From Responsive to Intimate Organizations

Categories: governance

What? Haier, a $38-billion-a-year Chinese appliance manufacturer, is re-structuring itself into decentralized "entrepreneurial platforms". The company has created small, independent clusters of employees. By treating these employee clusters as entrepreneurial platforms, Haier hopes to foster intensive collaboration with customers, suppliers and competitors. The goal of the restructuring is to offer more customization in the design, manufacturing and distribution of Haier products.

So What? Haier is creating a client-centric, decentralized model that could be instructive for other private and public sector organizations. The company wants to reach what it terms a ‘zero-distance’ with customers, minimizing the organizational levels between employees and end-users. Haier calls this a shift from being ‘responsive’ to ‘intimate’ with customer needs.  If successful, this decentralized, competitive, and project-based model could call into question the utility, and need for, traditional organizational structures.

Source: Strategy + Business - ‘The Haier Road to Growth’

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