A few years ago, I wrote about Haier (HERE) after reading a Harvard Business Review article on “The End of Bureaucracy.”
My conclusion at the time was simple: impressive—but not quite there.
Haier had done what few organizations have managed to do. They broke work into smaller, entrepreneurial units. They pushed decision-making closer to the front lines. They aligned compensation with performance. In many ways, they redefined what a modern organization could look like.
But something still felt off.
At the time, I described this gap in terms of autonomy and ownership. I argued that while Haier had created a high degree of both, it hadn’t gone far enough—that a truly collaborative organization would require 100% autonomy and 100% ownership.
I don’t think that’s the right way to describe it anymore.
That framing keeps the conversation inside a control-based logic—where autonomy is something granted, increased, or maximized. What I didn’t fully articulate then is this: Haier didn’t move beyond bureaucracy—it redefined what control can look like.
That’s not collaboration.
Haier’s model, while better, is still an evolved form of control. The difference comes down to one thing: authority.
In control-based systems—even very advanced ones—authority remains unequal. Leaders may push decision-making down, invite participation, and create significant autonomy. But ultimately, that autonomy exists within a structure that still defines direction, boundaries, and success.
Autonomy in these organizations is granted.
In a collaborative structure, authority isn’t distributed from above—it is held within the team itself. Direction isn’t set and passed down—it is shaped together. Accountability is not assigned; it is shared.
To be clear: increased autonomy increases participation – it doesn’t fundamentally change where authority sits.
Haier represents what’s possible when organizations stretch the limits of control. And that’s no small thing. Most organizations never get close. But it also shows the boundary. You can maximize autonomy and still be operating within a control-based system.
The real shift isn’t more autonomy.
It’s a different state entirely—one where authority itself is shared. That’s the move from control to collaboration.
And that’s a very different design challenge.
#ReThinkOrgs