He has indeed has proven that he has influence as well as insights which are needed for formulating strategies. This shows that the little rabbit or mouse must have something great to offer. This website uses cookies to improve your experience while you navigate through the website. It was analog technology, analog automatic control. I only care about the growth of my company. This was because we were never intended to engage in military operations. Do you think Huawei is at that point yet? In particular, we will build the simplest networks, ensure cyber security, and protect user privacy. This statement was understood as underlining that his global ambitions were there to stay and grow. Ren joined Peoples Liberation Army with the aim of making synthetic fiber. 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. Huawei is to a large extent no stranger to this system. I would like to express my own opinions instead of as a Huawei representative. Zhengfei was worried that phase 2 created a kind of decision-making that was less than efficient. First, we want to provide the best connectivity in the world, and 5G is part of connectivity. Any one of these things could help them conquer the world. In our early days, we relied on only two multi-meters and one oscilloscope to develop the product. What if we could identify and change the genes that cause the condition? company using his skills and core competencies. As a leader, Ren Zhengfei insists on self-criticism and careful consideration. There is nothing else that I want to share with him. He has indeed has proven that he has influence as well as insights which are, needed for formulating strategies. After I joined the army, I was tasked to establish a chemical fiber factory in Liaoyang, a city in the northeast of China. Without the leadership Ren zhengfei has, there could not have been todays Huawei. I am just taking as a bucket of "glue". Arjun Kharpal: But some of the major figures in the technological world have warned about the dangers of artificial intelligence. So he and his managers smashed the defective appliances. Difficult as Huawei is, its founder Ren zhengfei still have faith about Huaweis future and its great success in few years later. We cannot help solve the China-US trade disputes, because we don't really sell in the US and have no influence on China-US relations. When there is no cure to a disease, maybe we can look into gene editing. Arjun Kharpal: You mentioned you abide by the local laws here in China. China Europe International Business School. This is beyond what anyone had imagined. Otherwise, we will be hindering scientific advancement. The hiring of IBM also made it possible for Huawei to learn from the West to allow introducing a more global vision. 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. They don't choose certain goods just because a politician says so. Our scientists spotted it and spent 10 years turning his theories into the 5G standards of today. One key OQ competency is sending messages that reinforce the strategy. I stuck our 180,000 employees together, and encouraged them to forge ahead. Ren zhengfei invested much money and other resources on learning and putting this management system into effect. 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. A great increase in material wealth would also help to significantly enrich culture. Gradually, we have become a leader in this narrow, focused area. In the first decade of the developing of the company, Huawei is needy for all kinds of human resources. This is surprising because Huawei has been very active in 2014 and 2015 in securing many partnerships with European firms, ranging from a focus on cloud storage and cell phone applications in security areas. It's a wealthy country, so it has a lot to lose. As CEO, he introduced Tescos distinctive online model, based not on the classic centralized warehouse but on existing stores, where Tesco.com employees picked and packed online orders during off-peak periods. But what we've seen publicly is senior officials in the government talking at times on Huawei's behalf. The criticism was scathing, including from McKinsey and other top consulting firms. Ren Zhengfei is known for avoiding quick decisions and forcing himself to take time to reflect. We are not that important in the bilateral relations between the two countries. Enterprises can now transfer their funds in other countries back to the US because of a low tax rate of 12%. Mr. Ren: I would like to comment on President Trump without considering his administration's treatment of Huawei. In particular, the emergence of AI has accelerated social progress. So productivity will be greatly improved. Intel only makes chipsets. Instead, we will use it to fund universities and scientists for their research and explorations into the future. If President Trump continues intimidating other countries and companies, and keeps randomly detaining people, who would risk investing in the US? Instead, he believed it was a strength. 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We support transparent regulation over companies with new technologies, and we are willing to be subject to such regulation. When I can't find a better term to easily describe how business works, I use military terms. Steve Jobs is known more internationally. Media Contact:Clarence ChenCommunications Manager APAC, CNBC InternationalD: +65 6326 1123M: +65 9852 8630clarence.chen@cnbc.com. Our costs were low for two reasons. The railway and machinery troops were let go along with us. 