How to carry out the reform of state-owned enterprises?

Question 1: What should be done to implement the reform of state-owned enterprises (SOEs) The reform of state-owned enterprises (SOEs) can be divided into three stages: initial exploration of the reform, institutional innovation, and in-depth advancement [1]. State-owned enterprise reform is a "crossing the river by feeling the stones" of the "trial and error" process, is the product of the central government to promote and local practice of the combination of the top and bottom, is essentially the interaction of productive forces and relations of production, in line with the construction of a socialist market economy, the objective needs. However, the reform of state-owned enterprises still has many problems to be solved through further reform. The future reform of SOEs will mainly focus on adjusting the strategic layout, deepening the shareholding system reform, improving the corporate governance structure, perfecting the state-owned assets management system and the leadership of SOEs in several directions. The report of the 18th CPC National Congress points out that "we should unswervingly consolidate and develop the public-owned economy, implement various forms of realization of public ownership, deepen the reform of state-owned enterprises, improve the management system of various types of state-owned assets, and promote the investment of state-owned capital in the important industries and key fields related to the lifeblood of the national security and the national economy, and continuously enhance the vitality, control and influence of the state-owned economy". ".

Question 2: How to comprehensively deepen and promote the reform of state-owned enterprises (1) the reform of state-owned enterprises as the central link in the reform of the economic system, in order to establish a modern enterprise system as the direction of the actual conversion of the enterprise business mechanism. Modern enterprise system is adapted to the requirements of the market economy, regulated by law enterprise system, its typical form is the company system, its basic features are clear property rights, clear rights and responsibilities, separation of government and enterprises, scientific management. The establishment of a modern enterprise system, the realization of the contributor's ownership and the separation of corporate ownership, is conducive to the separation of government and enterprises, the conversion of state-owned enterprises, business mechanism, is conducive to the cultivation of a diversified investment subject and the strategic reorganization of state-owned enterprises.

(2) Classification guidance, from the whole state-owned economy, "grasping the big and letting go of the small", the strategic reorganization of state-owned enterprises. "Grasp the big" is to grasp some of the lifeblood of the national economy, reflecting the country's economic strength of large enterprises and enterprise groups, in accordance with the requirements of the laws of the market economy, to take strong policy measures to support the best and strongest, and to improve their quality and competitiveness; "put the little" Is to take the reorganization, union, merger, leasing, contracting and joint-stock cooperative system, sale and other forms of liberalization of small state-owned enterprises, so that small state-owned enterprises can flexibly adapt to the market.

(3) Explore and develop various forms of realization of public ownership in accordance with the standard of "three benefits". Under the conditions of socialist market economy, the forms of realization of public ownership can and should be diversified, and all forms of operation reflecting the laws of socialized production can be boldly utilized.

(4) Combine reform, reorganization, transformation and strengthening of management. In the process of reforming state-owned enterprises, we should actively promote the flow and reorganization of state-owned assets, so that resources can be reasonably utilized; combine reform and technological transformation, accelerate the technological progress of state-owned enterprises, encourage and guide social capital to invest in the technological transformation of enterprises, and form a market-oriented mechanism for the development of new products and technological innovation; effectively strengthen the internal management of enterprises, and make efforts to explore a system of enterprise leadership and organization and management that conforms to the laws of the market and the conditions of our country. The enterprise leadership system and organizational management system, the establishment of decision-making, implementation and supervision system, the formation of effective supervision and constraints mechanism.

(5) Encourage mergers, regulate bankruptcy, layoffs and streaming, reduce staff and increase efficiency and implement re-employment projects. In order to speed up the restructuring and adjustment of state-owned enterprises, we should encourage advantageous enterprises to merge with enterprises in difficulty; we should implement bankruptcy for enterprises with long-term losses and no hope of reversing losses; and the diversion of surplus staff is also an important way to improve the economic efficiency of enterprises, but this will bring temporary difficulties to some workers, the Party and *** we should take active measures to care for and arrange the lives of laid-off workers, broaden employment opportunities, and promote the re-employment project.

