At 61,
he's amassed a fortune of around $30 billion by building up his giant real
estate firm, Dalian Wanda. He's now dabbling in entertainment and sports --
recent investments have included the Spanish soccer club Atletico Madrid and
the Hollywood film studio Legendary Entertainment.
His
recent book, a compilation of public speeches entitled "The Wanda
Way," claims to give an inside look into his managerial philosophy and the
values that turned his company into a giant conglomerate with big global
ambitions.
We
read his book here at CNNMoney so you don't have to. Here are some nuggets of
advice from Wang:
Wang
joined the Chinese military as a teenager in 1970. His grueling training
involved epic marches that took the soldiers through "knee-deep stretches
of snow."
"We
were deprived of everything. In the snow, we had to dig our own hole to spend
the night," he recalls. Anyone who faltered "could forget about being
chosen to move up that year, or earning your Exemplary Fighter award."
This
experience built his "teeth-gritting spirit and a desire to fight until
the end," he says.
Wang
suggests there's a direct relationship between a military background and
success, pointing out that many top Chinese entrepreneurs previously served in
the military.
2.
Differentiate and innovate, like Starbucks
"The
first key is to understand how you can differentiate yourself from others and
to be innovative," Wang said. "For instance, everyone knows how to
sell coffee, but Starbucks (SBUX) redesigned the coffee-making process, innovated
the business model and became a successful chain business."
He
also highlighted McDonald's (MCD) and Yum! Brands (YUM)-owned KFC for similar
praise.
Wang
disputes the idea that only high-tech companies can lead the way forward:
"No matter whether you are in a traditional or an emerging industry, as
long as you're capable of innovating the existing business model, you can reap
super profits."
He
even put his money where his mouth is, striking a "half joking ... half
serious" 100 million yuan ($15.3 million) bet in 2013 with Alibaba (BABA,
Tech30) founder Jack Ma on whether e-commerce will make up more than half of
the domestic retail market in 10 years' time.
3.
Stay close to the Chinese leadership
Wanda
only cooperates with one Chinese state-owned enterprise for its construction
operations, and Wang has sought to align his business priorities with what the
ruling Communist Party has decreed.
For
example, he's increasingly interested in investing overseas -- especially after
the State Council in 2014 released specifications urging private Chinese
companies to go global, he says.
And
he's not shy about seeking to please top government leaders, including
President Xi Jinping, by sinking money into soccer teams.
"The
government leaders care about it very much, and the Chinese administration of
sports made several appeals, so I came back and am offering support for Chinese
football," he says.
Still,
it's a difficult road to navigate. "Government-business relations are very
complicated in China," Wang says. "It's even more difficult than
completing a Ph.D. course at Harvard."
4.
Minimum target: Be No. 1
"There's
nothing wrong with being No.1 worldwide," according to Wang.
But
part of the fabric of success means instilling company-wide ambitions and goals
with all employees to build a distinctive company culture, he says.
To
help with that, he has an internal website and monthly company magazine that he
describes as "the core media for spreading Wanda's corporate
culture."
A
collection of touching success stories about employees are published annually
to boost company morale. Wang also recommends one book each year for all
employees to read.
Outstanding
employees get a bonus paid vacation and an invite to a splashy annual
conference to rub elbows with Wanda company executives.
5.
Don't read books on corporate philosophy
"One
of the most defining characteristics of my success is that I've never had full
trust in books," Wang says.
That
includes ones by people like himself.
"You
cannot simply copy models that have been proved by successful
entrepreneurs," he said. "Please don't take what I talk about here
today as teaching material."
What
worked for Wanda may not work for another firm -- circumstances and industries
change, he warns.
For
any budding entrepreneurs that still want to read Wang's book -- despite his
own advice -- it's issued by the British firm Lid Publishing.
CNNMoney
(Hong Kong)
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