We are actually learning from US companies. He brought in editors from the target journals to help train the faculty on how to write more effectively for them. His company reflects these traits. Beset by internal and external challenges, Huawei needed to completely rethink its approach to business, corporate culture and company management. 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). Arjun Kharpal: But the US has put intense pressure on some of its allies in Europe, for example, Germany and the UK, to block Huawei from 5G networks. KPMG wouldn't hide anything for us. It will never happen. It allows a leader to impose expectations and define the outcomes. .. . .. .. Ren Zhengfei is successful Chinese businessman. It was analog technology, analog automatic control. "Every generation produces its own great character, and each exerts impact for hundreds of years.". Mr. Ren: I am not a government official, so I don't know what the governments have talked about. 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. 2023 CNBC LLC. Investor and consumer confidence will increase, and the US economy may take a turn for the better. During China's Cultural Revolution, I designed a small instrument using my math skills, and actually received recognition from the government for this device. We remained focused on this same single point. Essential in his idea to compete, however, is that it should be done with respect for its opponents. 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. So George revamped the universitys advisory board meetings. It is mandatory to procure user consent prior to running these cookies on your website. So we believe our engagement with the German government will be endorsed by the Chinese government. Ren innovation skills and technical knowledge. Any one of these things could help them conquer the world. More and more companies are harnessing new technologies more quickly. As a leader he was used to delivering a vision and as a mentor he was guiding his employees towards their goal. It was hard times. Arjun Kharpal: A bit about the US market. Huawei is now the world's largest telecoms equipment maker. The government would find it hard to address its deficit. That future may be closely related to our business, but it also may not be. According to him, Huawei should be focused on building a company where peoples minds are the main asset and resource to rely on. For more information, visit www.cnbc.com. The collaboration between these two countries would create two "trains" that can tow the global economy out of trouble. After all these upheavals, she has changed her mind and doesn't want to leave. You're seen as a visionary very much here in China in the technology world. When attending a summit in Croatia, Premier Li also told our employees not to install backdoors. Our relationship with the Chinese government is primarily defined by these two points. If a technology is just five kilometers away, we will invest heavily (a business version of a Van Fleet Load). 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? Arjun Kharpal: You mentioned in our conversation that people ask you about your vision for 20 to 30 years, but you don't even know what's going to happen in the next two to three years. First, embrace bureaucracy rather than rail against it. 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. After he reduced taxes, he should have been friendlier to other countries and try to convince everyone that the US is a great place to invest. But I still had to find a job to feed my family. Arjun Kharpal: I want to also address some of other criticisms towards your company. The first is the ability to accurately estimate the level of conflict a particular course of action will elicit. 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. With an "umbrella", Apple sells at high prices and maintains high quality. Saying that he was great is an understatement. Mr. Ren: I don't know about technology, management, or finance. He created a new position, director of external relations, and placed that director and the director of marketing on the management committee. After we were discharged, we were assigned to different places across China. Where does this idea of competing in a cooperative way come from? So Microsoft is the winner and it dominates the market. Huawei has kept a low profile, ever since it was founded. HBR Learnings online leadership training helps you hone your skills with courses like Business Plan Development. They are out of the ordinary and unexpected. Our financial statements are audited by KPMG, which can clearly show whether or not we are supported by the Chinese government. When we first entered the telecom industry, we started by reselling products from another company. First, as our technology advanced rapidly, we managed to bring down the costs of our products. I don't think we need to worry too much about the adverse impact of this technology. Huawei is now China's most prominent multinational company and a leader in 5G mobile telephone technology, which will be rolled out across the world in the next few years. I think currently AI has greatly improved productivity. If you'd like to share this PDF, you can purchase copyright permissions by increasing the quantity. Ren described it as a blend of three qualities: extreme resilience, a willingness to self-sacrifice, and sharp predator instincts. Mr. Ren: I can't speak for other companies; I have no authority over them, but Huawei will be the first company to comply with this agreement. I raised a total of over 20,000 RMB to pay the variety of fees needed to start a company. He also. CEO's are the driving force behind any for-profit organisation. By the time I left the military, 186, 286, and 386 had dominated the computer world. Struggling a bit can be good for them. It incorporates respectability well and great lead . Summary. We endorse unified global standards that make installing backdoors a crime. 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. So instead, we choose to narrow our focus, like a needle point, on a specific area where we can make breakthroughs. Therefore, he often uses similar way to manage the company like the military system does. Every year we invest more than 20 billion US dollars in it. In that case, billions of dollars would be stuck in the US. Trusted by 2+ million users, 1000+ happy students everyday, You are reading a previewUpload your documents to download or Become a Desklib member to get accesss. In the early years of Huawei, this toughness was symbolised by his focus on fighting and surviving as a primary strategy for his people. It does not depend on what Donald Trump has to say. Leading Huawei: Seven Leadership Lessons of Ren Zhengfei, The relationship between China and the European continent carries much history with it. Mr. Ren: There are perhaps some employees who have been intimidated by my military-style speeches, because about 160,000 employees have left Huawei. European countries want to think over all their options a bit. Mr. Ren: I don't know. We only focus on edge computing. Even if we were ordered to, Huawei would still not install backdoors. He is continuously focused on the future and hardly ever ruminates about the past. (Academic publishing, he believed, was a necessary but not a sufficient condition for RSM to be recognized as a top business school.) I lived through the great famine that hit China, and the economic recovery that followed. Back then, China was still going through the Cultural Revolution. This helps the US greatly improve their national reserve. In the Qingdao headquarters of the Chinese company Haier stands a display case containing a sledgehammer. At the time, the market economy was beginning to take shape in China, at least in coastal cities. One Chinese company that is increasingly becoming active in Europe is the Chinese telecom giant Huawei. Huawei, one of the biggest company focusing on making communication tools like cellphones, is famous all over the world. Moving forward, we will invest more in this direction. So you said she doesn't want to leave anymore. After I was discharged from the army, I ran into a big trouble at work. There are various types of leadership styles (Fiaz et al., 2017) 1. 