Chinese companies are reinventing management. Here are some tips for your business

By Mark J. Greeven, Katherine Xin and George S. Yip

Chinese companies have long been acclaimed for their manufacturing prowess and, more recently, for their pragmatic approach to innovation. Now it’s time to recognise how they are also reinventing the role of management through an approach we call “digitally enhanced directed autonomy,” or DEDA.

DEDA uses digital platforms to give frontline employees direct access to shared corporate resources and capabilities, making it possible for them to organise themselves around specific business opportunities without managerial intervention. Autonomy is not complete, nor is it given to everyone. Rather, it is directed exactly where it is needed, and what employees do with their autonomy is carefully tracked. The approach contrasts with the Western model of empowerment, which gives employees broad autonomy through reduced supervision.

In this article we describe the three core features of the DEDA approach: granting employees autonomy at scale, supporting them with digital platforms, and setting clear, bounded business objectives. We describe how Chinese companies such as Handu Group, Alibaba Group, and Haier Group are using those features, and we draw lessons for Western companies.