World Monitor Magazine June #3 - Page 122

additional content a small, crowded urban apartment. The machine became extremely popular, among, for example, families with newborn children. Lei Yongfeng, director of R&D for the Tianzen (Heaven) air conditioner in a manner previously unseen in the Chinese market, through a system called “Overall Every Control and Clear” (OEC). Every day, workers tracked quality results using paper and pencil, and their wages were tied directly to the outcomes. This gave the company a simple means of establishing goals and controlling achievement for “everything, everyone, and every day,” and a way to encourage employees to constantly challenge their previous performance. For the next 30 years, the operational capability of OEC gave Haier what behavioral experts George Kohlrieser, Susan Goldsworthy, and Duncan Coombe call a “secure base” on which to build bold change. For example, the company managed logistics with a zero-defects focus, resulting in very low inventory, short delivery times, and low working capital. In the years that followed, as new business models were introduced, the disciplined mind- set of OEC was never abandoned. Instead, it was scaled up to meet ever more ambitious goals. Workers grew accustomed to taking small steps that added up to great results. 116 world monitor The Niche Innovator In the late 1990s, a farmer in the Chinese countryside complained to Haier that his washing machine was full of dirt and was not functioning well. The local distributor sent a technician to the farmer’s house, where he discovered that the farmer had been using the washing machine not to wash clothes but to clean sweet potatoes. At this time, agricultural markets had been permitted to open in China, and cleaner vegetables commanded higher prices. The repair technician reported immediately to Haier’s headquarters abo ]\XXKX\ܛ[[ܙX\[H[[ۂ[HY[ۋ[\Y H\[Hۂ[X\YHY]XH\[XX[K\YۙYX[[]HH^Bܚ[YH[[وHX\˂\[H[YH[YKZY\&\\X\\›؜\Y][ZH\\ۜ[Y\X[H[\H[H[ ]\YZ\[\\]\H^H]YK^H[][ܙHYY[X[X[B\ܙY]\\H\\]HB\\[]^HHXX\[XX[\ˈ[\ۜH\˜ۜ[Y\YY ZY\][YHX[ Y[\H\[XX[H[YB]HYH][X\[H][•\H\\\\\[YH\قHXۙZ[[[ۈ]ZY\H]™ܛHو\Y\\\ۜ]H[ݘ][ۋ\\[Y[KX]\H]X[]H\›ۙ\HܙX]Y\[X]܈[[N\\[Y\Y]Y\ [Z[\ۈH\[x&\š\ ]ۈܚٛܘH\\[K[HX\[Z[\ܛX[x$^B[][ۜ\ [[\YY\\XH˜\Y\ˈXZۈH8'[\XB[8'H\H[Y[K]Y[[[ۜ[\YۙYX[\XYB\وY[X\وY\[[[ۘ[\\Y[XYXڙXˈB]YYHۙXوHX]^X\BH[X[8'X\]Z['H \YۈH[YKXZ[ۘ\وZXY[ܝ\K[X]\XH܈[[]YX[]ZY\X]\]Z\KXHZ\X[ۜ\XHHX\]XK\HX\]Z[œ\XY[[ۘ[[\H^Bܙ[^][ۘ[[] \\[H\H[X[˜Y[Z[[ZY\[Hؘ[\[KH\XY\[[BHY[X[Yۙ&\]YHق'\Z[H\[\X\[\HB]K8'HZ[[[\]XBX܈Xܜ\H\H\B]\]]ܜˈH\[H[Y[YHو]\Y\\\ۜ]B[ݘ][ۈ\X[]H\ˈ[NNMXۚ^[HYYوYBY[[ܛZ]ܞH\]][YZ[K\YY\]ܜ[H[]Y]\˂]Y][HYY\]ܜ[ [[\[H ZY\\^YY]X\[XZ[BXZ[X[HX\و\X[\܂HKˈX\] YX[[K[Z\[ZY\^K[\H\[XX[\™\YۙY܈X]Hؙ\