Titlebook: Leadership for a Digital World; The Transformation o Annika Steiber Book 2022 The Editor(s) (if applicable) and The Author(s), under exclus

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Why New Management Models Are Needed: And the New Management Capabilitiesnes the new capabilities that firms now need. The typical Industrial Age management model is a bureaucracy, focused on cost-efficiency and control. It enables a company to perform complex tasks repeatedly and reliably. However, when the task is to change the task, as in reorienting the firm to pursu

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Silicon Valleyation, and this chapter explains why. Openness to new forms of organization and management was partly a result of the region’s history. The California Gold Rush of the 1800s quickly turned San Francisco from a wilderness outpost to a growing metropolis, so that the waves of people coming into the ar

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The Silicon Valley Modelmodel was, and is, in many respects the polar opposite of the traditional “Machine Bureaucracy.” For example, top leaders are externally focused on innovation and growth, rather than internally focused on cost-efficiency and control. People are valued for their entrepreneurial qualities, not just ab

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Haier: A Traditional Firm Transforming into a Digital Winner Ruimin. This chapter describes how the company evolved in a series of stages and shows how these developments led to the key principles and elements of Haier’s revolutionary management philosophy, RenDanHeYi. In 1984, the company was a struggling refrigerator factory on the brink of failure. Basic

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The RenDanHeYi Modelnd “dynamic partners”; delegating power to autonomous teams called microenterprises, supported by functional platforms; and creating “ecosystem microcommunities” that are open to global resources, both external and internal, thereby focusing these resources on users’ needs. Digital technology is lev

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RenDanHeYi Versus the Silicon Valley Modeled at Google. The two models share many underlying principles and both, apparently, have worked well for their companies, as evidenced by the continuing rapid growth of both Haier and Google. One possible conclusion is that the models embody a set of “meta-principles” useful for any company in today

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