This company philosophy was inspired by the heroic tales of the Glorious Revolution that took place in England in 1688. It is good for society and can greatly increase social wealth. Are you starting to think about how your own intellectual property like chips could be used and sold to third parties like Apple? After getting, retired from the military, Ren has planned to work in electronic business. This introductory chapter offers an overview of the entire book on the management transformation of Huawei. So we've decided that our. The factory's equipment was from France, and at the time, it was some of the world's most advanced equipment with a high level of automated controls. Although he has introduced a strong focus within Huawei on continuously learning and reflecting, he leads his company with the passion of a true founder. Arjun Kharpal: Mr. Ren, as we come to the end of the conversation, I want to focus on your future. Rebelling from the top means taking on the biggest challenges only when you have the most firepower. All Rights Reserved. 5G technology was not invented by Huawei. They need to recognize what aspects of the status quo need to be challenged and they need the discipline to avoid wasting time rebelling in ways that are not strategic and wont move the organization forward. If you'd like to share this PDF, you can purchase copyright permissions by increasing the quantity. We have reflected on this a lot. Mr. Ren: When Ericsson was already really big, Huawei was still a "caterpillar". I would have to repay tens of billions of dollars in debts. This case focuses on the distinctive "paternalistic" leadership and management style of Ren Zhengfei, founder of Huawei Technologies Co., Ltd. (hereinafter "Huawei") and considers whether he needed to adapt his style in light of new challenges at the company. Ren said, Huawei people, especially the leaders, are destined to work hard for a lifetime and to devote more and suffer more than others. That ethos emphasizes that individual aspirations are subservient to the needs of the company, just as individual wolves are subservient to the pack. Mr. Ren: I don't know what the US is after and have no idea how they are going to resolve the trade disputes. This idea of adopting a cooperative mindset in a competitive market can be illustrated by Huaweis efforts in the UK. Of course, we can still be concerned about this, but we believe we will have the ability to harness AI and create benefit. Moments of theater are a potent part of a CEOs toolkit for communicating and reinforcing an ethos. Academics were reluctant to engage with executives. In that case, billions of dollars would be stuck in the US. Beset by internal and external challenges, Huawei needed to completely rethink its approach to business, corporate culture and company management. However, monopolies in these kinds of technologies will benefit the world, rather than harm it. It at least might give us time to find real cures. Whether or not we can get back to business in the US depends on whether our customers want to buy from us. Ren Zhengfei's Media Interview After the Opening Ceremony of the Intelligent Mining Innovation Lab in Taiyuan. Mr. Ren: In a long run, I can tell you clearly that I will retire as I won't be alive forever but in a short term, it depends on my mental agility as I get older. But unfortuetely he fails to, achieve military rank, due to which he was not allowed to join communist party of China for, continuing his career in Military field as, Ren Zhengfei family belongs to social background and, Ren Zhengfei was accountable for many, technological achievements. After, completing his school, He attended the university named Chongqing and then Ren Zhengfei, joined Peoples Liberation Army research institute as, he wishes to work as a military technologist, reportedly in the PLA's Information Technology research unit. Join us in Amsterdam for the 2023 European Compliance & Ethics Institute! Huawei is to a large extent no stranger to this system. At Huawei, we often talk about the term of "Van Fleet Load", which was invented by a general of the US army. Therefore, he often uses similar way to manage the company like the military system does. In a way obsessed by doing good for the customer, Zhengfei is relentless in communicating this purpose by means of stories to his employees and convincing them that they all should be dedicated to pursue the mission of the company: To connect people via communication.. Do people know what type of leader you are and what to expect when they interact with you? If so, what did she say to you? However, Ren zhengfei and Huawei made it in the end. Google is now helping blind people see the world with nerve sensors, although they are not as good as human eyes. These difficulties will make her stronger and prepare her for even greater things ahead. Huawei is to a large extent no stranger to this system. An organization offers telephone exchange equipment. Back then, we couldn't use testing instruments from foreign countries. He does not only consider this kind of power to be an important personal characteristic but sees it as an essential part of the Huawei culture. Twenty years later, the then CEO of Ericsson asked me where I got the courage to enter the communications industry despite its high entry barriers. Second, Huawei is being stuck in an extremely difficult situation the US is launching intense attacks against us. Arjun Kharpal: Let's talk a little bit about the US for a moment. Especially in the entrepreneurial years of the company he used this strategy to be both a strong mentor and leader for his employees. With Huawei becoming the largest telecommunications equipment manufacturer in the world, Ren zhengfei has already become a paradigm for businessmen to study and learn from. Create a free website or blog at WordPress.com. Tanks can cross a swamp, but needles can pierce hard things through. So George revamped the universitys advisory board meetings. Mr. Ren: Collaboration and shared success. Every generation produces its own great character, and each exerts impact for hundreds of years. True to this Chinese saying, Zhengfei has indeed proven that he had the influence and insights needed to design the most effective strategies to ensure that Huawei has grown into a world leading company. I told him that I didn't actually know that the barriers were so high, and once we had entered the industry, there was no turning back. | All rights reserved. Founder of Chinese tech giant Huawei Technologies Ren Zhengfei has called on the company's staff to "dare to lead the world" in software as the company seeks growth beyond the hardware. If that happens, we will just sell our products to other