Zhang Ruimin, CEO of Haier, has been recognised for his innovative management philosophy that prioritises human value over profit. His approach, dubbed Rendanheyi, has transformed Haier from a failing state-owned enterprise into a global market leader in home appliances. Ruimin’s philosophy centres on the belief that every employee can be both an entrepreneur and a value creator.
Rendanheyi, which combines the Chinese words for “employee,” “value,” and “link,” encourages employees to form micro-enterprises within the company. These micro-enterprises function independently, with each one responsible for its own profits and losses. This structure fosters innovation, as each micro-enterprise continually seeks new ways to create value for customers.
Ruimin’s philosophy has not only led to Haier’s success but has also influenced other companies worldwide. His ideas have been studied in business schools and have inspired the creation of similar models in other organisations. Despite his success, Ruimin remains committed to maximising human value, believing that this is the key to sustainable business growth.
Ruimin’s leadership and innovative thinking have earned him numerous accolades, including the Thinkers50 Leadership Award. Despite these recognitions, he remains focused on his mission to create a world where everyone is an entrepreneur.
Go to source article: https://www.forbes.com/sites/billfischer/2023/11/15/zhang-ruimin-a-lifetime-of-maximizing-human-value/?sh=29e4642a1f36