VIVA! Conversion: A Pioneer in Digital Performance Marketing
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. VIVA! Conversion is one of the 50 organisations we listed this year.
Introducing Viva! Conversion
Founded in 2017 by Toni Fernández Lázaro, a former Google employee, VIVA! Conversion has emerged as a leader in the digital performance marketing industry. Starting with a team of 8, the company initially focused on pay-per-click (PPC) marketing but has since expanded to include SEO and growth marketing. Today, VIVA! Conversion offers a comprehensive suite of services including SEO, conversion rate optimization (CRO), marketing automation, web analytics, and web development with a team of over 40 people.
Viva! Conversion embarked on its self-management journey about a year ago and is gradually embedding in its organizational design principles that align with the RenDanHeYi philosophy. Starting with transparency and decentralized structure, the company is transitioning towards full autonomy of the people closest to the problems of the end-user. Together with its value sharing mechanism, this makes for a prime case of zero distance excellence.
Organizational Structure
With growth, Toni increasingly recognized the limitations of a traditional hierarchical structure and the inefficiency of concentrating the full decision-making power in his own position as a Founder and CEO. This is why in 2023 Toni embarked on a journey to transform VIVA! Conversion into a self-managed organization. Inspired by Frederic Laloux's "Reinventing Organizations," Toni sought alternative management approaches, engaging with experts and learning from other companies that had successfully implemented similar changes.
The current structure of VIVA! Conversion is flat and decentralized, encouraging employees to take ownership of their work. Teams are organized around specific services but work collaboratively to provide integrated solutions, enhancing both efficiency and innovation. While some of the teams, which concentrate higher volumes of workload, still exhibit some form of middle management, Toni is actively working on completing the full transformation towards an empowered network of teams.
Approach to Clients
VIVA! Conversion’s approach to clients is rooted in transparency, trust, and a commitment to delivering measurable results. They form long-term partnerships with their clients, integrating themselves as part of the client's team rather than just service providers.
Their methodology is heavily data-driven, combining scientific methods with the team's extensive experience. This balanced approach allows VIVA! Conversion to navigate the ever-changing digital landscape effectively. High communication standards and constant availability are key components of their client service, ensuring clients are always informed and involved in the decision-making process.
Internal Culture: Autonomy and Ownership
The transition to a self-managed organization has empowered employees to take initiative and drive their projects forward, fostering a culture of innovation and responsibility.
Several initiatives have been implemented to support this cultural shift:
Profit Sharing: The company shares 25% of its profits with all employees, aligning individual success with the company’s overall performance.
Open Book Management: Financial transparency is practiced by opening the company’s financial books to all employees, fostering a sense of ownership and accountability.
Decentralized Decision-Making: Employees are encouraged to take ownership of their work and participate in decision-making processes, reducing reliance on top-down directives.
Salary Transparency: Open discussions about salaries promote trust, fairness, and open dialogue around compensation.
Conflict Resolution Protocol: A structured approach to resolving conflicts encourages direct communication and collaboration among employees.
Transitioning to a self-managed organization has not been without challenges. Some employees were initially resistant to the change, accustomed to traditional hierarchical structures. There was also a need to establish clear guidelines for decentralized decision-making to avoid confusion and conflicts.
Despite these challenges, VIVA Conversion remains committed to refining its approach. The company is exploring the implementation of holacracy. This move aims to provide more clarity, order, and accountability.
Investments in soft skills and leadership development training are also planned to equip employees with the necessary skills to handle conflicts, improve self-awareness, and foster healthy relationships.
Conclusion
VIVA! Conversion's journey towards self-management exemplifies their commitment to creating a more empowering and fulfilling work environment. By embracing transparency, decentralizing decision-making, and fostering open communication, the company aims to unlock the full potential of its employees. In the process it has also created an organization that closely resembles the principles of RenDanHeYi. While challenges exist, VIVA! Conversion is dedicated to evolving and refining its approach, setting a benchmark for other organizations seeking to embrace transformative ways of working.
