The Role and Influence of Corporate Culture in the Development Process of Enterprises—A Case Study of miHoYo in Shanghai

Abstract: Established in 2011, miHoYo has successively launched multiple high-quality popular products, including “Honkai Impact 2,” Honkai Impact 3, “Uncertain Event File”, “Genshin Impact, “Honkai: Star Rail, dynamic desktop software “Artificial Desktop,” and community product “miHoYo Community.” Diversified products such as animations, music, and peripherals have been created around original intellectual properties. The upcoming “Lost Ark Zero” is also widely anticipated by players worldwide.

Adhering to the mission of “tech otaku saving the world,” miHoYo has consistently dedicated itself to technological research and exploration of cutting-edge technologies in areas such as cartoon rendering, artificial intelligence, and cloud gaming technology, accumulating advanced technical capabilities.

It was reported that on December 8, miHoYo’s “Honkai: Star Rail” won the Best Mobile Game at GTA 2023, and “Genshin Impact” was nominated for Best Operational Game.

Keywords: Corporate Culture, miHoYo

Corporate culture refers to the spiritual and material wealth created in the production, operation, and management activities of an enterprise under certain conditions. It includes the company’s vision, cultural concepts, values, corporate spirit, moral standards, behavior guidelines, historical traditions, corporate systems, cultural environment, and products. Among these, values are the core of corporate culture. In recent years, corporate culture has often been found in well-known enterprises, with successful companies having their own set of corporate cultures. With the transformation of China’s economic development and the upgrading of modern industries, school-enterprise cultural exchanges and integration have become increasingly frequent and profound. More people are paying attention to and understanding the profound connotations of corporate culture.

Table of Contents

1.Introduction to Shanghai miHoYo Company

2.The Enormous Impact of a Good Corporate Culture on Company Development

1.Introduction to Shanghai miHoYo Company In 2011, Shanghai Jiao Tong University graduate students Liu Wei, Cai Haoyu, and Luo Yuhao received a 100,000 RMB grant from the Shanghai Science and Technology Entrepreneurship Center’s “Chuhuang Project” to establish miHoYo. In January 2014, miHoYo launched the 2D shooting game “Honkai Impact 2,” and in July, the four-panel comic “Honkai Impact Academy” was released. In October 2016, the 3D action game “Honkai Impact 3” was launched. In February 2017, miHoYo submitted an A-share listing application to the China Securities Regulatory Commission. In the same year, the number of accounts for “Honkai Impact 2” exceeded 44 million. On September 28, 2020, “Genshin Impact” officially started global simultaneous public beta testing. In July 2022, miHoYo’s overseas version of “Genshin Impact” continued to sit at the top of the US overseas revenue chart with a revenue of 140 million USD.
2. The Significant Role of Good Corporate Culture in Company Development: Insights from miHoYo

“In our company, it’s not because we have such a vision that we have such a company. It’s because we have a group of people together that we can do such things and become such a company. What defines such a group of people, and what sets them apart from other groups? It’s our philosophy and culture. When a group shares consistent beliefs and harmonious culture, they discover that their ideals are similar, and their methods are aligned. From then on, they unite to save the world and become heroes. So, please remember our culture: ‘Say what you mean, and mean what you say. Acknowledge only achievements, pursue excellence.'” — A former operations personnel at miHoYo elucidates on their culture.

“Saying what you mean” means: Within miHoYo, any commitment made in any form should be completed with quality within the committed time. Commitments can take the form of an email, a task on TAPD, a chat on WeChat, or even a casual remark in the hallway: “Hey, I’ll get this done for you tonight.” In this context, “saying what you mean” implies delivering on your commitments within the specified time frame while ensuring quality.

Why “say what you mean”? “Saying what you mean” is the fundamental guarantee of execution for the normal progression of projects. If individuals cannot fulfill their commitments on time, they cannot base larger team plans on these commitments, rendering their product plans mere talk.

Of course, as a digital entertainment product, various risks may arise in software engineering, making it even more crucial to scientifically estimate and plan.

How to achieve “say what you mean”?

Clarify task requirements before making commitments During the discussion phase of a task, if you have any doubts about its purpose or requirements, be sure to bring them up face-to-face. Never assume “it should mean this” as there may be significant deviations between your understanding and reality.

