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On September 11, Liu Zhenjiang, a member of the Party Committee and vice chairman of the China Iron and Steel Association, delivered a speech at the 2013 China Metallurgical Industry Enterprise Management and Innovation Forum. He emphasized that in the face of current challenges or the need for improvement, enterprises must focus on and effectively utilize management innovation as a key driving force. “This is the master switch,†he said.
He further explained that whether it's a company’s development strategy, production processes, structural adjustments, or overcoming difficulties, all these activities highlight the critical role of effective management. Liu noted that the steel industry is currently facing complex issues and contradictions. In such times, forums like this are essential to encourage sharing of ideas and exchanging best practices among industry players.
Liu pointed out that during the early stages of transformation, many steel companies struggled with adaptation, lacked new thinking, and were slow to update their approaches. For example, economic growth slowed down, and steel production became difficult to control. As companies faced these challenges, outdated management methods proved ineffective, making it necessary to embrace innovative management solutions.
“We must innovate in management—innovative concepts, mechanisms, and methods,†Liu stressed. He added that management innovation is not just important now but will be crucial for the future of enterprises. It acts as the central switch that can help address both present and future challenges.
Management innovation is a significant scientific challenge, requiring continuous improvement through practical application and theoretical refinement. Liu highlighted several key points during the process:
First, enterprises should recognize and make full use of the “main switch†of management innovation. The Communist Party has set strategic goals for national rejuvenation, including the “two centenary goals†and an innovation-driven development strategy. Innovation is becoming the main driver of progress, with technological and management innovations acting as twin engines. Liu encouraged companies to seize this opportunity and not forget the “key†that could open new doors during tough times.
Second, management innovation requires updating ideas and concepts. Companies must understand and adapt to changes in the broader economic environment and market conditions, especially shifts in factors supporting economic growth. They should track economic trends, identify gaps in quality and efficiency, and adopt advanced management philosophies while discarding outdated models.
Third, bold implementation of management innovation is essential. Both state-owned and private enterprises have their own strengths and should learn from each other. State-owned enterprises, in particular, need to strengthen corporate reforms. Liu mentioned that strategic management, large-scale enterprise group management, technology innovation, resource and environmental management, risk control, and other areas involve a wide range of content without a one-size-fits-all model. Breakthroughs in these areas are necessary for successful management innovation.
Liu also highlighted that the forum was held at Tangshan Iron and Steel, coinciding with the 70th anniversary of the plant’s construction. Tangsteel was recognized for its outstanding management innovation, particularly during the financial crisis when it chose a green transformation path. “Tangsteel has taken the lead in transformation and upgrading, demonstrating strategic management innovation and political wisdom,†Liu remarked.
Finally, Liu expressed his hope that steel companies would firmly establish the concept of management innovation, show courage in implementing it, continuously reflect on experiences and lessons learned, and keep exploring and improving their management practices to enhance their overall development quality and efficiency.