Haier's change: let the process management enterprise

From 1998 to now, haier did one thing-process reengineering!

"Let the process and rank-in-position classifications management enterprise." Since 11 years ago, ZhangRuiMin set up the management goal, began the process reengineering writer. Although after many twists and turns, top management team up and down, there are several times even do not bottom go to, have more outside questioned the viability of the haier, but he is consistent, in all kinds of "birth pangs", endure "pain" forward.

Touch stone sea

In 1998, in the outside looking in, haier sales a prosperous, internal many top executives think is a great day. But ZhangRuiMin don't think so. "Haier suddenly grew up, but clothes or the original clothes, it chained down the development of haier, haier internal problems very serious." He said. Haier was proud "joint fleet" did, inventory and accounts receivable unprecedented increase.

And then, haier just from diversified phase to the international forward. Article 3 assessment standards internationalization is: the structure of the organization must adapt to the change of the market, with external global brand, network system based on the marketing strategy. When a lot of peer also lost in the excitement of the price war when ZhangRuiMin thinking first question was: how to reengineer enterprises enter into the RuWeiSai? He said: "in a very long period of time, haier like many Chinese enterprise, success depends mainly on hold the market opportunity, this is an opportunity, the success of the type, for the man is more internal, not the system to management, with markets mature, the opportunities are fewer, there has to be a mechanism-by relying on 'artist' turn to rely on 'flow'-like Toyota's kanban management."

"A chief himself and vision copy the process reengineering" of content to us. To be honest, BPR? I can't imagine, also don't understand. And why do well to all break?" At that time, in haier, many people's ideas turn but bend.

Although "market chain" process reengineering began to head five months sales performance has been declining, but should be our internal contradiction relief, give yourself in the haze of reform has brought insist the haier power.

Process with the power of the steward die& conflict, for 2002 years nearly 10 senior managers deposition, job-transfer buried the set. Can ZhangRuiMin but not so slow, immediately to full SBU, make the customer do big, the enterprise do small, let all the employees to become a CEO, control the market, as far as possible the enterprise grinding flat. Although the market on the competitive advantage of haier (310368, fund) be further developed, but the enterprise internal I still haven't overturn.

"Is essentially a process problem, although before process is cracked the heavy, but the organizational structure hasn't changed, the two parts or two skins, they don't fusion, 'people one single" win-win business model will do utility." ZhangRuiMin in lost in thought. Traditional enterprise pyramid and organization structure, make enterprise and market formed two pyramids, two Bridges between Kentucky with numerous organization structure gap, the user information can't accurate and quickly across to provide service--employees. So, he put the management structure over, let employees and customers fully contact, will process and organization structure tightly together.

Correction navigation structure

Haier, organization structure and the process is the sign of the complete harmony: the actual combination of zero inventory under network that need for that. "Reengineering 1000 days" at the beginning of, zero inventory has not the standard, although many measures to eliminate inventory, but not only no utility, but also exposed the many problems. August 2008, ZhangRuiMin fall cruel-hearted cancel inventory.

The DaoBi is not only the haier the entire process, even the upstream and downstream enterprise into them. How to do that is both upstream partners them in an orderly way, quickly provide raw materials, and then let the downstream sales channel fast sales? This is an industrial chain game management problem, you need to consider the balance relationship between three groups: meet user requirements, realize customer value, full consideration of the largest upstream cooperation manufacturer's interests. Produced zero inventory of that is that for mode should be--

First, the actual nets union, from consumer source to reduce the stock of possibilities. The arrival of the era of the Internet, the consumer market mastery discourse, demand more and more small, is becoming more and more personalized. Large manufacturing industry is facing unprecedented challenges, if mass production standardization product, the result can't keep up with market changes, inventory increase, the price war turned ugly. Therefore, the enterprise need by mass production for mass customization transformation, to do this, need to understand customers' needs. Haier virtual nets the function of the one is and end users communication needs, to provide users really want to products, and by the fastest speed to meet. At the same time, it also can stick to the customer form a complete set of consumption, consumption and many consumer groups.

In the second place, from channel inventory to close to zero. Users like to buy products, customer just like to sell. Best-selling products do not take up too much money, to speed up the turnover of funds, unit costs to maximize value. Therefore, haier market staff with customers carries on the investigation and study, do "diligent into fast pin", so that customers fund turnover fast, high efficiency, the value of the firm also can be realized.

Third, in the internal design production process do everything possible to eliminate inventory. In the same goal and the whole process DaoBi system, independent operation body every member of face to the market, to the customer need, create A and B class products, the management of A and B class customers, maximize the added value of the products.

Fourth, force the "modular", and the manufacturers a win-win situation. Haier is global procurement, and the manufacturers in collaborative process, use resources replacement resources, such as purchasing. Brazil a compressor manufacturer grace in front design braque haier, improve the technical level, and expand the scale of factory.

Now haier basic no over age inventory, and the industry is more than 20 days; Haier's operating capital turnover days is minus 10 days, the industry is 27 days.

Pearl necklace from to

The success of the inspection process reengineering another sign is-if it can copy process has played in mode in the series of role. Haier whether can successfully established a "single people one win-win" business model, one important criteria is "do through example, copy model", namely "pearl rule"-each a successful independent operation body is a shining pearl, copy the example is the process will play an empty string pearl, a necklace, and necklaces gold line is "process".

"I think we rural independent operation body copy the key to success has two, one is the perfect process, it that I can find to communicate directly, not old stare at leadership, leading to chase them. Another is to enterprise culture to understand thoroughly, and a chief said that, in the model is the basis of successful copy to the unity of the enterprise culture, and I feel only everybody concept, doing things the consistent pace to unity." In 2010, hao maiha and her rural independent operation body won the "pearl necklace award", in 2009 they home appliance in the process of countryside, rural users to capture the high-end refrigerator demand, as well as to the refrigerator design be fond of, through the team DaoBi all the process, to get resources to support and opened the rural high-end refrigerator market, improve the A and B class products and satisfy the users' potential demand, let the rural market haier refrigerator achieved 40% increase.

Therefore, in the process of the pearl necklace from, there are two key factors play a decisive role, one is a smooth process, one is the unity of the enterprise culture. Smooth communication and reduce the process of copying costs, avoid excessive cause because of the enterprise management costs eat all the death of profits. Unified enterprise culture is a model of success, the concept of copy, however concept is the process copy the hard part, and the enterprise culture is the highest level of organization management, is all employees abide by the highest objective, value system, the basic beliefs and behaviour combined. To make the whole organization concept was not easy and consistent, this also is the biggest challenge facing the ZhangRuiMin.

"Enterprise transformation of the distribution of interests will inevitably involve changes, let all employee agrees to new ideas, and actively perform enterprise strategy, more not easy. What's more, is that all staff to innovation action to achieve unified goal? Must have been a very difficult process." Haier vice President LiangHaiShan said.

Therefore, haier founded the FM mechanism, around "with one" the value proposition of the division on FM. "Both the collective FM, also have personal FM, and classification FM, a year will have 60 times. At the same time, and each department internal FM, carry out layer upon layer, continued to copy top management management concept. The result of this FM, not only promote the realization of the transformation of the target enterprise, also further enrich and improve the haier culture connotation." LiangHaiShan said.

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