Chapter 24

Part One: Turbulent Waters of Officialdom. Chapter 24: Bullying a widow and her child

Cai Feijuan had watched Zhang Ke sit quietly for ages, only to suddenly interject with that remark. She felt displeased, her brows drawing together slightly, but since this boy had saved Zhitong from beneath the wheels, she held back from saying anything unpleasant.

Xie Wanqing knew the role Zhang Ke had played in the Ding Xiangshan case and did not regard him as an ordinary boy. More importantly, of course, he had snatched Zhitong from beneath the wheels at the critical moment, leaving an indelible impression on her-one so profound that she had developed an almost instinctive trust in him.

Xie Wanqing looked up and asked him, "Why do you say that?"

"Although I'm still only a high school student," Zhang Ke said, "after listening to you and Sister Cai talk all afternoon, Wanqing, I can understand some of the problems with Haiyu Company's management. For example, hiring local frontline sales staff for branch offices is an important management measure. It not only saves personnel costs but also makes it easier to conduct business locally. Yet Haiyu Company sends every employee at its branch offices out from headquarters, regardless of their role. How much must the travel expenses and out-of-town allowances alone cost? If even a high school student like me can understand this, how could Haiyu Company's general manager not understand it?"

Cai Feijuan froze for a moment. She had not expected this boy to actually understand management, but inwardly she remained dismissive. Children these days read all sorts of things and had a smattering of knowledge about everything. There was nothing particularly surprising about it.

Xie Wanqing thought it over and began to understand what Zhang Ke meant, though she could not be entirely certain.

Zhang Ke let Zhitong lean against his chest, swept his gaze over Xie Wanqing and Cai Feijuan, and continued, "By now, even a kid like me who's just graduated from junior high knows the importance of dividing authority. I just heard you say, Sister Cai, that the managers of Haiyu Company's branch offices hold sweeping powers. They're responsible for everything at their offices, including logistics, distribution, marketing, finance, and so on, while the company exercises only basic oversight through the figures. My dad helps Uncle Tang compile economic data from the counties and districts under them, and he complains every time that you'd have to be out of your mind to trust the figures they submit. Haiyu Company mainly handles agency and distribution business. I think there are at least two things headquarters should keep under its control: logistics should be managed centrally by headquarters, and so should finance. But I heard you say that the branch offices all have their own vehicle fleets and storage warehouses. Headquarters can't control logistics or keep track of their inventory, and their finances aren't subject to headquarters' oversight either. They can fabricate figures for their performance and profits that look as good as they like. My dad has quite a bit of experience with fabricated figures. You can ask him."

Although Cai Feijuan was very dissatisfied with the company's chaotic management, hearing this boy criticize it made her feel distinctly uncomfortable. She retorted, "Headquarters doesn't just exercise basic oversight through figures. We set collection targets for every branch office. Collections-do you even know what that means?"

Zhang Ke glanced at her. She still had a certain charm, but she was too old. "Of course I know what collections means. I imagine that once a branch office's collections exceed a certain threshold, there's a corresponding bonus?"

"Of course. The highest collections bonus is ten thousand yuan."

Zhang Ke smiled. "If I were a branch manager, getting that bonus would be all too easy. Since there's no financial oversight anyway, I'd withhold the employees' wages for the time being and inflate advertising expenses to two or three times the actual amount. I assume advertising expenses can be deducted separately from collections? I'd overstate those expenses and hold on to the advertising money for now, too. And don't the wholesalers have to buy their goods from me? I'd have them send their payments first. Given Haiyu Company's level of financial oversight, that's all it would take. Whatever collection rate you wanted, I could produce beautiful figures for you, and then pocket headquarters' ten-thousand-yuan bonus without a hitch."

Zhang Ke's words left Cai Feijuan dumbfounded. Was this really a boy who had just graduated from junior high? Why did he sound like a seasoned operator with more than a decade in the business?

Xie Wanqing's brows knitted tightly. She asked Zhang Ke, "Those are all problems within the company. Why do you say the biggest problem lies with the general manager?"

Zhang Ke smiled. "Even if you had me help you manage Haiyu Company, Wanqing, I couldn't possibly let things get this chaotic. Surely its general manager isn't less capable than I am?" To persuade Xie Wanqing, Zhang Ke did not hesitate to belittle himself. "Chaotic management does the company every kind of harm and no good at all, but it lets the branch managers line their pockets. Sister Cai just said the company only checks collections and has no means of controlling the branch offices' expenditure. In other words, any expense can be reimbursed in full. When Dad and I came to the Provincial Capital, we passed the long-distance bus station, and someone even asked him whether he wanted invoices. Could those invoices be reimbursed too?" Zhang Ke made this up off the cuff, then continued, "Take the advertising expenses I just mentioned. Sister Cai said each branch office spends around three or four hundred thousand yuan a year on advertising, yet headquarters has no criteria for evaluating the results. Probably only the branch managers know how much shady business is hidden in those expenses. That means everyone will be scrambling to become a branch manager. It's a post where you rule your own little territory and have endless opportunities to skim money. Didn't Sister Cai just complain that Haiyu Company's general manager is a poor judge of people and keeps sending useless fools who don't know how to market anything to run the branches? But I believe every manager sent out is an old hand at lining his pockets. And of course, Haiyu Company's general manager isn't that stupid either. Would he send those people out if there were nothing in it for him? However poor the company's performance, even if it makes no profit and runs at a loss, loans can keep it afloat. As long as it manages to limp along, it's an endless source of money for him. On the other hand, if the accounts are clear and management is sound, the profits belong to you, Wanqing, and have nothing to do with him..."

After hearing all this, even Cai Feijuan began to waver. She could not imagine these words coming from a sixteen-year-old boy.

Xie Wanqing frowned and murmured to herself, "Is that really how it is?"

Xie Wanqing sent Cai Feijuan home first. She sat there deep in thought over a pile of company documents. Zhang Ke's words had struck a chord with her, but she still could not be sure that things were really as he said.

Xu Xueping hurried home for dinner that evening, and at the table, Xie Wanqing repeated what Zhang Ke had said that afternoon.

Xu Xueping frowned. "I didn't ask about the company before because I didn't want to go against my principles. Now that Zhiming is gone, I can say a few words. I haven't had much contact with that cousin of yours, but I don't like him. He's too clever. I told Zhiming to pull out long ago, but he simply wouldn't listen..."

From his words, he seemed to agree with Zhang Ke's assessment. Xie Wanqing felt utterly useless. She could not even see things as clearly as sixteen-year-old Zhang Ke.

Seeing Xie Wanqing's silent expression, Zhou Shuhui said, "Even Zhiming couldn't keep a grip on such a big company. You've only just started dealing with its affairs, and you have Zhitong to distract you as well. You might as well let it go..."

"Even when Zhiming was dying, he was still thinking about the company. How could I let it go?" Xie Wanqing insisted.

Zhou Shuhui sighed and looked at Xu Xueping. "Xueping, you can't just stand by and watch outsiders bully a widow and her child!"

Xu Xueping sat turned to one side and said nothing.