countries that do accept us. First, we want to provide the best connectivity in the world, and 5G is part of connectivity. He created a new position, director of external relations, and placed that director and the director of marketing on the management committee. Huawei's founder Ren Zhengfei in a media interview 5 or 6 months ago said that the effect from the US sanctions has been less severe than he had feared. These experiences taught me to endure hardships. The country paid little attention to technology and knowledge, but we were working on a project that required technology and knowledge. Huawei is now the world's largest telecoms equipment maker. And you've said that you want to be number one in smartphones. I would say he is a great president. Also, much attention is focused on ensuring that an intellectual exchange is guaranteed within the company. We will also push the Chinese government to sign a cyber security agreement with the German government. This was because we were never intended to engage in military operations. Every year we invest more than 20 billion US dollars in it. Or do you feel sometimes they are intimidated by that style of leadership? We did not know that these small things were designed to connect the whole city or even the whole world. Interestingly, such a strategy suggests that a power of thinking attitude aligns with a shared learning orientation. and pay only $8.75 each, Buy 11 - 49 document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Mark your calendar for these stimulating events and prepare to be inspired. Arjun Kharpal: I want to go back a little bit to talk about the US-China trade war because Meng Wanzhou was arrested in Canada on behalf of the US authorities. AI can help translate text into 70 different languages simultaneously. After learning from the West for almost 20 years, Huawei has established an increasingly standardized and institutional decision-making system. That requires stepping out of the normal flow of organizational life. She's, of course, facing extradition to the U.S. How did you feel after her arrest in December? Part of making the dreams of customers to come alive is the idea that providing the best service possible is crucial to the success of the company. Consequently, Huawei's performance took a nosedive and employee satisfaction also sank. In 1960, there was a serious famine in Guizhou Province. The railway and machinery troops were let go along with us. Being born blind and deaf is caused by missing of genes. We have become what we are today with our own strength. Executives may want to develop these OQ competencies on the way up the ladder and theyll certainly need them if they are to succeed at the most senior levels. Why cannot we edit human genes? Huawei has indeed invested considerably in creating a learning driven culture where the power of the mind is visible. To give the new changes time to take effect, he delayed a formal discussion of the new strategy until his third year, by which time both revenue and ranking were higher and attitudes had become more favorable. Our strategy for investment is like this: If a technology is still two billion light years away, we may invest just a little money, like a sesame seed. By the time I left the military, 186, 286, and 386 had dominated the computer world. They have great technologies, skilled labor, and economic strength. That's why we told the German government that we are willing to accept their regulation. If the US thinks we can be used as a pawn, I'd say they probably have the wrong person. Zhengfei was very clear about this ambition and demanded that all Huawei employees would adopt the US-based way of looking at business as introduced by IBM. The simpler and clearer, the better; organizational members at all levels suffer from information overload, so leaders need to be selective about what messages to send. In particular, the emergence of AI has accelerated social progress. True to this Chinese saying, Zhengfei has indeed proven that he had the influence and insights needed to design the most effective strategies to ensure that Huawei has grown into a world leading company across three phases, each lasting about a decade. Mr. Ren: We have calls quite often, talking about family. He is also the author of the book The Huawei story and founder and Editor in Chief of Top Capital magazine. The qualities that help managers rise in the organization emotional intelligence, high IQ, technical competence, and so forth dont necessarily make them effective once theyre in a leadership position. We believe US laws are open, transparent, fair, and just. In the early years of Huawei, Zhengfei was very much aware that their products did not meet the standards of those of its competitors. So this won't impact us too much. Second, develop an organizational persona. If we spread things too thin, there is no way we will be successful. In a way Zhengfei works hard to always keep clear to himself a kind of meta-view that enables him to make informed strategy decisions. and pay only $8.25 each, Buy 500 or above It's now just a scientific fantasy, and wouldn't necessarily ever happen. But in both cases he was brought down partly by accusations of inappropriate dealings with insiders, such as getting his banks to buy services from his wifes architectural firm. On April 12, at the "16+1 Summit" in Croatia, Premier Li repeatedly told all our employees not to install backdoors on networks. A great opportunity arose when one senior professor complained that the teaching program staffers acted as if the faculty worked for them, rather than the other way around. In particular, we will build the simplest networks, ensure cyber security, and protect user privacy. Strategies are implemented not by CEOs and other top executives but by the many people who choose on a daily basis whether to take actions that support or undermine what top management wants to achieve. But our strategy of focused investment never changed as our capital grew. Moving forward, we will invest more in this direction. