If we didn't pay taxes or follow the laws and regulations in the over 170 countries where we operate, we wouldn't have survived in those countries. But we will not distribute this extra money to our employees or shareholders. As mentioned earlier, the first two decades of Huaweis existence were dominated by the force of attack in order to survive and gradually become a better service provider. AI will benefit our society. So AI should be a force for good. We should not worry that it will hinder social progress. Underlying his focus on story telling is his strategy to energise people and introduce a sense of vitality to the projects that need to be undertaken. 5G made progress. 3.2 Findings 3.2.1 Huawei's leadership style Many will claim that Zhengfei (the founder) laid the foundation for Huawei's . But by 2003 Sainsburys had followed suit by which time Tesco had a five-year head start and an expanding user base. That's why some deep-pocketed countries with rich oil reserves are buying from us. Ren Zhengfei leads Huawei Technologies, one of the world's largest manufacturer of telecommunication hardware and mobile phones. When Huawei was just founded, the world of communications was extremely under-developed. 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.. They don't need a warship to conquer the world. You've grown the company over 30 years to the size of it now. We will not distribute the extra profit to shareholders, either. Do you think she's a hostage in this broader US-China trade battle? Huawei is to a large extent no stranger to this system. In China, leadership has traditionally been grounded in a hierarchical top-down management system. If President Trump continues intimidating other countries and companies, and keeps randomly detaining people, who would risk investing in the US? 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. Beset by internal and external challenges, Huawei needed to completely rethink its approach to business, corporate culture and company management. For more information, visit www.cnbc.com. The engineering troop I was in was among one of the first troops to be disbanded. But our strategy of focused investment never changed as our capital grew. He is the founder as well as founder of, Huawei Technologies Co.Ltd. So it would be impossible for us to provide customer information to any third party. So there is no need to worry too much about some comments posted on the Internet. Small projects like this ignited my passion for scientific research. Save my name, email, and website in this browser for the next time I comment. In fact, the company only seems to be growing stronger. Then scientists realized the value of genes and DNA. In other words, the emphasis of results is viewed a basic spirit of Huawei. True to this Chinese saying, Zhengfei has indeed proven that he had the influence and insights needed to design the most effective . Ren innovation skills and technical knowledge. What were you thinking at the time and what were your expectations for the company? Some US politicians are criticizing Huawei everywhere they go. They replied that they could not make it smaller. So firstly, we must abide by Chinese laws and regulations. Ren Zhengfei is known for avoiding quick decisions and forcing himself to take time to reflect. When we first entered the telecom industry, we started by reselling products from another 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. On this forum, ideas are communicated frequently by senior executives and Zhengfei and feedback from all 170,000 employees is encouraged. In the early years of Huawei, this toughness was symbolised by his focus on fighting and surviving as a primary strategy for his people. We need to make our value distribution reasonable. There's a lot of disagreement, of course, on what the right course of action is in Europe. In Europe, we will face some difficulties in the short term, but there will be no impact on our business. Arjun Kharpal: I want to also address some of other criticisms towards your company. After limited discussion, George instituted a program that rewarded faculty who published in the top practitioner journals with a bonus of up to 15,000. KPMG wouldn't hide anything for us. European countries want to think over all their options a bit. 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. Is it your ultimate aim to get back to business in the US market or just clear your name there? Its CEO, Ren Zhengfei, has long identified grey management as a principle of his leadership and employed it to provide his firm with a clear direction. Our subsidiaries in other countries also have this relationship with local governments. CNBC is the leading global broadcaster of live business and financial news and information, reporting directly from the major financial markets around the globe with regional headquarters Singapore, Abu Dhabi, London, and New York. 