(6) to promote the establishment of social security system as the focus of supporting reforms. The establishment of social security system to implement a combination of social integration and individual account pension, medical insurance system, improve the social insurance and social relief system, to provide the most basic social security; the establishment of effective state-owned asset management, supervision and operation mechanism, to ensure that the value of state-owned assets value-added, to prevent the loss of state-owned assets; the establishment of urban housing provident fund, to accelerate the reform of the housing system, in order to deepen the reform of state-owned enterprises and adjust the economic structure to create a good external environment. The government has also created a favorable external environment for deepening the reform of state-owned enterprises and restructuring the economy.

Question 3: How to reform state-owned enterprises? First, deepen the reform of state-owned enterprises must face the *** system and property rights

1. Thoroughly reform *** system of appointment and dismissal of cadres and employment system. First of all, we must really cancel the administrative level of enterprises and enterprise operators of cadres treatment, cultivate entrepreneurial market, improve the performance appraisal system of enterprise operators, and promote the reasonable flow of management personnel; secondly, we must implement the competition of civil servants in the *** department, establish the performance appraisal system of civil servants, and improve the quality of their work; once again, we must actively explore a new mechanism for selecting and employing people to meet the requirements of the market economy, to put the organizational assessment and recommendation, and to introduce a competitive mechanism. The organization's assessment and recommendation, the introduction of competition and open recruitment to the community combined.

2. Property rights system reform is still the core issue of state-owned enterprise reform. The establishment of a modern enterprise system must be clear property rights as a prerequisite, otherwise any other reform measures will be ineffective or little effect. Mature and perfect property right system should include three aspects: first, the property right is clear, that is, clear the main body of property ownership and its responsibility and rights with the main body of the legal person; second, the flow of property rights, that is, the property right can be traded; third, the enterprise internal property right structure is reasonable, that is, the main body of property rights within the enterprise is diversified. At present, the property rights system reform should focus on the following work:

(1) actively promote the sound and perfect the shareholding system. First of all, to correctly understand the dominant role of the state-owned economy in the national economy, a complete change in the shareholding system of enterprises in the state-owned shares should be absolutely controlling the understanding of the promotion of enterprise property rights structure diversification. Secondly, to establish a perfect corporate governance structure, so that the owner has its "position". Corporate governance structure is the core of the corporate system, the basis of which is the separation of ownership and management, the key is the owners have their "position", that is, in the corporate governance structure on behalf of the owners of the company's effective exercise of its residual control and residual right to claim the agency.

(2) Take effective measures to promote the reasonable flow of property rights. To revitalize the stock of assets and promote the optimal allocation of state-owned enterprise assets has been incorporated into the focus of China's current economic work. One of the problems that need to be solved is to improve the laws and regulations, standardize the operation of property rights trading institutions. In view of the current property rights transactions in the government out of many departments, *** direct intervention and off-site transactions in general, first of all, should be improved as soon as possible the transfer of property rights laws and regulations, to promote the public property rights of the legal, standardized and orderly flow; Secondly, we should strengthen the supervision of changes in property rights and property rights registration check; again to improve the functions of the property rights trading institutions, strengthen the intermediary role of the property rights trading institutions, and actively promote the property rights of the free trade and the realization of the national policy objectives. realization of national policy objectives. Secondly, combined with the strategic adjustment of state-owned capital, give full play to the macro-control function of ***, use administrative means and economic means, formulate corresponding policies to adjust the investment direction and structure of state-owned assets, so as to realize the adjustment goals in a planned and step-by-step manner. Third, to grow and improve the capital market. First, we should systematically promote the expansion of the stock market year by year, to create opportunities for enterprises with the conditions of direct financing to the market, and at the same time to promote enterprises in accordance with the intrinsic requirements of the capital mechanism of capital operations; second, we should further explore the flow of state-owned shares and methods, as soon as possible to eliminate the obstacles between state-owned shares, legal person shares and the market circulation of shares to enhance the liquidity of the state-owned shares, to realize the same shares with the same profit, standardize the operation of state-owned equity, and effectively protect the owners of state-owned assets. Effectively protect the rights and interests of owners of state-owned assets.