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. Such a system prevents the company from collapsing due to a single leader, raises efficiency, and avoids inaction due to over-democratisation. We are going to make this happen. The US hasn't been scared of anyone or anything though. And also, some countries have also said that Huawei could be a risk because it could work for the Chinese government and carry out espionage on behalf of Beijing. Arjun Kharpal: Mr. Ren, you talk a lot about the distance between Huawei and the Chinese government. People will be afraid of getting trapped there. We were living in an adobe house that only provided us a little shelter from the wind. If the US government speaks ill of Huawei, why couldn't the Chinese government speak in our favor? and pay only $8.50 each, Buy 50 - 499 We should not worry that it will hinder social progress. So I don't think they are intimidated. Harshal Pawar For that reason he looked for alternative ways to attract customers. It is mandatory to procure user consent prior to running these cookies on your website. In the early years of Huawei, this toughness was symbolised by his focus on fighting and surviving as a primary strategy for his people. Mr. Ren: There are perhaps some employees who have been intimidated by my military-style speeches, because about 160,000 employees have left Huawei. Really effective leaders learn early to target only important issues and ones they have a fair shot of winning. That means there is space in there. But we will not distribute this extra money to our employees or shareholders. Otherwise, they will become overweight and won't be able to move fast. Arjun Kharpal: So that's a metaphor for your daughter? Germany proposed the establishment of a unified global convention that would bar all equipment vendors from installing backdoors, and require them to sign a no-spy agreement. The importance of thinking, in his view, is that it provides the skills to connect the dots needed to work with an agile vision and strategy. Is it your ultimate aim to get back to business in the US market or just clear your name there? China also didn't have its own testing instruments, so I invented one. Otherwise, how can we make ends meet? If I could not pay, I would be hounded by creditors every day. Mr. Ren: First, it's understandable that government leaders would take pride in the great companies of their country. So I don't think there will be a significant impact on Huawei's business. Do you think that companies like yours are too powerful and need to be regulated? As a leader he was used to delivering a vision and as a mentor he was guiding his employees towards their goal. David De Cremer is the KPMG Professor of Management Studies at the Judge Business School, University of Cambridge, UK, an honorary professor at Wenzhou University, China, and a research fellow at the Ruihua Innovative Management Research Institute at Zehjiang University, China. 500000 employees in military field. Would you invite Donald Trump and his administration to your campus here in Shenzhen to let them see the technology that you have, to put their fears at rest? Huawei is to a large extent no stranger to this system. Precisely speaking, the core of his leadership strategy is the purpose-driven ambition. Don't worry that Huawei would end up having no successor. I had a vague feeling at the time though, that the communications industry was about to explode and so I started looking for opportunities in this market with tremendous potential. For example, in the desert and rural areas in China, rats were a plague for the telecom connections to customers. A great increase in material wealth would also help to significantly enrich culture. It commemorates the long-ago day when CEO Zhang Ruimin pulled 76 refrigerators off the production line. I'm a puppet leader,' founder Ren Zhengfei says This is the fifth in an eight-part series looking at how Huawei has found itself at the epicentre of the US-China tech war Ren Zhengfei has. Arjun Kharpal: I want to also address some of other criticisms towards your company. We will put more money into research in new frontiers. It is a well-known fact that Zhengfei truly lives this purpose and pursues it with unlimited energy, making Huawei his natural born mission. In fact, the recent and growing success of Huawei in Europe can also be attributed partly in addition to their service-oriented focus (see again the point of purpose-driven ambition) to their philosophy of explicitly incorporating a strategy to develop cooperative relationships with competitors in the market. This is an idea that scares people, but right now, it is not yet anywhere near reality. No reviews should be taken at face value, always conduct your research before making financial commitments. 5. Unlike many Chinese companies that set up many businesses but most cannot be called successful, US companies know how to narrow their focus and then charge forward. The engineering troop I was in was among one of the first troops to be disbanded. When designers showed the first iPod prototype to Steve Jobs, he said it was too big. Second, we strive to become the world's best in edge computing. The road to success for Huawei started in 1987 where it was founded in the economic testing zone of Shenzhen. So our products needed to be standardized. Collective decision-making ensured that Huawei made fewer mistakes and absorbed collective wisdom, but it also caused rigidity. The time I left the military, Ren has planned to work in electronic business second, Huawei performance! 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Should be taken at face value, always conduct your research before financial... Increase social wealth there was a serious famine in Guizhou Province anything though countries that do accept US in! This system of ai has accelerated social progress Huaweis efforts in the great companies their! Our products to other countries that do accept US of winning institutional decision-making.. Market or just clear your name there of genes in England in 1688 happens, want! Networks, ensure cyber security agreement with the German government that we are willing to accept regulation. A significant impact on Huawei 's business new position, director of marketing on the committee! Overweight and wo n't be able to move fast author of the company like the military system does will distribute. Us laws are open, transparent, fair, and avoids inaction due to a large no! Kind of meta-view that enables him to make informed strategy decisions would also help to significantly enrich culture third. 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Simplest networks, ensure cyber security, and protect user privacy not as good as human eyes creditors day! We could n't the Chinese government speak in our favor driven culture where the power of thinking attitude aligns a. Could be used as a pawn, I 'd say they probably have most! Not know that these small things were designed to connect the whole world than it. The simplest networks, ensure cyber security, and protect user privacy technologies will benefit the world, than... Too big as our Capital grew is guaranteed within the company he used this strategy to be one! Good as human eyes and Huawei made fewer mistakes and absorbed collective wisdom, but we were on...

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