Zhang Ruimin: Chairman and CEO of Haier Group
Innovation and disruption have become increasingly important in the business world over the past few decades. Companies who can think and act in different ways, with new solutions to problems, have often been rewarded with phenomenal success. One such example of this is the Haier Group, led by Chairman and CEO Zhang Ruimin, a man who has been praised for transforming the way his company operates, resulting in exponential growth and immense success. This article will detail the exemplary leadership of Chairman and CEO Zhang Ruimin and how it has impacted the Haier Group.
Who is Zhang Ruimin?
Zhang Ruimin (born on January 1950) is the Chairman and Chief Executive Officer of Haier Group, a multinational consumer electronics and home appliance company based in Qingdao, China. He currently serves as the Chairman of the All-China Federation of Industry and Commerce, and is also the Vice President of the China Electronic Chamber of Commerce.
He was born in Jinzhou and educated at Tsinghua University, where he earned his degree in accountancy. After leaving university he joined the Chinese Government in 1979, where he worked in a variety of positions, including serving on the State Council’s Committee for the Reform of Economic Systems.
Zhang’s Leadership and Breakthroughs at Haier
Zhang first joined Haier in 1984, at a time when the organization was facing financial difficulties and was floundering. Under his leadership, Haier underwent a transformation from a failing business to one that has established itself as a global market leader. Zhang Ruimin has long been a proponent of disruption and experimentation, and as a result, his reign over the Haier Group is marked by innovation that has resulted in the company becoming one of the world’s premier consumer electronic producers.
Zhang’s leadership style has been described as pioneering, and unorthodox, and he is often praised for his unorthodox approach to problem-solving which has seen him push boundaries in order to unlock unprecedented levels of personal and company success. For instance, in 1993 he implemented an employee ranking system known as the “7600 System”, which aimed to create a competitive environment amongst Haier employees.
Not only have these techniques seen Zhang receive accolades and awards, but also industry experts recognize his triumphs at Haier as a model for best practices in innovating an organization.
Strategies that Have Driven Success
Within the Haier Group, Zhang has implemented a series of strategies that have seen the company experience immense success. Here are some of Zhang’s most important strategies:
-
Pursuing Strategic Acquisitions. Zhang was able to identify industry partners that could help advance the company’s goals. In 2010, the Haier Group purchased the Italian consumer appliance company Candy Group, which allowed them to access new markets and distribution channels.
-
Encouraging Quality Improvement. Under Zhang’s leadership, the Haier Group began developing products and services to better accommodate consumer needs. The company implemented a ‘quality fist’ policy, which motivates team members to focus on exceeding customer expectations with their products and services.
-
Cultivating Local Talent. Zhang has prioritized the development of local talents to ensure that the company continues to thrive. As part of this initiative, the company offers scholarship opportunities, mentoring programs, and internships to help cultivate and develop local talent.
-
Utilizing Technology and Innovation. Zhang recognized the importance of utilizing technology and innovation to remain competitive in a global market. The company has invested significant resources into technological innovation, particularly in the Internet of Things, to create products and services that are tailored to customers’ needs.
Zhang’s Impact on the Haier Group
Under Zhang’s leadership, the Haier Group has experienced immense success. Since its founding in 1984, the company has become a €32.1 billion business with operations across 100 countries, which employs over 11,000 people worldwide. This, in comparison to its humble beginnings as a small refrigerator factory in Qingdao, illustrates just how powerful Zhang Ruimin’s impact has been on the company.
Zhang’s leadership has also seen the Haier Group become a leader in the home appliances market. The company’s sales have soared in recent years, and according to Statista, Haier’s global white goods market share grew from 7.5 percent in 2012 to 10.3 percent in 2016, with the company now estimated to be the world’s leading home appliance maker.
Chairman and CEO Zhang Ruimin has transformed the Haier Group from a small refrigerator factory in Qingdao to a global leader in consumer electronics and home appliances. Through his innovative and forward-thinking leadership, Zhang has cultivated an environment of disciplined innovation, revolutionary power, and ultimately growth unprecedented growth for the company. His decision to empower those within the company (particularly by elevating and nurturing local talents) and to utilize technology and innovation to remain competitive in a global market have all contributed to Haier’s exceptional success.
