PTHR: Redefining Progressive HR Consulting

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

Introducing PTHR

Founded in 2012 by Perry Timms, PTHR (People and Transformational HR) is a UK-based consultancy operating within the HR and People profession. With a mission to create "better business for a better world," PTHR focuses on human-centered design and systems thinking to help organizations transform and thrive in the 21st century. The company is a certified B Corporation and is recognized globally for its commitment to ethical business practices. PTHR’s values are built around self-management, evolutionary purpose, and wholeness, which underpin its approach to organizational change. Their core offering revolves around redesigning work systems, cultivating inclusive cultures, and driving people-powered innovation, all while addressing critical global issues like the climate emergency. Among their notable accomplishments, PTHR ranked in the top 5% of all B Corporations globally in 2022, and Perry Timms was awarded the WorldBlu Lifetime Achievement Award for services to democratic and freedom-centered organizations in 2024.

PTHR is an organization that walks its talk and has become itself a test bed for progressive ways of work. The decentralized autonomy and embedded co-creation fully align with the RenDanHeYi management philosophy and make PTHR an excellent example of progressive work ways and an inspiration.

Organisational Structure

PTHR’s organizational structure is uniquely decentralized, embodying the principles of self-management and agile working. The company operates through a constellation of specialized teams, each led by a Practice Lead in fields like organizational psychology, sustainability, and digital production. There is no traditional hierarchy; instead, the teams work collaboratively and autonomously, allowing for greater flexibility and innovation. This self-managed structure empowers employees to take ownership of their work, fostering a culture of trust and accountability. PTHR's commitment to decentralized operations is further reflected in its "work from anywhere" policy, as well as its four-day working week, which enhances work-life balance while maintaining productivity.

Their structure exemplifies how a modern organization can thrive without rigid hierarchies, instead relying on collaborative leadership and shared accountability. The workflow is organised not into traditional verticals but in Stacks. And each Stack is owned and partnered by two of the team. It also translates into how they manage knowledge and information as well as initiatives that aren’t client driven work. For example one of their Stacks is Sustainability; Owned by Kirsten and co-owned by Catalina, this include all work for BCorp certification and communityship and has results in a “spin out” enterprise called ARC - A Regenerative Culture - helping clients and partners be more green, net zero and climate active.

Zero Distance to Clients

Customer centricity is at the heart of PTHR's operations, and their decentralized structure plays a crucial role in enhancing customer service. By allowing teams to operate autonomously, PTHR enables rapid decision-making and tailored solutions for their clients. The agility of their organizational model allows PTHR to co-create solutions with their clients, ensuring that services are highly customized and responsive to specific needs. Their commitment to customer engagement is reflected in their use of methodologies like design thinking and systems thinking, which emphasize a deep understanding of the client’s needs and challenges. This client-focused approach not only improves service delivery but also builds stronger, more collaborative relationships between PTHR and its partners.

Internal Culture

PTHR’s culture is deeply rooted in values of justice, belonging, and continuous learning. The company promotes a holistic approach to employee well-being, emphasizing energy and care in the workplace. PTHR’s commitment to a regenerative culture extends beyond individual well-being to encompass broader social and environmental goals. Employees are offered autonomy in their work, aligning with the company’s principles of self-determination and applied psychology, which optimize their contributions to both the organization and its clients. While PTHR does not operate a traditional profit-sharing mechanism, their business model prioritizes prosperity over profit, ensuring that success is measured not just by financial performance but by positive impact on people, communities, and the planet. PTHR has open salaries and has just introduced self-set Maternity, Study and Annual leave for the team.

Conclusion

In conclusion, PTHR serves as a trailblazer in progressive business practices, demonstrating how decentralization, purpose-driven work, and human-centered design can create lasting value for both organizations and society. Their commitment to continuous innovation and ethical responsibility makes them a leading force in reshaping the future of work.