What basic information do you need to clarify?

What is the deliverable? (Is it an email with a work plan, completed code for a feature, or turning off the air conditioner at the end of the day?)

The measurement standards for the deliverable, the degree of completion of the work. Is there a consensus on the criteria for good or bad? (Functional? User-friendly? Friendly? To what extent?)

The deadline for delivery, also known as the Deadline.

Even if your leader or partner does not define these issues clearly, communicate them explicitly, as it directly affects whether you can “say what you mean.”

In addition to these direct requirements, information such as the relationships between tasks, cooperation with people assisting with the task, etc., can help you better understand the task. After fully understanding the background information of the task, try to break down the task into sub-actions, assess the time and resources required for each small action, and then provide a truly pragmatic, achievable commitment.

Never commit to uncertainties When a work task is uncertain, the correct and safe approach is not to make hasty commitments. You should bring out any uncertainty factors you see and proactively understand these uncertain situations.

For uncertain issues that cannot be assessed, make an attempt, test the waters, estimate a research time. When the research time arrives, or when there is a stage conclusion, proceed with the next assessment.

Absolutely do not make commitments for things you are unsure of, driven by factors such as saving face or succumbing to pressure from team leaders. Especially for newcomers or those unfamiliar with project situations, remember that not making commitments is the most responsible practice. Otherwise, the entire project’s progress expectations will be delayed, not just the current task.

Thoroughly subdivide and accumulate time; a reliable estimation method To evaluate a reasonable task completion time, I recommend the following method:

After fully understanding the requirements, subdivide each requirement and goal until it cannot be further subdivided. Then, calculate the time for each sub-division and accumulate them. This should yield a relatively reliable result. Generally, the time for a subdivided task should not exceed 2 days. Otherwise, I would consider that the task must have room for further subdivision and necessity.

Remember, the foundation of “say what you mean” is to make commitments that are realistic and achievable based on thorough understanding and careful estimation.


Title: Straight Talk Culture: Navigating Open Communication at miHoYo

In miHoYo, the principle of “straight talk” is fundamental in fostering a culture of open communication. When encountering issues or perceiving shortcomings within the company, the only correct approach is to directly address the problem with the involved party, objectively presenting the concerns. This practice is essential for two crucial reasons:

A Key Guarantee for Outstanding Products:

In a team, each individual, whether a producer, planning lead, or art director, has inherent limitations. People excel in certain areas while having shortcomings in others. Recognizing this, the pursuit of excellence in product development relies on a team approach where strengths complement weaknesses. “Straight talk” ensures diverse perspectives are heard within the team, enabling individuals to understand the limitations of their focus and gain a comprehensive view of the issues. Thorough examination, guided by logical reasoning, leads to better decision-making.

Avoiding Ostrich Approach to Problems:

miHoYo acknowledges past mistakes of neglecting small issues, allowing them to escalate into significant problems. Timely exposure and resolution of small problems are cost-effective and diverse. However, when issues accumulate, they spread like viruses, causing widespread damage. Embracing “straight talk” guarantees the early detection and resolution of problems, preventing the accumulation of challenges that can jeopardize team unity and product success.

How to Practice “Straight Talk”:

Direct and Timely Face-to-Face Communication:

Address problems directly with the involved parties, avoiding discussions behind their backs. In a healthy work environment, discussions about issues should happen openly and not in the form of anonymous whispers or office politics. Openly discussing problems, creating a direct communication environment, is the correct approach.

Objective Statements Focused on Issues, Not Individuals:

Present objective facts when discussing issues—evaluate correctness, provide supporting evidence, and suggest potential solutions. Differentiate between addressing the issue and attacking a person’s character or personality. Focusing on the issue facilitates problem resolution, while personal attacks contribute nothing positive.

Confronting Conflicts to Achieve Consensus:

Contrary to popular belief, avoiding conflicts does not maintain harmony; it only postpones conflict resolution opportunities. Facing and proactively resolving small conflicts maintains long-term trust. Handling disputes openly and positively results in high-quality discussions, providing a chance to understand and resolve differences.

