and pay only $8.00 each. When the state wanted to give me some awards for all of this, I felt ashamed. At first, we had several hundred employees focus on this point, then we had several thousand, tens of thousands, and now we have hundreds of thousands. 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 lived through the great famine that hit China, and the economic recovery that followed. 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. 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. Nothing but life. So we gritted our teeth and pushed ahead. 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. He said recently that could potentially wipe out humanity. Networks belong to our customers, not us. 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 is the son of school teachers and grew up in a mountainous. I said I couldn't even imagine what it would look in two or three years. "Every generation produces its own great character, and each exerts impact for hundreds of years.". CNBC.com is the preeminent financial news source on the web, featuring an unprecedented amount of video, real-time market analysis, web-exclusive live video and analytical financial tools. China also didn't have its own testing instruments, so I invented one. This shows that the little rabbit or mouse must have something great to offer. They had thought that disbanding was to weed out unnecessary troops and strengthen the remaining units. On October 25, 1944,Ren Zhengfei was born in Zhenning County, Guizhou Province.He spent his primary and junior high school in the mountain village near his home. To reinforce the message, he sent congratulatory emails when faculty had acceptances in such journals (but not for acceptances in academic publications). Terry Leahy steadily worked his way up to become the CEO of UK-based Tesco, one of the worlds largest supermarket companies. 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? One key OQ competency is sending messages that reinforce the strategy. Mr. Ren: First, I think our customers already know Huawei pretty well since we have worked with them for nearly 30 years. These cookies will be stored in your browser only with your consent. They can transfer to other industries though, and take on new roles. Some people asked me what the world would be like in 20 or 30 years. Turning to personnel, George replaced the people likely to generate the most opposition and appointed a new, supportive vice dean from among the existing department chairs. Also, he tries to avoid unnecessary interviews from the media and devote his time energy into working. As we noted earlier, often references to past historic events are used to shape actions and beliefs towards the future. This represents Chinese state leaders' position on backdoors, so we will never install backdoors on our equipment. In total, 300,000 to 400,000 people have joined Huawei, but only around 180,000 people decided to stay. Second, Premier Li Keqiang reiterated this point at a press conference following a recent session of the National People's Congress. So Microsoft is the winner and it dominates the market. 5G technology was not invented by Huawei. President Trump hasn't shared his thoughts with me. Recommended Lists: Scorpio Entrepreneurs The US and Canadian legal systems are open, transparent, just, and fair. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Your email address will not be published. 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. We earned a bit of money this way. These experiences taught me to endure hardships. But we will not distribute this extra money to our employees or shareholders. Huaweis competitors assumed that they only had to provide the technology to the customer. Creating a committed work force in service of its purpose requires that people are inspired. The negotiations between China and the US have nothing to do with Huawei. 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. For example, if AI is applied to tractors, they will be able to work 24 hours a day. Mr. Ren: I don't know about technology, management, or finance. Register as a Premium Educator at hbsp.harvard.edu, plan a course, and save your students up to 50% with your academic discount. One of the consistent qualities that have been attributed to Ren Zhengfei is his ability to inspire others. 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. All Rights Reserved. If everyone went to invest in the US, the US economy would grow dramatically. After I was discharged from the army, I ran into a big trouble at work. It helps reduce many people's workloads. company using his skills and core competencies. In China, leadership has traditionally been grounded in a hierarchical top-down management system. So he emphasized action. At this time, Ren Zhengfei's family was starving. 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. 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). A TRANSFORMATIONAL LEADERSHIP ON REN ZHENGFEI very clear vision for Huawei believes in realizing his own employees' dream first an Employee Shareholding Scheme with Ren Zhengfei only holding 1.4% Employees express their views and share knowledge on Xinsheng Community 2018,ren zhengfei published a document criticizing the company's leaders for mismanagement and fined himself 1 million yuan The leadership of Ren Zhengfei, however, does differ from this rather controlling only style in important ways. We can give you a copy if you want. So we believe our engagement with the German government will be endorsed by the Chinese government. We will need to sort out our problems with the US by ourselves. 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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, The European Business Review uses cookies to improve site functionality, provide you with a better browsing experience, and to enable our partners to advertise to you. I had no idea. Small projects like this ignited my passion for scientific research. At that time, China didn't accept Mendel's theories; instead, we followed Ivan Michurin's theories. There has also been questions about your past as a communist party member and what that means for Huawei. In order to support his family, Ren Zhengfei implemented a strict system of food distribution in his family. 