Second, deepen the reform of state-owned enterprises must face the problem of economic interests

Enterprises as a social economy in a cell, must pay attention to and seek their own economic interests, from the point of view of socio-economic development, which is the driving force and source of economic development. In the period of planned economy, our country state-owned enterprises and state-owned enterprises staff's economic interests have long been disregarded, "big pot rice", egalitarianism prevails, seriously dampen the enthusiasm of enterprises and staff, this problem should become a state-owned enterprises reform must be solved. However, we must see that the problem of ignoring the economic interests of state-owned enterprises is only one of the reasons for the long-term inefficiency of state-owned enterprises, and the practice of solving the problem of economic interests of state-owned enterprises as the main line of reform is very questionable. We must note that, as a special form of enterprise, the economic interests of SOEs must follow certain principles, which are summarized as follows: First, the ownership of SOEs belongs to society as a whole, not to the enterprises themselves. This determines that the recipient of the economic benefits obtained by the state-owned enterprises should be the whole society, not the state-owned enterprises themselves. Secondly, SOEs bear the responsibility of ensuring social and economic stability and guiding social and economic development. Therefore, the goal of SOEs' operation has the consistency of economic and social benefits, rather than the single demand for their own economic benefits. Third, the state ...... >>

Question 4: How to correctly view the reform of state-owned enterprises For a period of time, the mention of state-owned enterprise reform, some people have quite a few words, and even some resentment: enterprise reform so that the loss of state-owned assets, the polarization of the rich and the poor intensified, the interests of employees are damaged, resulting in a variety of social contradictions, and a small portion of the people and even the loss of confidence in the reform of enterprises. Indeed, in the national economy in the main position and play a leading role in the state-owned economy, its reform is also bound to be of great public concern.

Undeniably, the reform is bound to touch the interests of some people, but we should use a dialectical approach to view the reform. Reform is a new thing, there is no successful experience for us to learn from, so when we "groping for stones to cross the river", there are bound to be so many stones touching the pain of our feet, but we can not touch the feet on the not to move forward, the problem and contradiction is the objective existence of the reform process. In front of the people crossing the river touched the foot, can be behind the people crossing the river to provide experience and lessons learned, touched the foot of the people of the reform of the opinion, but is to play a positive role in promoting the reform, when most of us have successfully crossed the river, it should not be one-sided to amplify the problem of touching the foot, but should be seen to cross the river of achievement. Look at the experience of the reform of state-owned enterprises we should not be confused, to strengthen the confidence and determination of the reform.

The state-owned enterprises at the beginning of the reform and opening up were called state-owned enterprises, in fact, is not a real sense of enterprise, just a production unit. In the face of market competition, in the late 1990s, "losses" became the biggest problem plaguing state-owned enterprises. 1998, the loss of state-owned enterprises reached two-thirds of the total profit of the country's state-owned enterprises in a year only 21.37 billion yuan. At that time, the central task of SOEs was to reform and get rid of difficulties. Today, more than 100 central enterprises managed by the State Council's State-owned Assets Supervision and Administration Commission (SASAC) alone make tens of billions of dollars or even nearly 100 billion dollars in profits every month.In 2011, 38 central enterprises entered the world's top 500 companies.

The reform has provided a strong impetus for the development of SOEs. The progress of SOEs has been evident from the "breakthrough" to the "development" of SOEs. Behind the profit growth and strength of state-owned enterprises is the deepening of state-owned enterprise reform. In recent years, the reform of state-owned enterprises has been comprehensively promoted, and the state-owned economy has been "in and out, some for some not for some", gradually withdrawing from the field of general competition, concentrating on basic, public welfare and pillar industries, and concentrating on advantageous industries and large groups and enterprises. The number of state-owned enterprises has been drastically reduced, and the vast majority of state-owned small and medium-sized enterprises in generally competitive fields have been restructured and withdrawn from the state-owned economy. The proportion of the state-owned economy in the overall national economy has declined year by year, but profound changes have taken place in the management system and business mechanism of state-owned enterprises, and their benefits have increased year by year, with total realized profits growing from 263.6 billion yuan in 2002 to 149.89 billion yuan in 2011; their capacity for technological innovation has been significantly strengthened, and a number of innovations with independent intellectual property rights and international advanced level have been achieved. The growth of the state-owned economy has not only significantly enhanced China's economic strength and international competitiveness, but also brought its leading role and influence into full play. After the outbreak of the international financial crisis, our country has been able to cope with the situation calmly and take the lead in realizing the economic recovery, an important reason is that we have a strong state-owned economy, so that the *** macroeconomic regulation and control can better grasp the overall situation and command the whole situation.

