A Lasting Difference: The Clarasys Way

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. Clarasys is one of the 50 organisations we listed this year.

Introducing Clarasys

Clarasys, established in 2011, is an employee owned management consultancy firm that operates globally with its headquarters in London. With a focus on delivering exceptional customer experiences, Clarasys has grown significantly since its inception, boasting a team of over 200 professionals. The company specializes in a range of services, including customer and employee experience improvement, digital transformation, and operating model design across various industries such as healthcare, information services, not for profits, financial services, and the public sector.

Clarasys's purpose is be an organization that "makes a lasting difference to the way people work, live and grow." As a flat-hierarchical company owned by employees, Clarasys is ultimately driven by the passions, goals, and development of its people. The firm operates based on a joint set of nine shared values, making it a truly employee-centered organization.

Clarasys is a prime example of RenDanHeYi principles in the management consultancy industry. Client centricity is the heart of the work they do and the level of decentralization and autonomy is further underlined by the employee-owned structure of the company. Shared rewards are also in place to ensure alignment and fair value distribution.

Autonomy

Clarasys prides itself on its unique organizational structure that emphasizes decentralization and empowerment. The company operates with a relatively flat hierarchy, promoting a team of teams organizational structure that is not based around hierarchy / levels, but focuses on having the right cross-functional skill-sets within a team for it to be autonomous. This setup encourages collaboration across all levels of the business, allowing for rapid decision-making and a high degree of employee autonomy. To empower autonomy and distributed decision making, Clarasys has established an ‘advice process’ to guide employees on how to get the right input from across the business before making decisions. This includes a rotating, representative body of employees who can provide rapid feedback on ideas from a cross section of employees.

Autonomy is also built into the way Clarasys manages career progression. Every individual has their own designated coach, who is different to their project line manager, and helps to support their professional development by acting as a coach, mentor and wellbeing support. Individuals are entrusted to drive their development, and are supported in doing so via established internal development frameworks, weekly 1-2-1 coaching sessions and both quarterly and 6-weekly reviews.

To support autonomy and for everyone to act like an owner, Clarasys has a limited number of traditional policies / processes, such as holidays or expenses. Insead it operates a ‘red-faced’ policy, where everything is transparent, and it’s up to the individuals to decide what they feel is the right decision. Employees also draft their own pay case each year, where people are empowered to put forward what they think is fair.

Customer Centricity

Customer centricity is at the heart of Clarasys's operations. The company has cultivated a culture where the distance between the organisation and its clients is minimised, often referred to as achieving "zero distance" to customers. Multi-disciplinary teams form around clients, or client groupings, and these teams are empowered to make decisions swiftly and tailor solutions to meet specific client needs. This autonomy not only enhances the client experience but also fosters a sense of ownership and responsibility among employees. Client CSAT surveys are run quarterly to ensure that client feedback is promptly integrated into service delivery, resulting in highly personalised and effective solutions.

Clarasys has also made the decision not to have a specalised sales team. Instead they adopt a doer-seller model where those who do the selling are then accountable for delivering the work. They also don’t have individual sales targets, or sales related bonuses, which guarantees the solutions put forward are the right thing for customers, and employees are never thinking about their own financial incentive when working with customers.

Shared rewards

As an employee-owned business, profit is shared amongst employees, or reinvested in the business. This is not done based on level or role title, but instead tenure at the company. They also do not have individual performance based bonuses, instead they have a team reward, where based on financial performance of the entire company for that quarter a certain amount of profit is shared amongst all employees, regardless of role or level.

Internal Culture

As owners of the business, all employees are encouraged to be accountable for the company culture. Establishing psychological safety is a key component of creating an open, transparent culture. This is also crucial in creating a culture where feedback is continuously sought and acted upon, ensuring that all employees feel valued and empowered to contribute to the company's success. Initiatives to encourage psychological safety, and a feedback culture include people nominating themselves for a monthly ‘F*ck up championship’ where people share to the whole company what they learned from a recent mistake, to take the stigma out of failure.

When joining Clarasys, employees undergo a tailored training programme, called “Clarasys Code” which focuses on emotional intelligence and training on how to live the company values, to ensure people know how to put our values into practice.

Transparency has underpinned how Clarasys has structured their organization, with live company-wide financial performance data available to all employees on demand, and monthly Q&A meetings across the whole company.

Employees are also encouraged to take ownership of their personal growth and are provided with personal allowances to spend how they want on L&D. Clarasys also fosters a culture of work-life balance, understanding that employee well-being is crucial for sustained performance and innovation. Regular social events, wellness programs, and flexible working arrangements are just a few examples of how Clarasys prioritizes the holistic well-being of its team members.

Conclusion

In summary, Clarasys stands out as a progressive organization that blends a flat, decentralized structure with a strong focus on customer centricity and employee well-being. These principles align closely with the RenDanHeyi management philosophy, It’s approach not only drives exceptional business outcomes but also creates a vibrant and fulfilling workplace for their employees, having been regularly recognised as one of the top 10 companies to work for in the UK (via the times top 100 companies survey).