Efficiency Improvement Practice at YouZan: A Framework of People, Finance, Things, Responsibility, Authority, and Interest

For any enterprise, "operation" means revenue generation, while "management" is the means to improve efficiency and reduce costs. Although business models vary across industries and stages, management can be abstracted into universal patterns. Efficiency improvement work serves as a lever to prevent management failure or loss of control, ensuring orderly operations.

The author shares practical insights from working at YouZan, organized around six dimensions:

People (人) : The most critical factor in improvement work. Since systems have delay characteristics, practitioners should plant ideas in people's minds and wait patiently for them to take root. YouZan implemented "setting benchmarks, summarizing, and establishing standards" to achieve incremental improvements.

Finance (财) : Efficiency improvement is a lever for cost reduction and efficiency gains, especially significant during economic downturns. YouZan introduced efficiency improvement roles when they had only 300+ employees, aiming to enhance "human efficiency" to resist external risks as the organization scales. Every improvement must be validated with data metrics, following Peter Drucker's principle of "no measurement, no management."

Things (物) : Focuses on value delivery items, tracking the flow from product ideation to launch. Small teams can use Kanban boards, while large end-to-end teams can use "processing time" mechanisms. Improving flow velocity increases the chance of success by letting consumers experience the latest product versions.

Responsibility (责) : Involves recruiting more people to sustain improvement efforts. Select suitable individuals (the author's criteria: smart, resilient, ambitious) to become part-time evangelists, creating a win-win situation for improvement goals, capability development, and team efficiency.

Authority (权) : In YouZan's flat organization, "personal influence" far exceeds positional power. The author recommends reading "The 5 Levels of Leadership" by John Maxwell. Improvement requires building lasting trust relationships and obtaining buy-in before working with teams. When pushing for cross-department goals, establish clear agreements and follow up on violations.

Interest (利) : Address departmental interests before planning improvement work. Think about "what's in it for everyone" - real benefits and value. Request material rewards from team leaders to keep teams visible and recognized.

The article concludes by comparing efficiency improvement practitioners to guide dogs (patient, leading teams forward) rather than huskies (well-intentioned but causing chaos).