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Arjun Kharpal: But some of the major figures in the technological world have warned about the dangers of artificial intelligence. However, most of us. Famous is the story where Zhengfei in Huaweis fifth year of existence, suddenly rushed out of the kitchen when cooking for Huawei employees abroad his hobby is cooking and announced, Huawei will be a top three player in the global communications market 20 years from now!. When attending a summit in Croatia, Premier Li also told our employees not to install backdoors. And care must be taken that they dont conflict with the desired ethos. I said this as an outsider without considering his treatment of Huawei. In a similar vein, since the beginning of Huawei, it is a known fact that Zhengfei is not a technical expert, but he never saw that as a weakness. And its founder Ren zhengfei is thought be be one of the best leader in the business world. Ren has unique qualities which make him different from other, leaders. Our company was very small then and almost had no capital or technology. Nevertheless, as the market evolved and employee characteristics shifted, the shortcomings of Ren's management model grew ever apparent. Second, Premier Li Keqiang reiterated this point at a press conference following a recent session of the National People's Congress. When two nations or companies meet, they must collaborate to achieve shared success. The slogan at that time was: We shall drink to our hearts content to celebrate our success (ren sheng de yi xu jin huan), but if we should fail lets fight to our utmost until we all die (ju gong jin cui, si er hou yi). The major form of analog control was a proportional-integral-derivative control. When Ren zhengfei advocates Huawei would occupy one third of the Chinas wholesale market, people all took it as a joke. You're seen as a visionary very much here in China in the technology world. Like a judo master, you must practice getting the maximum effect from your large organization with a minimum effort on your part: the judicious email, the sharp moment of theater. The US government must present evidence to substantiate their charges against Huawei as this lawsuit proceeds. He has a saying that is often quoted: thinking ability is the most important thing. He is very careful not to feed the myth of his leadership and rather emphasises the importance of working hard in the success story of Huawei. Huawei is to a large extent no stranger to this system. In his pursuit of the Huawei dream, Ren Zhengfei seems to know his own limitations and does not portray himself as the ultimate know-all leader. I think it's the right thing for them to do. Indeed, as the Chinese say: Every generation produces its own great character (Jiang shan dai you ren cai chu) and each exerts impact for hundreds of years (Ge ling feng sao shu bai nian). It will never happen. He made this persuasively clear by literally saying that it is necessary To cut off your feet to wear the shoe (xue zue shi lu). Then a large number of our employees would resign, but I cannot leave. Detailed information on the use of cookies on this Site, and how you can decline them, is provided in our, Delivering Innovation Accenture Research, A Special Report on AI and Humans by AiTH, NUS Business School, Europes recovery is possible. She's, of course, facing extradition to the U.S. How did you feel after her arrest in December? Are you starting to think about how your own intellectual property like chips could be used and sold to third parties like Apple? Leading Huawei: Seven Leadership Lessons of Ren Zhengfei. Do you think that companies like yours are too powerful and need to be regulated? Second, customers have the right to make their own choices. There has also been questions about your past as a communist party member and what that means for Huawei. The multinationals that were present in China at that time did not consider this to be their problem, but rather that of the customer. He lives with his daughter Cathy Meng who is also the CFO of Huawei. Vernon Hill was transformationally successful in leading Commerce Bank in the USA and then Metro Bank in the UK. Arjun Kharpal: Mr. Ren, I want to move onto a bigger picture of the world of technology. The US hasn't been scared of anyone or anything though. It at least might give us time to find real cures. Huawei has kept a low profile, ever since it was founded. His management of the company is heavily influenced by the childhood hardship he endured during the Cultural Revolution and the military values instilled in him during his 6 years in the PLA. We are supportive of this. I think that is how this story is likely to end. He took. Arjun Kharpal: In terms of the way he's negotiated with China, some people would say that actually he's managed to get concessions for the US. 2023 | A2Z Pte.Ltd. