Rendanheyi Model - Explained
What is the Rendanheyi Model?
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What is the Rendanheyi Model?
The Rendanheyi Model, pioneered by the Haier Corporation, is an innovative way of organizing a multinational firm.
The corporation is divided into self managing micro enterprises, of which many are market facing ("users"). The others are called "nodes". These are supplying the "users" with components and services such as HR, finance and IT.
The users may hire or fire nodes or outside providers as they see fit.
All micro enterprises are ultimately accountable to the company's customers and a highly entrepreneurial culture is cultivated.
What are the Attributes of the Rendanhei Model?
The Rendanheyi model has several innovative attributes:
- OPEN SYSTEM OF MICROENTERPRISES: The enterprise has been transformed from a closed system to an open system, a network of self-governing microenterprises with free-flowing communication among them and mutually creative connections with outside contributors.
- CUSTOMER-ORIENTED: Purchasers of our offerings are transformed from customers to lifetime users of products and services designed to solve their problems and increase their satisfaction.
- LEADING TARGETS: A dynamic system in which each microenterprise is charged with pursuing ambitious goals for growth and transformation, not simply based on last year's results.
- OPEN CONTRACTING: no internal monopolies of supplying departments like legal, IT, HR, etc., but freedom to shop outside if a better solution is available.
- VOLUNTARY COOPERATION in so called "platforms". Platforms are aimed at serving a business industry (category, i.e. washing, gaming) or at developing a new capability, without top-down coordination.
- OPEN INNOVATION: R&D has heavy involvement of clients, outside institutions and experts ("solvers"), and crowdsourcing is used for funding and feedback.
- EMPLOYEE OWNERSHIP: Employees are transformed from executors of top-down directions to self-motivated contributors, in many cases choosing or electing the leaders and members of their teams.