QINGDAO, China--(BUSINESS WIRE)--The wise always strive to remain one step ahead in navigating the path of advancing society. This time, they have set their eyes on Qingdao, the seaside city of the East.
The Internet of Things (IoT) is changing how an economy or society operates at an unprecedented rate and in an unprecedented way. The traditional development model cannot meet rapidly-iterating user needs. The increasing instrumentalization of “people” in classical economic theories has widened the gap between the rich and the poor, and the call for common prosperity has become increasingly pronounced. However, technology and product innovation alone cannot solve these problems. Management model innovation is the only answer.
While many companies are struggling to break management bottlenecks, those that have adopted the Rendanheyi model are showing strong adaptability to the future. On September 17 in Qingdao, the 5th Rendanheyi Model Leading Forum attracted Edmund Phelps, Nobel Prize laureate in economics, Gary Hamel, Founder of the Management Lab (MLab), Danah Zohar, Founder if the quantum management theory, Bill Fischer, professor at IMD, and Michele Zanini, Managing Director of MLab.
They were eager to discover why the Rendanheyi model (conceived in Qingdao) has become a key in unlocking the world of IoT.
Edmund Phelps argued that to achieve common development for all, a nation or a corporation must draw on the potential of “ordinary people” for widespread innovation; however, large organizations often lack such necessary dynamism. Only organizations that can unleash the potential of individuals maintain a place in the future.
The Rendanheyi model has achieved this breakthrough: it emphasizes that each individual is an autonomous person. It turns each person from an executor of commands to an entrepreneurial partner. Instead of making a distinction between superiors and subordinates, it only sees three types of actors - platform owners, microenterprise owners, and entrepreneurs. These three types of actors bid for and converge (or diverge) around leading goals. Anyone with an entrepreneurial drive can achieve self-fulfillment here.
When CEO Zhang Ruimin smashed the defective refrigerators, he also rejected the idea of, “I can’t make it work,” among the employees, and made Haier’s products available throughout China. He then proposed the Rendanheyi model, disrupted hierarchies, and paved the way for leading the IoT era with a new enterprise management model. Since its debut in 2005, the Rendanheyi model, a management paradigm from China, has exceeded expectations and triggered a global revolution in management innovation. After 16 years of iteration and five consecutive years of refinement through the Rendanheyi Model Forum, Haier has succeeded.
In any country, nation, or enterprise, there is a universal desire for each person to demonstrate his or her own value. This is the great value proposition of the Rendanheyi model, which applies to anyone and is shared by the world.
So far, more than 300,000 organizations in 74 countries and regions have registered as members of the Rendanheyi Alliance. Ten Rendanheyi centers have been established around the globe, including in Silicon Valley – all founded by local scholars and entrepreneurs. They expect to find their own way forward from this Chinese model.
Zhang Ruimin, Chairman and CEO of Haier Group, said that he hoped Chinese enterprises would seize the opportunities of the times and become leaders in the IoT era together. The Rendanheyi model he proposed is undoubtedly our best chance.