This case describes how SeaCloud, a real estate company founded in 1999, redesigned its performance management system in an attempt to achieve the strategic goal of improving efficiency at a time when many Chinese real estate enterprises doubled down on their strategies to undertake projects with short turnaround times. In December 2018, Ling Yun, the Founder and CEO of SeaCloud, discovered that a major project under development by the company was significantly behind schedule, despite most employees meeting their performance goals. It was then he realized that there were problems with the company's existing performance management system, and he asked the HR Director, Liu Min, to undertake a full review and redesign the performance management system. The new performance management system needed to address a number of issues, including (i) there was no direct link between mid-level and junior employees' performance appraisal results and salary increases; (ii) neither was there a link between corporate strategy and the performance criteria used to evaluate staff performance; (iii) senior executives were appraised annually, limiting the ability to take more timely corrective measures and actions; and (iv) cross-departmental collaboration was not effective. Under the new system, mid-level and junior employees' performance bonuses were based on and determined by both individual and departmental evaluation outcomes. In addition to job responsibilities, key performance indicators (KPIs) and key work processes were established by managers and used to evaluate staff performance. Senior executives were now appraised on a quarterly rather than annual basis. The results of 360-degree feedback were also taken into consideration when assessing staff promotion. To enhance cross-departmental cooperation, employees from different departments would also be jointly evaluated.
This case describes the plight of Li Fen, a human resources (HR) manager. In 2008, Li began working as a management trainee at Company A, a smartphone manufacturer. After landing a formal job at the company, she handled HR and administrative tasks for a new project and a big company project that had encountered some difficulties. She handled both projects effectively due to her self-discipline and strong work ethic. Nevertheless, she found it difficult to get along well with her colleagues, including superiors, peers, and subordinates, who frequently complained about her, and they even got into heated arguments. She had never considered that interpersonal relationships could get in the way of her work. Disheartened, she returned to company headquarters to enhance her professional skillset. However, would better professional skills alone help her deal with these interpersonal issues? People often joked that Li had low emotional intelligence (EQ), but she could never quite put her finger on the problem. In the past, she had believed that work was just about getting things done and that managers should not preoccupy themselves with other people's emotions or show empathy to others. Now, however, she began to question this assumption: Could it be that EQ was actually critical in the workplace, and in that case, how could she improve her EQ to forge stronger interpersonal relationships?
This case presents the development trajectory of Meizu, a well-known smartphone brand in China, including its inception, rapid rise, and gradual decline, as well as how the leadership characteristics of J. Wong, its founder, precipitated both its success and failure. High school dropout Wong founded the company in 2002. As a result of the company's superb product quality, Meizu became the leading company in China's MP3 player market. In 2006, Wong realized that MP3 players would gradually give way to smartphones and decided to switch production to the latter. He had a perfectionist approach to product development. After three years of R&D and rejecting two versions he deemed unsatisfactory, he finally launched the M8, Meizu's first mobile phone. To craft a comfortable wooden back cover for the MX3, he even made 31 models using a woodworking plane. He was also one of the first people to ride the wave of the fan economy and internet marketing, and frequently discussed technological topics with users on the Meizu BBS forum. In the past, when copycat mobile phones inundated the market, Wong's geeky personality garnered attention and a vast fan base for Meizu. However, as the market gradually matured and competition intensified, Meizu slowly fell behind. It only launched one smartphone model per year, and its excessive perfectionism meant it could not keep up with the competition. What kind of person was Wong? How should we evaluate the successes and crises he has brought to the company? This case sheds light on how the personality traits of a company's leader could affect the development of both the leader himself and the company.