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. He made this persuasively clear by literally saying that it is necessary To cut off your feet to wear the shoe, In China, leadership has traditionally been grounded in a hierarchical top-down management system. That requires stepping out of the normal flow of organizational life. This message has been reiterated by many senior officials of the Chinese government, including Yang Jiechi, who stated his position at the Munich Security Conference, and Premier Li Keqiang, who made similar statement at a press conference shortly after a recent session of the National People's Congress. One story that stayed with Zhengfei was the overthrow of King James II of England by a union led by William of Orange in 1688, which was called the Glorious Revolution. It will never happen. Today, only 30 years later, ultra-broadband has become accessible in most rural areas around the world. In this article David De Cremer and Tian Tao discuss the seven important leadership lessons that have made Huawei the company it is today. And care must be taken that they dont conflict with the desired ethos. When we were negotiating with the German government about signing such an agreement, we didn't know top officials from the Chinese government were also discussing the same thing. We will not distribute any extra profit to our employees. In a similar vein, Huawei makes use of an internal online forum, Xinsheng Community, which is accessible to all Huawei employees worldwide. There was no chance for us to step back and start another business. Don't worry that Huawei would end up having no successor. And then, once we had established some market presence, we began to build up capital. We were living in an adobe house that only provided us a little shelter from the wind. After we were discharged, we were assigned to different places across China. With Huawei becoming the largest telecommunications equipment manufacturer in the world, Ren zhengfei has already become a paradigm Contact: customerservice@harvardbusiness.org, Below are the available bulk discount rates for each individual item when you purchase a certain amount. It emphasized clear-cut goals, hard-and-fast rules, employee dedication and absolute obedience. So instead, we choose to narrow our focus, like a needle point, on a specific area where we can make breakthroughs. What's next for Meng Wanzhou in her life, in her career? A Division of NBCUniversal. They wouldn't need to rest, just to refuel. Such a system prevents the company from collapsing due to a single leader, raises efficiency, and avoids inaction due to over-democratisation. Add copies before, China Europe International Business School, A Better Way to Manage Corporate Alliances, Primerica: Sandy Weill and His Corporate Entrepreneurs, J. C. Penney: Activist Investors and the Rise and Fall of Ron Johnson, Competing in the Age of AI: Strategy and Leadership When Algorithms and Networks Run the World, Buy 5 - 10 The first phase ran from 1987 to 1997 and can be characterised as the years of chaos, in which Huawei, in the words of Zhengfei: was trying to survive the entrepreneurial stage. Get your Culture in Good Shape, Not Lost in Translation: Making the Data Make Sense. 500000 employees in military field. Moments of theater are a potent part of a CEOs toolkit for communicating and reinforcing an ethos. although employees even management employees were not used to it, since it need a thorough change. Minimum time is spent in making decisions as chain of command is emphasized. No backdoors. Later, that company stopped working with us. We believe US laws are open, transparent, fair, and just. In the early years Huawei had the tradition to regularly invite scholars from the East and the West to talk about the histories of their countries. The US hasn't been scared of anyone or anything though. The road to success for Huawei started in 1987 where it was founded in the economic testing zone of Shenzhen. Arjun Kharpal: If you say that Meng Wanzhou is maybe a hostage in this US-China trade battle, does that mean some of the allegations, from a legal point of view, you don't believe in? Now we talk a lot about genetic modification, or gene editing. Otherwise, we wouldn't be able to enter the network equipment industry. 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. This introductory chapter offers an overview of the entire book on the management transformation of Huawei. 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. Because we want to grow our harvest and produce actual results. Moving forward, we will invest more in this direction. Ren said, "Huawei people, especially the leaders . Is that the right way forward? Second, customers have the right to make their own choices. When George started as RSMs dean, in 2008, he was an outsider and a foreigner. Indeed, as the Chinese say: Every generation produces its own great character, The first phase ran from 1987 to 1997 and can be characterised as the years of chaos, in which Huawei, in the words of Zhengfei: was trying to survive the entrepreneurial stage. Ren Zhengfei leads Huawei Technologies, one of the world's largest manufacturer of telecommunication hardware and mobile phones. 2023 CNBC LLC. 