Haier Purpose by Hu Yong and Hao Yazhou
Zhang Ruimin is Chairman and CEO of Haier Group.
In 1984, Zhang Ruimin became Director of the Qingdao Refrigerator Factory, the predecessor of Haier. Over more than 30 years, he has turned a small collectively-owned factory with a 1.47m Yuan loss into a global enterprise with global turnover of 188.7b Yuan (2015). Haier now tops the Global Major Appliance Brand rankings with the highest retail volume – and has done so for seven consecutive years. Haier is also included in the World Brand Top 100 and was ranked number one in the global white goods industry. Among many firsts, Zhang Ruimin was the first Chinese entrepreneur to give a speech at Harvard.
In management practice, Zhang integrates the essence of China’s traditional culture with modern Western management concepts, insisting on “taking in everything, growing innovatively and having one’s own style”. His innovative management philosophies range from OEC management — “accomplish what’s planned each day and improve on what’s accomplished the previous day” — to “Market Chain” management with everyone facing the market, and the win-win model of Rendanheyi in the Internet age.
Zhang Ruimin believes that successful enterprises move with the times. Haier has undergone five strategic transformations. In 2012, Haier Group entered into the fifth Strategy Phase – the Networking Strategy Phase. In the Internet age, Haier has transformed itself from an enterprise that manufactures household appliances to a platform that incubates entrepreneurs. Haier’s “win-win model of Rendanheyi” has been widely examined and celebrated as a major management innovation.