"The law of the market is always changing. Every business knows this, but the vast majority of businesses have not turned themself into organizations that can adapt to external changes. [...]

"No matter how the outside world changes, the organization must change in sync. The traditional organization is unchanged and constantly solidified until it gradually turns into an 'empire.’

"The greater the empire, the more dangerous. Just like a very sophisticated machine, in the face of constant changes from the outside world, the only thing an empire can do is not change.

"From the Internet to the Internet of Things, the outside world is changing faster and faster, and traditional large enterprises’ lives are getting shorter and shorter.

"It's like the Titanic hitting an iceberg. The Internet of Things era is scarier because more and more icebergs are floating around. If the company is still the Titanic, it could hit a floating iceberg at any time.

"That is why Haier has converted the hierarchical pyramid into countless small micro-enterprises, which together form dynamic micro-communities. Each micro-community is like a boat. Each boat is relatively small and has an adventurous spirit."

Article: Haier Germany: How To Future-Proof Your Company

Video: How Haier Works - Video Animation