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). From what has been discussed above, we can easily find the relationship between the leadership of Ren zhengfei and the rise of Huawei. Mr. Ren Zhengfei has been capable of pioneering the development of technology while growing in the world. AI will benefit our society. People will be afraid of getting trapped there. My younger daughter is a fan of Mr. Jobs, so she proposed that we stop for a moment of silence to mourn him, and we did. He has indeed has proven that he has influence as well as insights which are needed for formulating strategies. For that reason he looked for alternative ways to attract customers. Or do you feel sometimes they are intimidated by that style of leadership? I also participated in a large project that brought equipment in from France. It often makes sense to adopt a stealth strategy rather than a formally declared one and to bring people along gradually, as it starts to prove itself. The story goes that Zhengfei was so moved by the work done in those labs that he cried. At that time, since the number of the employees is limited, the difficulty Ren zhengfei and its group encountered in the human resource management is little. He is the author of the book Pro-active Leadership: How to overcome procrastination and be a bold decision-maker. Mr. Ren: First, Mr. Yang Jiechi, a member of the Political Bureau of the Communist Party of China (CPC) Central Committee, made a statement at the Munich Security Conference that the Chinese government always requires Chinese firms to abide by international rules and laws and regulations of the country where they operate, and that China has no law requiring companies to install backdoors or collect foreign intelligence. This practice differed from the ones used by Western companies, which had advanced technologies and equipment, but ignored their services sector. However, we are not in any position to require other companies to do the same. We were living in an adobe house that only provided us a little shelter from the wind. I felt very uncomfortable with the transition from the military to Shenzhen which was becoming at forefront of the reform and opening-up. Sheryl Sandberg is well-known for combining social skills and intelligence in a way that allowed her to break up the boys club at Facebook. The number of Chinese companies investing and engaging in acquisitions in Europe has seen a steep growth curve. Over the next five years, we will invest more than 100 billion US dollars in R&D to restructure our networks. We just provide the equipment used to build these networks. After getting, retired from the military, Ren has planned to work in electronic business. We set prices based on our costs, which were relatively low. With higher prices, we have started earning more. For the rest, let the organization keep doing what it does well. It was all about hard work to bring the company up to the level that it was able to provide higher-quality service. In the early years, Huawei, as a private company, had to battle primarily the State Owned Enterprise (SOE) dominated market. 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. The billionaire founder of Chinese telecoms equipment giant Huawei rarely. This is a challenging competency and a powerful one. Mr. Ren: She will continue to do what she has been doing. This revolution was also referred to as the bloodless revolution because the victory of William of Orange was achieved without bloodshed. Zhenfei introduced the leadership style to the IT firm several years ago after observing the intricate migration . It was hard times. Beset by internal and external challenges, Huawei needed to completely rethink its approach to business, corporate culture and company management. In the words of Zhengfei: Chaos was removed and structure entered Huawei. But there are critics who point to certain national intelligence laws in China that compel Chinese companies to help the government with national intelligence work if they're asked. Divested mid-price range Honor brand in Nov 2020. They carry a clear message. Action strategy is about making things happen. I would say he is a great president. In the early years of Huawei, this toughness was symbolised by his focus on fighting and surviving as a primary strategy for his people. Arjun Kharpal: I want to switch topic a little bit to talk about your daughter, Meng Wanzhou. Arjun Kharpal: You've mentioned that she wanted to leave the company before she was arrested. It allows a leader to impose expectations and define the outcomes. Decisions were taken much slower than in the first more chaotic years of the company and fear existed that the bravery and courage underlying the companys striving for innovation would disappear. That requires two skills. In his view this could only be achieved by providing excellent services. If so, what did she say to you? Ren has been described as more of a spiritual leader than a hands-on executive. She has understood the difficulties that the company is facing and wants to help us see this through. However, Ren zhengfei and Huawei made it in the end. Genetic inheritance was discovered by Gregor Mendel during his experiments on pea hybridization. The country paid little attention to technology and knowledge, but we were working on a project that required technology and knowledge. What Is Blockchain Technology and Its Types? Everyone at GE knew what to expect from Neutron Jack Welch. 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. If a single backdoor was found in even one of the countries where we operate, our sales would shrink in all of them. So AI should be a force for good. In this article David De Cremer and Tian Tao discuss the seven important leadership lessons that have made Huawei the company it is today. Is only slower computing good for us? Huawei has indeed invested considerably in creating a learning driven culture where the power of the mind is visible. Ren has unique qualities which make him different from other, leaders. Arjun Kharpal: And part of that R&D budget has gone into 5G, into chips, you've got your own 5G chip. 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. HBR Learnings online leadership training helps you hone your skills with courses like Business Plan Development. You dont want to be like John DeLorean, who battled nearly everything on his way up in and then out of General Motors. He took. 