Implementing Quantum Management: The RenDanHeyi/Zero Distance Business Model

The whole raison d’etre of this book is to argue that the business model conceived by Zhang Ruimin for Haier’s transformation program could be a template for the wider transformation of society and the birth of a new world order. Thus it is important that readers understand the basic features of the model. The material presented in this chapter will be familiar to readers who have been following the Haier story, as it has been presented in several books, case studies, and media features. It describes how Haier deconstructed traditionally managed company power and organizational structures (power filtering down from the top, through middle managers, to employees who follow instructions, & all mediated through bureaucratic structures & rules) & replaced them with a network of self-organizing, self-governing “micro-enterprises” serviced by platforms. Famous Haier slogans such as RenDanHeyi (“value to employee aligned with value to user”), “everyone a CEO,” “win/win,” “user multiplier,” “building an ecosystem” will be explained. The RenDanHeyi business model redefines many business sacred cows—what is a leader? what is an employee? what is a customer? what are the metrics of business success?