Empowering Digital Excellence through Holacracy: The Liip 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. Liip is one of the 50 organisations we listed this year.

Introducing Liip

Liip is a pioneering digital agency based in Switzerland, operating from six offices located in Zurich, Lausanne, Bern, Basel, Fribourg, and St. Gallen. Since its inception, Liip has grown to employ 220 talented professionals, making significant strides in the IT industry. The company is renowned for delivering high-quality digital services, including web and mobile application development, e-learning tools, and digital strategy solutions. Liip prides itself on fostering genuine partnerships with its clients, driving innovation, and contributing to digital progress through a human-centered approach.

At the core of the organization is a drive to contribute to a future that works for everyone towards sustainable digital human progress.

Liip is a prime example of RenDanHeYi in the digital services industry. It prides itself on fostering true partnerships with its clients. Besides, it's among the pioneers of holocracy in Switzerland ensuring autonomy and distributed authority among teams who work closely with the customer.

Organizational Structure

Liip's organizational structure is a testament to its commitment to innovation and employee empowerment. Since 2016, Liip has been fully structured according to Holacracy, becoming the first company in Switzerland to adopt this system. Holacracy replaces traditional hierarchical management with decentralized governance, allowing teams to self-organize and manage their own operations. This system fosters an environment where employees are given the autonomy and authority to make decisions, directly impacting the success and direction of their projects. Each team owns its business or market segment and maintains direct relationships with clients, ensuring responsiveness and alignment with client needs.

Client Collaboration

At Liip, close collaboration with clients is essential. At the core of the relationships Liip builds with its clients are geographical and cultural proximity, close collaboration and local development. The self-managing teams interact directly with clients, ensuring that communication is seamless and that client needs are promptly addressed. This direct interaction allows Liip to tailor its solutions to the specific requirements of each project, fostering a collaborative environment where clients are seen as partners and mutual trust is developed. The teams’ autonomy in decision-making enhances the quality and efficiency of service delivery, as they can quickly adapt to changes and implement solutions that are both innovative and practical.

Internal Culture

Liip's internal culture is deeply rooted in autonomy, transparency, and shared success. The company’s adoption of Holacracy has created a flat organizational structure where traditional managerial roles are replaced with roles defined by clear responsibilities and accountabilities. Financial indicators and impact metrics, aligned with the Sustainable Development Goals (SDGs), are openly shared at all levels of the organization, from project-level to the organizational level. This transparency ensures that every employee is aware of the company’s financial performance and “contribution to the world”.

Decision-making at Liip greatly lies in the power of every role-holder, driven by guiding principles underlying the values and identity of the organization:

• Purpose over profits

• Open over closed

• Challenge over comfort

• Trust over control

• Practice over theory

• Flexibility over strength

• We over me

Liip’s “ways of work”, often unique in Switzerland, have earned the company several “employer awards” throughout the years. For example, Liip practices transparent salaries (both the values and the process) and operates an egalitarian bonus system where either everyone receives a bonus, or no one does, fostering a sense of unity and shared purpose. This approach ensures that all employees are motivated to contribute to the collective success of the company. Additionally, Liip is in the process of achieving B Corp certification, further solidifying its commitment to sustainability, social responsibility, and the well-being of its team and the wider community.

Conclusion

Liip exemplifies the principles of RenDanHeYi - innovation, employee autonomy, and client-centricity. Its progressive organizational structure, collaborative approach with clients, and transparent, inclusive culture sets it apart as a leader in the digital agency landscape.