10Pines: A Pioneer in Agile and Sociocratic Organizational Practices
The RenDanHeYi model, developed by Haier Group CEO Zhang Ruimin in 2005, is revolutionary management philosophy aimed at transforming traditional hierarchical corporate structures into highly adaptive, customer-centric ecosystems. Rooted in the belief that employees (Ren) and their entrepreneurial capabilities should align with customer needs (Dan) to create value, the model emphasizes individual accountability and dynamic organizational roles (HeYi). By dismantling conventional silos, the RenDanHeYi model fosters a network of autonomous micro-enterprises within the larger corporate entity, transforming the organization into a nimble startup factory.
To develop and share the idea of Zero Distance and its broader management philosophy of RenDanHeYi, Haier hosts an annual forum to celebrate the world's most progressive organizations. This September marks the 8th edition of the forum, taking place in Haier’s hometown, Qingdao, on September 20. Working with the Business Ecosystem Alliance and the Management Lab, the Haier Model Institute will release the inaugural listing of the progressive companies which are putting Zero Distance and related ideas into practice.
These organizations are characterized by:
Zero Distance to customer | Decision what to build is based on insights from the marketplace
Autonomy | Small teams with full decision-making autonomy enable speed in execution
Shared Rewards | Everyone in the micro-enterprise participates in its financial success
For the 2024 inaugural ZeroDX awards, Haier approached us to list 50 self-managed organizations that showcase the principles of RenDanHeYi in how they organise their work. 10Pines is one of the 50 organisations we listed this year.
Introducing 10 Pines
10Pines, established in 2009, is a progressive software development company based in Buenos Aires, Argentina. Initially founded by four software developers from the agile community, 10Pines has grown to nearly 100 employees. The company specializes in custom software development and also operates an academy for software training, agile methodologies, and organizational management training and consultancy. 10Pines prides itself on a unique organizational culture inspired by the principles of Ricardo Semler's "Maverick" and the agile mindset, focusing on transparency, self-management, and people over processes.
10Pines is an excellent example of RenDanHeYi in the software development industry as they are fully decentralized with project teams having full autonomy to make decisions. In addition to zero distance to customer and autonomy, 10Pines is also fully in line with the shared rewards principles where 50% of profits are distributed among the team.
Organizational Structure
10Pines operates on a decentralized, horizontal organizational structure, closely aligned with the principles of sociocracy. The company is divided into various circles, such as recruitment, finance, sales, and more, with no traditional hierarchy. Instead of leaders, they use terms like "citizens'' to describe team members, emphasizing shared responsibility and collective decision-making. Each circle functions autonomously, with roles such as gardeners (mentors) to guide less experienced members. The shareholders in 10Pines are responsible only for adding new shareholders, while all other decisions are made collectively, reflecting a deep commitment to decentralization and participatory governance.
Customer Centricity
Customer centricity at 10Pines is deeply integrated into their operational model. The company ensures that every project team prepares its own profit and loss statements, fostering a direct understanding of project economics among team members. This transparency ensures that customer needs and project viability are clearly communicated and understood at every level. Furthermore, 10Pines does not have a separate sales team; instead, employees involved in various projects also handle client interactions, ensuring that customer feedback and project requirements are directly managed by the individuals executing the work. This direct involvement promotes a high level of accountability and responsiveness to customer needs.
Company Culture
The culture at 10Pines is built on the three pillars of shared decision-making, transparency, and aligned interest, which together create a stable and coherent organizational environment. Decision-making is conducted using the principle of consent, ensuring that all voices are heard and considered. Information sharing is facilitated through open book management, where financial details, including salaries, are transparent to all employees. Training sessions are regularly conducted to help employees understand financial statements and business metrics. Profit sharing is another cornerstone, with 50% of the company's profits distributed among employees based on criteria such as tenure, hours worked, and seniority. This approach fosters a sense of fairness and collective success. Additionally, the role of gardeners, who act as mentors, and the open environment where anyone can participate in decision-making, further reinforce the collaborative and inclusive culture of 10Pines.
Conclusion
10Pines exemplifies a progressive organization that has successfully integrated agile and sociocratic principles into its core operations. By maintaining a decentralized structure, prioritizing customer centricity, and fostering a transparent, inclusive culture, committed to shared rewards, 10Pines is fully in line with the RenDanHeYi management philosophy as well. This commitment to self-management and transparency has positioned 10Pines as a leading example of modern, people-centric workplace practices.
