Ivy Global - Transforming Work through Semco Style Management

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. Ivy Global is one of the 50 organisations we listed this year.

Introducing Ivy Global

Ivy Global, established in 2014 in the Netherlands, is a forward-thinking company that provides engineering and project management talent to various industries. The company’s mission is to empower young professionals by integrating them into real-world projects, offering them opportunities to gain hands-on experience and build their careers. With a strong emphasis on collaboration and innovation, Ivy Global connects students with industry projects, helping companies achieve their technical goals while nurturing the next generation of engineers. Over time, Ivy Global has grown to include around 150 employees, including a mix of part-time students and permanent staff members.

Ivy Global is a strong example of the RenDanHeYi management philosophy in the IT services industry particularly through its decentralized structure, autonomy across teams and democratic remuneration practices.

Organizational Structure

Inspired by the Semco Style management philosophy, Ivy Global has embraced a decentralized structure, eliminating traditional hierarchical roles. One of the most significant shifts occurred in 2022 when the company phased out the director’s role, challenging its employees to collectively manage tasks that were previously the responsibility of a single leader. Ivy operates without managers, relying on self-organized teams across its offices in Amsterdam, Delft, and Eindhoven. These teams handle their own sales, recruitment, operations and financial management, while a company-wide team supports functions like HR, communications, and long-term strategy. Decision-making is decentralized, with employees empowered to make decisions that affect their work, fostering a sense of ownership and accountability​.

Customer-Centricity

The decentralized model at Ivy Global has enhanced its ability to respond quickly and effectively to customer needs. By empowering teams to make decisions without the need for managerial approval, the company can provide flexible, customized solutions to its clients. This structure enables Ivy to be highly responsive to changes in project requirements and customer feedback, ensuring that services are aligned with client expectations. The ability to make quick, on-the-ground decisions also means that Ivy Global can deliver projects more efficiently, reducing bottlenecks and improving overall client satisfaction​.

As Ivy isn’t bound by the need for managerial approval, employees can quickly respond to customer needs and immediately test their own ideas. Remy, one of Ivy’s clients, shared an example where the team automated a label printer using a script, a solution he hadn’t thought of himself. He also appreciates Ivy’s structured communication, which keeps everyone updated through regular reports. Remy values how Ivy listens to client needs and adapts their approach accordingly, making them an agile and customer-focused partner. This is just one example of how the way of work at Ivy Global delivers above and beyond for its clients.

Autonomy is also underlined by the way they manage internal capacity. As part of their transition to self-management, Ivy Global introduced a capacity-meter that underlined peer-to-peer responsibility. By measuring their workload on a scale from 1 to 5, each person could indicate if they were open to help others (1) or if they were too busy with their own projects (5). It created more alignment within the organization, since more cross-functional collaborations started to arise. In this manner, work allocation became more self-managed instead of being directed by a manager. The beautiful side effect of these collaborations was the increased awareness, among employees, about all the projects Ivy Global was working on. It led to a better understanding of the workload of others, as well as stronger personal connections.

Company Culture

Ivy Global’s culture is rooted in trust, transparency and shared responsibility. The company operates on the principle that everyone should have access to the same information typically held by managers, including financial data. This transparency is critical for enabling employees to make informed decisions.

Additionally, Ivy Global has adopted a democratic process for determining salaries, where all employees come together to propose and agree on their compensation during an annual session. This practice reflects the company’s commitment to fairness and shared success. Ivy Global also embraces a profit-sharing mechanism where employees are given the opportunity to purchase shares in the company. This model ensures that workers are not just employees but also co-owners, aligning their personal success with that of the company.

The company places a strong emphasis on work happiness ("werkgeluk"), aiming to create an environment where employees feel valued, motivated, and aligned with Ivy Global’s long-term vision.

Challenges remain, particularly in onboarding new employees into the decentralized framework and ensuring that everyone effectively utilizes the available data. However, Ivy Global continues to innovate and adapt its practices to maintain a dynamic and inclusive workplace​.

Conclusion

For the past 10 years, Ivy's philosophy has been to ensure that the business model truly works before making bold claims. Now, a decade later, they are gradually starting to share their approach with the rest of the world.

Ivy continuously pushes the boundaries of decentralization. Even when things get challenging— for example when the company faces losses or significant mistakes are made—there is no manager stepping in to take control. Instead, the team holds discussions afterward to learn from the experience and figure out how to prevent similar issues in the future. This approach allows Ivy's self-managing business model to evolve and strengthen over time, ensuring continuous improvement and resilience.

Through its commitment to decentralization and the Semco Style philosophy, Ivy Global is redefining the future of work, creating an environment where employees are empowered, customers are prioritized, and continuous learning is at the core of the company’s growth strategy.