Core Insights - The essence of leadership lies in the ability to inspire and energize a team, creating a palpable change in the atmosphere without the need for extensive verbal communication [4][8]. - The "Five-Step Combination Theory" is a management methodology tailored for the Chinese business context, emphasizing the importance of people in the management process [5][6]. Group 1: Leadership and Management - Leadership is characterized by a unique energy that can transform the environment, influencing team morale and direction [8]. - The Five-Step Combination Theory focuses on human elements, starting with selecting the right managers and extending to team building, strategy development, market competitiveness, and value creation [9][11]. Group 2: Importance of Selection - Selecting the right individuals is more critical than merely managing them; a cohesive team is essential for success [11]. - The selection criteria for managers should encompass ten dimensions, with a particular emphasis on "learning self-reflection" and "passionate pursuit" as core attributes [11][12]. Group 3: Strategic Foundations - True strategy is rooted in values and beliefs rather than just documents and numbers; it is essential for leaders to understand the mission and purpose of their organization [13][14]. - The execution of strategy is closely tied to the people chosen to implement it, making human selection a pivotal factor in strategic success [14]. Group 4: Market Competitiveness - Modern market competitiveness is increasingly driven by technology and innovation, rather than traditional cost advantages or differentiation alone [16][17]. - Companies must leverage technological capabilities in various operational aspects, such as supply chain management and customer engagement, to maintain a competitive edge [18][19]. Group 5: Innovation and Culture - A culture that allows for trial and error is essential for fostering true innovation; failure should be viewed as a learning opportunity rather than a setback [20]. - Entrepreneurial spirit involves a balance of realistic problem assessment and optimistic leadership to navigate challenges [20]. Group 6: Value Creation - Value creation extends beyond financial metrics to include contributions to society, employee satisfaction, and customer experiences [22]. - The ultimate goal of the Five-Step Combination Theory is to achieve holistic value creation that enhances the well-being of all stakeholders involved [22]. Conclusion - The Five-Step Combination Theory represents a flexible mindset rather than a rigid process, emphasizing the importance of starting with people and ending with value [24]. - Effective leadership is defined by the ability to inspire voluntary followership, creating a dynamic and motivated team environment [25].

General Provisions - The purpose of the implementation rules is to improve the corporate governance structure, strengthen the leading role of strategic management, enhance the normativity and scientific nature of decision-making, and improve the quality and effectiveness of major investment decisions [1] - The Strategic Committee is established by the Board of Directors to research and propose suggestions on the company's medium and long-term development strategies and major investment decisions [1][2] Composition of the Committee - The Strategic Committee consists of three to seven directors, including at least one independent director [2] - The members are nominated by the Chairman, more than half of the independent directors, or more than one-third of all directors, and elected by the Board of Directors [2] - The Chairman of the company serves as the head of the Strategic Committee [2] Responsibilities and Authority - The main responsibilities of the Strategic Committee include researching and proposing suggestions on long-term development strategies, major investment financing plans, significant capital operations, and other major matters affecting the company [3] - The committee is responsible to the Board of Directors, and its proposals are submitted for the Board's review and decision [3] Decision-Making Procedures - The Investment Review Group prepares for the Strategic Committee's decisions by providing relevant materials and conducting preliminary reviews [4] - The Strategic Committee discusses proposals from the Investment Review Group and submits the results to the Board of Directors [4] Strategic Management and Evaluation Procedures - The Strategic Implementation and Evaluation Group is responsible for organizing the development of strategies and plans [5] - This group tracks and evaluates the implementation of strategies and submits regular reports to the Strategic Committee [5] Meeting Rules - The Strategic Committee convenes meetings as needed, with a notice given three days in advance [6] - A quorum requires the presence of at least two-thirds of the members, and decisions must be approved by a majority [6] - Meeting records must be kept for at least ten years, and members have confidentiality obligations regarding the discussed matters [6][7]

