Haier’s People-Unit Integration and T Model

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The T-model is a budgeting system designed to achieve competitive market goals; it divides the entire process of the group in creating orders, acquiring orders, and fulfilling orders into 13 stages. The \"T\" day, when production begins based on orders, serves as the starting point for progress from both ends. \"T-\" represents the support for the goals set at the \"T\" day, while \"T+\" represents the enhancement of those goals. 　　Case: Qiu Zhihao enjoys “visiting stores”. Qiu Zhihao is a refrigerator product manager in Chengdu. In March 2006, he met the sales target for three refrigerators in 23 days, and exceeded his overall sales goal by 100% in just 20 days. How was Qiu Zhihao able to achieve his goal so quickly? Qiu Zhihao said: This is a benefit derived from the budget. 　　When it comes to \"pre-budgeting,\" Qiu Zhihao has deep insights: in February, Chengdu’s sales of three-door refrigerators only reached 85% of the target, and the reason was the lack of \"pre-budgeting\"! Towards the end of February, Qiu Zhihao realized that he would not be able to meet his targets. After analyzing the situation, he found that the main problem lay with the specialty stores – there, the three-door color crystal refrigerators not only had poor samples, but in some of those stores, the latest models of such refrigerators were not even available for display. But now, no matter what measures are taken, it’s too late. It was only at this point that Qiu Zhihao truly understood that the \"analysis results\" were merely related to carrying out the \"T+\" process; to achieve the goals of T, it was necessary to do a good job in the \"T-\" phase, and \"pre-budgeting\" was the approach associated with the \"T-\" model. 　　After that, Qiu Zhihao began to create \"advance budgets.\" In these budgets, he found that as long as the budget was adequate, things would generally turn out exactly as planned. For example, in March, the Nanchong area achieved its goal in just 20 days, as planned in his budget. 　　Some time ago, Qiu Zhihao noticed while visiting stores that the Nantianhe specialty store in the Nanchong area was unable to meet its budget targets for March, as the order volumes from 35 rural outlets were insufficient to support the achievement of those targets. Qiu Zhihao approached the owner of the Southern Tianhe specialty store to plan in advance the training and resource support for the rural networks. As a result, after the plan was implemented in March, rural outlets began to pick up orders, with 300 refrigerators being picked up on the busiest day. Thanks to the effectiveness of these networks, the entire Nanchong area was able to achieve its goals in just 20 days, as planned.