Edgeburn Theorem

Eichborn's theorem: The size of the company is based on the principle of being familiar with each other.

Eichborn’s theorem means that if you meet an employee and don’t recognize him, or forget his name, then your company is too big. Once the stall is too large, it will be difficult for you to take good care of it. It was proposed by Aaron Eichborn, director of the British Stephen Joseph Theatre.

In the management of an enterprise, small has small advantages and big difficulties. In the process of growing an enterprise, management bottlenecks will inevitably occur. Eichborn's theorem reflects this problem. When enterprises realize economies of scale, they must beware of "big enterprise diseases." In the process of expanding, we should pay attention to:
①It cannot be bigger in order to be bigger;

②We must have a full understanding of the management problems after getting bigger and be prepared to deal with them;

③ Proceed with caution, slow down the development, and do not eat a fat man in one bite.

 Regarding the problem of personnel management after expansion, managers must attach great importance to:

  1. Personnel planning must be done when recruiting;

2.Carry out self-management, improve self-ability, create a harmonious relationship with employees, and prevent personnel loss.

How big is the company? There is no fixed number. It all lies in your management leadership. Strong management ability means a company can be big; weak management ability means that a company is naturally small. Otherwise, problems will arise and management will get out of control. Leaders cannot see subordinates, and subordinates cannot see work and responsibilities.

John Sear, who has served as the director of the British Atomic Energy Authority for a long time, said with emotion when he talked about the talent management view of the British business community: “Only companies that have a wholehearted and thorough cooperation between consultants and employees can play a high Benefit. Managers must maintain close contact with the sales department or factory operations."

   There are many differences between great people and ordinary people. One of them is that great people remember thousands of ordinary people's names, while ordinary people remember thousands of great people's names in their minds.

   Unlike many CEOs, Jack Welch spends more than 50% of his working time on personnel. He believes that his greatest achievement is to care for and cultivate talents. He can name at least 1,000 senior General Electric executives (about 170,000 GE employees), know their responsibilities, and know what they are doing. Welch himself once said: "All we can do is to bet on the people we choose. Therefore, all my job is to choose the right people."

   Tang Jun is known as the "working emperor" because he spent 7 years at Microsoft from an ordinary technician to the president of China, and retired as a lifetime honorary president. Later, when he moved to Shanda, stock options worth hundreds of millions of yuan and hundreds of thousands of daily salary became a topic of interest. During his time at Microsoft, Tang Jun's first important promotion opportunity was due to his good character. For an excellent professional manager, a good personality can better communicate with superiors, subordinates, customers, and peers, and it can definitely play a role as a lubricant. Tang Jun can remember the name of each of the more than 1,000 Microsoft employees, and will ask the company's aunt to help the employees pay the utility bills. On weekdays, the company is responsible for going to the airport and the station to pick up each employee's family... It has been more than a year since leaving Microsoft. He will often eat, drink tea, and chat with his former subordinates and employees.

  As a professional manager of a large company, Tang Jun’s success lies in his ability to take care of every employee.