The Next Next Common Sense
others may require more gradual shifts with demonstrated suc- cess at each stage. 5. Feedback Mechanism Customization Design feedback mech- anisms that align with cultural preferences for direct versus in- direct communication, public versus private recognition, and individual versus group focus. IBM's global implementation of agile development teams demon- strates these principles in action. Rather than imposing identical team structures globally, IBM created a core set of principles for autonomous teams but allowed significant variation in how these principles manifested across different cultural contexts. In Japan, teams maintained more struc- tured documentation and review processes within their autonomy, while teams in the United States operated with less formal structures. Both approaches maintained alignment with core principles while respecting cultural differences. Case Study: Haier's Living Canyon Perhaps no organization better exemplifies the canyon principle than Haier, the world's leading home appliance manufacturer. Under CEO Zhang Ruimin's leadership, Haier transformed from a traditional hierar- chy into a network of over 4,000 "microenterprises"—small, entrepreneur- ial units that contract with each other and external partners. What makes Haier's approach a true canyon rather than either rigid control or chaotic freedom? The system establishes clear purpose boundaries—every micro- enterprise must demonstrate how it creates user value. It employs market mechanisms, with internal relationships governed by contracts rather than command. It ensures transparent performance, with results visible to all through digital platforms. And it maintains shared cultural values, with principles like "zero distance to users" guiding all decisions. Within these boundaries, microenterprises have remarkable freedom to determine their own strategies, partnerships, and even compensation
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