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FANG Jianping: The biggest crisis is mental crisis

Fri, Jan 19, 2018

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Fang jianping, is Chairman and President of Shanghai Aerospace Energy Co., LTD., graduated from the Mechanics Institute of Tongji University in 1989, and also is alumni of Tongji MBA 1998. Fang won the China Aerospace Award, the title of Shanghai Outstanding Science and Technology Worker, and Shanghai Aerospace Base Entrepreneurial Honorary Award, etc.

Starting from a designer, Fang Jianping has served in positions such as a research director and deputy director of the institute, also has served as administrative command of a model rocket engine and manned space propulsion system since working in the subordinate unit of China Aerospace Science and Technology Group up to now, always standing in the forefront of China's aerospace industry. In 1995, in order to seek a way out for the 500 employees in the research institute, Fang undertook the task of reform, founding the Shanghai Aerospace Energy Co., LTD and Shanghai Fiorentini Gas Equipment Co., LTD., and successfully made the two companies well-known in domestic natural gas industry.

In a recent interview, Fang narrated the difficult transformation process of the research institute and shared the experience of entrepreneurship and management. He believes that the biggest crisis in the operation of both business and life is mental crisis, and that each of us should be responsible for ourselves.

Reform: Opportunity is forced out

Fate that ties Fang Jianping and Tongji began from his undergraduate period. Fang Jianping graduated from Tongji Mechanics Institute in 1989 during when state-owned enterprises were under reorganization while private enterprises were going through bankruptcy, which implied unpromising employment situation. In such background, Fang Jianping's classmates chose to study abroad or do business, while Fang chose the space industry and entered the Space Propulsion Research Institute of China Aerospace Science and Technology Corporation.

There is a familiar phrase, "Missile production is inferior to tea egg business", which describes the income of intellectuals who engaged in mental activity at a much lower rate than that of manual laborers. In such an era, Fang Jianping’s choice in the space industry means tremendously low income. He clearly remembers that his salary was only 93 yuan in that era while a Panasonic TV cost 3600 yuan. However, the phenomenon of income upside down of intellectuals and manual workers made college graduates unwilling to work in research institutes, that caused talent shortage in the space industry, which also gave young Fang Jianping an emerging opportunity.

"The Times made me who I am. I always believe that destiny comes first, then opportunity and ability. My experience over the past 30 years is not a typical striving example for young people to refer. But it is because of the importance of the times, fellows can think about what era they are in, how to positioning in this era, and how to play a role of oneself."

There were more than 500 employees in the research institute at the time, as Fang said: "Daily work is around the rocket, the most important mission of the whole year is to ensure the successful launch of the rocket." Fang Jianping took charge of the first class engine of a rocket model for there were no other young people in the institute then. Despite limited income, Fang was very excited, "After all, I can get close to the rockets."

In 1995, though 27 years old, Fang was already the deputy director of the institute. "Tremendous stress made me sleepless every day." It turns out that the space unit is in financial poverty, and one can’t tell the cost of food and fuel without being the head of the household. The unit once dispensed a few year-end bonuses, having two old comrades coming up to Fang, arguing against unjust distribution of bonuses, two of them debated on their contribution to the space industry, while the dispute is only "Your award is half a yuan more than mine". These old comrades had overseas study experience and profound academic background, dedicating youth and talent for the space career full of their ardent love, but now they compromised for limited salary. Knowing this, Fang felt bad in his heart, "More than 500 people are waiting to survive, and I have to give them a word."

Fang Jianping said modestly, "The reform is forced rather than active transformation." He realized that there would be no train of thought if he followed the path of the past, thus started to think about marketable path. In the face of the gap between ideal and reality, the institute retained two advantages — system integration and reliability. "These two advantages are heritage from Mr. Qian Xuesen. For the sake of enterprise standard upgrade, I strongly suggest that all the manufacturing and even service enterprises of the market should study the system engineering and reliability theory. Despite years of enterprise operation, Fang Jianping retains expert scholar temperament.

After finding the advantages of the research institute, Fang Jianping made a breakthrough from the gas industry. "I found that the industry is backward, and there are many business opportunities. The opportunity is forced out, we must strive for a way, then seek common interest from it." Fang tells the story of how he took advantages to obtain the investment from Italian Fiorentini Group, and finally jointly established Shanghai Fiorentini Gas Equipment Co,. LTD under the support of the subordinated Space Energy Co., LTD. of China Aerospace Science and Technology Group Co., LTD, Italian Fiorentini Group Co., LTD. and Shanghai Volkswagen Gas Co., LTD.. At present, Shanghai Fiorentini Gas Equipment Co,. LTD. is the first and biggest sino-foreign joint venture specializing in the gas pressure regulating and measuring system and equipment research, development, design, production, sales, and technical services in China.

Management: Creation of Valuable Product and Service

As expected, Fang Jianping encountered many problems after finding a way out.  "The first issue is efficiency." Fang sighed that nowadays people prefer macroeconomics research, and only a few focus on microeconomics. " The essence and purpose of an enterprise is to create value. As an enterprise manager, there is no need for empty talk, but deep study of the enterprise product and market demand for efficiency improvement."

In terms of management, Fang Jianping also encountered many problems including core technology and product, business model and enterprise reform. "What is to be  managed when we talk about management? It’s called human and financial management in the past, now is the pursuit of perfect culture, namely to create valuable products and services via administration products like ERP system, enterprise strategy, communication efficiency enhancement, marketing, organizational management, etc." Fang Jianping said, Shanghai Fiorentini gas company practise four satisfaction in management , namely customer satisfaction, employee satisfaction, shareholder satisfaction and social satisfaction. "The attitude of employees can be transformed into customer attractiveness, and the ability of the enterprise directly affects the competitiveness of the product."

Fang Jianping also emphasized that enterprise operation should be flexible and changeable to meet the needs of customers, while the management of enterprises should be strictly committed to regulation. Although seemingly contradictory, "At different stages, facing different objects, there should be different management concepts. It isn’t necessary that junior subordinate to superior, what matters is to hear the market."

Fang Jianping admitted that the current Fiorentini Gas is also facing the problem of second start-up. "We are in an era of informatization, personalization and globalization, and we need to consider improving the relationship between technology, products and customers. An old model can't adapt to new needs, then where is the customer demand? How do you create a new pattern?"

Regarding entrepreneurship, Fang Jianping suggested that "When starting a business, you should consider yourself as a partner of your customer rather than a supplier, thinking from the perspective adverse. Where there is customer demand, there is an area where companies need to go further."

The Biggest Crisis is Mental Crisis

"The biggest crisis, whether it is running a business or living a life, is a mental crisis. For the enterprise, what is difficult to solve is the problem that employees do not love their own industry or their jobs. For individuals, everyone should think about whether to be a valuable, creative person and be responsible to himself/herself.

For MBA students, it is important to settle to study in a down-to-earth way and do their own things well. The general environment can not be changed, but one can rely on his/her own efforts to change the subenvironment. To learn and to practice in school, even if it turns wrong, and don’t be restricted to the field of theory. If you love one thing, do it cautiously and conscientiously, then look up at the starlit sky."

X Thank you for your interest in Master of Global Management, Tongji University!