The fundamental purpose of reform is to liberate the productive forces and develop them. The reform and development of state-owned enterprises is a process of continuous exploration, practice and deepening. We must insist on correctly treating the various contradictions in the reform with the vision of development, solving the various problems in the reform with innovative methods, deepening the reform of state-owned enterprises, and providing inexhaustible power for the sustainable development of state-owned enterprises.

Question 5: How to reform state-owned enterprises in China I personally believe that the reform of state-owned enterprises in China must be different from the West or the former Soviet Union. State-owned enterprises are enterprises owned by all people. I think we can set up a bank and call it a nationally owned bank. 70% of the shares of the SOE should be held by the bank, 20% by ***, and 10% by the management of the company. Management shares are automatically held by the management staff during their tenure and are not transferable. After leaving office, they are held by the next leader. Under the universal holding bank, there is a universal holding committee, which is composed of representatives of all social strata and represents the interests of all people. The leaders of state-owned enterprises are no longer appointed or dismissed by ***. Instead, they are publicly recruited. The leaders of SOEs are supervised by the Universal Holding Committee and the ***. Profits from the universal bank are used for public **** benefits such as subsidized electricity, water, and health care. Lastly, I would like to emphasize that universal banks are not allowed to be listed on the stock market, which means that they cannot be owned by anyone or by state agencies. The main task of a universal bank is to hold shares in state-owned enterprises.

Question 6: Why do we need to reform state-owned enterprises? How to carry out the reform of state-owned enterprises? Deepening the reform of state-owned enterprises is conducive to the state-owned enterprises to enhance vitality, the adoption of a modern enterprise system, to cope with economic globalization competition and cooperation.

It is conducive to improving the system of ownership of the means of production in China, to the rational allocation of resources, to the development of all kinds of ownership of the economy*** together, to the development of productive forces, and to the healthy development of the national economy.

The reform of state-owned enterprises, to be able to make the means of production ownership system of perfection and superiority of the play, adhere to the principle of three favorable. Favorable to the development of productive forces, conducive to the improvement of people's living standards, and conducive to the improvement of the comprehensive national strength.

The reform of state-owned enterprises should be conducive to the consolidation of the dominant role and pillar position of state-owned enterprises in the national economy.

The reform of state-owned enterprises should be conducive to the more successful operation of state-owned enterprises and the enhancement of independent innovation and competitiveness.

The reform of SOEs should be conducive to SOEs going out, enhancing international competitiveness, opening up to the outside world and cultivating new advantages in international competition.

Question 7: How to understand the reform of state-owned enterprises? The reform of state-owned enterprises is a "trial and error" process of "crossing the river by feeling the stones".

The reform of SOEs mainly focuses on adjusting the strategic layout, deepening the shareholding reform, improving the corporate governance structure, perfecting the state-owned asset management system and the leadership of SOEs.