Maintaining an Open Mindset and Considering the Bigger Picture:

Encourage open communication, but it doesn’t guarantee that every suggestion or criticism will be accepted. Decision-making authority is often left to the individuals responsible for specific tasks. Acknowledge that factors like timing, available information, and different perspectives influence judgment. Focus on the common goal, and if disagreements persist, establish a mutually agreed-upon decision-making method, such as voting or relying on clear authority.

Challenges to “Straight Talk” at miHoYo:

Monday-Morning Quarterbacks:

Individuals who criticize after the fact, claiming they saw issues all along.

Backstabbers and Faction Creators:

Those who talk negatively behind people’s backs, forming small groups and engaging in office politics.

Inability to Distinguish Between Issues and Individuals:

Individuals who fail to separate objective problem-solving discussions from personal attacks.

Passive Bystanders:

People who observe problems but choose to ignore or remain indifferent to them.

Egocentrists:

Individuals who prioritize personal will over collective decisions.

In conclusion, “straight talk” at miHoYo does not equate to a one-person-one-vote system. It emphasizes the importance of exposing issues to help decision-makers obtain a broader perspective. The philosophy is rooted in the belief that those on the frontline making decisions possess the most comprehensive information and should be accountable for the outcomes. “Straight talk” serves as a tool to enrich decision-makers’ understanding, enabling them to make more informed choices in a complex and dynamic environment.

“Only Recognizing Achievements” is a philosophy emphasizing a results-oriented approach. It carries two main implications:

Results as the Primary Evaluation Criterion:

At miHoYo, the primary judgment criterion for any task or individual is the quality of the results achieved. The focus is on whether the outcomes are positive or negative. Only when a task yields favorable results is there further consideration of the methods employed and their rational and scientific significance. In essence, no matter how well-managed or harmonious a team is, if the results are not satisfactory, other considerations become irrelevant.

Embracing Excellence and Offering Rewards:

miHoYo adheres to the principle of associating with outstanding individuals, collectively achieving remarkable results, and rewarding everyone accordingly. The company does not adhere to hierarchical norms but places utmost importance on evaluating individuals based on the outcomes they deliver. Whether someone is a newcomer or a seasoned professional, and regardless of their position within the company, good results merit corresponding recognition and rewards.

Why Adopt “Only Recognizing Achievements”?

This organizational culture is designed to ensure two key principles:

The Primacy of “Business First” Principle:

Business, in this context, refers to catering to the market, meeting user demands, and generating profits. miHoYo’s core value lies in satisfying the needs of their target users, creating value for them, and earning reasonable profits. If the company fails to create value for users and meet their needs, discussions about well-established company systems, advanced corporate culture, and talented personnel become irrelevant. The emphasis is on delivering products that align with user needs, making this cultural approach meaningful.

Empowering Team Members for Optimal Performance:

Specific product details at miHoYo are decided by frontline team members. Embracing a culture of only recognizing achievements ensures that team members’ abilities are fully utilized, and they receive direct recognition and rewards. Opportunities are open at all times; if someone sees an opportunity within the team or a project and wishes to contribute, they are encouraged to step forward. A notable example is the recruitment of customer service team members who transitioned to various positions within the company, including development roles in programming, art, and planning.

Ensuring “Only Recognizing Achievements”:

Equally Opening Opportunities for Every Team Member:

miHoYo’s recruitment process is meticulous, aiming to understand the talents and traits of each new team member during interviews. However, recognizing that their understanding may be incomplete or that the capabilities of team members might be underestimated, they ensure that opportunities are open to everyone within the team or project. At any given moment, if someone identifies an opportunity and wishes to contribute, they are welcome to do so.

Ignoring Credentials, Focusing on Results and Contributions:

The company’s results-oriented approach disregards credentials, seniority, and the amount of effort put in. Recognition and rewards are solely tied to the quality of the outcomes achieved. The company values ideas over age, and being young does not diminish one’s worthiness of respect and collaboration. miHoYo believes in the potential of talented young individuals who can surpass their predecessors and should receive outstanding rewards.

