Wethod: Transparency and Autonomy in a Modern Tech Startup

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

Introducing Wethod

Wethod, a dynamic tech startup, emerged from the innovative hub of H-FARM in Treviso, Italy. Founded to service the project management needs of a digital agency, Wethod has evolved into a small yet impactful team of 10 people. As a SaaS company, Wethod offers a sophisticated tool designed to enhance team organization with unique features that emphasize transparency and decentralization. Their software is tailored to support a horizontal management approach, embodying the company's dedication to innovation and efficient collaboration. By empowering all team members to manage their tasks and access comprehensive profit and loss information, Wethod fosters a culture of autonomy and accountability.

Wethod is a prime example of a tech product organisation following the principles of RenDanHeYi. Its roadmap is largely driven by clients and decisions are taken as close to the customer as possible to ensure swift reaction to their needs. There are no barriers between the client and the team and work at Wethod is largely driven by the principles of openness, equality and co-creation.

Organizational Structure

Wethod's organizational structure is a textbook example of flat hierarchy. The CEO doubles as the product owner, working directly with the team to define the high-level product development roadmap. A senior developer has taken over the role of coordinating the development team, but beyond this, the company operates with a high degree of autonomy across all roles. Project management is a shared responsibility; every team member can lead projects focused on feature development or bug fixes. Communication, business development, and customer support are handled collectively, ensuring a deep understanding of customer needs and product development. Regular team meetings facilitate transparent collaboration and collective problem-solving, reinforcing a culture of mutual accountability and effective execution.

Zero Distance to Customers

Customer centricity is at the heart of Wethod’s operations. The team's hybrid roles maintain a close connection with customers, which is amplified by their software’s transparency and collaboration features. Continuous customer feedback directly influences the development roadmap. Zero distance to customers is exemplified by the close communication established - each customer gets an access to the Slack of the Wethod team where they can quickly address any concerns with everyone on the team. Wethod also hosts an annual event that draws hundreds of participants for workshops and private sessions, fostering direct interaction with customers to discuss features and improvements. This approach not only meets customer needs but also builds strong relationships with the user base. Additionally, Wethod maintains a public page updated weekly, where they transparently share all deployments and updates, keeping customers informed and engaged.

Wethod's customer-centric approach is further highlighted by their unique pricing model, which includes consulting hours as part of their service package. This ensures customers receive the necessary support to maximize the value of Wethod’s software. The company’s transparent pricing and high-quality customer support reflect their dedication to building long-term, trusting relationships with clients.

Company Culture

The culture at Wethod is defined by trust, transparency, and flexibility. Salaries are fully transparent and annual increases and bonuses in line with company profits ensure fair pay. Complete flexibility regarding work location and hours underscores Wethod's commitment to a healthy work-life balance. Regular sessions using methods like the "5 whys" help identify root causes of issues and develop solutions collectively, fostering a strong sense of ownership and continuous improvement. The company’s open communication and decentralized decision-making reflect its innovative spirit, making Wethod a progressive and adaptable organization in the tech industry. Internal projects aimed at improving company processes are common, encouraging all team members to contribute ideas and feedback.

Conclusion

Stepping on their foundational principles, Wethod acts as more than a project management tool. It invites organizations to consider a new way of working: modern, integrated, distributed, responsible, and straightforward. These principles closely align with the RenDanHeYi management philosophy making Wethod (and many among its clients) excellent zero distance organisations.