Question 8: How to view the reform of state-owned enterprises China's reform of state-owned enterprises, property rights system reform is the financial cut-off and the banks cut off the loan of the double pressure forced out of the reform of state-owned enterprises has always been in the debate in the continuous promotion. How to look at the reform of state-owned enterprises, the benevolent see benevolence, the wise see wisdom. But the practice of state-owned enterprise reform is the best answer. At present, there are three theories of state-owned enterprise reform: one is the pessimistic theory, the loss of confidence in state-owned enterprise reform, the role of the state-owned economy with a negative attitude; the second is the theory of quick victory, that the main problems of state-owned enterprise reform has been solved; the third is the theory of persistence, pessimistic theory and the theory of quick victory are not in line with the objective facts, the reform of state-owned enterprises is a long-term strategic goal. History is the best doctor. Some people believe that China's state-owned enterprise reform is being pushed forward under the guidance of neo-liberal thinking and theories. I don't think so. Historically, China's state-owned enterprise reform and property right system reform were forced out by the double pressure of financial cut-off and bank loan cut-off. Why did the reform of state-owned enterprises first break through from the local? Local *** directly facing the pressure from all sides, directly facing the factory to smoke, employees to employment, financial to tax, social stability four major problems. When faced with these pressures, they have no alternative but to promote reform. Now from the national situation, the central enterprise reform lags behind the local enterprise reform, the reform of large enterprises lags behind the reform of small and medium-sized enterprises, the economic situation of good enterprises lags behind the reform of enterprises in difficulty. More than twenty years of state-owned enterprise reform can try all the methods have been tried, state-owned enterprise operators independent decision-making power is also the world's largest. But policymakers do not bear the responsibility of decision-making mistakes, because the reform of state-owned enterprises is in the absence of the situation of the contributors to promote. The reform of state-owned enterprises needs to solve two basic problems, one is the marketization of the operation mode of state-owned enterprises, and the other is the marketization of the system of state-owned enterprises. The first problem has been basically solved after more than two decades of reform, with the marketization of human resources, production, supply and marketing basically realized, and the second problem is being solved.The controversy over the reform of state-owned enterprises in 2004 reflected the different perceptions of the reform of state-owned enterprises, which, on the whole, had a positive effect. All parties are paying attention to the contradictions and problems arising from the reform and restructuring, which can lead to the improvement and standardization of our laws and regulations. The current sample survey shows that more than 70% of the restructured state-owned enterprises have realized profits. from 1998 to 2003, the number of state-owned enterprises was reduced to 138,000, the number of employees was reduced from 75 million to 43 million, and the annual realized profits increased from 21.3 billion to more than 400 billion. Under the tide of reform, there is bound to be mudslinging, which is a process of exploration and gaming. From a historical perspective, if the restructuring of state-owned small and medium-sized enterprises had not been actively promoted, the local economy and the Chinese economy as a whole would not be in today's situation, and the historical opportunity would have been lost. Enterprises that have completed restructuring now seek survival before restructuring and development after restructuring. They are now further considering and promoting the second restructuring. Problems occur during reform and can only be improved through reform. From a realistic point of view, the reform of state-owned enterprises has now entered the stage of systemic and institutional changes, and has entered the deep reform from the shallow reform, we must effectively see the current situation of state-owned enterprises in the reform of all kinds of problems: First, the reform of the state-owned assets management system. The 16th National Congress has solved the problem of funders' organizations in place, but has not yet solved the problem of funders' functions in place. The second is the structural adjustment of the state-owned economic layout. The Fifteenth National Congress proposed that the state-owned economy should be in and out, and do something or do nothing. But exactly how to reflect, how to implement? Is a problem that has not yet been resolved. Third, the adjustment of labor relations of state-owned workers. The systematic dependence of state-owned workers on state-owned enterprises is the most difficult problem to be solved in the reform of state-owned enterprises. In addition to the above, there are also the main and auxiliary separation of large and medium-sized state-owned enterprises and auxiliary restructuring, the separation of enterprises to run the society, the social management of enterprise retirees, the debt restructuring/non-performing assets disposal of state-owned enterprises, mergers and acquisitions, restructuring and industrial integration of state-owned enterprises, state-owned enterprises' governance structure, and the restructuring of collective enterprises, and other issues. (Zhou Fangsheng / text)

Question 9: How to understand the comprehensive deepening of the reform of state-owned enterprises in the reform of state-owned enterprises to promote the reform of state-owned enterprises in a comprehensive manner stepped into a new stage of major and minor

?

The reporter learned on December 17, 2014, the annual meeting of the central enterprises, local SASAC responsible person is expected to be held recently, the meeting will summarize the work of 2014, the deployment of 2015 reform points. Informed sources said that in the classification reform, defining the function of the central enterprises, central enterprises will be divided into general commercial category, special commercial category and public welfare category. Commercial category central enterprises should rely on the capital market to develop a mixed ownership economy and become a standardized public company in the market economy.

Li Jin, vice president of the China Enterprise Reform and Development Research Association, said that the meeting of the heads of central enterprises and local SASACs will be the overall deployment and specific implementation of the requirements put forward by the Central Economic Work Conference, and the reform of state-owned enterprises next year will be centered on the standardization of the enterprise's business decision-making, value preservation and value-added, participation in fair competition, improve efficiency, enhance vitality, and fulfillment of social responsibility to deepen the six aspects. The clear classification of reform can effectively promote the process of state-owned enterprise reform. At present, the blueprint for state-owned enterprise reform is gradually clear, this year is the state-owned enterprise reform of the "opening play", next year will gradually enter the "main show".

