Key Steps Taken by GE Appliances

Annika Steiber ()
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Annika Steiber: Menlo College

Chapter 14 in Leadership for a Digital World, 2022, pp 117-124 from Springer

Abstract: Abstract As of November 2021, GE Appliances (GEA) had implemented most major principles and practices of a new management model based on Haier’s RenDanHeYi philosophy. Product-line business units became self-governing microenterprises (MEs). Given the RenDanHeYi ability to propose new businesses from the bottom up, four new MEs were formed, expanding the company’s range of products and markets in pursuit of the leading goal to be the number one US appliance maker. Operating functions, such as manufacturing and marketing, became service platforms serving the MEs. With MEs and platforms working together, and with the platforms focused on further digitizing their operations, GEA began to move toward reductions in operating costs. GEA changed its compensation model to reflect the RenDanHeYi pay-by-user principle; adopted the concept of Zero Distance to the user and rearranged its product branding strategy to create a “House of Brands” for various user groups. Also, internal communications became more open and transparent; GEA emphasized inclusion and diversity in hiring and day-to-day management, and all employees were educated in RenDanHeYi principles. Steps still to come, such as building out the company’s ecosystems and ecosystem microcommunities (EMCs), were seen as part of ongoing efforts to make GEA dynamically changing and adaptive for the future.

Keywords: GE appliances; RenDanHeYi; Microenterprises; Service platforms; Pay-by-user compensation; Zero distance; House of brands; Corporate ecosystems; Ecosystem microcommunities; Dynamic capabilities (search for similar items in EconPapers)
Date: 2022
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DOI: 10.1007/978-3-030-95754-4_14

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