Haier, a global giant in consumer electronics and home appliances, has adopted the Rendanheyi model, a revolutionary organisational structure. This model, championed by CEO Zhang Ruimin, is designed to transform the company into an ‘entrepreneurial platform’. The structure encourages employees to become ‘micro-entrepreneurs’, running independent business units known as micro-enterprises.
These micro-enterprises function autonomously, making their own decisions on products, markets, and resources. They also bear their own profit and loss responsibilities. The model promotes a culture of innovation, as micro-entrepreneurs are incentivised to develop new products and services.
Haier’s shift to the Rendanheyi model represents a significant departure from traditional corporate hierarchies. The company has effectively dismantled its old pyramid structure, replacing it with a flat, networked organisation. This transformation has been driven by the vision of Zhang Ruimin, who believes that the future of business lies in creating value for users rather than merely selling products.
The Rendanheyi model has proved successful for Haier, with the company reporting increased profits and innovation. It’s a compelling example of how businesses can adapt to the digital age by embracing new organisational models.
Go to source article: https://medium.com/work-futures/evolution-of-the-platform-organization-3-haier-rendanheyi-and-zhang-ruimins-vision-d8afceef7f5e