Volume Three: Ascending High to Look Far 66. Development Strategy (Part 3)

Facing such a sharp question, Qin Yan showed not the slightest trace of panic. Maintaining a calm yet clear expression, she answered:

"Thank you both leaders for the questions just now. They are indeed very professional and crucial. Let us have a further discussion and exchange regarding these two points."

"Regarding the first question concerning the growth rate, since we propose that the company undergoes significant reform and transformation in the future, the future growth rate will certainly be higher than the current one, and such a rate is entirely possible. However, this leader's concern is also reasonable; from the perspective of prudence and stability, we must also consider the possibility that this target may not be realized."

"Therefore, afterwards, we will take everyone's opinions into reference, combine them with strategic planning measures, and further deliberate to propose a reasonable growth rate and development target. At the very least, we must ensure that this target has a high probability of achievement, backed by reasonable support and clear safeguard measures. Nevertheless, I must speak quite frankly: when formulating development planning targets, no one can guarantee one-hundred-percent realization, as there are still many uncontrollable factors in the future. Generally speaking, planning targets must consider rationality while also possessing forward-looking and advanced qualities. Otherwise, they will lose their guiding role, which might differ somewhat from performance appraisals."

"Regarding the second question, the funding required for reform and development mentioned by Section Chief Zhou, this issue is indeed extremely important and critical. We have dedicated a special chapter in the plan to describe the support and safeguards for our strategic planning measures, but there may still be areas that are not comprehensive enough, and I ask all leaders to offer more valuable opinions and suggestions."

"Specifically regarding the funding required for future development mentioned by Section Chief Zhou, our description may not be detailed enough, and we need to ponder some new ideas and measures. Concerning the capital demands to support these strategic measures, our current description may not be entirely clear, and there are several points I need to explain and clarify:"

"First, while the total financial demand for all these strategic measures combined may appear enormous, these measures will not be implemented all at once; rather, they will be rolled out step by step. It is possible that the funds recovered after the implementation of earlier measures will be reinvested into subsequent plans, thereby relatively easing the financial pressure;"

"Second, if the preceding measures achieve their expected effects, a portion of funds will be accumulated, which can also partially resolve the funding for subsequent implementations;"

"Third, following our detailed investigation and analysis of the factory's conditions, we believe that the company's asset with the greatest value-added potential is its land assets. Currently, because the company is relatively flush with capital, only a portion of the real estate and land has been used as mortgage loans. Of course, I am not referring to the financing potential of the remaining unmortgaged land; rather, based on our analysis and judgment of the macroeconomic environment—including the urban development and economic operations of Huajiang Province—the company may face factory relocation within the next few years. At that time, the company's more than two thousand mu of land can be monetized, generating massive cash flow that can support the vast majority of the funding demands outlined in the plan."

"Of course, although the probability of this event occurring in the future is high, no one can pinpoint the exact timeline, which is why we did not state it very explicitly in the plan. Nevertheless, the issue raised by Section Chief Zhou does exist and is extremely important. We will further revise and refine this aspect afterwards."

Qin Yan's response was watertight, fully demonstrating her capability and high emotional intelligence. On the surface, she affirmed the opinions of Fang Dakal and Zhou Wenhua, acknowledged the shortcomings and problems of the plan, promised revisions and refinements, and preserved their dignity. In reality, however, she provided a powerful explanation and clarification for their objections in a manner that was relatively easy for them to accept, while steadfastly maintaining the core viewpoints and思路 of the plan. To be able to deal with such sharp questions with utter composure and achieve one's objectives without offending anyone—one has to admit, she is an expert.

Naturally, the discussion continued. Afterwards, several other people expressed their views and opinions on the plan, though in my view, most of them were trivial, minor issues. Qin Yan provided thorough explanations and clarifications for everything that required them. Just when I thought the discussion would conclude in such a tranquil manner, I did not expect that even sharper and more intense issues lay ahead.

To my surprise, Zhang Guoqing, the head of the Production Section, raised a question that everyone was concerned about. He stated it this way:

"I agree with most of the plans and measures in the proposal, including the transition to producing daily-use chemical raw materials—a portion of which we have already begun producing in the early stages. However, even with the addition of this product line, it still falls under the category of chemical raw material production. To ask us to truly manufacture daily consumer goods makes me quite worried. The industry gap is simply too wide; we lack experience in this area, as well as the relevant technology and talent. The sales methods are also vastly different. I fear that we are unfamiliar with this industry, and plunging into it rashly would entail significant risks. Personally, I suggest we proceed with caution."

While I was psychologically prepared for dissent regarding entering the field of daily consumer goods, I never expected that the first person to stand out in opposition would be Zhang Guoqing, whom I had always trusted relatively well. Whether Zhang Guoqing's move stemmed from a cognitive issue, an ideological problem, or other reasons entirely, is something worth pondering. If I want to implement my vision, I must listen to his words and observe his actions. If his mindset fails to keep pace or he refuses to execute the direction I have decided upon, I will have no choice but to replace him, I thought to myself inwardly.

