Innovation and Practice On The Management System and Mechanism of New Energy Enterprise

Background: Since the "11th Five-Year Plan", with sustained and rapid development of China's economy and society, Sinopec Green Energy Geothermal Development Co., Ltd. (hereinafter referred to as "SGE") has gradually developed from a little-known company into a the world’s largest geothermal heating company and China’s largest company specializing in middle and deep layer geothermal development, with an asset value of more than RMB 4 billion. Since establishment, SGE has achieved profitability for 12 consecutive years, carried out a diversified business layouts of clean energy based on geothermal +, and made its development more closely combined with national development, industry development, social responsibility, and technological progress. There are many factors behind the SGE's outstanding growth such as time, industry, market environment, and technological advancement. The most important factor is that there is an invisible curve, namely the development curve of SGE. It is through the innovation of the system and mechanism, the continuous updating of the management concept, the dynamic optimization of the organizational structure, and the enthusiasm of the cadres and talents to start a business, and the continuous innovation of the evaluation and motivating mechanism that the company has achieved achievement in the industry and make great strides towards high-quality development. Since entering the "14th Five-Year Plan", the company has firmly grasped the strategic opportunity of mixed ownership reform, gave full play to the vitality of the system and mechanism, took root in Xiong County, integrated into Xiong'an, contributed to Xiong'an, served the people, and the company's geothermal + business development has entered the fast lane. Standing at a new historical starting point, we are striving to effectively inherit, demonstrate and disseminate excellent management experience, and create a "world-class, China's first" green and clean energy company on geothermal development. The company urgently needs to summarize the experience to provide useful experiences for the development of new energy industry.

Innovations: 1. Adhere to the market-oriented system and mechanism, and establish rules and regulations to promote development. In order to better meet the needs of professional development, market-oriented operation, and socialized competition, the company conscientiously implements the project of "strengthening the enterprise with talents", deepens the system reform, and continuously optimizes the top-level system structure. It effectively guarantees that talents have a system to follow in the links of "selection", "use", "education" and "retention", and there are rules to be found. It has established and improved the talent growth channel of management, professional technology and skill operation, and comprehensively stimulated the vitality of talent development, Innovation and efficiency and momentum have effectively guaranteed the realization of the company's production and operation tasks and goals. 2. Build scientific three-determined standards, and increase efficiency through inventory control. According to the business development characteristics of the geothermal industry, Luyuan Company selected core indicators such as revenue, full-fee area, and heating area on the basis of full internal and external research and benchmarking historical data, and researched and formulated the industry and business that conform to the "geothermal +" industry and business. The three-determined plan of development characteristics further clarifies the management level, job responsibilities and staffing standards of the headquarters and secondary units. After the implementation of the three-set plan, the company's secondary units have streamlined 7 departments, and the per capita heating area has increased from 89,700 square meters per person in 2019 to 91,500 square meters per person in 2020 and 107,700 square meters per person in 2021. The core competitiveness has been improved, effectively promoting the development of the company's geothermal business. 3. Focus on precise assessment and incentives, and rigorously test hard to increase vitality. The company has established a three-level assessment management system of headquarters - secondary units - grassroots stations - natural stations, and by signing economic target responsibility letters with secondary units, the assessment responsibilities are implemented step by step. The headquarter manages the head office and exercises power at different levels, and each unit formulates targeted implementation policies according to the actual situation. The first is to set the assessment coefficient range according to the scale and operational difficulty of each unit, reasonably widen the gap between units, and fully reflect the fairness and competitiveness of the assessment in the contribution rate of each unit. Since the implementation of the performance appraisal policy, the company's heating area has a compound annual growth rate of 50.05%, and its revenue and profits have increased from 9 million yuan and 1 million yuan in 2007 to 737 million yuan and 102 million yuan in 2020. Second, the incentives are differentiated, and more work and more efforts will widen the gap. The company has successively issued such systems as the "Special Rewards for the Company's Market Expansion", "Interim Measures for the Management of the Company's Incentive Mechanism", "The Implementation Plan for the Company's Incentive Annuity", and the "Administrative Measures for the Company's Advanced Selection and Commendation". Promote talents in the process of tackling key problems and technical tackling. It has been commended for 47 advanced collectives, 14 model workers, and 86 advanced workers. All staff are full of entrepreneurial energy and strong momentum. The distribution mechanism fully reflects more work and more pay. The company divides the assessment results into grades and the cashing-linked mechanism for secondary distribution, and drives the distribution to tilt towards efficiency-creating units, positions, and individuals. It fully embodies distribution according to work, more pay for more work, and achieves precise incentives, stimulates the enthusiasm and creativity of all employees, and promotes the continuous high growth of the company's performance. 4. Build high-end talent channels, attract external and internal training to add motivation. First, the introduction of mature talents has achieved remarkable results. Over the years, the company has closely adhered to the main line of innovation and development, adhered to high-end leadership and innovation-driven development, continued to benchmark against advanced standards, continuously improved and improved the talent management system and policy system, and actively practiced the core of "dare to be the first" and "benefit the people". The value concept has created a good cultural atmosphere and an employer brand image. "Plant the plane tree well and attract the phoenix". In the past 13 years, it has attracted more than 400 talents from all walks of life to join the geothermal energy development business. They work in ordinary positions. With extraordinary things, in boosting the high-quality development of the company, it has created one industry first after another. The company's employer brand has been highly praised by third-party channels, and won Liepin's 2020 and 2021 Extraordinary Employers, and the attractiveness of mid-to-high-end talents has been significantly enhanced. Second, the talent training and cultivation have achieved remarkable results. The company takes various forms such as "post three bases", "geothermal professional competition", "management forum", "technical dissertation defense seminar" and other forms as important carriers. "Post evaluation" and "post practical drills" are powerful starting points to carry out in-depth talent training work, systematically improve talent business capabilities, and enable the company to "produce more talents, quickly produce talents, and produce good talents". By the end of 2021, there will be 175 employee training sessions, with a training scale of more than 10,000 person-times, and 4 geothermal professional skills competitions, providing strong intellectual support for the company's high-quality development.

Expected results: to for a new energy industry system and mechanism innovation experience template. 1. Create a "heirloom" for the management of cadres and talent teams in new energy development enterprises, and form a unique talent management ideological system and development model for the selection, use, training, assessment and incentives of talent teams, and management innovation, providing inexhaustible support for enterprise development. 2. Create a "wind vane" for the demonstration of the "three determinations" standards for employment in the new energy industry, and accumulate and inherit excellent talent development concepts, scientific talent management methods, and successful talent management experience, forming a positive demonstration effect on the development of the industry. 3. To create the "charisma" of the employer brand of new energy enterprises, effectively attracting high-end technological innovation talents, industry leading talents, and compound talents needed for project development from universities, scientific research institutes, and various industries who are interested in new energy development. Build an ecosystem of talent development in the industry together, and provide inexhaustible talents for the high-quality development of enterprises.