Decoding ‘The Spirit of Haier’
How this Global Organization is Successfully Reinventing Innovation Management in the New Era
PUBLISHED : 4 Mar 2021 at 10:46
Organizational management in the ‘Never Normal’ era remains the top-of-mind challenge for today’s executives who must continually adapt and prepare for any unexpected event and uncertainty.
It is fair to say that only organizations with a strong management vision can survive. But business survival is not enough, successful organizations must be able to stand out and thrive sustainably amid economic challenges that impact businesses across the world. Behind every successful global organization, there must be a combination of strategies and skills in place to propel the organization forward.
'People' remain at the heart of every business development and contribute directly to the success of an organization. Southeast Asia Center (SEAC) recognizes the importance of human resources and is determined to accelerate the potentials in people for every Thai business organization, so that they can move forward with transforming the business and keeping pace with the world. Through a recent collaboration, SEAC and The Haier Model Research Institute (HMI) announced the creation of a new organizational innovation and applied learning entity, Southeast Asia Innovation Management Research Center (IMRC), bringing to Thailand Master Classes in Innovation Management, Enterprise Transformation Design, and a transformation community of practice linked with like-minded organizations around the world.
Mr. Zhang Ruimin, Chairman and CEO of Haier Group
Haier’s core management philosophy ‘RenDanHeyi’ is a model founded by Mr. Zhang Ruimin, Chairman and CEO of Haier Group, focusing on ‘Human-first Value’ as the key factor in sustainable business development. RenDanHeyi is one of the most revolutionary management models of the 21st century, enabling organizational and individual capabilities development to drive real transformation. Meanwhile, the traditional model of corporate management focuses mainly on driving the number of transactions and fails to meet today’s challenges of business uncertainty as a result.
The RenDanHeyi model emphasizes the importance of employees in creating value for users and customers. Employees are not just workers who follow the orders of their supervisors, but participate in thinking, making decisions, and working together to deliver the best value for the company and its customers. The model is recognized by the world’s leading experts and organizations for its outstanding concept and new approach of working and is able to create a new ecosystem that deliver value to society as well as bringing business success both in the form of profit and exponential growth in the IoT (Internet of Things) era.
Besides considering the three financial aspects of the business – Balance Sheet, Profit & Loss Statement and Cash Flow Statement - organizations should take into consideration the win-win value added statement that arises from a mutually beneficial relationship between organization and end-users. When the organization can innovate and serve the users, it results in the creation of new value within the ecosystem.
RenDanHeyi is revolutionizing a management model in the IoT era and is embraced by companies around the globe. There are 72061 companies from 74 countries and regions that have already registered as members of the network, and 9 local RenDanHeyi research centers that have been set up around the world. This model is widely applied in all sectors, enabling organizations to adapt in the unpredictable world and withstand any crisis – in the same manner that Haier managed to grow globally even during the COVID-19 pandemic.
Corporate management philosophy and practices of RenDanHeyi is driving the organization ahead of the uncertainty, providing important knowledge that Thai organizations in the IoT era can benefit from. Today, these world-class management principles are even more accessible through the Southeast Asia Center (SEAC), a representative of IMRC in Thailand, which offers innovation management discipline in the Thai market through 4 main IMRC services, allowing organizations to access this global discipline through SEAC.
The 4 main IMRC services include master classes in innovation management, monthly webinars with global experts from the Haier Model Research Institute, ISO 56000 certification for organizations that meet the professional standard in innovation management, and membership services that enable Thai organizations to join the community of practice within the IMRC network.
A successful organizational development must be able to keep pace with changes and grow sustainably. Organizations must not only focus on the development of products and service, or balance of profit and loss statement, balance sheet, and cash flow statement alone, but should also consider the competence and potentials of its employees at all levels. Moreover, providing opportunities for human resource to participate in decision-making and being a part of value creation for the organization will increase every individual’s self-esteem while uniting them together, bringing the organization closer towards its goals efficiently and more sustainably.
