ET Group: Pioneering Human-Centric Workplaces
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. ET Group is one of the 50 organisations we listed this year.
Introducing ET Group
Founded in 1977, ET Group is a leader in the Canadian audio-visual industry, specializing in designing and implementing hybrid workplace solutions. With a team of more than 100 professionals, the company leverages technology to enhance human connections, fostering more collaborative and productive workplaces. Their mission is to create environments where teams can thrive and collaborate effectively, regardless of their physical locations.
ET Group is an excellent example of RenDanHeYi in Canada not only because they have successfully transitioned towards a decentralized organizational design without middle management. They are a pioneer as fuelled by the level of autonomy provided to the team, they continue to reinvent and evolve their services and value proposition in line with customer needs.
Transformation Through Leadership
By 2016, ET Group was facing significant financial and cultural challenges, and the company had lost its sense of fun and engagement. Recognizing the need for change, Dirk Propfe stepped into the CEO role and initiated a fundamental transformation of the organization. He introduced three guiding principles to create a life-giving organization:
People come alive when they have autonomy and purpose.
People come alive when they receive a fair share of the value they generate.
People come alive when they bring more of themselves to work.
These principles became the foundation for a new direction, aiming to revitalize ET Group's culture and ensure long-term success. Since the transformation began, ET Group has achieved remarkable results:
Growth: The company has grown an average of 30% per year for the last 8 years.
Employee Happiness: ET Group’s employee net promoter score is consistently over 50, a level considered excellent.
Workplace Culture: More than 97% of team members believe ET Group is a great place to work.
Decentralized and Collaborative Structure
ET Group is a pioneer in decentralized ownership, with a share ownership plan that has enabled 50% of the team to collectively own 25% of the company. The company is on track to becoming the first in Canada to be majority-owned by employees, thanks to new legislation supporting the creation of employee ownership trusts. These trusts allow employees to become owners without having to risk their own money.
To empower employees at every level, ET Group employs distributed decision-making processes such as advice processes and consent processes. These methods enable team members and teams to respond to customer needs more quickly, enhancing the level of service, care, and attention provided to clients. This approach fosters deep trust and appreciation from clients and allows continuous improvement and innovation, as each team member can sense and respond to challenges and opportunities. The results speak for themselves: delighted clients and more than 80% of ET Group's revenue comes from recurring clients.
Key practices include:
Circle-Based Governance: Teams self-organize around specific domains, which enhances decision-making efficiency and responsiveness.
Role Definition and Clarity: Team members can energize multiple roles, evolve their accountabilities, and create new ones as needed. This promotes autonomy, accountability, and a deep sense of ownership.
Holacratic Practices: Regular meetings focus on operational and strategic issues, driving continuous adaptation and improvement.
Self-Set Salaries: Employees set their own salaries through a structured advice process involving peer feedback and market standards, ensuring fairness, transparency, and equity.
Innovative Compensation Model: ET Group has replaced traditional incentives like sales commissions with a company-wide performance bonus system, where 33% of profits are regularly distributed among those energizing roles on an ongoing basis, including both employees and contractors. This approach aligns individual contributions with the company’s overall success, fostering a culture of collective achievement and shared rewards.
Customer-Centric Approach
ET Group prioritizes a "zero distance" philosophy inspired by the Chinese company Haier, striving to stay as close to the customer as possible. This proximity allows ET Group to better listen, adapt, and innovate based on clients' needs and challenges. The company is organized in a client-centric way, with many teams focused on serving similar types of clients.
An example of this approach is how ET Group responded to the needs of the Ontario Justice cluster during COVID-19. When the province required 100 courtrooms to be equipped for hybrid proceedings to maintain distancing requirements, ET Group's proximity to the client enabled rapid action. Justice workflows are complex, especially in a hybrid context, but ET Group moved from need identification to a field prototype of a custom mobile cart system—complete with multiple cameras, microphones, and displays—within just six weeks. Within three months, they deployed 60 of these carts throughout Ontario, showcasing their ability to quickly respond to new requirements.
After COVID-19, ET Group noticed that many current and prospective clients were struggling to adapt to a hybrid work reality. In response, the company developed workshops to explore the challenges of hybrid work and introduced a new framework that highlights different aspects that need to be considered, such as space, technology, social interactions, and organizational paradigms. This initiative has led to invitations to deliver keynotes on hybrid work and has positioned ET Group as thought leaders in this area. ET Group now offers hybrid discovery experience workshops to help leading Canadian organizations understand the dynamics of hybrid work, develop best practices, and assist with implementation and strategy design.
Culture of Authenticity and Inclusion
ET Group fosters a culture of continuous learning, innovation, and inclusivity, encouraging employees to bring their whole selves to work. Key practices include:
Check-Ins and Check-Outs: These practices enable team members to share personal insights and emotions, enhancing team coherence and trust.
Team Connects: Facilitated sessions designed to strengthen team bonds and communication.
Liberating Structures: Techniques used to harness the collective intelligence of the team, ensuring every voice is heard and valued.
Personalized Development: Each team member is encouraged and supported in their personal and professional growth, with resources dedicated to continuous development.
Awards and Recognition
ET Group's innovative approach has been widely recognized. In 2021, they won the inaugural Tony Hsieh Award for innovative ways of working. The company is consistently ranked among Canada's best workplaces in technology. In 2024, ET Group received employee engagement awards from the NSCA, underscoring their commitment to creating a supportive and empowering workplace.
Commitment to Evolution
ET Group is committed to creating a healthier and more meaningful workplace. Their continuous investment in innovative practices and collaboration with changemakers has solidified their industry-leading profitability and ability to attract top talent. This evolution from a traditional hierarchical company to a thriving, self-managed organization exemplifies their dedication to empowering and valuing people at every level. The transition and the resulting zero-distance to customer, team and employee autonomy as well as the efforts made towards employee ownership are all examples of RenDanHeYi principles embedded in ET Group's organizational design.
For more information, visit ET Group to discover how they are revolutionizing the way people connect and collaborate in the workplace.
