---
title: "Live Toward Death, or Live Toward Life?"
description: "Whether it is 'living toward death' or 'living toward life,' both are language of transformation, representing two different mindsets for transformation, with the premise that transformation is needed. The representative of 'living toward death' is Zhang Ruimin, CEO of Haier, while the representative of 'living toward life' is scholar and manager Chen Chunhua. Both have won applause from society, and each has their own resonators. It is hard to say which is better, but both approaches have their own complete methodology, and success is possible along either logic."
author: "刘春雄"
publisher: "New Distribution"
email: "zhaobo258@gmail.com"
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published: "2016-09-07"
language: "en"
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---

# Live Toward Death, or Live Toward Life?

> Whether it is 'living toward death' or 'living toward life,' both are language of transformation, representing two different mindsets for transformation, with the premise that transformation is needed. The representative of 'living toward death' is Zhang Ruimin, CEO of Haier, while the representative of 'living toward life' is scholar and manager Chen Chunhua. Both have won applause from society, and each has their own resonators. It is hard to say which is better, but both approaches have their own complete methodology, and success is possible along either logic.

Whether it is "living toward death" or "living toward life," both are language of transformation, representing two different mindsets for transformation, with the premise that transformation is needed.
The representative of "living toward death" is Zhang Ruimin, CEO of Haier, while the representative of "living toward life" is scholar and manager Chen Chunhua. Both have won applause from society, and each has their own resonators.
It is hard to say which is better, "living toward death" or "living toward life," but both approaches have their own complete methodology, and success is possible along either logic.

**Living Toward Life**
In the preface to Shi Wei's new book on transformation, "Rebirth," Chen Chunhua elaborates on her viewpoint called "living toward life":
"First, do not transform for the sake of transformation; proceed with gradual and continuous change, try not to burn bridges, do not abandon current markets and products, and always ensure sufficient performance growth; only by surviving can you grow.
"Second, try a dual business model: maintain stable operation of existing businesses while laying out new businesses, balancing long-term development and short-term goals.
"Third, value and build multi-faceted trust relationships, including investor trust, employee trust, customer trust, and social trust, which is very important during the transformation period of interest restructuring."
Achieving "living toward life" is not easy because it means change and transformation must be done in advance, not waiting until it is "unavoidable," at which point you may have to "live toward death." Doing change and transformation in advance means simultaneously doing the following:
First, have a forward-looking vision of "planning the present with the future in mind." Contrary to most people's strategic planning of "designing the present based on the future," top domestic management experts influenced by Drucker, including Bao Zheng and Chen Chunhua, advocate that strategy is "planning the present with the future in mind," with the strategic thought that "present accumulation constitutes the future." So, "what is the future" is very important, which is precisely what is difficult in this round of strategy. Chen Chunhua's thinking still contains many traditional strategic thoughts.
When is the best time for reform? I think it is when business reaches its peak, because at that time you have unlimited reform capital. But who would think that this is exactly the time when reform is most needed? So, generally, companies think of reform when business is on the decline, or are forced to reform.
Ren Zhengfei of Huawei is a boss with advanced warning capability. For example, "Huawei's Winter" was proposed when winter had not yet arrived; if you wait until winter actually comes, it is too late. So, I think Huawei's reform is also a "living toward life" mindset.
Second, the "dual business model" ensures a smooth transition. Transformation enterprises, unlike startups, have no baggage; they have existing business, and cannot ignore it, so they need a "dual business model." I agree with Chen Chunhua's viewpoint and approach. Once the new business model succeeds, the transformation of the traditional model is no longer a problem.
Third, make transformation invisible. Transformation can be revolution, change, or improvement; as long as the goal is achieved. Good transformation can be invisible, not only in business model transition but also in internal structure and personnel adjustments. So, Chen Chunhua says that "investor trust, employee trust, customer trust, and social trust" are very important. Since it is transformation and reform, it inevitably involves interests and constraints; not everyone supports it, or they do not oppose abstract reform but oppose specific measures.
Of course, "living toward life" is difficult. Chen Chunhua previously at Liuhe and now at New Hope are practicing "living toward life" transformation and change. Although it is not high-profile, even low-key, this transformation method is one with minimal shock, lowest cost, and relatively high success rate.

