Outside Fairy Mountain Meeting room Floor-to-Ceiling Window, the alpine meadow was illuminated golden by the afternoon sun.
Zhao Chen stands in front of the whiteboard, holding a marker in his hand,
Sitting in front of Long Table are all the core members who worked with him to bring Henglong from the real estate company to where it is today.
He was originally going to announce the plan to establish Henglong Research Institute,
But the "quarterly system evaluation mechanism" mentioned by Shen Jue in his speech just now made him change his mind.
He put down the marker and turned to look at the people present.
"Before announcing the establishment of Research Institute, I want to do one other thing first."
He picked up the Henglong Decision-Making Structure Diagram printed by Chen Xi and wrote a few words in the blank space:
From emergency framework to normal system.
"In the past few months, Henglong has verified a set of Institution-Driven's decision-making framework in extreme environments--
Independent Model cross-validation, Investment Decision Committee collective deliberation, and batch buying rhythm control.
But verification is verification, and this framework is still at the 'emergency' level.
When the flu comes, we use it, but when the flu passes, do we just throw it back in the filing cabinet?
What I want to do today is not to set up a new organization,
It is to formally solidify this framework into the normal system of Henglong."
Chen Xi took over.
"I suggest that the three core principles that have been proven effective during the epidemic be formally written into Henglong Capital Investment Management Charter.
Article 1: Major investment decisions must be cross-verified by at least two sets of Independent Valuation Model.
The assumptions and data sources of the two sets of Model are independent of each other;
Article 2: If the amount of a single investment exceeds a certain scale, or the market volatility exceeds a certain level, the Investment Decision Committee review process will be automatically triggered;
Article 3: The holding logic of each position is re-verified with new variables every quarter.
If the verification fails, the position reduction or liquidation process will be initiated.
These three principles have been implemented in practice during the epidemic, and now they need to be upgraded from temporary rules to formal systems."
Song Zhongping raised his hand.
He is the only person in charge of operations who has followed him from the real estate era to the present.
We know that if the institutional framework is too complex, it will be bypassed by the executive layer when implemented.
He flipped through the framework document Chen Xi, which was full of comments, and made a very practical suggestion--
Theoretical framework and operational manual are separated.
The theoretical part is for Investment Decision Committee and legal affairs, but what the execution team needs is a simplified version:
Check three checkboxes before placing an order for each transaction, and you don't have to flip through pages of terms.
"No matter how good the system is, if it is stuck at the executive level and cannot be understood when it is implemented, it means nothing."
Zhang Qingxue supplemented Song Zhongping's proposal from a legal perspective.
"After the operation manual and theoretical framework are separated, the theoretical framework can be officially named "Henglong Group Basic Guidelines for Investment Decision-Making",
Approved by Board of Directors as the highest rule of the Henglong investment system.
Any future formulation of new systems and new processes must be consistent with this basic principle.
This is Institutional Constitution from Henglong."
"The basic principle is very accurate.
But it cannot only stipulate how to make decisions, but also how to modify itself."
Shen Jue put down the tea cup and crossed his hands on the table.
"I propose to add to this basic rule--
Independent Director conducts a comprehensive review of the operation of Investment Decision Committee every quarter.
The review content includes: whether all investment decisions that trigger Investment Decision Committee review are implemented in accordance with the prescribed process,
Independent Model cross-validates whether there is any going through the motions,
Whether the rhythm control of batch buying is effectively followed.
The review report is submitted directly to Board of Directors without going through the management."
Her tone when she said this was exactly the same as when she usually raised the avoidance clause on Board of Directors--
Pick out the weakest bone in the system and force it to grow muscle before it breaks.
Chen Qiming used Financial Data to prove the necessity of system upgrade.
During the flu period, he tracked every buying decision that was executed strictly in accordance with the institutional framework.
Their comprehensive costs were compared with the theoretical costs under the centralized decision-making model.
"I discovered a very interesting phenomenon:
The final comprehensive cost of several batch purchases is controlled within the bottom range.
The theoretical cost is not much higher than that of centralized buying, but Risk Exposure is significantly lower.
The overall volatility of the portfolio narrowed significantly.
The institutional framework does not sacrifice efficiency, but optimizes the risk-benefit ratio."
Su Wantang was the last one to speak.
She turned the Philanthropic Foundation network upgrade plan in front of her to the last page and pushed it in front of Zhao Chen.
"What you are discussing is the institutional framework on the investment side.
I would like to add a social risk dimension on the public welfare side.
During the influenza period, Foundation's epidemic prevention material distribution network covered hundreds of schools.
A large amount of first-hand data has been accumulated - which areas have the weakest ability to resist risks during public health events?
Which grassroots nodes can be transformed into humanitarian material distribution sites as soon as possible.
These data are not on Bloomberg Terminal, but they are also part of the Henglong decision.
I suggest adding social risk variables to the stress test Model.
Incorporate public welfare network data into the regular research scope of Henglong Research Institute."
Zhao Chen stood in front of the whiteboard again.
The three vertices of Triangle Framework have been marked with dense connecting lines.
And the newly added in the discussion just now
"Operation manual layered"
"Institutional Constitution"
"Quarterly Independent Review"
He marked the "social risk variables" one by one on the corresponding connecting lines with a blue marker.
He took a step back and looked at the picture, put his marker in the whiteboard slot, turned around and said:
"What we are doing today is not to establish a new organization, but to evolve the Henglong system from 'usable' to 'easy to use'.
Chen Xi The three core principles just mentioned are written into the investment management charter, which is the skeleton of the system;
Aunt Zhang's 'Institutional Constitution' positioning ensures that future system revisions are based on the highest standards, which is the foundation of the system;
Director Shen's quarterly independent review mechanism ensures that the system itself will not become rigid. This is the immune system of the system;
Mr. Song's operation manual is layered so that the system can be truly implemented at the execution level, which is the blood vessel of the system;
The social risk variables of Wantang are included in Model, which is the system's perception of the external environment.
This set of things taken together is the complete evolution of Henglong from an emergency framework to a normal system."
Shen Jue looked at the marker Zhao Chen placed in the whiteboard slot, and suddenly said:
"Have you noticed that in today's meeting, you never said 'I think' once from the beginning to the end.
You are using 'Chen Xi suggestion' 'Zhang Qingxue positioning' 'Mr. Song's suggestion'.
You used to say on Board of Directors, 'Henglong is not mine, Henglong is this system'--
You don't need to say anything now, because the system is already running in front of you."
Zhao Chen was silent for a moment.
The afternoon sunshine on the meadow outside the window is blocked by a thin cloud, and the light in Meeting Room softens.
The densely drawn Triangle Framework picture on the whiteboard looks a bit old in the soft light--
Although it was only written in a few hours, every connection is a trace of countless crises and decisions made in the past few years.
He picked up the marker and wrote two more words next to the word "starting point" in the center of the triangle: iteration.
"Director Shen is right.
The system will not remain unchanged. Today it is upgraded to 2.0, and there will be 3.0 and 4.0 in the future.
But the rules for upgrading themselves are part of the system -
Who will propose changes, what procedures will be followed for review, and how will the changes be verified--
We have written all these into the basic guidelines today.
From now on, Henglong's system can evolve on its own, and no one will need to think of a framework when a crisis strikes."
After he finished speaking, he put the marker back into the pen holder.