On Sept. 13, Lei Jun, Founder and CEO of the popular Chinese electronics company Xiaomi, announced a big systematic adjustment to the organizational structure and personnel appointment through an internal email. It is the first adjustment Xiaomi has made after the company went public in July, and the biggest structural change in its history.
Moving towards a flatter organizational structure, Xiaomi now has ten operating departments headed mostly by young people in their 30s who report directly to Lei. Originally divided into four departments of TV, eco-chain, MIUI and entertainment, the ten new departments comprise of four Internet departments, four hardware departments, one e-commerce department, and one technology platform.
In addition, an organization department and a strategic advisory department have been recently added to strengthen corporation management. The former is responsible for the recruitment, promotion, training, and evaluation of senior management personnel as well as the organizational structure of each department while the latter is designed to assist the CEO in developing the company’s strategic plan and supervise its implementation.
The marketing department will also go through a number of changes. The public relations team will now become an individual department and report directly to Li Wanqiang, Xiaomi’s co-founder and brand strategy officer. The rest of the marketing department, combined with the e-commerce marketing group and the new media group, will become the marketing department of sales and services.
Lei points out that as a company with 100 billion yuan in revenue and over 20,000 employees, Xiaomi must prioritize organizational management and strategic planning to ensure the company’s sustainable development.
Lei also emphasizes the significance of cultivating and appointing young management staff. He aims to build a more dynamic forefront team and encourages driven young professionals to grow and develop on the front line.
The Beijing-based company, which is the world’s fourth largest smartphone supplier, went public in the Hong Kong Stock Exchange in July, raising $5.4 billion from its initial public offering.