With the acceleration of state-owned enterprise reform, the state-owned enterprise reform has stepped into the main and secondary, up and down the combination of comprehensive deepening of the new stage, the development of the blueprint and realize the path gradually clear. In terms of top-level design, the guiding ideology, principles and measures have basically formed **** knowledge. In terms of classification reform, informed sources said that for defining the functions of different central enterprises, a document has been taken out three months ago, and after many discussions and coordination, it is now basically formed **** knowledge. The future of the central enterprises will be divided into general business class, special business class and public welfare class. General commercial category, also known as "business a class", that is, competitive enterprises; special commercial category, also known as "business two classes", including oil, electricity, military industry and other relations between national security and economic lifelines of the enterprise; public welfare is to protect people's livelihoods, to provide public **** services to the enterprise. The public welfare category is to protect people's livelihood and provide public **** service enterprises.

Question 10: Why is the reform of state-owned enterprises (SOEs) "not the right thing to do"? strain on the external environment, but the company's long-standing weaknesses such as single industry and poor risk resistance have not been fundamentally changed; and with China's accession to the WTO, the external environment faced by the enterprise will undergo drastic changes and has begun to have an impact on the development of the enterprise, and the viability of the local petrochemical enterprises will be further affected.

2. As a typical production-oriented state-owned enterprises, many of the functional defects and institutional deficiencies that exist in market-oriented operations have not been perfected, and they are typical olive enterprises with weak decision-making, development, research and innovation capabilities, strong production management capabilities in the main industry, and weak management, marketing and public relations capabilities.

3. The original business philosophy, operational habits, corporate culture of state-owned enterprises has become increasingly unable to adapt to the needs of enterprises to become bigger and stronger. At the same time, the further development of the group lacks the necessary organizational support, technical support, institutional support and personnel support, the long-term development of the enterprise is not enough energy.

Solution:

Obviously, the Group's next development goal should be market-oriented, with industrial adjustment and upgrading as the grasp, to fully realize the strategic transformation from a production-oriented enterprise to an independent business enterprise and the corresponding functional changes.

First of all, we synthesize the advantages and disadvantages of our enterprise and the opportunities and challenges we face, use the tools of strategic analysis, and put forward the overall strategic thinking and development planning for the future development of the enterprise. After many rounds of demonstration and propaganda, the new development strategy centered on the industrial development strategy of "Oil Head and Chemical Tail" and the capital operation strategy of "Introducing Strategic Investors" has started to be implemented in the enterprise.

Secondly, to address the shortcomings of the enterprise's organizational function, we started from the adjustment of the governance body and management body, redesigned and planned the enterprise's organizational lineage, implemented the separation of the governance body headed by the board of directors and the management body headed by the general manager, and at the same time, to adapt to the needs of the enterprise's transformation, set up a new department of marketing, investment management, etc. After the re-design of the organization, we also set up a new department of marketing and investment management. After the organization was reset, the process of its management operation was also designed.

On the basis of effectively promoting the reorganization of the organization, we also reformed the human resources management of the enterprise, helped the enterprise for the new organization, staffing and posting, with scientific and practical methods for job evaluation and based on the reform of the salary system and performance appraisal reform, and management personnel competitions, the development of management incentive system, which stimulated the enthusiasm of all cadres and staff. In addition, in response to the reform of the organization, we have carried out the reform of the salary system and performance appraisal. In addition, in view of the new requirements for the quality of management personnel after the reform of the organization, we have also formulated a customized training plan, selected a group of management personnel to Shanghai for a period of four months to carry out intensive training to enhance the management capabilities and management awareness of management personnel.

While achieving initial results in organizational structure and human resource reform, and giving full play to the development momentum from within the company, we have also actively assisted the company in implementing its industrial development strategy and capital operation strategy, and tried to bring in external resources and strength to achieve qualitative changes and upgrade the company.

Case Insight:

Through close cooperation for more than two years, we witnessed and personally participated in the strategic change of a traditional state-owned enterprise, and experienced all the hardships and difficulties, but also saw the road to success. An enterprise used to survive in a relatively monopolistic, closed and policy-protected business environment, in the face of major changes in the external environment, how to realize the transformation and sustainable development of enterprises is a **** of the subject, petrochemical enterprises, telecommunications, electricity, medical services and other public **** service industry. To a large extent, the top leadership courage to face change is the key to success; and skillfully borrowing external brains, with the wisdom and power of the third party to promote enterprise change, is the vast majority of state-owned enterprises to break through the internal intricate pattern of interests, to seek a shortcut to rational thinking.