Mark J. Greeven

Katherine Xin

George S. Yip

<article-ideainbrief class="article-ideainbrief">
 <h4 class="ideainbrief-title">Idea in Brief</h4>
 <div class="ideainbrief-contents">
  <h5>The Challenge</h5>
  <p>As companies grow and become more complex, they typically become less entrepreneurial and innovative.</p>
  <h5>The Traditional Response</h5>
  <p>Companies in the West often try to increase frontline autonomy by reducing managerial supervision. That introduces redundancy and poor coordination.</p>
  <h5>The Breakthrough</h5>
  <p>Chinese companies deploy digital platforms to give employees access to shared corporate resources and capabilities. That makes it possible for frontline workers to self-organize around specific business opportunities.</p>
 </div>
</article-ideainbrief><p class="mag-icon-management-w30">Chinese companies have long been acclaimed for their manufacturing prowess and, more recently, for their pragmatic approach to innovation. Now it’s time to recognize how they are also reinventing the role of management through an approach we call “digitally enhanced directed autonomy,” or DEDA.</p>

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<p>China&#8217;s companies have long been acclaimed for their manufacturing prowess and, more recently, for their pragmatic approach to innovation. Now it&#8217;s time to recognize how they are reinventing the role of management through an approach the authors call &#8220;digitally enhanced directed autonomy,&#8221; or DEDA.</p>
<p>These companies use digital platforms to give frontline employees direct access to shared corporate resources and capabilities, making it possible for them to organize themselves around specific business opportunities. Autonomy is not complete, nor is it given to everyone. 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.</p>
<p>This article describes the three core features of the DEDA approach: granting employees autonomy at scale, supporting them with digital platforms, and setting clear, bounded business objectives. It offers examples of how companies are using those features and draws lessons for Western companies.</p>

How Chinese Companies Are Reinventing Management

China’s companies have long been acclaimed for their manufacturing prowess and, more recently, for their pragmatic approach to innovation. Now it’s time to recognize how they are reinventing the role of management through an approach the authors call “digitally enhanced directed autonomy,” or DEDA. These companies use digital platforms to give frontline employees direct access to shared corporate resources and capabilities, making it possible for them to organize themselves around specific business opportunities. Autonomy is not complete, nor is it given to everyone. 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. This article describes the three core features of the DEDA approach: granting employees autonomy at scale, supporting them with digital platforms, and setting clear, bounded business objectives. It offers examples of how companies are using those features and draws lessons for Western companies.

How Chinese Companies Are Reinventing Management

Summary.

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