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Mark your calendar for these stimulating events and prepare to be inspired. Without the leadership Ren zhengfei has, there could not have been todays Huawei. So productivity will be greatly improved. If a country is poor and they have nothing to lose, they aren't afraid of being attacked. With an "umbrella", Apple sells at high prices and maintains high quality. Along the way he introduced one important innovation: the Clubcard, the UKs first supermarket loyalty card, which allowed Tesco to leapfrog Sainsburys into the number-one retail spot. When the state wanted to give me some awards for all of this, I felt ashamed. Academics were reluctant to engage with executives. When Huawei dominated the domestic market on a large scale, its problem in human resource was more than Huaweis original management system can handle. At the time, the market economy was beginning to take shape in China, at least in coastal cities. We earned a bit of money this way. Information that flows through the networks also belongs to our customers, not to us. Ren Zhengfei (Mr Ren): When I had just started Huawei, we still did not understand China's reform and opening-up policy. We did not know that these small things were designed to connect the whole city or even the whole world. His ability to critically reflect on past successes and at the same time to identify the future challenges in the next decade makes Zhengfei an impactful business leader in the eyes of many Chinese. Amazon, Google, and many others all have their own focus areas. Just tell me what you think are going to be some of the significant technological developments over the next two years that you see coming. When he talks about his skills and qualities he always emphasises that he is not the most knowledgeable. That's how we started out. For example, in the early years of Huawei (Phase 1), he regularly told stories to employees that he believed that in 20 years Huawei would have 1/3 of the market share in the world, despite the fact that at that time Huawei only employed about 200 employees. It incorporates respectability well and great lead . This fact inspired him to embrace the idea that one can win and still be cooperative. Given these achievements combined with a certain myth of a Chinese emperor rising to the global stage, it begs the question what the philosophy and driving force behind this business success is. This category only includes cookies that ensures basic functionalities and security features of the website. Indeed, EU officials initially wanted to investigate the anti-dumping act in relationship to Huaweis products. The authors describe seven characteristics of Zhengfei's leadership style, including 'adaptive vision', 'humble dedication' and 'winning by cooperating'. 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. Arjun Kharpal: What guarantees can you give to customers that their data is safe? So the standards the US finds so compelling are actually all built on a single mathematics article. Huawei was not mentioned in any of the negotiation meeting minutes published by the US and China. Because they are simple and easy to understand. Our network equipment sales dropped 1.5% last year, but enjoyed a 15% increase in Q1 of this year. Huawei, in contrast, decided to provide these services to their customers. An organization offers telephone exchange equipment. When he passed away, I was on a vacation in the mountains with my family. If we didn't abide by those laws and regulations, we wouldn't survive even a day. When I was young, I had no ideals. So I don't think they are intimidated. She has understood the difficulties that the company is facing and wants to help us see this through. Create a free website or blog at WordPress.com. The country paid little attention to technology and knowledge, but we were working on a project that required technology and knowledge. OQ, as well call it, consists of five competencies: sending messages that reinforce strategy, fostering an ethos, using action strategy, rebelling from the top, and staging moments of theater. In 1960, there was a serious famine in Guizhou Province. Mr. Ren: They are more than welcome to come visit us in Shenzhen. What have been the driving forces behind that? Otherwise, we wouldn't be able to enter the network equipment industry. What Is Blockchain Technology and Its Types? Huawei, one of the biggest company focusing on making communication tools like cellphones, is famous all over the world. You are less known internationally. Smartphone was badly hit. The secret is to take advantage of opportunities to do something symbolic in a surprising, high-impact way that will capture the attention (and, hopefully, the hearts and minds) of the organizations members. Is that useful to the company, or do you find that a distraction? It commemorates the long-ago day when CEO Zhang Ruimin pulled 76 refrigerators off the production line. While pursuing this vision, he continuously has proven his ability to design strategies that enabled him to adapt his vision to the challenges that the company faces. Necessary cookies are absolutely essential for the website to function properly. As can be expected of a man with an army background he served in the Peoples Liberation Army he is known to be intense and tough and never loses control. With Huawei becoming the largest telecommunications equipment manufacturer in the world, Ren zhengfei has already become a paradigm I think Google might one day come up with a medicine that helps people live forever, but I may not be able to see it coming. But opting out of some of these cookies may have an effect on your browsing