Panelfisa: Innovating Through Decentralized Empowerment

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

Introducing Panelfisa

Panelfisa Group has origins dating back to 1907 in Tolosa, Spain. The current company was established in 1993 when 37 employees came together to buy out the company and save it from bankruptcy. Originally a small producer of nails and screws for the woodworking industry, Panelfisa has evolved into a global leader in the manufacturing of cold-forged and laminated fasteners, primarily serving the highly demanding automotive sector. Today, Panelfisa operates in seven countries, with 70% of its production exported to over 20 countries, supporting major automotive clients like Volkswagen, Renault, and Ford​. It has a workforce of 190 people divided between its headquarters in Spain and a production plan established in 2014 in Mexico. Despite its growth, the company has maintained its commitment to the values of trust, customer care, and continuous strive for excellence, which have been the cornerstone of its success.

Panelfisa is a prime example of RenDanHeYi management philosophy in the manufacturing industry. It is committed to a decentralized team-of-teams structure, personal autonomy and shared decision making.

Organizational Structure

At the heart of Panelfisa's operations is a unique organizational structure that rejects traditional hierarchical models in favor of a highly decentralized, self-managed system. This approach is grounded in the principles of the NER Group, a collective of socially responsible businesses. At Panelfisa, there is no conventional chain of command; instead, the company relies on a network of autonomous teams that operate with a high degree of independence. Decision-making is distributed across these teams, with strategic and operational decisions being made at various levels, depending on the scope and impact of the decision​. For instance, strategic decisions regarding the company’s long-term goals are made collectively in general assemblies, where all employees have a say. This structure fosters a culture of mutual trust and responsibility, empowering employees to take initiative and contribute meaningfully to the company's success.

Zero Distance to Customers

This decentralized model is not just a theoretical framework; it has practical, tangible benefits, especially in how Panelfisa interacts with its customers. The company’s flat organizational structure allows for rapid decision-making, enabling teams to respond swiftly to customer needs and market changes. This agility is crucial in the automotive sector, where the ability to quickly adapt to new technologies and customer requirements can be a significant competitive advantage. Panelfisa’s engineering teams work closely with clients to co-develop customized solutions, often involving joint projects that lead to process improvements, cost reductions, and enhanced product performance. By being deeply integrated into their customers' operations, Panelfisa ensures that it remains a trusted partner, capable of delivering innovative solutions that meet the highest standards of quality and reliability.

Moreover, Panelfisa’s commitment to its customers is reflected in its global presence. The company has strategically located its production facilities and logistics centers close to major automotive hubs, allowing it to provide responsive and reliable service. This proximity not only reduces lead times but also facilitates better communication and collaboration with clients, ensuring that Panelfisa can meet the exacting demands of the automotive industry. The company’s ability to maintain such a high level of customer service while operating across multiple countries is a testament to the effectiveness of its decentralized organizational model.

Ways of Working

Beyond its operational and customer service excellence, Panelfisa places a strong emphasis on cultivating a positive and inclusive company culture. As a cooperative, the company operates on the principle that employees are not just workers but also co-owners who share in the profits and have a stake in the company’s success. This model is designed to foster a sense of ownership and accountability among all employees, encouraging them to take initiative and contribute to the company’s strategic goals. Profit-sharing mechanisms are in place to ensure that the financial success of the company is shared equitably among its members, further reinforcing this sense of collective responsibility.

Panelfisa’s culture is also deeply rooted in the principles of transparency, solidarity, and social responsibility. The company is committed to maintaining open lines of communication across all levels of the organization, with important information shared through coordination teams and general assemblies​. This transparency ensures that all employees are informed and engaged in the decision-making process, creating a work environment that is both collaborative and empowering. Additionally, Panelfisa is actively involved in various social initiatives, such as supporting the Zutani project, which provides food to disadvantaged communities, and participating in the restoration of the AITA MARI, a rescue ship operating in the Mediterranean Sea. These initiatives reflect Panelfisa’s broader commitment to contributing to the well-being of society and the environment, in line with the values of the NER Group.

Conclusion

In conclusion, Panelfisa stands as a powerful example of how a company can successfully combine tradition with innovation. By embracing a decentralized, self-managed organizational model, Panelfisa has created a work environment that empowers its employees, fosters collaboration, and drives continuous improvement. This approach not only enhances the company’s operational efficiency and customer service but also aligns with its core values of trust, solidarity, and social responsibility. As Panelfisa continues to grow and evolve, it remains a shining example of how businesses can thrive by putting people and principles at the center of their operations.