ago? How big is it after ten years? But we can invest a lot less in the public sector now. Let me make an analogy. In the past, the administrative allocation of an industrial department was at least several hundred million yuan a year or more, including information centers, planning institutes, etc. How much does the country now give us? The scale of the industry has been so large that it will not only increase investment, but also reduce investment. The entire industry will not be served by people. The weakening of the entire program, the weakening of industry guidance, and the weakening of basic industrial management work. Failure to pay attention to this issue will inevitably create major contradictions. I went to Shanghai for research. A veteran manager in Shanghai said that when they relocated their company, they wanted to find a safe distance procedure. What they found was the 1993 regulations of the Ministry of Chemical Industry. No country or any industry can make money, and everyone who earns money can't earn any money. Some people have to settle down solidly to do industry services, do industry research, and collect and analyze information. If our industry associations are now making money, there will be no one in the industry. This is a big problem. Therefore, to make the association's people feel at ease and to solidly serve the enterprise is an issue that must be solved urgently.
Reporter: At present, the phenomenon of chaos and lag in the management of some industries is very prominent. The discontent of enterprises and the dissatisfaction of the people make the government helpless. How do you feel that you need to change this situation?
Zhao Jungui: The key lies in establishing a strategic height from the establishment of an industry that adapts to a market economy, to improve the international competitiveness of the industry as a whole, and to establish an industry organization commensurate with China's international industrial status. Institutionally, the relationship between the government, enterprises, and industry associations should be streamlined. The government departments should decentralize the powers. The support should be supported and the stewardship should be managed; enterprises should increase their sense of social responsibility in participating in the construction of the industry public platform. The active participation of the participation, the active supervision of the supervision; the association should strengthen the norms of action and self-discipline awareness, the norms to be standardized, the reflection of the reflection, the criticism should be criticized, so that the government, enterprises, industry associations in their place Each has its own place, forming a reasonable position to promote the development of the industry and the joint force of division of labor and collaboration, and gradually form a new type of relationship that jointly promotes public management of the industry.
Reporter: What are your strategies for the lack of funds?
Zhao Jungui: The construction of the association does not need to follow the route of traditional institutions. The government gives the association certain support. Other funds are operated by the association itself. The government should first establish and improve trade associations to manage laws and policies that include membership fees management. For example, some countries stipulate that enterprises must participate in industry associations and pay dues. There are more than 29,000 enterprises in the petrochemical industry in China. If a company pays 1000 yuan, it is considerable, but this requires the government's approval and support. China’s associations are too scattered and ostensibly superficial, but the actual scientific management system is scarce. Hundreds of thousands of associations across the country are affiliated with certain government authorities. Not only has the natural links between industry associations been severed, but also the administrative burden on government departments has increased. If the hierarchical management of the association is implemented and the industry association’s own management system is formed, it will not only save management costs but also facilitate the integration and collaboration of the association itself.
Way out on your own
Reporter: Although our technology lags behind developed countries, there is a gap between soft power and foreign countries, and there is still a need to increase the right to speak at the international level. However, starting from China’s national conditions, industry associations are a good opportunity to develop over the years. How do you see this? ?
Zhao Jungui: The experience and lessons learned from the work of the association over the past few years have taught us that the fundamental way to achieve the healthy development of the association lies in itself. Judging from the usual practices of international developed market economy countries, there must be communication between industry associations and governments. This is the shortcoming of China's industry management system. In the end how the Chinese associations are positioned in the market economy system, the debate is fierce. I think that Chinese associations must recognize our country’s national conditions. We cannot simply reorganize China’s association system according to Western rules. Simply studying the West and simply marketing are all wrong. I think that the Chinese community must have a management system with Chinese characteristics. It cannot simply imitate the western marketization. Otherwise, simple marketization will inevitably bring problems, just as it is impossible to simply marketize education and health care, otherwise it will be political. It is a problem. The associations are the basis of our party's governance. We should establish a government-sponsored private association management system that suits China's national conditions, and absorb the beneficial practices of foreign association management, combined with the reality of China. This is in line with China's national conditions.
We don't forget the responsibility for corporate services, and we must also have a strong sense of social responsibility. If an industry's enterprises do not actively participate in the construction of public organizations in the industry and do not care about the public affairs of the industry, this industry must It is a mess, and the public competitiveness of this industry must be doubted. Effective service is the eternal soul and theme of the association. Associations that cannot provide effective services to the government and enterprises are destined to survive and develop. The time is tight, it is impossible to enhance the company's soft power, improve the service level of the association, and so on.
The normative operation is the "rules of the game" that the association must stand up to in an invincible position. Since its inception, service associations have been the foundation for realizing the long-term influence of the association and the cohesion of the industry, and are the basis for winning the trust of the company. The experience and lessons learned from the association's eight years of existence have also proved this profoundly. We will cherish the association's brand and reputation as if we value our own eyes, pursue brand values, and maintain the fairness and vitality of the association.
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