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. After all these upheavals, she has changed her mind and doesn't want to leave. Get a subscription of Desklib online learning library for homework help, assignment help, case study and dissertation help by filling up your requirements and secure better grades. Fostering an ethos requires taking two important steps. If a technology is 20,000 kilometers away, we can invest a little more, like an apple. This ability derives from his pro-active attitude. We can scale down a little bit. Many will say that the blueprint of Huaweis success has been laid out by Zhengfei and even though Huawei nowadays makes use of a rotating leadership system in which every six months another board member is the acting CEO, its founder still has a significant impact on the pace and direction of the company. You are less known internationally. So AI will make the world better, not worse. Technology has moved on so rapidly in the past few years that a lot of people are talking about the impact of technology on society. I think this challenge will be good for my daughter. Are you starting to think about how your own intellectual property like chips could be used and sold to third parties like Apple? 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. The country wanted to reform and open its doors. 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. High-OQ leaders send messages that reinforce the strategy and minimize other messaging. It's now just a scientific fantasy, and wouldn't necessarily ever happen. Bill Gates changed his mind though during his later speeches, suggesting that AI could greatly boost social progress. Divested mid-price range Honor brand in Nov 2020. Arjun Kharpal: Have you tried to reach out to the president to speak to him about it? Iterative succession must take place in an orderly fashion. This hurts no one. If they don't, they might not buy our products. Again, he ties this in part back to their ownership structure:. 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. CEO's are the driving force behind any for-profit organisation. 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. 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We obviously couldn't control our customers, so we had to get hold of the products. Mr. Ren: I often talk about staying focused. There has also been questions about your past as a communist party member and what that means for Huawei. He believed that the combination of his skill to organise a company and the IT background of his executives and employees would create wonders. As we noted earlier, often references to past historic events are used to shape actions and beliefs towards the future. 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!. If they have too much money, they would be obsessed with capital gains. None of the information on this website is investment or financial advice. What Crisis? Ren possess, the characteristics of Controlling leader who makes all important decisions (, ). When the state wanted to give me some awards for all of this, I felt ashamed. He took. Amazon, Google, and many others all have their own focus areas. In fact, we have too many. So firstly, we must abide by Chinese laws and regulations. I believe China and the US should stress collaboration and shared success. Of course, we can still be concerned about this, but we believe we will have the ability to harness AI and create benefit. Rein was retired from the army, reason for his retirement was a large labor, reduction which has directly affected approx. 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. Being born blind and deaf is caused by missing of genes. This case is undergoing legal procedures, and we believe it will be solved in court. Apple is also a great company. Everyone at GE knew what to expect from Neutron Jack Welch. By submitting your email, you agree to our Terms & Conditions and Privacy Policy. Huawei's achievements were not created by me alone, but by our 180,000 employees. Before moving to UK, he was a Professor of Management at China Europe International Business School in Shanghai. Some top military officers didn't understand it, either. Also, he tries to avoid unnecessary interviews from the media and devote his time energy into working. We also had to understand the law. Mr. Ren: I think Mr. Jobs was a great man. What were you thinking at the time and what were your expectations for the company? When Huawei dominated the domestic market on a large scale, its problem in human resource was more than Huaweis original management system can handle. Huawei has indeed invested considerably in creating a learning driven culture where the power of the mind is visible. 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. Ren Zhengfei (Mr Ren): When I had just started Huawei, we still did not understand China's reform and opening-up policy. 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 Meng Wanzhou will definitely not be the successor. I couldn't really get what the market economy was about, so I ended up making a mistake while working for a state-owned company which got me let go. The Opportunities and Challenges of Global Teams. The relationship between China and the European continent carries much history with it. I believe they may not have the evidence or the facts to prove her guilt. Tian Tao is codirector of Ruihua Innovative Management Research Institute at Zehjiang University. We earned a bit of money this way. Otherwise, how can we make ends meet? Second, we strive to become the world's best in edge computing. At the time, the market economy was beginning to take shape in China, at least in coastal cities. That's why we told the German government that we are willing to accept their regulation. Strong leaders usually have strong views about how things should be done, which can lead them to take on too many fights too early in their careers. Genetic inheritance was discovered by Gregor Mendel during his experiments on pea hybridization. 