On December 6th, Zhang Yong, Chairman and CEO of Alibaba's Board of Directors, issued an internal letter announcing the company's upgrade to a "diversified governance" system, appointing Dai Shan and Jiang Fan to be responsible for the newly established "China Digital Commerce" and "Overseas Digital Commerce" sectors, respectively.
As the CEO of the group, Dai Shan will represent Alibaba Group in charge of Da Taobao (including Taobao, Tmall, and Alibaba Mama), B2C retail business group, Taocai Cai, Taote, and 1688 businesses, jointly forming the "China Digital Commerce Sector".
As the CEO of the group, Jiang Fan will represent Alibaba Group in charge of two overseas businesses, Global AliExpress and International Trade (ICBU), as well as multiple subsidiaries targeting overseas markets such as Lazada, jointly forming the "overseas digital business sector".
In his internal letter, Zhang Yong stated that upgrading the diversified governance system is aimed at creating long-term value through a clearer strategic blueprint and more agile organizational approach in various business areas. Domestic demand, globalization, and cloud computing are Alibaba's three major strategies, and since becoming CEO in 2015, Zhang Yong has always advocated for an agile organizational philosophy to guide the adjustment of internal production relations to meet the needs of Alibaba's multi characteristic business development. This targeted organizational restructuring has released a signal for Alibaba to further strengthen domestic demand and overseas business.
Alibaba also announced that Wu Wei will no longer serve as the Group Chief Financial Officer (CFO) starting from March 31, 2022, and will be replaced by Xu Hong, the Deputy CFO of the Group. Wu Wei will continue to serve as the Group's Executive Director and a member of the Sustainable Development Committee under the Group's Board of Directors. Zhang Yong fully affirmed the work of Wu Wei over the past 15 years and the achievements he has made for Alibaba with the term "outstanding historical contribution" in his internal letter. He also stated that he had been working with Wu Wei several years ago to plan for the CFO succession plan, and today the conditions for the handover are ripe.
Zhang Yong stated that as Alibaba Group forms a pattern of multi business engines driving future growth, "diversified governance" will become a new organizational strategy for the group. Alibaba hopes to explore more new governance methods, always use the progressiveness nature of production relations to drive the release of advanced productivity, and use organizational innovation to drive business innovation.
Full text of internal letter:
Be good at yourself and walk with the wind and rain
Dear Ali people,
Towards the end of the year, it is time for us to adjust ourselves and start again. It must be acknowledged that this has been a challenging year, as well as a year for us to better integrate into the trend of social development and begin self transformation. We have made some progress, but we also face many challenges. In the midst of major cyclical changes, in order to further upgrade our diversified governance system, with clearer strategic blueprints and more agile organizations in various business areas, and truly create long-term value, the group has decided to:
1. Dai Shan (Su Quan), as the group president, will represent the group in charge of a layer of organizations such as Da Taobao (including Taobao, Tmall, Alibaba Mama), B2C retail, Taocai Cai, Taote, and Domestic Trade (CBU), jointly forming the "China Digital Commerce Sector". In the face of increasingly fierce competition, we must make more efficient decisions, unify actions, and clarify the positioning and division of labor among various levels of organizations. I look forward to Dai Shan continuing to play Alibaba's leading role in the Chinese consumer sector based on her profound market experience, outstanding leadership, and unique perspective on women's experiences.
As the CEO of the group, Jiang Fan will represent the first tier organization responsible for the overseas business of AliExpress and International Trade (ICBU), as well as multiple subsidiaries facing overseas markets such as Lazada, to jointly form the "overseas digital business sector". In the past few years, Alibaba's overseas market has grown rapidly, with an annual active consumer base of 285 million. However, we still have a long way to go before becoming a truly global company and achieving greater success in the vast overseas market. Therefore, we need to form an overall strategic blueprint and organizational guarantee for the overseas market, and move forward firmly. Jiang Fan has made significant contributions to the wireless, personalized, and content-based development of Taobao for seven years. We look forward to Jiang Fan leading his team to achieve more innovation in overseas market development.
The "Mid Taiwan Strategy" implemented since 2015 has been the most important organizational strategy of the group in the past few years. As the entire group is forming a pattern of multi business engines driving future growth, facing the future, "diversified governance" will become a new organizational strategy for the group. We hope that through the exploration of more new governance methods, we will always use the progressiveness of production relations to drive the release of advanced productivity, and use organizational innovation to drive business innovation.
The above appointment will officially take effect from January 1, 2022.
As the CEO of the group, Michael Evans will also be responsible for departments such as the "Alibaba Overseas Business Representative Team" (AGB), "International Intellectual Property Protection" (IPR), and "Overseas Public Affairs" (IGR), playing a more important role in strengthening communication and cooperation in Alibaba's overseas market. The appointment was previously effective.
Starting from April 1, 2022, Maggie will no longer serve as the Group Chief Financial Officer (CFO) and will be replaced by Toby, the Deputy CFO of the Group. Wu Wei will continue to serve as the executive director of the group and serve as a member of the Sustainable Development Committee under the group's board of directors.
Since joining Alibaba for nearly 15 years, Maggie has participated as CFO in leading three successful listings from Alibaba B2B company to Alibaba Group, and has formed and cultivated a highly professional and knowledgeable financial team, becoming a strong support for Alibaba's strategic implementation and business development. Faced with the ups and downs of the capital market, international environment, and macro situation, she has always been humble and resilient. She has been an irreplaceable close comrade of mine and a confidant of many core management team members. She has made outstanding historical contributions to Alibaba to this day. The CFO succession plan was jointly planned by Maggie and I a few years ago, and we believe that today's handover conditions are mature. The market always has ups and downs, but the business we do is long-term, and the management's relay is to ensure that Alibaba can run for a long time and sustainably. Maggie will also use another identity in the future to better support and assist me and the team in completing our mission.
The handover between Maggie and Toby also reflects Alibaba's tradition of orderly inheritance. Three years ago, Toby joined Alibaba from PwC and became the Group's Deputy CFO two years ago. Faced with constantly changing business types, Toby quickly demonstrated outstanding professional skills and leadership. So far, Toby has gradually taken on the heavy burden of group financial management and strategic investment work. We have every reason to believe that Toby can effectively assume the responsibilities of the next CFO of Alibaba Group, leading the team towards the next stage of success together with the core management team of the group.
For Alibaba, which is 22 years old, this is another new beginning and a new starting point for us to firmly transform towards the future. Everyone from Alibaba, let's do our best together and walk together in the wind and rain!
Zhang Yong (Xiaoyaozi)
Chairman and CEO of the Board of Directors of Alibaba Group
December 6, 2021