Roots and Souls – The Way of Management in the New Era

Sep 03-2025   

*This article is based on the keynote speech by Lou Xiangpeng, author of Roots and Souls: The Way of Management in the New Era , proponent of the Roots & Souls Management Theory, and founder of Beijing Flyteam Strategic Brand Consulting.

Strategy Has Roots

First, grasp the trend. For example, BYD foresaw the future of new energy vehicles 20 years ago. This demonstrates the power of insights into industry, technology, and consumer trends.

Second, examine fundamental competition. Numerous cases, both positive and negative, confirm the importance of focusing on core competitiveness.

Finally, uncover fundamental assets. BOE returned to its core semiconductor display business and achieved global leadership. Wanda, staying true to its core strengths, abandoned its foray into the unfamiliar tea business—both are classic examples of leveraging fundamental assets.

As Drucker stated, “The essence of corporate strategy is to solve social problems.” The underlying logic for businesses in the new era lies in aligning with societal needs, concentrating resources on core strengths, and conducting strategic deductions. More specifically, strategy revolves around addressing three key dimensions: category, market, and ecosystem.

Brand Has Soul

The essence of a brand is to resonate with the collective cognition and needs of its consumer base. The core approach is to engage with the collective consciousness of the target audience. A brand with a soul generates consumption motivation, fosters emotional connections, enhances communication efficiency, and attracts capital.

Therefore, brands must identify keywords that resonate with consumers instantly. These keywords do not need to be high-end, but they must trigger precise emotional responses.

Four Business Strategies

1. Strategy: Define goals and direction. The opposite—blind expansion—often leads to failure. Even if the direction is correct, focusing resources and controlling the pace remain critical.

2. Brand: Build a stable brand totem. Apple’s logo—the bitten apple—is deeply ingrained in public consciousness. Drawing on cultural symbols such as the story of Adam and Eve or Newton’s discovery, it represents wisdom, knowledge, and innovation. The “bite” signifies breaking with tradition, embodying Apple’s spirit of challenging conventions and exploring the unknown.

3. Marketing: Create products with soul. As Philip Kotler emphasized, “The core of a great brand is its product”—and developing such products must be a strategic priority.

4. Ideology: This is the foundation of strong execution. Ultimately, the success of a business depends on whether its ideology moves people.