Key Stats

• 100k plus employees
• ~27 billion USD in revenue in 2023, listed in the Fortune 500
• 4000 micro-enterprises (ME's)
• 10-15 people per ME
• 4 layers of management across Chinese operations (~half of employees)
• Growth through acquisitions and new ventures
• More profitable than any other domestic or international competitor.

RenDanHeYi Model

“Ren” refers to each employee, “Dan” refers to the needs of each user, and “HeYi” refers to the connection between each employee and the needs of each user.

As CEO Zhang Ruimin says: “With the RenDanHeYi model we move away from being organised like an empire (with a traditional, closed pyramid) to be more like a rain forest (with an open networked platform). Every empire will eventually collapse. A rainforest, on the other hand, can be sustained.

Haier’s management model comprises seven elements:

• Microenterprises—small, independent operating units
• Leading targets—bold goals for growth and transformation
• Internal contracting—freely negotiated agreements between operating units
• Voluntary coordination—platforms and platform owners
• Open innovation—online product development
• Internal venturing—support for internal start-ups
• Ownership—substantial financial upside for employee-investors