Zhang Ruimin, CEO of Haier, a global appliance manufacturer, believes that successful firms should not just adapt to the future, but create it. He suggests that organisations should not only focus on satisfying customers but also on creating new needs for them. Zhang has transformed Haier from a failing state-owned enterprise into a global leader in the appliance industry by implementing a unique management model. This model, known as Rendanheyi, combines the words ’employee’, ‘value’ and ‘link’ and emphasises the importance of connecting employees’ value to the needs of the user.
Zhang’s model has seen Haier’s profits soar, with the company achieving a net profit margin of 6.2% in 2019, higher than its competitors. The Rendanheyi model has also led to increased innovation, with Haier filing more patents than any other company worldwide in 2016 and 2017. Zhang’s approach to management and innovation provides a blueprint for other companies looking to not only survive but thrive in an ever-changing business landscape.
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