Rendanheyi refers to Haier’s original rendanheyi model which is a business model proposed and named by Zhang Ruimin, Chairman of the Board of Directors and CEO of Haier Group. Haier’s shorthand for its new practices is ‘Rendanheyi and it’s principles are identical to those of Unbossed companies.

INTRODUCTION TO HAIER

Haier is based in Qingdao, China, and currently the world largest appliance maker, with 75000 employees and 27,000 outside China. The gross profits of Haier’s core appliance business have grown by 23% a year with a revenue increase of 18% annually. Haier’s success is the result of a root-and branch overhaul of its once-traditional management mode.

“Ren” refers to employees. “Dan” refers to user value. Employee + Value Realization = Heyi.

THE PRINCIPLES

Principle 1:
Each employee directly faces a customer. This can be an external customer or an internal customer (HR, Finance, etc)

Principle 2:
Each team of employee realizes their own value/loss sharing in the value creation process.

Principle 3:
The employee is not a subordinate to the position, but exists because of the user. Where is there is the “Dan” there is the “Ren”.

Principle 4:
The employee is no longer confined to the inside the company. Anyone can compete for a position for a competitive plan. This means external service providers and internal service providers can compete for the same team of employees facing an external customer.

Principle 5:
Focus on ecosystems value creation, ecosystem revenue and ecosystem brands. Whereas the ecosystem is the reflection of the shared economy driven by Internet of Things.

Principle 6:
The relationship between companies and customers is upgraded from price trading to value interaction.

Principle 7:
The relationship between enterprises and stakeholders is upgraded from a business game to sharing and co-creation.

THE RESULT

The implementation of these principles will lead to different structures, systems and processes in every company as they need to be fit for every unique context. Generally speaking you will see the transformation of:

  1. Large Monolithic Organizations to a fleet of Self-managing Micro-enterprises
  2. From inside-out Goal-setting to market-driven Targets
  3. From Internal Monopoly Departments to Internal Service Providers by Contract
  4. From Top-Down Coordination to Voluntary Coordination
  5. From Rigid Boundaries to Open Innovation
  6. From Innovation Phobia to Entrepreneurial at Scale
  7. From Employees to Business Owners

Sources: The End Of Bureaucracy, Gary Hamel & Michele Zanini

BOOK

Currently we are working on the most practical HOW-TO book about Unbossing and similar business models. The new publication deadline for the book will be around the summer of 2022, and it really seems that this deadline will stick this time.

Interested in the book? Subscribe to stay up to date and have the chance to get a first copy!

Subscribe here.

Partner with Hifluence

Hifluence specializes in guiding leaders and organizations make the shift from the traditional command-and-control model to Unbossing and RenDanHeyi ways of working. For more information, check out what we do and how we can work together.

SIGN UP FOR MONDAY-MORNING-XTC, INSPIRATION FOR UNBOSSERS!

A weekly newsletter with tips, tricks and inspiration on unbossing, leadership and life.

Sign me up here!