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. When I was young, I had no ideals. We have become what we are today with our own strength. Despite this controversy, Huawei received support from both Ericsson and Nokia, stating that in their view Huawei was not dumping its products. This represents Chinese state leaders' position on backdoors, so we will never install backdoors on our equipment. So there is no need to worry too much about some comments posted on the Internet. Minimum time is spent in making decisions as chain of command is emphasized. Second, we strive to become the world's best in edge computing. What did you learn at the time that helped you start Huawei and guide your philosophy? At Huawei, we have two major areas that we are focusing on for the future. Do you still feel Europe is open to Huawei, or could one country blocking Huawei mean that the whole union stops Huawei from participating in 5G? Huaweis competitors assumed that they only had to provide the technology to the customer. Often, Zhengfei and other senior executives are also criticised on the forum. So we would never follow anyone's instructions to install backdoors. Back then, it would reach minus 20-something degrees Celsius in the winter. The best illustration of how rewards are shared is the fact that Zhengfei only holds 1.4% of the companys total share capital whereas 82,471 employees hold the rest of the shares (stated in Huaweis 2014 Annual report, as of December 31, 2014). For example, Huawei equipment broke down frequently, so Huawei technical engineers went to customer equipment rooms to repair the equipment at night when the equipment was not being used. In the first decade of the developing of the company, Huawei is needy for all kinds of human resources. Every night, we took turns fueling the stove, because if it went out, we would have frozen. If President Trump continues intimidating other countries and companies, and keeps randomly detaining people, who would risk investing in the US? 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. 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. Otherwise, we wouldn't be able to enter the network equipment industry. 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. Last but not least, Ren zhengfei has experiences of serving the army. I am just taking as a bucket of "glue". In our early days, we relied on only two multi-meters and one oscilloscope to develop the product. 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. That approach may not be an option at the top. That's my only ideal. Why cannot we edit human genes? The university had charged him with increasing revenue and strengthening relationships with the business community while maintaining RSMs high level of academic research. How can I live a life like that? Where was I supposed to go from there? 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. Some US politicians are criticizing Huawei everywhere they go. One opposing force is the idea of attack versus compromise or also referred to as the simultaneous tendency to cooperate versus compete. The Opportunities and Challenges of Global Teams. Mr. Ren: I think Mr. Jobs was a great man. 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. There was nothing much wrong with them just a few scratches and other minor defects. However, monopolies in these kinds of technologies will benefit the world, rather than harm it. Second, develop an organizational persona. Apple is also a great company. 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. The leadership of Ren Zhengfei, however, does differ from this rather controlling only style in important ways. In China, leadership has traditionally been grounded in a hierarchical top-down management system. Is that something you would welcome? Dong Mingzhu, Chinas most successful businesswoman and the head of Gree Electric, has a persona that says, Where Sister Dong walks, no grass grows meaning she is really, really tough. For example, if AI is applied to tractors, they will be able to work 24 hours a day. Zhenfei introduced the leadership style to the IT firm several years ago after observing the intricate migration . So we will leave these issues up to the courts. Data Analysis Methods Every Business Needs To Know How To Perform, Are You Ready to Lead in a Digital World? Since China has become the second largest economy in the world, this relationship has taken new forms in the shape of several business initiatives. However, most of us. In his view this could only be achieved by providing excellent services. 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.. China also didn't have its own testing instruments, so I invented one. We will also increase our sales revenue, which is now more than 100 billion US dollars, to around 250 billion US dollars. Ren has unique qualities which make him different from other, leaders. This company philosophy was inspired by the heroic tales of the Glorious Revolution that took place in England in 1688. To reinforce the message, he sent congratulatory emails when faculty had acceptances in such journals (but not for acceptances in academic publications). At that time, Ren zhengfei often told all kinds of stories to encourage its employees to imagine the splendid future and try to cast them into reality with their own hands. So he emphasized action. 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). We have limited resources and technologies. Fostering an ethos requires taking two important steps. Harshal Pawar We will need to sort out our problems with the US by ourselves. It was all about hard work to bring the company up to the level that it was able to provide higher-quality service. No reviews should be taken at face value, always conduct your research before making financial commitments. I'm not the one responsible for these achievements, and I shouldn't be the one receiving honors. We want to hear from you. A great increase in material wealth would also help to significantly enrich culture. Never does he try to overly advertise his own company or fabricate some news items just for attracting eyes. Ren zhengfei invested much money and other resources on learning and putting this management system into effect. Collective decision-making ensured that Huawei made fewer mistakes and absorbed collective wisdom, but it also caused rigidity. That's how we started out. With Huawei becoming the largest telecommunications equipment manufacturer in the world, Ren zhengfei has already become a paradigm That creates a kind of balance. We cannot deny the role that enthusiasm plays in the procedure. Twenty or thirty years from now, outstanding talent may be able to combine genes with electronics technology to create new "people". But if investors are scared that they won't get their money back, they won't dare to invest in the US. The leadership of Ren Zhengfei, however, does differ from this rather "controlling only" style in important ways. If they have too much money, they would be obsessed with capital gains. It's not up to me to designate a successor. Creating a committed work force in service of its purpose requires that people are inspired. At Huawei, we often talk about the term of "Van Fleet Load", which was invented by a general of the US army. Second, we don't really sell in the US market, so we will not be affected by a sales ban. This practice differed from the ones used by Western companies, which had advanced technologies and equipment, but ignored their services sector. Analysis Methods Every business Needs to know how to Perform, are you Ready to in... 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