Why This Matters
Can a 70,000-person company act like a group of 4,000 startups? Haier proved the answer is "Yes" through the Rendanheyi model. For CHROs, traditional "Span of Control" and "Reporting Lines" are becoming obsolete. In a world of AI and rapid change, Scalable Agility requires moving from a pyramid to a network of self-directing units.
The 3 Pillars of Rendanheyi (Micro-Enterprise Logic)
Inspired by Humanocracy and High-Impact Tools for Teams:
1. Zero Distance to Customer
Every ME must justify its existence based on customer value. If an internal "service" ME (like HR or IT) isn't providing a competitive "product" to the frontline MUs, the frontline MUs are free to buy those services from the outside market. This forces internal excellence.
2. The "Owner-Entrepreneur" Contract
Employees in an ME aren't "hired"; they are partners. They share in the upside of the ME's success and have the autonomy to "pivot" their unit's strategy if market conditions change. The CHRO's role shifts to Contract Integrity and Talent Market Orchestration.
3. Open Innovation Platforms
MUs aren't silos; they are nodes in a network. They share data and resources through open platforms. Instead of "approving" a collaboration, the company "incentivizes" it through shared upside (Ecosystem Micro-Enterprises).
Pro-Tip: The "Internal Market" First Step
You don't need to reorganize your whole company tomorrow. Start by turning one 'Service Department' (like Internal Recruiting or L&D) into a 'Micro-Enterprise' with a theoretical budget that 'buys' its services. Measure their 'Customer Satisfaction' as your primary metric.
The 90-Day ME Implementation Roadmap
Phase 1: Value-Stream Mapping (Month 1)
Identify the "Smallest Viable Business Units" in your org. Which teams could feasibly own their own P&L? Don't look at departments; look at Outcome Clusters.
Phase 2: The "Contracting" Prototype (Month 2)
Create a simple "Internal Market Contract" between a frontline team and a support team. Define what "Success" looks like and what the "Price" is (in terms of internal budget allocation). This tests the logic without destroying the structure.
Phase 3: The "Platformization" of HR (Month 3)
Redesign HR processes to be User-Led. Instead of HR 'assigning' training, create a 'Learning Market' where MUs 'invest' their own budget into the skills they need. This shifts the power from HR to the value-creators.
Key Takeaways
- Small is the only way to stay fast at scale.
- Internal markets are the best 'bureaucracy killers.'
- CHROs must become 'Architects of the Talent Platform.'
- Tie every role directly to a customer outcome.