Alibaba: The House Jack Built

Alibaba’s “Six Veins” of Success

Ma launched Alibaba in 1999. China had only two million Internet users, a personal computer cost a prohibitive $1,500, and Chinese phone connections were expensive and slow.

“In the earliest days of China’s economic reforms, entrepreneurship was viewed as a highly risky, even illegal undertaking.”

Ma inculcated his corporate culture with Six Veins, the principles he considers crucial to success:

“Customer first”: While rivals Baidu and Tencent hire mostly technical workers, Alibaba seeks sales employees, reflecting its focus on customers.

“Teamwork”: Alibaba workers sing songs, play games, and join group outings. Alibaba focuses on people’s efforts over their results. People meet their goals by breaking them down into small steps. High-performing teams receive generous bonuses as rewards.

“Embrace change”: Alibaba shuttles staff members between assignments. Chinese culture teaches that failure is “shameful,” but Alibaba encourages workers to accept failure as part of life.

“Integrity”: Corruption is endemic in China. Merchants who sell on Alibaba try to compromise the site’s overmatched “referees.” To maintain integrity, Alibaba rotates workers constantly, not only as part of its ethos to embrace change, but also to prevent them from establishing “alternative centers of power.”

“Passion”: Employment at Alibaba requires hard work and dedication.

“Commitment”: Ma tells his employees to “work happily but live seriously,” to reinforce their bonds with the company.