Leadership for a Digital World: The Transformation of GE Appliances (Management for Professionals)

The pace of change today is unprecedented. As more than one observer has said, change itself has changed. Technologies and markets in virtually every industry are now subject to rapid and unpredictable change, placing a premium on the ability to successfully manage new paradoxes, such as being entrepreneurial and efficient, as well as able to sense shifts and rapidly respond and secure enough stability for quality and efficiency. In short, enterprise leaders face a paradigm shift in management, and they will be forced to transform their organizations in order to survive in the 21st century. This book will provide leaders with the fundamental principles for managing a firm in the digital economy, as well as the Rendanheyi business model, developed for the new century. Finally, the book will provide leaders with a case, based on GE Appliances, on how they can effectively transform their own organizations. Foreword by Edgar Schein and Peter Schein. Foreword by Edgar and Peter Schein Preface Acknowledgments Introduction Management Disrupted: What Will the Future Look Like? Explorations in Search of New Models RenDanHeYi and the Internet of Things The Transformation of GE Appliances Looking Ahead References Contents List of Figures Part I: Why Management Needs to Change and Key Capabilities for a Digital Economy 1: Why New Management Models Are Needed: And the New Management Capabilities 1.1 The Old Model: Mass Efficiency and Control 1.2 The Changing Nature of Change (And What It Means for Management) 1.3 ``Dynamic Capabilities ́ ́: The Key to Managing in a Dynamic World 1.4 Some Core Ingredients for Building Dynamic Capabilities 1.5 Looking Ahead References Part II: Two Cradles of Management Innovations 2: Silicon Valley 2.1 The Origins of Silicon Valley: How a New Era, Long ago, Shaped Today ́s Principles 2.2 The Birth of an Industry Ecosystem: The Growth of a Management Mindset 2.3 Innovation in Technology and in Management: An Ongoing Dance 2.4 Moving Ahead References 3: The Silicon Valley Model 3.1 The Silicon Valley Model Versus the Traditional Model 3.2 Moving Ahead References 4: China 4.1 Moving Ahead References 5: The New Chinese Model 5.1 Visionary and Externally Focused Top Leaders 5.2 Culture and People 5.3 Organization, Coordination of Resources, and Digital Ecosystems 5.4 Moving Ahead References Part III: Haier and the RenDanHeYi model 6: Haier: A Traditional Firm Transforming into a Digital Winner 6.1 Haier ́s Six Development Phases 6.1.1 Brand Building Strategy (1984-1991) 6.1.2 Diversification Strategy (1991-1998) 6.1.3 Internationalization Strategy (1998-2005) 6.1.4 Global Branding Strategy (2005-2012) 6.1.5 Networking Strategy (2012-2019) 6.1.6 Ecosystem Strategy (2019-Present) 6.2 Moving Ahead References 7: The RenDanHeYi Model 7.1 Becoming User Centric 7.2 Organizational Experimentation 7.3 Release Talents and Entrepreneurship Within 7.4 Principles and a New Language 7.5 Change of the Game: The Internet of Things 7.6 The Result: RenDanHeYi 7.7 Key Principles of RenDanHeYi 7.7.1 Strategy: Ecosystem Brand 7.7.2 Organization 7.7.3 Employees 7.7.4 Users 7.7.5 Compensation 7.7.6 Management 7.8 Moving Ahead References 8: RenDanHeYi Versus the Silicon Valley Model 8.1 Strategy: Ecosystem 8.2 A Networked Organization 8.3 Entrepreneurs and Dynamic Partners 8.4 Users and Zero Distance 8.5 Compensation and Pay-By-Users 8.6 Nonlinear Management 8.7 Moving Ahead References Part IV: GE Appliances in 2016 and 2021 and the Interpretation of RenDanHeYi 9: GE Appliances in 2016 9.1 Triggers for Change 9.2 GE Appliances in 2016: Evaluation Methodology 9.3 Top Leaders ́ Main Focus and Its Direction 9.4 People and Compensation 9.5 Culture 9.6 Leadership Style 9.7 Organization, Coordination, and Digitization of Communication Processes 9.8 Innovation Processes 9.9 Moving Ahead References 10: GE Appliances in 2021 10.1 Top Leaders ́ Main Focus and Its Direction 10.2 People and Compensation 10.3 Culture 10.4 Leadership Style 10.5 Organization, Coordination, and Digitization of Communication Processes 10.6 Innovation Processes 10.7 Moving Ahead References 11: GE Appliances ́ Interpretation of RenDanHeYi 11.1 Key Objectives and Principles 11.1.1 Set Leading Goals 11.1.2 Zero Distance to Users 11.1.3 Align the Organization Toward Users 11.1.4 Pay by Users 11.1.5 Ecosystems and EMCs 11.2 Moving Ahead References Part V: A Framework for Better Understanding a Business Transformation 12: A Framework for Understanding a Business Transformation 12.1 A Deeper Look at How Transformation Occurs 12.2 Moving Ahead References Part VI: The Transformation of a 100-Year-Old Company 13: From Desire to Implementation 13.1 Disrupting the Organizational Trajectory 13.2 The Desire to Change Is Ignited 13.3 New Governance and a ``Light-Touch ́ ́ Guiding Hand 13.4 RenDanHeYi Becomes a ``Feasible ́ ́ Solution 13.5 Flying Without a Pilot 13.6 Moving Ahead References 14: Key Steps Taken by GE Appliances 14.1 Transformation Step-by-Step 14.1.1 A New Structure 14.1.2 Updated Compensation Model and Zero Distance to Users 14.1.3 ``House of Brands ́ ́ 14.1.4 Becoming More Diverse and Inclusive 14.1.5 Next Up: Ecosystems and EMCs 14.1.6 Sustaining the Transformation 14.1.7 The COVID Effect 14.2 Moving Ahead References Part VII: Managerial Advice and Concluding Summary 15: Managerial Advice 15.1 Lessons Learned from the GEA Case 15.1.1 Success Factors 15.2 Lessons for Adopting RenDanHeYi 15.2.1 RenDanHeYi Is Not ONE Recipe 15.2.2 RenDanHeYi Does NOT Have an Endpoint: It Is a Journey 15.2.3 Top-Leader Commitment and Support Are Essential 15.2.4 Involve Your People in the Change Processes 15.2.5 Challenge Your Traditions 15.2.6 Change Is Hard: Fight the Antibodies 15.2.7 Transformation Is an Evolution 15.3 Moving Ahead Reference 16: Concluding Summary References