Unlocking Human Potential Through RDHY: A New Era of Business Transformation

Hi Umberto Lago, why did you write this book… now?

Umberto Lago: I have been researching the evolution of the Haier business model, known as RenDanHeYi (RDHY), for nearly 15 years. Recently, other companies have expressed interest in this innovative model but often feel overwhelmed by its complexity and the stark contrast with their existing organizational structures. This inspired me to write this book, where I aim to bridge the principles of RenDanHeYi with traditional management literature and outline a step-by-step approach for its implementation. My goal is to provide a practical guide that makes the adoption of this transformative model more accessible for organizations eager to embrace a new way of working.

The trends that are just emerging and that you believe in the most?

U. L.: There is a growing movement against bureaucratic, hierarchical organizations, a trend that has been increasingly highlighted in management literature over the past few years. I strongly believe that this shift can be highly beneficial for both customers and employees. Traditional hierarchical organizations often underutilize employees’ ideas, initiative, and creativity. As Peter Drucker famously stated, “One cannot hire a hand; its owner always comes with it.” This quote epitomises how bureaucratic systems often reduce employees to mere functionaries, ignoring their full human potential. Employees are not just cogs in a machine—they are individuals with immense intellectual capabilities that far surpass those of any mechanical system. When allowed to express themselves and are properly motivated, their contributions can be invaluable to an organization’s purpose and success. It is by embracing business models that prioritize human-centered approaches that companies can unlock the true potential of their workforce, driving innovation and creating more meaningful connections with their customers.

If you had to give one piece of advice to a reader of this article, what would it be?

U. L.: Readers of this book may be interested in trying to implement the RenDanHeYi business model in their own company or in a company for which they are working. If this is the case, my advice is to go for it without any doubt. The process of exploring the model, challenging existing corporate culture, and initiating discussions about customer intimacy and employee entrepreneurship creates a tangible sense of excitement within the organization. This excitement and the transformative process it initiates are indeed immensely beneficial. In other words, the organization does not have to wait until the RDHY model is fully adopted to start realizing its benefits. The discussions inspired by the adoption process, the ideas it generates, and the enthusiasm it promotes among employees are concrete, tangible outcomes that manifest from the very beginning. These benefits are readily accessible; they do not require the completion of the journey to become evident. All it takes is to take the initial step.

In a nutshell, what are the next topics that you will be passionate about?

U. L.: The shift away from hierarchical organizations is likely to continue gaining momentum. On my part, I am committed to furthering my research on the practical aspects of introducing innovative business models into traditional, bureaucratic enterprises. My focus lies on understanding how these companies navigate the complexities of change and successfully implement new approaches. In my book, I provide a detailed guide that outlines how to manage this transformation, breaking down the process into manageable steps. I will continue on this line of research.