Zhang Ruimin, CEO of Haier, transformed the firm from a nearly bankrupt state-owned enterprise into a global market leader. His management philosophy, RenDanHeYi, places the customer at the centre and treats employees as entrepreneurs. He believes in the elimination of middle management, considering it a barrier to innovation and customer satisfaction.
Haier’s organisational structure consists of self-managed teams, called microenterprises (MEs), each focused on a specific customer group. Employees are encouraged to act as entrepreneurs, taking responsibility for their ME’s results. They work directly with customers, allowing for quick adaptation to customer needs.
The Zhang Ruimin model has led to significant success, with Haier becoming the world’s largest white goods manufacturer. However, it’s not without criticism. Some argue that it places too much pressure on employees, while others question its viability in different cultural contexts. Despite this, Zhang Ruimin remains committed to his philosophy, believing it to be the future of management. He continues to experiment and innovate, striving to create a company where everyone is an entrepreneur.
Go to source article: https://corporate-rebels.com/interview-zhang-ruimin/