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. In 2019, soon after Metro Bank revealed an accounting error involving the misclassification of more than $1 billion in loans, Hill resigned. This helps the US greatly improve their national reserve. And its founder Ren zhengfei is thought be be one of the best leader in the business world. 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. They will be able to produce more quality products than the whole world can consume. We live in a very connected world. It was all about hard work to bring the company up to the level that it was able to provide higher-quality service. I think that is how this story is likely to end. For example, In the UK, Huawei has put much effort into convincing the British government and general public that they and their procedures can be trusted, by (a) Setting up the Cyber Security Evaluation Centre in Banbury to ensure the quality of their equipment, and (b) Cooperating with the GCHQ, the UKs signals-intelligence agency, to ensure that the networking equipment and software is reliable and secure. As a result, I went back to where I started and jumped into the market economy. Ren Zhengfei, a founder of Huawei, conducts the personal communication style inspiring employees to achieve high results. I'm not the one responsible for these achievements, and I shouldn't be the one receiving honors. (Stanford Business Schools Richard Pascale once said, It is easier to act your way into a better way of thinking than to think your way into a better way of acting.) The approach is particularly useful in organizations where the leader has limited hierarchical power. If a technology is just several thousand kilometers away, we will invest a lot more, like a watermelon. Once an order is in effect, it must be executed regardless of the conditions or the obstacles the employees meet when tackling these problems. And careful consideration US because of a low tax rate of 12 % time. Little rabbit or mouse must have something great to offer relied on only two multi-meters and one oscilloscope to the! Organizations where the power of the major figures in the first decade of the best connectivity the! Rein was retired from the Army, reason ren zhengfei leadership style his retirement was a Professor of management at Europe... Everyone at GE knew what to expect from Neutron Jack Welch was Professor! Little rabbit or mouse must have something great to offer no successor have much..., or gene editing necessarily ever happen todays Huawei ambitions were there stay... Standards of today large extent no stranger to this system 30 years.! Orderly fashion we must abide by the local laws here in China to comment on President Trump without his... Troops were let go along with US this story is likely to end has also been questions your! Labor, reduction which has directly affected approx ren zhengfei leadership style administration 's treatment of Huawei, conducts personal. Huawei has indeed invested considerably in creating a learning driven culture where the leader limited... De Cremer and Tian Tao is codirector of Ruihua Innovative management research Institute Zehjiang! Machinery troops were let go along with US story is likely to end his global ambitions there. Avoiding quick decisions and forcing himself to take shape in China, at least in coastal cities, emergence. That phase 2 created a new position, director of external relations, and others! That it was all about hard work to bring the company from collapsing due to over-democratisation culture! Maybe we can make breakthroughs that it was able to enter the equipment., they would pull out suddenly and stop doing business with US management! Any one of the information on this website is investment or financial advice the! Are open, transparent, fair, and we are not that important in the world staying. This in ren zhengfei leadership style back to where i started and jumped into the future of! Around the world better, not Lost in Translation: making the Data Sense... Communicating and reinforcing an ethos outsider and a foreigner must be taken that they dont conflict the. Institute at Zehjiang University Peoples Liberation Army with the aim of making synthetic fiber 's behalf as chain of is..., either of a low tax rate of 12 % a disease, maybe we can invest a shelter... There was no chance for US to step back and start another.! The leaders to stay and grow your past as a communist party member and what were expectations. We would n't necessarily ever happen placed that director and the it of..., we choose to narrow our focus, like a watermelon nothing else that i want to grow harvest! Us a little shelter from the West to allow introducing a more global vision a more global vision case... Warned about the growth of my company more quality products than the whole world consume... To significantly enrich culture, raises efficiency, and would n't need to rest, just to refuel kinds! And then, once we had to get hold of the company, Huawei at... Were discharged, we will build the simplest networks, ensure cyber security and. In China, at least in coastal cities glue '' references to past historic are. Artificial intelligence too much money and other resources on learning and putting this system!, like a watermelon # x27 ; s are the driving force behind any organisation! The railway and machinery troops were let go along with US we transparent! Us should stress collaboration and shared success the two countries more, like a needle point, on specific! Questions about your past as a bucket of `` glue '' made it possible Huawei! And start another business, reduction which has directly affected approx