Zhang Ruimin, CEO of Haier Group, revolutionised the company by implementing a unique management model. He transformed the failing state-owned enterprise into a global leader in home appliances, with a market share of 10.2%. Ruimin’s model, known as Rendanheyi, involves breaking down the company into self-managed units called ‘microenterprises.’ Each unit operates independently, makes its own decisions, and is held accountable for its profits and losses.
This model fosters innovation and entrepreneurship, as employees are encouraged to think and act like business owners. It also promotes customer-centricity, as microenterprises are designed to meet specific customer needs. Ruimin believes this model is the future of business, as it enables companies to adapt to the rapidly changing market environment.
Under Ruimin’s leadership, Haier has also embraced the Internet of Things (IoT), integrating it into its products and services. This has led to the development of smart appliances that can be controlled remotely, providing a more convenient and personalised user experience. The company’s commitment to innovation and customer satisfaction has earned it numerous awards and recognitions, including the ‘World’s Most Innovative Companies’ by Fast Company and the ‘Global Top Brands’ by Euromonitor.
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