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In April 2007, Haier announced a "1,000-day business process reengineering" project as the home appliance giant worked to establish itself as one of China's great global brands.
"We've transformed our organization model from triangle to an inverted triangle," says CIO Xie Haiqin, who also leads Haier's department for process system innovation. Instead of managers at the top directing staff at the bottom, Haier's culture now pushes managers to support employees on the front lines, Xie says, to let the company respond more quickly to changing customer needs.
That took major changes in IT systems. "To make the re-engineering possible, the whole business process and information system had to go through major reconstruction and adjustments," Xie says. "The good news is we got it done in last year." For example, every employee now has some pay tied to personal and business unit performance. And every employee has an account where they can track the factors that go into performance pay, which they can check by PC or a mobile device.
Except more such innovation, especially in support of global expansion. Haier opened a factory in South Carolina 10 years ago and sells to major U.S. retailers. The 1,000 days may be over, Xie says, but "we are still on the road." -Hu Yufang
. We've got a management crisis right now, and we've also got an engagement crisis. Could the two be linked? Tune in for the next installment of IT Life Radio, Wednesday May 20th at 3PM ET to find out.