In Baoshan Iron Ore Corporation, overstaffedness, poor profitability, irresponsibility of the working staff have been the neck-bottles for development. To solve these problems, the business operating system has been changed and the original enterprise has been turned into a share holding company. Through system change, many new initiatives have been introduced, such as streamlining the administrative structure, raising profitability by cutting staff size, exercising construction contracts, attracting foreign capital, relating salary to production output and expanding marketing channels. These initiatives have greatly motivated the staff, cut production cost, enhanced economic gains, thus brought profound change to the company and taken it to the sound cycle of economic activities.