SOE Reform: DEC Promotes Tenure and Contractual Management for High-Quality Development

Dongfang Electric Corporation (DEC) has been devoted to the power generation equipment industry for more than 60 years, providing clean, highly-efficient and smart energy equipment and system solutions for global customers.

It has evolved into the only energy equipment enterprise in the world that has the ability to develop six kinds of power generation equipment related to water, fire, nuclear, gas, wind and light.

By conscientiously promoting the three-year action of the reform of state-owned enterprises (SOEs), DEC has made improvement in high-quality development.

The company's operating revenue, total profit and new orders in the first quarter of 2021 increased by more than 30 percent year-on-year compared with the past two years.

In 2019, DEC implemented tenure and contractual management of managerial level personnel in two of its three-tier enterprises, which gained experience for future reform.

The next year the company established a reform system framework including an action plan, a task list, an assessment system and several supporting systems, and built a reform assessment mechanism that highlights indicator-based tasks and whole process management to guarantee solid implementation.

As of May 2021, the ratio of contractual management in the tenure system of all DEC subordinate enterprises reached 71 percent and the pattern is scheduled to be implemented in all subsidiaries by July.

At the same time, DEC will promote competition-based promotion and implement a market-oriented recruitment mechanism featuring strong incentives and strictly constrained salary allocation.

(Executive editor: Niu Yilin)