Pragmatic Principles to Eliminate Formalism:

“Only Recognizing Achievements” also means eliminating any form of formalism. Every effort and action should be genuinely directed towards achieving results. For instance, in meetings, where discussions are essential for problem-solving, the company reminds itself to stay focused on the goal of resolving issues. If a meeting becomes overly formalized without contributing to problem-solving, adjustments should be made to the meeting’s content, or it should be terminated. The sole criterion for individual performance evaluation is the quality of results achieved, not the number of hours worked or the extent of overtime.

Feel free to ask if you need more details or have specific sections you’d like to focus on.

miHoYo’s Attitude Towards the Pursuit of Excellence:

The value of pursuing excellence is not uncommon, but miHoYo’s demands in this regard may exceed expectations, characterized by an almost fanatical pursuit of excellence. To encapsulate this, the company aspires to create products that are not just top-notch but surpass the highest standards.

In the realm of product development, miHoYo avoids settling for second-rate products. However, they don’t aim merely for first-rate; their goal is to produce products that transcend the definition of excellence. What qualifies as a product exceeding excellence? In my perspective, there are two scenarios: firstly, a product that significantly outperforms all similar products in the market. Secondly, a product that goes beyond user expectations, delivering something users need but never imagined. An illustrative example is the launch of the iPhone, where the design surpassed users’ previous expectations of what a smartphone could look like.

To underscore their extreme pursuit of excellence, consider this unconventional example: as the CEO, faced with a choice between developing ten games with a revenue of 10 billion or creating a single game surpassing the quality of the previous ten but with an annual revenue of 5 billion, miHoYo would unhesitatingly choose the latter, even if it means earning half the revenue. This exemplifies their extreme dedication to the pursuit of excellence.

Why Pursue Excellence to Such an Extent?

To understand this, one must delve into the unique industry environment miHoYo operates in. Engaged in the creation of games and animation, often classified as digital creative products, miHoYo operates in a market where the adage “Winners take all” holds true. This aligns with the current market landscape, where the top product captures a significant market share. In the digital creative industry, where marginal costs are nearly zero, and global cultural differences are diminishing, the potential for a top-tier product to rapidly gain market share and generate substantial profits is immense. Thus, miHoYo’s extreme pursuit of excellence is driven by the fierce competition and the potential for extraordinary returns on investment.

How to Achieve the Pursuit of Excellence:

Everything Others Can Do, We Can Do:

miHoYo adheres to the logic that if someone else can accomplish a task, they can do it too. Historical instances reflect this approach, such as when developing “Honkai Impact 2,” a game created using Unity, a technology they had not used before. Observing other teams achieving smooth and detailed skeletal animations using Unity and Maya, miHoYo chose the same technical path and successfully replicated the fluid performance on iPhone 4. The logic here is grounded in the fact that, within the digital creative industry, miHoYo has access to the same production tools and knowledge as other top-tier companies globally.

Nothing Is Impossible:

The statement “nothing is impossible” may sound like a motivational cliche, but miHoYo considers it an attitude. When encountering difficulties, saying, “This cannot be done” is a serious attitude problem at miHoYo because it contradicts the ethos of pursuing excellence. In their view, if given 200 years, many currently inconceivable things could become possible. The determination to overcome challenges and the belief that solutions can be found are crucial components of their attitude towards excellence. When facing a seemingly impossible task, the correct approach is to communicate the reasons behind the perceived impossibility. Issues might stem from historical code problems, necessitating a two-week code refactoring before spending three days on the feature. Transparency in communication is key.

Additionally, miHoYo emphasizes that the judgment of whether something can be done or not must consider various factors. It requires a comprehensive analysis of information from all sides, rather than a unilateral and hasty conclusion. Only by raising such issues can a more effective solution be explored, including potential workarounds to bypass difficulties while still meeting requirements.

In their ongoing projects with teams ranging from dozens to hundreds of people, the pursuit of excellence demands that each individual focuses on optimizing their specific tasks. With such a large team, no one can oversee every detail of the entire project. Hence, achieving excellence in the end product necessitates that each team member strives for perfection in their respective areas. Only when everyone pursues excellence can the fundamental modules of the product be perfected and seamlessly integrated, resulting in an exceptional end product.

In summary, miHoYo’s unique industry environment and their commitment to creating the best drive their fate towards the pursuit of excellence.

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