On June 22 , Dr. Annika Steiber, director of Rendanheyi Silicon Valley Research Center, hosted the webinar "Leading for Exponential Impact". John Hagel, management consultant and author of “The Power of Pull”, Antonio Boadas, GEA's Chief Communications Officer and Adrian Otto who is Technical Director from Google participate in this webinar, to jointly discuss what kind of strategy and management model enterprises should transform in the future, so as to turn pressure and challenges into opportunities.
John Hagel, who has extensive consulting experience about many Silicon Valley companies, believes that the majority of the challenge we face today comes from the fact that old business models have led some success in the past, which makes many leaders reluctant to change. What many companies should now realize, he said, is that they have many opportunities to create more value, but they see the requirements to transform as a threat to themselves and to the company, and choose to stay put.
John Hagel also provided his own three opinions on the transformation strategy of IoT era. First, both managers and employees should realize that the object of enterprise service should not be superiors and leaders, but customers. Through the interaction with users, enterprises could dig and meet their deep needs, and then create user loyalty; Secondly, in terms of organization structure, the huge and redundant system and top-down standardized working mode are no longer suitable for rapid development and changes in current age. In order to seize opportunities nimbly, organizations should be restructured into smaller and more flexible working groups. Third, in terms of openness of companies, they should break the boundaries. External enterprises should not be regarded as competitors, but as resources that can contribute to the value creation. Meanwhile, the goal of enterprises is no longer to pursue dominance, but win-win cooperation which allows to establish a dynamic ecosystem.
Antonio Boadas, who has experienced GEA’s transformation of Rendanheyi model, shared his thoughts. Before acquired by Haier in 2016, GEA was a traditional company with traditional management model, and had made some good achievements. However, after entering the era of Internet of Things, the disadvantages of the old model gradually emerged and the profitability of the company gradually weakened. After the acquisition, GEA began to transform into Rendanheyi model. GEA began to encourage every employee to become an entrepreneur and achieve their own value by satisfying the user needs. In terms of organization system, GEA has broken up many Microenterprises(MEs) and transferred part of decision-making right to these MEs, enabling them to operate more flexibly. At the same time, the wall of the company is gradually broken down, and more external resources are brought in to create value. As a result, GEA's revenue was able to double as the U.S. appliance industry slowed in 2020, nearly doubling its revenue and quadrupling its profit in four years since it was merged with Haier in 2016.
The seminar came to an end in a heated communication. In just one hour, the participants had a lot of exchanges on the reform of management model. Silicon Valley Research Center and John Hagel will continue to collaborate on the executive course "Leading for Exponential Impact — Turning Mounting Pressure Into Expanding Opportunities” in September, which will provide more inspiring thoughts toward transformation of management model.
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