HLnovel Chapter 197 Visiting Uncle
Chapter 197 Visiting Uncle
The iron gate to the courtyard creaked open. When Ling Yun walked in carrying two boxes of tea, her uncle Ling Jun was squatting under the grape trellis, pruning the branches with a pair of shears. Hearing footsteps, he didn't turn around.
"Xiaoyun's here? Come, have a seat."
There was a stone table and benches in the courtyard, and an old well beside it, its rim worn smooth. Lingyun placed the tea leaves on the table and sat down. A sea breeze blew in, carrying a slightly salty and fishy smell.
After Ling Jun finished cutting the last branch, he put down the shears, wiped his hands on his apron, and sat down. He was wearing faded blue overalls and old-fashioned liberation shoes.
"Is the tea from Weihai not good?" He glanced at the tea box.
"It's from Hangzhou, pre-Qingming Longjing tea," Lingyun said. "I know you like it."
Ling Jun opened the box, smelled it, nodded, and got up to go inside to get the kettle. When he came out, he had two more white porcelain cups in his hand. They were plain, but had fine crackle patterns on their walls from long use.
The water boiled, and I made tea. The tea leaves unfurled in the cup, releasing a delicate fragrance.
"Tell me," Ling Jun said, blowing on the tea foam, "what happened?"
Ling Yun took a notebook out of his briefcase and opened it. Inside were several pages of handwritten notes, the handwriting somewhat messy.
"Lately, I feel like I'm overwhelmed with work," he said. "I have to manage things in Silicon Valley, manage electronics factories in China, expand internet cafes, oversee labs, and I just started a fund. Every day when I open my eyes, there are a dozen things waiting for me, and when I close my eyes, I'm still dreaming about them."
Ling Jun took a sip of tea and remained silent.
"I'm thinking," Ling Yun flipped to a page in his notebook, "that we should probably change the pipe method."
"What regulations?"
"I've thought of two methods." Ling Yun pushed the notebook over. "The first is employee stock ownership, virtual restricted stock, with the number of shares tied to the position. As long as you're in that position, you'll enjoy annual stock dividends. The company belongs to everyone, but decision-making power is centralized. Focus on technology, do research and development, and dig deep."
Ling Jun looked at the page and traced the words "employee stock ownership" with his finger.
"What about the second one?"
"The second option is to go the route of a large listed company." Ling Yun turned to the next page, "A joint-stock company, listed on the stock exchange, managed by professional managers. I would step down to the board of directors to make strategic decisions, and leave the day-to-day operations to professionals."
Ling Jun put down his teacup, took out his reading glasses from his pocket, put them on, and carefully looked at the two pages of paper for about three minutes.
Then he took off his glasses and tapped the first page with the temple of his glasses.
"Have you considered this approach of employee stock ownership?"
"What's the problem?"
"How can you guarantee that you'll always be the one 'centralizing' power?" Ling Jun said. "The first volume of Mao Zedong's Selected Works says, 'Political power grows out of the barrel of a gun.' In a company, what is the 'barrel of a gun'? It's equity, personnel power, and financial power. If you delegate these, what will you rely on to secure your position?"
Ling Yun wanted to speak, but Ling Jun waved his hand and continued, "I'm not saying this method is bad. On the contrary, it's excellent; it can make employees truly feel like the company is their own and be willing to work hard. But—"
He paused, then took a sip of tea.
"However, you need to be clear about what can be shared and what cannot. Decision-making power cannot be shared, strategic direction cannot be shared, and control of the core technology team cannot be shared. What you share is money, the right to dividends, and the right to make money along with the company. But the steering wheel must remain in your hands."
"How can you guarantee that?"
"Design a good equity structure," Ling Jun said. "Look, let's say your company is worth one billion yuan, and you allocate 30% as employee stock. But the voting rights for that 30% can be delegated to you as a nominee shareholder. Or, you can design it as an A/B share, where you have ten votes per share and they have one vote per share. Consult a professional lawyer for specific details on how to operate. But the core principle is this: everyone can make money together, but you have to decide where the ship heads."
Ling Yun jotted down a few notes in his notebook and said, "Since it's an employee stock ownership plan, the shares should be distributed widely and not dominated by a single shareholder. Otherwise, it would lose its meaning. I plan to allocate 90% of the shares of several technology companies to employees. Only with sufficient incentives can we unleash their initiative and drive technological innovation and progress."
"That will really test your ability to control things. If you can give up some of the profits and avoid being greedy, you can succeed in many things," Ling Jun said with great satisfaction.
"And the second option? Go public and hire professional managers."
"This is more troublesome," Ling Jun laughed, "Once the company goes public, it's no longer just yours; it belongs to all the shareholders. What do shareholders want? Profits, growth, and a rising stock price. What do you do then? Cut R&D for short-term profits? Falsify accounts to make the stock price look better? Or make reckless acquisitions for expansion?"
He stood up, walked to the grape trellis, picked a leaf, and twirled it in his hand.
"Have you heard of the 'big company disease'? Bloated organizations, cumbersome processes, departmental silos, internal friction. Why? Because after going public, there's compliance, auditing, and financial reporting. Layer upon layer of approvals, meeting after meeting. By the time a decision is made, the market has already changed."
"What should we do then?"
"Maintain small team operations." Ling Jun walked back and sat down. "Large companies maintain several small teams, like special forces. Give them resources, goals, and deadlines, but let them decide how to execute them. If they succeed, reward them handsomely; if they fail, disband and reorganize. That's called—"
He thought for a moment and said, "This is called 'centralized leadership, decentralized operations.' The same principle applies to guerrilla warfare, as discussed in Volume III of Mao's Selected Works."
Ling Yun smiled: "Uncle, you have a thorough understanding of Mao Zedong's Selected Works."
"It's about applying what you've learned," Ling Jun laughed. "When I was young, I was the Party Secretary in a factory, managing thousands of people. Later, I worked in the government, managing a city. Management is similar across different levels. The core is just three things: people, money, and direction."
He counted on his fingers: "Make good use of people, manage money well, and keep the direction steady. As for the rest, let go of them when necessary."
"I just can't let go right now," Ling Yun said. "I always feel like others can't do this well, and I have to keep an eye on that."
"That's normal." Ling Jun poured him some tea. "You started from scratch, tightening every single screw yourself, so you're bound to be worried. But as the company grows, you have to learn to delegate. If you don't, you'll work yourself to death, and your subordinates won't grow either."
How do you determine which items should be placed?
"One standard: Will the company collapse without you?" Ling Jun said. "If it won't collapse, then let it go. For example, in production, once you've set the standards and found reliable people, let them manage it. For example, in sales, once you've set the strategy and built the channels, let the team carry them out. But you need to regularly review the reports and data, and correct any problems promptly. This is called 'focusing on the big picture and letting go of the small details.'"
"Then what does 'big' mean?"
"Strategy is 'big,' core talent is 'big,' key technologies are 'big,' and corporate culture is 'big,'" Ling Jun said. "You have to personally oversee these. Leave the rest to others."
Lingyun flipped through the notebook and jotted down a few more notes.