In his internal speech, Pony Ma reviewed the recent merger and the firm’s adaptability in a volatile market.
“In recent years, as we are striving to create excellent products and increasingly engaging ourselves in mobile internet industry, I feel the same strong passion as I had fifteen years ago, since when we grew from a single product to a complete and prosperous business model.” Pony Ma, founder of Tencent, said at a closed meeting to his staff on October 10th.
The internet market in China has witnessed huge changes in the past fifteen years. In response to that, Tencent restructured its organizational scheme, created more competitive products and required the administrative staff to be passionate, hard-working and open-minded. In this meeting, Ma reviewed more.
Change is always the best policy
Last month, Tencent and Sougou, a Chinese search engine, established a strategic partnership which made Tencent owner of 36.5% of Sougou’s equity capital on a fully-diluted basis. To partner a former competitor, in Ma’s opinion, is the right thing to do in a long run and he hopes people in Tencent are prepared to embrace new challenges in the future.
Another notable change is that Tencent integrated its mobile security and PC security service into MIG, or Mobile Internet Group, one of Tencent’s most important business unit. Ma decided security would be the safeguard for Tencent’s mobile business and required all the product lines to break through in this regard.
“Working in this industry, we should always take the initiative to change and find solutions as soon as possible.” Ma said.
Unlike traditional industries in which companies can turn around with quick cash influx, the mobile internet industry requires more teamwork and sense of responsibility for a company to keep going. As Ma suggested, some senior managers in Tencent, most of whom are the “rich second generation” and own impressive resources already, should never stay satisfied with where they are. They should keep exploring potential resources and create the best products that have a long-lasting competitive edge. Or, as Ma put it, his management should keep “hungry”.
Less is more
Tencent hired more than 1000 fresh graduates this year, with growth rate controlled within 10% compared with last year. This number will be held under 5% next year according to Ma. “I hope we can downsize our recruitment. As for employees, it’s not the more the better.” Ma said. He suggested that manpower should be efficiently distributed over all departments rather than keeping too many in one or two.
At the end of his speech, Ma encouraged more cooperation and communication within the Tencent group and an open and integrated business model in Tencent in the future.