P4Q: Reinventing Manufacturing with Radical Self-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. P4Q is one of the 50 organisations we listed this year.
Introducing P4Q
P4Q, established in 1999 in Alonsotegi, Spain, operates in the cutting-edge world of electronic manufacturing, with a large range of its own products, from renewable energy (with its solar tracker controllers) to healthcare (with its innovative lateral flow and urine test strips readers). With around 300 employees spread across facilities in Spain, the USA, and China, and its advanced service centers in Mexico, Brazil and Chile, P4Q has evolved into a key player in the industry. But what truly sets P4Q apart is its bold departure from traditional corporate structures. Guided by a purpose rooted in autonomy, transparency, and continuous innovation, P4Q has fully embraced a self-management model, shedding conventional hierarchies in favor of a decentralized approach that empowers every employee to contribute to the company’s success. This shift has not only enabled P4Q to thrive in a competitive market but has also positioned the company as a beacon of progressive organizational practices.
P4Q is a prime example of RenDanHeYi in the manufacturing industry. They have successfully rallied a sizable team towards decentralized authority, participatory decision-making and shared rewards.
A New Kind of Organizational Structure
At P4Q, the idea of a boss is practically obsolete. The company operates without the layers of middle management typically found in manufacturing firms, opting instead for a structure composed of self-managing teams. These teams are not isolated silos but interconnected units that share information, make collective decisions, and take full responsibility for their work. Each team elects members to fulfill specific roles such as pilot representative, commitment representative, and facilitator, ensuring that every aspect of the team’s operations is covered. This system, rooted in mutual trust and shared accountability, allows teams to move swiftly and make decisions that align with both their goals and the company’s overarching strategy. The result is an organizational model where bureaucracy is minimized, and the flow of information is unobstructed, enabling P4Q to remain agile and responsive to changes.
Customer Centricity in Action
The decentralization at P4Q does more than just streamline internal operations—it places the customer at the very heart of the business. On a typical day, decisions about product development, customer support, and service delivery are made directly by the teams that interact with customers. This direct connection means that P4Q can respond to customer needs with remarkable speed and precision. For example, if a client in the renewable energy sector requires a modification to a solar tracking system, the team responsible can immediately assess the request, decide on the best course of action, and implement changes without waiting for approval from a distant management layer. This level of customer centricity, enabled by P4Q’s flat structure, ensures that the company not only meets but often exceeds customer expectations, fostering strong, long-lasting relationships and driving repeat business.
A Culture of Shared Success
The culture at P4Q is built on a foundation of shared success and continuous improvement. Every employee is viewed as a vital part of the company’s ecosystem, with the power to influence outcomes and drive innovation. Remuneration at P4Q reflects this ethos. While exact figures are not widely publicized, the company is known to implement a profit-sharing model that ties individual rewards to the performance of their teams and the company as a whole. This approach not only incentivizes high performance but also ensures that the benefits of success are distributed equitably across the organization. Furthermore, P4Q invests heavily in the development of its employees, providing extensive training in self-management practices, transparent communication, and collaborative decision-making. This focus on personal and professional growth fosters a work environment where employees feel valued, motivated, and aligned with the company’s mission .
Conclusion
P4Q’s journey demonstrates that in a world increasingly driven by complex, fast-changing markets, traditional hierarchies may no longer be the most effective way to organize a business. By embracing self-management and placing a premium on customer-centricity, P4Q has not only redefined what it means to be a manufacturing company but has also set a new standard for what work can look like when people are trusted, empowered, and connected to a shared purpose.