Next, I saw Diao Youhua, the deputy director of the general office, stand up to speak from the back. Following Zhang Guoqing's remarks, he said:

"I agree with Section Chief Zhang's perspective. We have always been a chemical plant producing raw materials. Professions are worlds apart; we have abundant experience in producing chemical products, but virtually none in daily consumer goods. Furthermore, the market for daily consumer goods is already fiercely competitive. Domestic markets are basically dominated by well-known foreign brands and a few major domestic giants, holding the vast majority of market share. Starting from scratch and attempting to compete with these domestic and international giants would likely be immensely difficult. I also agree with Section Chief Zhang's opinion. Mentioning this matter in the plan is not entirely out of the question, but if we are truly going to implement it, we must proceed with caution."

It had been a few years since Diao Youhua had spoken so sharply. He cleverly chose to echo someone else's opinion when it was raised, rather than sticking his neck out as the first to voice this viewpoint, reflecting his consistently slick and evasive nature. Although our relationship had indeed eased somewhat since he came to my office in tears to express remorse when I became the deputy secretary of the Party committee—and I, on my part, refrained from making things difficult for him partly out of respect for Factory Director Shi—true intimacy between us remained impossible given our past history. I knew this in my heart, and he certainly knew it too.

The moment Diao Youhua sat down, Ma Xiaosong, the deputy head of the Sales Section, stood up immediately. His very opening sentence was: "I do not agree with the views of Section Chief Zhang and Director Diao."

As soon as these words were spoken, many people in the conference room were utterly shocked. In typical meeting discussions, differing viewpoints are normal, but people generally take care to save face for others. Direct, head-on opposition right from the start like this was exceedingly rare, instantly tightening the atmosphere of the meeting.

Ma Xiaosong was usually quick-witted, proactive in his work, and left a very good impression on me; he was a cadre I focused on observing and cultivating. His interpersonal dealings were typically flexible and considerate, so his sudden display of such sharp and aggressive behavior came as quite a surprise. I was quite curious to hear what he would say next.

"It is true that we lack experience in daily consumer goods, and it is also a fact that the daily consumer goods market is fiercely competitive," Ma Xiaosong continued.

"However," he pivoted abruptly, "no one is born with experience. One must always possess a spirit of reform and innovation. If we never take the first step, we will never gain experience. The daily consumer goods market is indeed fiercely competitive, but its market capacity is massive, and the growth rate in recent years has been very fast—unlike the chemical industry, where the entire sector is on a downward trend. Moreover, Manager Qin and her team's plan states very clearly that entering the daily consumer goods market relies on two pillars: first, taking technology as our core competitiveness; and second, achieving product and market differentiation to distinguish ourselves from existing products and target special market niches. If we implement these principles, we still stand a chance of securing a share of the daily consumer goods market. I speak my mind freely, and everyone is entirely welcome to discuss differing views."

Once Ma Xiaosong finished speaking, I completely understood why he had spoken so directly and decisively. As one of the few people I had previously entrusted with researching daily consumer goods production and markets, he was well aware of my strong advocacy for entering the daily consumer goods market. Seeing someone oppose this direction and potentially derail everyone's thinking, he naturally stood up at the first opportunity to distinctly and clearly oppose their views. I must say, he is an excellent comrade who possesses both working capability and the acumen to comprehend and execute my intentions, resolutely supporting my initiatives. And the latter quality is often the one I have come to value more and more deeply as I've served as General Manager and Chairman.

Following Ma Xiaosong's remarks, Xia Shuyong, the head of the Procurement Section, spoke next. He also unequivocally supported Ma Xiaosong's view, stating:

"Section Chief Ma's speech just now touched me deeply. The company's current situation has reached a point where reform is imperative; it is not that I am pessimistic, but if the company does not reform, it truly will not be able to sustain itself in a few years. Speaking of risks—what endeavor is without risk? One can choke to death while eating, or be hit by a car while walking. That may sound a bit harsh, but it is an iron-clad reality presented right before our eyes. Not reforming leaves us only waiting for death, a mere matter of dying sooner or later. Everyone knows our operational situation; dragging it out spells certain doom. If we resolutely reform and transform, we cannot entirely rule out the possibility of failure, but there remains a sliver of a chance of survival. Do we wait for death, or do we reform to seek a chance of survival? The time has come for everyone to make up their minds."

Xia Shuyong's speech was staggering, plunging many into deep contemplation regarding the current situation and crisis facing the company. Xia Shuyong is indeed a highly capable and reassuring cadre. A thought flashed instantly through my mind: Xia Shuyong must be vigorously cultivated. Having worked in the Procurement Section for so many years, it is high time he transitioned to other positions to accumulate experience in different operational links. If Zhang Guoqing is getting older and his mindset cannot keep up, one might consider appointing Xia Shuyong as the head of the Production Section.

The subsequent speeches grew rather interesting, carrying the subtle undertone of taking sides. The cadres I trusted supported reform and transformation, while those closely associated with Factory Director Shi opposed the transition to producing daily consumer goods. As for the production of daily-use chemical raw materials, no one opposed it anymore—which in itself was a victory.