RenDanHeYi – A Post-Bureaucratic Governance Model

This article explores Haier’s radical RenDanHeYi model, an innovative post-bureaucratic governance framework that reimagines large enterprises as networks of entrepreneurial micro-organizations. Instead of traditional top-down control, RenDanHeYi empowers autonomous teams to co-create value directly with customers, tying compensation to user outcomes. Haier’s HQ shifts from command to enablement, acting as strategist, investor, and platform builder while preserving coherence through internal contracts, cultural alignment, and transparent performance metrics. The model demonstrates how large companies can scale agility, accountability, and innovation by replacing hierarchy with ecosystem logic. It offers a compelling blueprint for governance in the age of decentralization and digital disruption.