Happy Ltd: Building Trust and Freedom in the Workplace

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

Introducing Happy

Happy Ltd, established in 1987, is a multi-award-winning B Corp based in London, UK. Specializing in IT training, leadership development, and workplace consultancy, Happy's mission is to create joyful and productive workplaces.

“We help organisations create happy workplaces”, explains Henry Stewart, Chief Happiness Officer. “The research is very clear that happy workplaces are more productive. Happy employees = happy clients = happy profits.”

The company aims for employees to find joy in at least 80% of their work, aligning with its core values of trust, empowerment, and continuous learning. The company’s story began when founder Henry Stewart sought to create an organization that prioritized employee happiness, inspired by Ricardo Semler’s radical approach to management at Semco. Today it has a team of 22 team members and about 50 part-time associates.

Happy is a prime example of RenDanHeYi in the training and consultancy industry. The company relies on coaching rather than management, democratic instead of centralized decision-making and focus on making the team happy first. In addition it has created a comprehensive compensation policy which enables value share among everyone on the team.

Organizational Structure

Happy employs a decentralized organizational structure that emphasizes a balance between horizontal and vertical elements. Leadership and decision-making responsibilities are distributed across various levels, fostering an environment where front-line staff are empowered to take ownership of their roles. This structure supports the company's goal of creating a workplace where individuals feel trusted and motivated. Key strategies include giving employees control over their own work processes and allowing them to design their own job roles.

Customer Centricity and Autonomy

Happy Ltd places a strong emphasis on customer centricity, ensuring that the needs and satisfaction of clients are at the forefront of their services. Employees who interact with clients are granted significant autonomy to make decisions and tailor services to meet specific client needs. This approach minimizes the distance between the company and its customers, enhancing responsiveness and personalization. Employees are encouraged to build strong relationships with clients, directly handling queries and resolving issues swiftly without needing upper management approval.

Coaching not Management

Happy doesn’t have managers but we do have coaches. They rely on coaches to empower and guide our employees.

As Lydia says, “I love my sessions with Cathy. I always leave my one-to-ones more excited and inspired than when I went in.”

And Sal: "My coaching sessions help boost my confidence. I set clear and achievable objectives and goals for our coaching sessions. It helps me own them and be accountable for taking specific actions and measuring the progress. I also get better at problem-solving during my coaching as I get support and assistance with reaching my objectives. I am not told how to do it or what to do; rather, I come up with a solution through coaching.”

Also, anybody can choose their coach.

Democratic Salaries

At Happy the salary panel is democratically elected. Also the salary pool is chosen by the staff, based on what the previous profit was and what we hope the future profit will be. Each person puts into a survey what they want to see, and we take the median average.

Also the salary for the CEO (or what we call the Chief Happiness Officer) is chosen by the staff. Each person puts into a survey what they want his salary to be in the next year.

Happy also has transparent salaries, where anybody on the staff can see a spreadsheet that shows what everybody has earnt at any time in the past and present.

Creating Joy at Work

“Creating Joy at Work” is Happy’s strapline. But they also implement it. “My goal is for all my team to get joy at work in 80% of what they do,” explains Cathy Busani MD of Happy. “Initially it was 73% but now it is 86%.”

Internal Culture and Employee Treatment

Internally, Happy is committed to creating a positive and supportive work environment. The company adheres to the principles outlined in "The Happy Manifesto" and “Creating Joy at Work: 501+ Ideas for a Happy Workplace”, which emphasizes the importance of employee well-being and empowerment. Employees are encouraged to engage in continuous learning and development, with access to various coaching and training programs.

The company fosters a culture of trust and freedom by allowing flexible working hours and encouraging transparency and open communication. This focus on personal and professional growth contributes to a culture where people feel valued and motivated to contribute their best work.

Happy Ltd also implements several unique practices to support its values and culture:

• Democratic Decision-Making: Happy is renowned for its democratic approach, utilizing Pre-Approval processes to ensure inclusive decision-making.

• Working to Strengths: New employees take the Clifton Strengths Assessment to align roles with individual strengths.

• Celebrating Mistakes and Innovation: The company fosters a culture of innovation and continuous improvement by encouraging the celebration of mistakes.

Happy Ltd offers a host of benefits to its employees, which include 4-day working week and generous holidays package including paid sabbaticals for long service.

It also has a comprehensive bonus scheme where 20% of the profit is distributed evenly among staff and 4% is donated to charities chosen by employees.

Conclusion

By fostering an empowered, customer-centric, and supportive workplace, Happy Ltd continues to set an example of progressive organizational practices. Its focus on self-management, autonomy in decision-making and shared rewards aligns closely with the RenDanHeYi principles and make it a fantastic candidate for the Zero Distance Excellence Awards.