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Haier’s “RenDanHeYi” Puts An End to Modern Management

Haier’s “RenDanHeYi” Puts An End to Modern Management

In response to the boom of research on Haier’s “RenDanHeYi” pattern by Western management scholars, Luo Qingqi, a strategic management expert and the senior director of PaLe Consulting, expressed in latest interview that “RenDanHeYi” pattern put an end to modern management and ushered in a new era of management.

According to Luo Qingqi’s analysis, Haier replaced the original management task of mass manufacturing management with mass customization management. The subject of modern management is manufacture capacity while the subject of postmodern management is innovation power. Haier presented the form of organization prepared for management innovation quantum to the world.

Zhang Ruimin, the chairman of the board of Haier Group and the CEO, introduced that “RenDanHeYi” pattern converted clients into lifelong users and employees into makers, and the relationship between users and employees as well as the enterprise is a partnership of long-term cooperation and co-creation and win-win. “Users can propose personalized demands at any time and participate in the full procedure of mass customization through the community ecosphere established by Haier.”

This pattern triggered continuous discussion in international management field and American management theory circle had brought Haier’s “RenDanHeYi” into “Lunar Program of Management”, which was launched by Gary Hamel, the professor of Strategy and International Management of London Business School, in May 2008 when numerous well-known management scholars and senior enterprise executives listed 25 management challenges so as to drive the renewal of management paradigm.

Luo Qingqi also stated that the most important reason for Haier pattern to be taken into “Lunar Program of Management” was that Haier opened a channel for the influx of innovation for future industry. When there was no more increment market left in the world, all stock must be transferred into new increment under the control of new management logic.

European management scholars regard Haier as the convincing proof that quantum management is a substitution for traditional management. Currently, quantum management is the most advanced management idea in Europe whose proposer Danah Zohar, a professor in University of Oxford, introduced Haier’s management pattern in the first chapter of her new book, The Quantum Leader. Zohar said that Western management pattern was trapped too deep in Newtonian paradigm to transform while Haier has already been practicing quantum management.

However, Luo Qingqi believed the management exploration of Haier would go further. “‘RenDanHeYi’ pattern has surpassed the quantum management imagination by British management scholars”. Quantum management is not a change of management tools but to reconstruct the organization on the basis of quantum pattern and to rebuild the relationship between organization and innovation. Haier created a innovation-related communication mode.

The guidance and universality of this initial management pattern by Haier were preliminarily verified as Haier stopped loss of Sanyo White Goods which had sustained losses for 8 years after merger and that it also finished the decline of GEA in performance for ten consecutive years after Haier acquired this firm.

According to American Dow Jones market observation report, in the first ten days of December last year, IEEE New Standards Committee in New York, America, approved a proposal of International Common Standards for Mass Customization led by Haier, which was the only international standard with the technical framework as pattern within half a century after the foundation of this institute while worldwide influential Fordism and Toyota mode had not become international standards yet.

With regard to postmodern management task, Luo Qingqi particularly reminded the management academy to release future innovation from the supply side. Innovative quantum is not merely an individual but can be minimized to a creation which is a code in modern management and common energy ground state in postmodern management. Thus, how to organize and utilize innovative quantum is the key of future management.

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