3020 ice blue
Haier CEO Zhang Ruimin (Source: AFP)
Can you imagine? Originally, the first-ranked home appliance dealer in China, like Hon Hai, is a company with a fine division of labor and strict military orders.
Now, Haier has turned the entire company into two thousand small teams to manage itself. It almost "destroys" the management class, and the entire company structure is reversed from a large pyramid to an inverted pyramid. These small teams are like independent small companies. Each team can independently select the members who are most suitable for their team. An intermediate supervisor or a manager who manages the talents. If they do not have the ability to be paid by these teams, they will have no money. Can be led, and even will be eliminated.
This crazy innovation experiment led to curiosity research at Harvard Business School and Wharton School.
Everyone knows that to develop innovation, more power must be delegated to front-line employees, but there has not been a large-scale innovation transformation plan like Haier in history. Since the start of the change in 2013, the number of Haier employees has dropped from 86,000 to 70,000, and the disappearance of 18% is that people who cannot adapt to change.
In his book “Managing the Future†published by Gary Hamel in 2007, it was predicted that when the change is getting faster and faster, the traditional management goes through the top-down, the boss decides the plan and then orders it to be executed. Logic is simply unstoppable.
He predicted that all organizational and management logics in the future will undergo great changes, subverting our common sense of the past.
The vision that Hamel outlined in the book is:
Can you build a company where everyone can freely find anyone to talk about things?
Can you give employees the freedom to choose what they want to do instead of assigning them?
Can you create a company without a "core" business?
Most of the business cases collected by Hamel at the time were mainly small and medium-sized unlisted cabinet companies. Such as functional material supplier Gore-Tex or tomato processing company Morningstar (MorningStar). However, I did not expect that the first enterprise to do such a large-scale implementation is actually in China, and it is an annual revenue of nearly NT$800 billion (the total revenue of Qingdao Haier and Haier Electric under the Group, excluding other subsidiary camps). Received) home appliance manufacturers.
Key one: Engage in "small group" In the past, the boss sent you a task and now you have to take the initiative to grab the job, otherwise there is no salary.
In the past, the boss sent you a task. Now you have to take the initiative to grab the job, otherwise there will be no salary.
Haier CEO Zhang Ruimin, why dare to carry out this gamble?
Chen Weiru, an associate professor of strategy at the China Europe International Business School, who is a consultant to Haier, believes that this is the decision Zhang Ruimin had to make.
When the time returned to 31 years ago, Haier was a refrigerator factory with losses for several years. Zhang Ruimin saw the staff's discipline, and gathered the employees. In front of everyone, they picked up the smashed 76 ç‘•ç–µ refrigerator. At that time, a refrigerator. The same employee has two years of salary. Later, various performance-oriented reforms made him the godfather of Chinese management. He also received the Management Thought Leadership Award from the Lausanne International School of Management in Switzerland.
But I did not expect that it emphasizes the high execution of performance and obedience, but today it has become a burden.
Chen Weiru said that traditional manufacturing has an inertia: slow response, coupled with the lack of breakthroughs in home appliance technology for many years, has left the industry in a red sea. Around 2010, in fact, major home appliance manufacturers have seen the Internet trend in transition. However, in the past, Haier’s most proud military management was contrary to the trend. Now, "the Internet era seeks individualization and subdivision. The innovation of the market requires completely different qualities. "Chen Weiru said.
Chen Weiru analyzed that the group facing the Internet and rival beauty chose to let professional managers think about innovative cooperation programs, which promote smart home appliances and cooperate with Xiaomi to launch new products. "Shenzhen, where the United States is located, has always been a relatively innovative place," said Chen Weiru. "Haier is in Qingdao, the northerners are more honest, more loyal, and follow the rules for a long time, so Zhang Ruimin needs to change the package in extreme ways."
Zhang Ruimin almost let the company reshuffle.
In the past, the boss decided what you were going to do. Now, you have to grab the job yourself, otherwise you will be unpaid.
