What Drives Xiaomi’s Success? Lei Jun’s 10 Management Principles Revealed

Team First, Product Second

The most crucial factor for startup success is the team, followed by the product. Xiaomi’s founders spent extensive time interviewing candidates—sometimes up to ten hours in a single session—to ensure they attracted the right people who would eventually join the company.

Founders Must Prioritize Hiring

In Xiaomi’s first year, the founders devoted most of their effort to building a hardware team despite lacking industry contacts. The hiring process was arduous, involving months of negotiations and even dealing with agents demanding high equity and benefits.

Partners Cover Different Areas

Successful entrepreneurship relies on a strong team, as exemplified by Alibaba’s founders. At Xiaomi, each partner manages a distinct domain, enabling rapid decision‑making because no one interferes with another’s responsibilities.

Use the Best, Most Suitable People

Xiaomi seeks the most capable engineers, believing that a top‑tier engineer is not among the top ten but among the top hundred. They invest heavily in recruiting core engineers who are highly motivated and enjoy their work, fostering a culture of playful innovation.

Sustaining an Entrepreneurial Mindset

Employees with an entrepreneurial spirit become self‑driven, reducing the need for rigid KPIs. Xiaomi sets high‑level sales targets (e.g., 40 million units) but leaves detailed KPI execution to partners, focusing on process quality rather than strict metrics.

Reward the Team to Keep Employees “Happy”

Motivation is simplified to making employees feel “爽” (happy). Leaders should lower their stance, listen to staff desires, and provide clear benefits, equity, and autonomy from the outset, rather than vague promises near an IPO.

Flatten the Organization

Xiaomi eliminates excessive layers, maintaining a three‑tier structure: staff, core supervisors, and partners. This flat hierarchy encourages rapid innovation and aligns product and organizational design.

Turn Employees into Fans, Fans into Employees

Every new hire receives an engineering device and can share invitation codes with friends, turning employees into brand advocates and recruiting fans into the workforce.

Customer Service: People Over Process

Instead of strict procedures, Xiaomi emphasizes passionate staff. The customer‑service leader focuses on fostering genuine love for the job rather than overwhelming KPI dashboards.

Environment Shapes Behavior

A pleasant, well‑designed workspace—bright interiors, comfortable attire, and thoughtful amenities—instills pride and professionalism, leading employees to naturally maintain high standards and deliver better service.