Corporate Culture Reform at Midea China

In a bold move to transform corporate culture, Midea Group, one of China’s largest home appliance manufacturers, has introduced six significant workplace reforms that challenge deeply entrenched practices in Chinese corporate culture.

The most impactful change targets the widespread PowerPoint dependency in corporate communications. Under the new policy, PowerPoint presentations are prohibited for internal communications, including work reports, summaries, and performance reviews. This addresses a common issue where employees spend excessive time crafting elaborate presentations rather than focusing on substantive work.

The second major reform prohibits business meetings outside working hours. This measure aims to protect work-life balance and eliminate the practice of holding lengthy evening meetings that often extend late into the night. Historically, after-hours meetings have been a significant source of workplace stress and inefficiency in Chinese corporate culture.

Another noteworthy change is the reduction of WeChat groups and the elimination of empty formalism in digital communication. The proliferation of redundant chat groups and performative interactions like sending motivational messages has created unnecessary digital noise and reduced productive communication.

The initiative also addresses the issue of proxy report writing, particularly for senior executives. The new policy requires all employees, including top management, to write their own materials. This change promotes authenticity in communication and ensures leaders are genuinely engaged with their work rather than delegating core responsibilities.

The reforms extend to administrative processes by reducing manual reporting requirements and emphasizing digital dashboards for management oversight. This shift towards data-driven management aims to eliminate redundant paperwork while maintaining effective oversight.

Perhaps most significantly, Midea has banned internal gift-giving and non-essential social activities, including entertainment events with clients such as karaoke (KTV) sessions. This represents a departure from traditional Chinese business practices where relationship-building often relies heavily on social activities and gift exchange.

These reforms signal a dramatic shift in Chinese corporate culture, challenging long-standing practices that prioritize form over substance. The measures directly address common sources of workplace inefficiency and stress, potentially setting a new standard for corporate governance in China’s evolving business landscape.

The success of these reforms will largely depend on consistent implementation and buy-in from both management and employees. While some resistance is expected, particularly from those who have benefited from traditional practices, the changes reflect growing recognition that Chinese businesses must evolve to remain competitive in the global marketplace.