Is China's road and bridge system reform evolving for survival?

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Enterprise project management has been a topic of great concern in recent years. It is generally believed that after enterprises implement project management, they can improve enterprise management and enhance business performance.

Some domestic enterprises such as China Road and Bridge began to explore and practice project management a few years ago.

What is the situation? The reporter specially invited Chief Engineer Yao Haidong, one of the main participants in China's road and bridge promotion of project management, to talk about the situation of roads and bridges.

Yao Haidong: Chief Engineer of China Road and Bridge Engineering Corporation, MBA degree, senior engineer.

He has served as project site engineer, project manager, deputy general manager, and chief engineer, and has worked for many years at the British John Burrow & Partners engineering consulting company and the British P&O Bovis project management company.

Has more than 20 years of practical experience in international engineering project management.

What was the motivation for China Road and Bridge to start implementing project management in 2002?

Yao Haidong: In one sentence, China Road and Bridge's implementation of project management was forced by the environment and seized the opportunity of institutional reform.

China Road and Bridge was born out of a national government agency. It was formerly the Foreign Aid Office of the Ministry of Transport. It was mainly engaged in international engineering business. With the reform and opening up, it gradually grew into a large state-owned enterprise.

At the end of the 20th century and the beginning of the 21st century, a series of major events occurred in the overseas market environment that were not conducive to our operations. For example, the Iraq War caused a decline in our operations in the Middle East, and the Asian financial crisis caused our operations in this region to almost come to a standstill.

Probably all motivations for reform arise from adversity. We cannot change adversity, but we can change ourselves. This is one of the main reasons why we implement enterprise project management.

In addition, a series of institutional reforms of China Road and Bridge have also created opportunities for enterprise projectization.

The organizational structure and system reform of enterprises are not so much human choices as environmental choices.

Enterprises in the operating environment are like creatures in nature. They evolve to survive. If they do not evolve, they will become extinct.

What managers need to do is research the environment and how to choose a company.

For China Road and Bridge, our corporate project management is driven by government macro-control and market competition to find the perfect fusion point between the two strategic positions of serving the national diplomatic and economic strategy and serving customers (foreign governments).

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What is the organization and operation of enterprise project management?

What was the biggest problem during the process?

Yao Haidong: The current organizational structure of China Road and Bridge is generally divided into three levels: company headquarters, overseas branches and overseas project teams.

Like most large state-owned enterprises, the company headquarters is basically set up in a functional structure, while overseas subsidiaries and project teams basically adopt a project system.

I believe that any enterprise is affected by two major environmental forces. One is the government's macro-control, which Keynes called the "visible hand", and the other is the market, which Adam Smith called the "invisible hand."

The government's macro-control is generally at the headquarters of state-owned enterprises, while market competitiveness is at the grassroots level of the enterprise, that is, our project team, and our overseas branches are a combination of several projects we have undertaken in an overseas country market.

The organizational structure of China Road and Bridge Corporation can be said to be an ecology formed by the evolution of these two environmental forces: the upper level of the company is functional, while the grassroots level is market project type.

In terms of process reengineering, we used to focus on departmental work processes, but now we strive to focus on business (engineering project) processes.

The project manager manual we compiled is written according to project process rather than professional classification. We select the project process, then determine the node work, and then determine the responsible person, forming a responsibility matrix with business process as the main line.

The biggest problem encountered by Luqiao in the process of implementing project management is the human problem.

Implementing a management model in an enterprise, changing the organizational structure, and introducing project management ideas are in themselves an impact and collision on the original concepts, ideas, and organizational structures.

As a traditional state-owned enterprise, there are many old rules, and most of the employees with project management awareness and experience are working overseas. They are far away from their hometown and the company's headquarters. Their voices are relatively weak, so

There is relatively greater resistance to implementation at the headquarters.

It is precisely because of this that reforms in this area are gradual. After most problems arise, they are usually broken down into small areas and made partial attempts, and then gradually expanded.

The most important thing is to grasp the issues, such as the understanding of project management between management and employees, the conflicts of interest between department employees and project team members, etc.

What are the results of implementing project-based management of roads and bridges?

Yao Haidong: The implementation of project management by Road and Bridge has achieved very good results. It can be said that if enterprise project management had not been implemented at the beginning, China Road and Bridge would not have achieved today's results.

In terms of performance, traditional indicators such as contract volume, turnover, and profit have all increased significantly.

The focus of management has gradually shifted from local service rules to overall methods of achieving goals.

The perspective has also gradually shifted from looking inward to looking outward, considering not only the interests of the company but also the interests of partners and owners.

Although project management has not yet reached our ideal level, the operating system has become flexible and can respond to market changes in a timely manner, and the efficiency and effectiveness of project management have also been greatly improved.