experience. Steve Jobs is known more internationally. Everything is limited. What makes Huawei interesting is its rate of growth and . Action strategy is about making things happen. Is that something you would welcome? We will not be affected by increased tariffs, either. In the words of Zhengfei: Chaos was removed and structure entered Huawei. This approach transformed Huawei into a company of strivers and fueled rapid business growth. This idea of adopting a cooperative mindset in a competitive market can be illustrated by Huaweis efforts in the UK. He said recently that could potentially wipe out humanity. I would say he is a great president. Ren zhengfei himself attributes his success to several characteristics. This shows that the little rabbit or mouse must have something great to offer. One defining feature of the Huawei culture is that it is able to bring together opposing forces and tendencies. I think this challenge will be good for my daughter. Arjun Kharpal: So would you say the US is scared of Huawei? I had thought that this was an Internet rumor initially, so I said that without much thought. So George revamped the universitys advisory board meetings. Third, follow the small rules so that you can break the big ones. There are various types of leadership styles (Fiaz et al., 2017) 1. He has indeed has proven that he has influence as well as insights which are needed for formulating strategies. We were living in an adobe house that only provided us a little shelter from the wind. The thinking ability he refers to not only refers to an important ability of people, but also the essence of Huawei culture. Data Analysis Methods Every Business Needs To Know How To Perform, Are You Ready to Lead in a Digital World? More and more companies are harnessing new technologies more quickly. As we noted earlier, often references to past historic events are used to shape actions and beliefs towards the future. We obviously couldn't control our customers, so we had to get hold of the products. In Huaweis early years, Zhengfei retained authority on major decisions such as corporate development strategies and culture building, but fully empowered employees when it comes to R&D, manager appointment, compensation & benefit allocation, and other areas. Our employees are used to the way I speak. Arjun Kharpal: Have you spoken to her recently? Purpose-driven Ambition The core of Ren Zhengfei's leadership is the undeniable fact that he is very clear about the purpose of Huawei, which is helping customers to realise their dreams. At this time, Ren Zhengfei's family was starving. Saying that he was great is an understatement. This introductory chapter offers an overview of the entire book on the management transformation of Huawei. As far as I know, Huawei has never been mentioned in any of the China-US talks or in any official news releases. The US has highly developed technology, but it also has a shortage in labor. Make it smaller.[1] That moment of theater became part of Apples folklore, epitomizing Jobss relentless pursuit of perfection. We live in a very connected world. Mr. Ren: I am not a government official, so I don't know what the governments have talked about. "Every generation produces its own great character, and each exerts impact for hundreds of years.". 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. 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. The billionaire founder of Chinese telecoms equipment giant Huawei rarely. Among his other, achievements, Ren is accountable of development of cooperative programs, Chinas interior regions. They are buying our products in large quantities as the US government is advertising for us. China has a population of 1.3 billion consumers. Second, we strive to become the world's best in edge computing. Western companies are no different. None. 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. In phase 2, running from 1997 to 2007, Huawei became more structured by hiring IBM to implement management structures as these were completely lacking at that time. For such a powerful country to be scared of a small company like us, some other countries are saying, "Your products are so good that the US government is scared. Its success stems in no small part from its ethos, the wolf spirit of Huawei, created by founder and chairman Ren Zhengfei at the start. This incentive performance system ensures that people are not only motivated to work hard towards collective success, but probably even more importantly it ensures that Huawei really is an employee-owned company. Harshal Pawar Every night, we took turns fueling the stove, because if it went out, we would have frozen. So I'll let her face what she is facing. For example, although his inspirational leadership style pushes forward the company and guides it through transformational phases, he is always quick to add that he may not be that good in bringing people together as many would like to believe. Can not leave words, the emphasis of results is viewed a basic spirit of Huawei shape in,... 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April 2
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