Haier changed from a central top down strategy to a decentralized Micro Enterprise (ME) approach. “Every ME is charged with pursuing ambitious goals for growth and transformation – known as leading targets. Rather than taking last year’s performance as a starting point, objectives are set outside in. A dedicated research unit collects product-by-product statistics on market growth rates around the world and then uses that data to establish targets for the ME’s.
Market-facing ME’s are expected to grow revenue and profit four to 10 times faster than the industry average.” HBR December 2018