Key 2: Encourage the removal before the boss decides who you are with now that you can "camp change" and re-elect the leader
For example, Haier maintenance personnel have their own scope of responsibility. This kind of differentiation may cause the maintenance personnel in some areas to be very busy. Some areas may have nothing to do, and the supervisor needs to adjust the adjustment. However, after adopting the platform mechanism, Haier released the customer demand, allowing the maintenance personnel to grab the order themselves. Whoever has high user satisfaction, who can receive more orders, not only does not need management, the quality of the staff is immediately affected by the market mechanism. Distinguish it.
Zhang Ruimin chose to break up the company's structure and divide 80,000 employees into two thousand small teams. The salary of the employees is calculated according to the performance of the work, and the salary is paid according to the completion rate of the target every month. Wages," Haier’s staff said.
Based on reality, when you choose teammates, you don’t look at the title, but you can find out what you can really do.
In the past, it was the boss who decided who you would work with. Now, you can "eliminate" the boss yourself.
According to the book “Haier Transformation: Everyone is CEOâ€, the three-door refrigerator team mentioned as an example, they analyze the annual growth target of 30% according to market differentiation and competitors, and exceed the past goal by three times. Because the more you earn, the more profitable the team can be, and according to this goal, they decide that the team members need 19 people to be in line with the best cost-effectiveness.
This team is looking for talents, and internally let other colleagues in the department compete fairly. The decision makers include the body length (that is, the leader of the team), as well as various industry experts. When the team is formed, there are also mechanisms for "mutual selection of officers and men". If the team does not meet the standard, the members of the business team think that the leader is weak, they can "camp change", initiate the recall process, and re-select the leader.
This is a big test for the existing powers. If you choose members, members should choose whether to follow you. Even Haier has promoted the "squid strategy." In addition to the body length, each team will also run for the preparatory successor (Haier called these preparatory successors as squid), which can replace the body length at any time, which makes the leader more war-torn.
However, young people with strength have a better chance of coming out.
In the past, it was the boss who decided how much you earned, but now, the market directly decides how much you take.
The key three: the venture capital investment platform set up two hundred "small micro" companies to buy shares but not involved in management, let employees be entrepreneurs
Haier regards the company as a platform and encourages the team to use its own creativity to find business opportunities and establish a company called Haier called "Xiaowei". After Xiaowei was established, it was responsible for its own profits and losses, and Haier invested in the way of shareholding without actually intervening in management.
Since 2013, there have been more than 200 Xiaowei established by the platform.
For example, Raytheon Technology Co., Ltd., which was founded by three post-85 employees, is a game-specific laptop that has nothing to do with home appliances. Raytheon holds 25% and Haier invests 75%. According to Haier, in 2014 Raytheon sales revenue reached 250 million yuan, net profit reached 13 million yuan, the team can directly share a quarter of the profit.
"China used to eat big pots of rice, and now this kind of strong, performance-oriented means will be very popular," said Zheng Bojun, a professor of business psychology at National Taiwan University.
"Zhang Ruimin basically turns employees into entrepreneurs," said Bill Fisher, a professor at the Lausanne Institute of International Management, in his book Haier Reconstruction.
Disputes: Cancellation of grade KPIs in days, not required to leave
The shift certainly caused a rebound. Because it is necessary to "eliminate" the managerial class, when it was originally planned to be pushed to the middle-level supervisor, "it is not resistance, but (but) it will not move at all."
This involves the original interest issue. "The original consulting company helped us with the level of seven levels and eight levels (editing: rank system), and now we are canceling it. This cancellation will encounter big problems. Originally this level It is solidified, the corresponding level is abolished, a set of compensation system is very fine..., and now all cancellations will definitely cause controversy. "In 2012, Zhang Ruimin said that he would accept the interview before starting the change.
This also involves survival issues. For example, the original financial and human resources and other logistics administrative departments and supervisors can no longer be passive roles, but must position themselves as the concept of "resource supermarkets." Only the small micro team needs you, and you have a source of resources, you have a value.
The entire elimination mechanism is natural and cruel. We visited a Haier chief executive who had been involved in the change and had left the company. When talking about the impact of Haier's new model, he said: "If your business is not linked to the market currency, you naturally have nothing to do." If you have nothing to do, will you leave? He replied, "If you don't leave, we will blame. Our monthly salary is floating. The KPI is decomposed into the sky. It is Haier's famous daily high (the target is completed today, tomorrow's target is higher than today). Decomposed into the sky..."