Core Viewpoint - Shandong Commercial Group Co., Ltd. (Lushang Group) is leveraging its new leadership team and implementing systematic reforms to enhance its competitiveness and achieve high-quality development in response to the changing market environment and deepening state-owned enterprise reforms [1][8]. Strategic Development - The company has established a "12345" high-quality development strategy and a "1+8+N" business development strategy, focusing on creating a digital lifestyle ecosystem and strengthening eight core industry sectors [2][3]. - A "three-year rolling plan" mechanism has been implemented to ensure the adaptability and foresight of the strategy, with annual adjustments and performance assessments integrated into the management process [2]. Governance Structure - Lushang Group is building a comprehensive risk control system, emphasizing a "big risk control, big review, big supervision" framework to ensure effective governance [3]. - The company has digitized its compliance system, embedding compliance checks into business processes and establishing a full-process risk monitoring network [3]. Cultural Development - The company has articulated a new corporate culture aimed at being a "quality consumption leader and a service provider for a better life," emphasizing a service philosophy based on sincerity and responsiveness [4]. - A focus on a "strict, true, detailed, practical, and fast" work style has been initiated to enhance team performance and accountability [4]. Party Building - Lushang Group integrates party building with business operations, creating a synergy that enhances both brand and operational performance [6]. - The company has established mechanisms to link party responsibilities with business performance, ensuring that both are evaluated together [6]. Performance and Innovation - The company reported a 41% increase in revenue and a 15% increase in profit for 2024 compared to 2022, with significant growth in its core business and new store openings [7]. - Lushang Group has achieved notable innovations in its pharmaceutical and beauty sectors, maintaining a leading position in hyaluronic acid production and launching numerous new products [7][8]. Research and Digitalization - Continuous double-digit growth in R&D investment has been observed, with new provincial-level research platforms established to support innovation [8]. - The launch of the "Lushang Life" service platform and a financial sharing center aims to empower the commercial circulation industry in Shandong [8].

Core Viewpoint - The article emphasizes the importance of strategic management in companies, highlighting that many strategic departments fail to fulfill their expected roles and often become marginalized, serving merely as policy research or image packaging units [2][4]. Group 1: Reasons for Ineffective Strategic Departments - The first reason is a misunderstanding of strategy, leading to a disconnect between strategy and operations. Many companies view strategy as a long-term plan unrelated to daily operations, which is a significant misinterpretation. Strategy should be seen as a high-level operational model focused on building long-term momentum and growth [3][4]. - The second reason is the incorrect positioning of strategic departments, where their roles and responsibilities are unclear. Some companies mistakenly believe that strategic work is merely about planning and research, which diminishes the strategic department's effectiveness [5][6]. - The third reason is a lack of strategic talent and insufficient professional capabilities within strategic departments. There is a shortage of qualified strategic professionals in the market, and many companies do not prioritize the development of their strategic management functions [9][10]. Group 2: Functions and Roles of Strategic Departments - Strategic departments should engage in closed-loop management of strategy analysis, formulation, decoding, execution evaluation, and review. This includes having the authority to allocate strategic resources and participate in leadership development [6][7]. - The strategic function must play multiple roles, including that of a "structure designer," "midwife," "consensus liaison," "chef," and "translator" during the strategy formulation process, and act as a "referee" during execution [7][8]. - The strategic personnel must possess a high level of professional capability, including knowledge in finance, industrial economics, marketing, operations, human resources, and information management, while also being familiar with industry specifics and maintaining communication with frontline operations [10][11].

Core Viewpoint - The document outlines the management system for the strategic planning and sustainable development of Great Wall Motor Co., Ltd, emphasizing the need for effective governance and decision-making processes to enhance the company's core competitiveness and investment decision quality [1]. Group 1: General Principles - The purpose of the management system is to strengthen strategic management and adapt to sustainable development needs while integrating resources for competitive advantage [1]. - The strategic planning defined in the document refers to the medium to long-term development strategy of the company, ensuring operational autonomy for various business modules [1]. Group 2: Management Structure - The management structure for strategic planning and sustainable development includes the Board of Directors, the Strategic and Sustainable Development Committee, and the Operations Management Department [4]. - The Board of Directors serves as the highest decision-making body for strategic planning and sustainable development, responsible for major investment decisions and public policy [4]. Group 3: Committee Composition and Responsibilities - The Strategic and Sustainable Development Committee consists of three to seven directors, including at least one independent non-executive director, and is chaired by the company chairman [2]. - The committee's main responsibilities include approving the company's strategic plans, reviewing sustainability and ESG-related reports, and making decisions on significant strategic matters [2][5]. Group 4: Strategic Planning Process - The strategic planning process involves collective discussions among senior management, analysis of external and internal environments, and the formulation of strategic recommendations by the committee [6]. - The Operations Management Department is responsible for executing the strategic plans and ensuring their implementation aligns with the company's objectives [6]. Group 5: Strategic Adjustment Mechanism - The company employs a PDCA (Plan-Do-Check-Act) cycle for continuous improvement and adjustment of strategies in response to internal and external changes [7]. - Triggers for strategic adjustments include significant deviations from strategic goals, changes in operational requirements, and major shifts in the external environment [7]. Group 6: Documentation and Confidentiality - Strategic planning documents are categorized and stored by the Operations Management Department, which implements a confidentiality management system to protect sensitive information [18][8]. - The strategic planning documents are considered important archives and are subject to strict management protocols to prevent unauthorized access [8].