**Living Toward Death**
Some say that in Chinese history, dozens of dynastic changes succeeded, but most reforms failed. Or the reform itself succeeded, but the reformer personally failed. So, some say reform is harder than revolution.
Living toward death is revolutionary reform.
Living toward death is also said to be "suicide for rebirth," or "place yourself in death to survive," "die first, then live." Only when the past self dies can rebirth occur.
When Zhang Ruimin took office in 1984, the situation he faced was "die first, then live." If death was not imminent, who would let you reform? So, enterprises at that time were marked by "die first, then live." Therefore, when we look at Zhang Ruimin's reform thinking, it bears historical imprints. Including Zhang Ruimin's language system, such as the widely spread "smashing refrigerators" incident, can be seen as creating momentum for the "die first, then live" and "burn bridges" mindset.
Here, it should be noted that "die first, then live" is somewhat different from "living toward death." "Living toward death" also originates from Zhang Ruimin's forward thinking.
"Die first, then live" often means that traditional ways can no longer continue, and change is forced. Many people originally opposed the internet, and now psychologically resist it, but when traditional ways fail, they have to try. In fact, most changes may be like this.
"Living toward death" is different: it is when business is good, foreseeing that without reform problems will arise, and making reforms in advance, but in a manner somewhat like "if not successful, then die."
For example, Zhang Ruimin's current reform, the three propositions of "enterprise platformization, employees as makers, and user personalization," is actually based on predictions about the information age. This era has not fully arrived, and there is even great debate about whether it will be as predicted. But in Zhang Ruimin's view, "there are only enterprises of the era, no successful enterprises." Since this era is coming, change in advance. So, this is also a change with "advance warning."
Unlike "living toward life," "living toward death" leaves almost no retreat. Especially in cutting about 10,000 management personnel, "either become an internal maker or leave the enterprise," this leaves no retreat, truly "living toward death."
Of course, in specific measures, existing business must be considered. Taking Haier's smallest operating unit, the "micro-enterprise" (xiaowei), as an example, Haier has two types: "maker micro-enterprise" and "transformation micro-enterprise." "Maker micro-enterprise" is a brand-new startup, which is incremental; "transformation micro-enterprise" is the transformation of existing business.
Haier's transformation has been ongoing for more than 10 years, but the determination was not as strong as now. This approach is debated domestically, and some international experts comment it is bold. Perhaps, in the internet age, it is time for China to export management to the world.

**The "Grip" of Life and Death in the "Unmanned Zone"**
Whether "living toward life" or "living toward death," there is an implied statement: following the old path leads to a dead end.
Throughout the industrial civilization era, China was a chaser, with road signs ahead. What we need to explore is the "Chinese-style path." Compared with the macro "Chinese-style," the micro "Chinese-style" is actually less.
Entering the information civilization era, China suddenly ranks among the world's forefront, or is tied for the forefront. According to Ren Zhengfei, we have entered the "unmanned zone," and we have become others' "road signs." Becoming a "road sign" has a cost; it may also mean that the road ahead is not passable, or is a dead end.
At this time, having only the courage of "living toward death" or the concept of "living toward life" is not enough; we also need a "methodology for living." In this regard, we lack thinking too much. From this perspective, I appreciate Ren Zhengfei. His speech at the Science University, I think, is classic, and I consider it the "survival methodology for leaders."
First, the distributed "multi-path, multi-echelon" strategy. Ren Zhengfei said: "Internally, research and verification of uncertainty are implementing multi-path, multi-echelon attacks, with dense ammunition and saturation attack."
Second, the "Blue Army strategy." The "Blue Army" was originally a mirror to test the "Red Army," but in the "unmanned zone," the "materialization of the Blue Army" has become an important strategy for Huawei.
Third, praise "imperfect heroes." "Do not judge heroes by success or failure; extract factors of success from failure, summarize, affirm, and praise, so that exploration continues. For future exploration, there is no such word as 'failure'; imperfect heroes are also heroes."
Fourth, openly absorb energy from the universe. "We encourage scientists from our dozens of capability centers, tens of thousands of experts and engineers to strengthen communication and collide ideas; a cup of coffee absorbs others' sparks and energy, turning strategic technology seminars into a 'Roman Square,' an open platform for scientific discussion, letting the sparks of thought ignite a blazing fire."

**Methodology for Change**
In the internet age, there is too much debate and it is hard to reach a conclusion. By the time everything is understood, the opportunity may have passed. This era needs a new methodology for change. Based on my experience, there are several key points:
First, separate the roles of chairman and general manager. One looks outward, the other inward. One introduces new forces, the other is responsible for stable operations. Although there are companies where one person does both well, in times of transformation, separation is important.
Second, have a long-term stable "outsider" as an advisor. "The onlooker sees the game best" is common, so a clear-headed "outsider" is needed to remind at any time. Many companies need advisors, but they are just "doctors" when the company is sick.
Third, enter a "new circle." A circle becomes a circle because of many similarities. Entering a "new circle" means seeking differences. In an old circle, conservatives may become more conservative because they reinforce each other.
Fourth, have a mindset of "self-questioning." Confidence often manifests as "self-righteousness," which is positive reinforcement. For things you do not understand or are unfamiliar with, do not instinctively or arbitrarily reject them; delve in to understand.
Fifth, dare to try. Small-scale trials, partial trials, trials that do not harm the core, and verification.

**New Construction, or Reconstruction, or Renovation?**
A few days ago, after the article "Reconstructing the Marketing System Is Imperative and Urgent" was published on the official account, marketing expert Shi Xianlong proposed that "new construction" is better than "renovation" or "reconstruction." This is indeed a common problem in transformation and change.
Changing a person is difficult, changing a group of people is harder, and changing a group of people with habits is especially hard. Besides ideological issues, this is the problem encountered in transformation and change.
Indeed, new construction is relatively easy. But for enterprises with huge scale, renovation and reconstruction are necessary processes. First new construction, then renovation may become a logical approach.
The successful are not blamed. Once a new thing succeeds, it will have a huge impact on the existing business, and then reconstruction or renovation is no longer difficult.

-END-
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