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[RDHY Dictionary] Valuation Adjustment Mechanism

Valuation Adjustment Mechanism (VAM)


Employees promise to achieve the goal of having the first competitiveness. Managers provide employees with resources in advance and ultimately create value for customers. VAM is a way to ensure that customers, enterprises, and employees achieve a win-win situation in the process of meeting customer demands. The core connotation of VAM is: to create value for customers, to bring value to the enterprise, and employees to realize their own value and achieve a win-win situation.


The essence of VAM is that the user-driven system replaces the traditional command and control system. The VAM itself is a means. Its goal is to drive the integration of the internal parallel ecosystem and the external user experience ecosystem.



VAM is a mechanism that accompanies the exploration and development of Haier's RDHY win-win model. In 2009, Haier began to explore the establishment of an autonomous management mechanism. At that time, it was proposed that the management entity should have a contract with customers, that is, lock the first competitiveness, satisfy the customer value proposition, and make the company profitable; the management body and employees must dare to bet against each other, win or lose together.

At the current stage, VAM is that employees promise to achieve the goal of having the first competitiveness. Platform owners and  ME owners provide ME member with pre-calculated resources, promise that the process and mechanism are conducted as planned, and ultimately create value for users.

This is a mechanism to ensure a win-win situation for users, enterprises, and employees in the process of meeting user needs.

3 June 2021 : 09:44 am


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