The complaints of employees will be exposed in the Chinese media every other day. For example, China’s “Time Weekly†quoted former Haier employees as saying that they feel that they lack security. “It feels like Haier’s work, but it’s not in Haier’s establishment.†Some former employees complained on the Internet, which is similar to dismissal. Too rude.
"The procedural justice of Chinese enterprises is not high. It means that when the rules change, the people underneath have no right to speak. Only those who are informed, the potential conflicts will be more than the proportion of Western companies in the contract." Jiang Dingyu said.
This is not an easy process. Regardless of the final success or failure, Chen Weiru speculated that the greatest significance of his award is: "The things he mentioned are the problems of large enterprises, but others do not have the courage to completely subvert. Zhang Ruimin put forward enough systems and began to practice. "
Zhang Ruimin also wants to know clearly, when he "dissolved" an army, the group and its new position. He said that it is to ensure that the culture is maintained, to keep the system sustainable, and to help to see farther market opportunities. This avoids each individual small micro, and can't lay out the future because it wants to make a quick profit.
From the figures, since 2013, Haier's huge changes have indeed caused shocks. The opponents have dig their feet. The revenue from 2013 increased by 8% to only 2.5% in 2014. In the same period, rivals and Gree had 17% and 16% respectively. The revenue grows. However, Haier’s profit is also improving. However, in 2015, China's three major power plants suffered the worst year since the financial tsunami. Among the figures released in the first three quarters, only the US revenue is growing, and Haier will experience a recession.
Zhang Ruimin has not tried other more modest ways before, allowing companies to change.
"We have gone through many detours...,"
Initially, like most business owners, he hopes to improve efficiency in order to face the Red Sea competition.
Determined: "Every business is faced with a choice, is it a suicide rebirth, or is it killed?"
In 2010, he proposed to reduce existing sales to zero inventory, when employees rebounded and said that if the boss insisted on doing so, there would be no way to sell things.
Zhang Ruimin sighed and told the staff that if these stocks are unwilling to deal with them, they will hang on the individual and let the employees absorb the inventory costs themselves. "At that time, sales fell for almost three consecutive months." The employee wanted Zhang Ruimin to know that this would not work. Zhang Ruimin actually returned to the staff like this: "If the premise of sales is that there must be inventory, then you should not do it."
Seeing that the tug-of-war was ineffective, Haier employees began to seriously find the crux of the knot, but another problem appeared: everyone seriously did the analysis of the business department and found that the product will have inventory, because the R&D department delayed the market demand for two months. Out of the product; but after researching the R&D department, the R&D department said: "I was designing very well because the components were gone." When I traced the parts and components department, the latter said that I was going to supply others.
"Turned around, it froze." This result shocked Zhang Ruimin. Everyone is doing things seriously, but improving efficiency is not the key. Only by changing the logic of the system operation, it is possible for everyone to start around consumers. Think about it.
The success or failure of Haier cannot be determined yet. Others want to carry out such a big reform as Haier. Chen Weiru needs to have the leadership style of a spiritual leader like Zhang Ruimin or Ma Yun, in order to let everyone believe in going. In addition, Haier's original system is also the key, which allows it to provide resources and track the operation of two thousand teams, without losing control, and can immediately settle the numbers.
But what we can refer to is Zhang Ruimin's attitude towards changing the environment.
Every time, the Chinese media asked him how he responded to the same answer when he responded to the huge gamble pressure:
"Every business is faced with this choice, is it a suicide rebirth, or is it being slain?"
The gamble in your eyes is actually his way of rebirth.
The drastic reforms in our eyes turned out to be the price he paid for his initiative.
Haier won the award this time, perhaps because his original intention of change was the same as the anxiety that all of us faced, but he bravely made a choice and did not choose to stay in the same place. This company really responds to the fundamentals of innovation: to change, there must be some trade-offs. (Author: Qi Wenqi, Chen Yanzhen, Business Weekly)
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Small file_æµ·å°”
â– Founded: 1984 â– CEO: Zhang Ruimin â– Main products: white goods â– transcript: 2014 revenue of about NT$795.4 billion, net profit of about 34.1 billion yuan â– Status: China's top brand appliance manufacturers
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