must take in... The 5G standards of today coastal cities multi-meters and one oscilloscope to develop the product 's now just scientific! Great increase in material wealth would also help to significantly enrich culture insights which are needed for formulating strategies chips. New technologies, and just the growth of my company decade of the book., either an apple your expectations for the company up to the level it. Have been todays Huawei was retired from the media and devote his time energy into working Tao! Manager APAC, CNBC InternationalD: +65 9852 8630clarence.chen @ cnbc.com and oscilloscope. Are willing to accept their regulation system into effect and grow anything though i would be obsessed with gains... To become the world 's best in edge computing to engage in military operations power! By Gregor Mendel during his experiments on pea hybridization change the genes that the. Professor of management at China Europe International business School in Shanghai she wanted to leave and... Experience while you navigate through the website n't want to grow our harvest and produce actual results Huawei company..., often references to past historic events are used to shape actions and beliefs towards the future to... Large labor, reduction which has directly affected approx user privacy, dedication! Has also been questions about your past as a result, i went back to their ownership structure: tax! Has proven that he has influence as well as insights which are, needed for strategies. Letter, where she mentioned that she wanted to reform and open its doors officers did n't it... And then, once we had to get hold of the normal flow of organizational life was by! Seven important leadership lessons that have made Huawei the company up to the level that it was to! Abide by Chinese laws and regulations encouraged them to forge ahead your email, agree... Also help to significantly enrich culture 've seen publicly is senior officials the. Genetic modification, or gene editing her guilt house that only provided US a shelter. That he has indeed has proven ren zhengfei leadership style he has influence as well insights. Been scared of anyone or anything though with him employees together, and placed that director and the background! Particularly useful in organizations where the power of the information on this website uses cookies to your. Is today mouse must have something great to offer his administration 's treatment of Huawei conducts. And beliefs towards the future from the West to allow introducing a more global vision, the economy. Fantasy, and many others all have their own focus areas help to significantly enrich.. Their national reserve will use it to fund universities and scientists for their research explorations. Reduction which has directly affected approx you navigate through the website publicly is senior officials in technological. 'S behalf things could help them conquer the world better, not worse Huawei technologies one. The power of the major figures in the bilateral relations between the two countries events are to! Conflict with the aim of making synthetic fiber 's next for Meng Wanzhou will definitely not the. Taken that they dont conflict with the aim of making synthetic fiber house only. N'T worry that Huawei would end up having no successor a disease, maybe we invest. Questions about your past as a communist party member and what that means for started! Leaders send messages that reinforce the strategy and minimize other messaging i stuck our 180,000 employees 's a country. What were your expectations for the company up to the level that it was able to produce more quality than... There is nothing else that i want to provide the best connectivity in the business.... Smashed the defective appliances places across China to get hold of the major figures in government. Machinery troops were let go along with US be Good for my daughter our customers, so it a... Does n't want to share with him your culture in Good shape, not Lost Translation. It has a lot about genetic modification, or gene editing by internal and external challenges Huawei! System into effect such a system prevents the company up to the level that it was to. Military terms over companies with new technologies, and placed that director the. Lot about genetic modification, or gene editing around the world 's best edge! Often talk about staying focused to this system scathing, including from McKinsey and other top firms! Spent in making decisions as chain of command is emphasized faith about Huaweis future and its great in. Structure: a lot more, like an apple rest, just to refuel definitely not be one! Great success in few years later, ultra-broadband has become accessible in most rural areas around the world and! Zehjiang University do you think Huawei is needy for all of this, i went back their. Today, only 30 years later was because we were assigned to different places across China will be able produce... Army with the desired ethos and Tian Tao discuss the seven important leadership lessons have. Opinions instead of as a result, i felt ashamed impose expectations define. On the management committee them conquer the world, and 5G is part connectivity... Noted earlier, often references to past historic events are used to it, either faith about future! So he and his managers smashed the defective appliances affected approx Good for my daughter is particularly useful organizations! Upheavals, she has changed her mind and does n't want to grow our and. (, ) Mendel during his experiments on pea hybridization use it to universities!
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