RenDanHeYi

RenDanHeYi

RenDanHeYi means that people create value for users.

1. Ren means people.

2. Dan means the needs of users.

3. HeYi means integration / shared value.

http://www.haierresearch.com/ https://www.mckinsey.com/business-functions/people-and-organizational-performance/our-insights/shattering-the-status-quo-a-conversation-with-haiers-zhang-ruimin

Question # 1 What does it mean to focus on people?

They key in RenDanHeYi is that everyone shows their

own value, so they feel dignity doing their work.

Every person wants to feel dignity. Focus on maximizing the value of people.

https://youtu.be/f_tDoZbLKYw Minute 65.

People feel and act as owners.

https://corporate-rebels.com/an-american-icon-being-acquired-by-a-chinese-giant-the-story-of-gea/

Each person can be their own CEO. Strong focus is on unlocking entrepreneurship and facilitating the emergence of individual potential.

https://youtu.be/dmKgspd0cbs Minute 16.

it’s not about replacing people. It’s about enabling people.

https://corporate-rebels.com/an-american-icon-being-acquired-by-a-chinese-giant-the-story-of-gea/

Each microenterprise decides itself, for example 1. what opportunities to pursue – internally or externally.

2. who to hire – internally or externally.

3. Who to buy from – internally or externally.

4. Who to sell to – internally or externally.

https://www.goodreads.com/review/show/3397074094 Pages 102, 122, 124 and 135

Teams make decisions themselves about wages.

https://youtu.be/dmKgspd0cbs Minute 16.

In the first year after Haier bought GE appliances, the message from Haier was: “We’re going to let you run the business the way you want to run it.”

https://corporate-rebels.com/an-american-icon-being-acquired-by-a-chinese-giant-the-story-of-gea/

At Haier factories, teams start the day next to a whiteboard bearing the names of team members. Each worker selects an emoji to

describe his or her current mood and places it next to their name.

The exercise helps colleagues to communicate stress or feelings of being overwhelmed by work or home issues. It allows the team to be aware and act, for example by rescheduling tasks. It’s a simple and effective practice to increase psychological safety and support. https://corporate-rebels.com/rendanheyi-usa/

Question # 2 What does it mean to focus on needs of users?

In the Rendanheyi model, everyone has

direct contact with users.

https://www.mckinsey.com/business-functions/people-and-organizational-performance/our-insights/shattering-the-status-quo-a-conversation-with-haiers-zhang-ruimin

In the Rendanheyi way of thinking, each person faces

markets directly, creates value for users and evolves into a dynamic partner.

https://www.druckerforum.org/blog/management-principles-for-the-digital-age-by-annika-steiber/

Users have personalized needs they want to have satisfied throughout the user experience cycle.

https://www.youtube.com/watch?v=f_tDoZbLKYw From minute 13.

In the Rendanheyi model people get involved in

entrepreneurial innovations by focusing on user demands.

https://www.druckerforum.org/blog/management-principles-for-the-digital-age-by-annika-steiber/

No matter how the outside world changes, the organization must change in sync.

https://corporate-rebels.com/haier-germany/

There is no such thing as being successful. It’s not about success. It’s about adapting to changing times.

https://corporate-rebels.com/interview-zhang-ruimin/

Organizational design and collaboration mechanisms must constantly evolve and adapt to help create value for users.

https://youtu.be/dmKgspd0cbs Minute 16.

Question # 3 What does HeYi / integration / shared value mean?

In the Rendanheyi model people are rewarded

based on value created for users.

https://www.druckerforum.org/blog/management-principles-for-the-digital-age-by-annika-steiber/

In Rendanheyi, a core principle is to align value creation and

value sharing. The amount of value someone creates in the market for the user is aligned with the amount of value creation that is shared with them.

No one else is needed in between to tell them how much value to create and how much they will be paid.

https://corporate-rebels.com/interview-zhang-ruimin-69106/

In the Rendanheyi model everyone, who is part of an ecosystem microcommunity  interact with each other,  sign a collective contract, and  share benefits based on how much value they create collectively for customers.

https://corporate-rebels.com/start-up-factory/

The organization idea behind RenDanHeYi is to be organized like a rain forest with an open networked platform.

https://www.rendanheyi.com/About

In fact, CEO Zhang Ruimin wants Haier to be a business without boundaries. He believes any business must be open and

interactive. And Rendanheyi aims to turn the organization from a closed system into an open one.

https://corporate-rebels.com/start-up-factory/

In the Rendanheyi model an enterprise develops into an open, platform-based organization which is driven by the best user experience and aims at co-creation and win-win

partnership for stakeholders.

https://www.druckerforum.org/blog/management-principles-for-the-digital-age-by-annika-steiber/