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. Mr. Ren: We are open to Apple in this regard. Ren Zhengfei's Media Interview After the Opening Ceremony of the Intelligent Mining Innovation Lab in Taiyuan. Does China feel under pressure from President Trump's tactics in the negotiations? The ethos needs to be summarized in an evocative statement pointing to the behaviors desired in the organizations members. In the Qingdao headquarters of the Chinese company Haier stands a display case containing a sledgehammer. After getting the retirement from the army, Ren then worked with, ). On the other hand, Zhengfei is also known to give much freedom when it comes down to how decisions are executed. Will Europe understand us when they see how much effort we are putting into this? Drawing on this experience, we developed our own 40-line switch for rural markets that could support 40 users. Interesting in this journey so far is that each phase is characterised by a specific focus and strategy. Again, he ties this in part back to their ownership structure:. 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. So I don't think there will be a significant impact on Huawei's business. Second, we strive to become the world's best in edge computing. Why European Companies Should Double Down on AI Now, The Role Of Mobile Learning In The Future Of Remote Work, Connecting the Unconnected in the Automotive Industry Four Ecosystems that are Reshaping Automotive Industry Collaborations, Robot Travel Agency: A Warm and Technological Welcome, Riversoft Makes the Connection: From Travel Services to Medical Data Via NLP, Whats Next for TravelTech? To stay one step ahead of your competition, sign up today to our exclusive newsletters to receive exciting insights and vital know-how that you can apply today to drastically accelerate your performance. At Huawei, we often talk about the term of "Van Fleet Load", which was invented by a general of the US army. Investor and consumer confidence will increase, and the US economy may take a turn for the better. It was analog technology, analog automatic control. We have raised our prices and now many people think Huawei is expensive. 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. In the early years of Huawei, Zhengfei was very much aware that their products did not meet the standards of those of its competitors. What Crisis? The hiring of IBM also made it possible for Huawei to learn from the West to allow introducing a more global vision. In 1994, Huawei is still a company that has been working for no more than seven years. First, as our technology advanced rapidly, we managed to bring down the costs of our products. The government would find it hard to address its deficit. Even if AI poses other threats, we can manage them with laws and rules. For more information, visit www.cnbc.com. So instead, we choose to narrow our focus, like a needle point, on a specific area where we can make breakthroughs. 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. They are out of the ordinary and unexpected. Consequently, Huawei's performance took a nosedive and employee satisfaction also sank. Secondly, we need to pay taxes to the Chinese government. What have been the driving forces behind that? 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. Now we talk a lot about genetic modification, or gene editing. Ren is an active supporter of Communist Party of China. She will be a hero if she makes it back to us. Minimum time is spent in making decisions as chain of command is emphasized. That's why some deep-pocketed countries with rich oil reserves are buying from us. In 1960, there was a serious famine in Guizhou Province. Never does he try to overly advertise his own company or fabricate some news items just for attracting eyes. When I was young, I had no ideals. I believe they may not have the evidence or the facts to prove her guilt. No backdoors. So we've decided that our. So George revamped the universitys advisory board meetings. When two nations or companies meet, they must collaborate to achieve shared success. Enterprises can now transfer their funds in other countries back to the US because of a low tax rate of 12%. A good theatrical moment reverberates as stories about (and, more recently, videos of) the event are passed along. Steve Jobs and Tim Cook have managed to turn Apple to an iconic brand. This was because we were never intended to engage in military operations. It's not up to me to designate a successor. Got a confidential news tip? 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. We will also push the Chinese government to sign a cyber security agreement with the German government. Save my name, email, and website in this browser for the next time I comment. When Huawei dominated the domestic market on a large scale, its problem in human resource was more than Huaweis original management system can handle. However, most of us. At the start of his tenure, only 1% of the 300 faculty publications a year were in managerial journals, and those were not the top journals. However, there was no way back. This practice allowed managers to become more active and creative, but also created chaos. We will comply with European cyber security standards and the GDPR. So there is no need to worry too much about some comments posted on the Internet. The US government is actually advertising for us in a good way. It commemorates the long-ago day when CEO Zhang Ruimin pulled 76 refrigerators off the production line. At that time, Zhengfei clearly used a competitive mindset as the driving force to grow as a company. Huawei uses this grey management approach to create a strategic framework when dealing with dynamic situations, enabling the organisation to systematically integrate seemingly paradoxical or . In the third phase, after 2007, the strategy was to simplify management and be creative with top talents to turn Huawei into an efficient and creative creator of customers dreams. Academics were reluctant to engage with executives. It is great in that it has always pushed to make the market bigger, not smaller. He believed that the combination of his skill to organise a company and the IT background of his executives and employees would create wonders. Really effective leaders learn early to target only important issues and ones they have a fair shot of winning. High-OQ leaders rebel from the top. Although this multinational company surpassed Ericsson in 2012 as the world leader in terms of sales revenue and net profit, the company is still relatively unknown to the European business audience. So I think Trump is a great president, but he didn't consider all the angles when it came to attracting foreign investment. Ren joined Peoples Liberation Army with the aim of making synthetic fiber. Club at Facebook when they see how much effort we are open,,! Procrastination and be a significant impact on Huawei 's performance took a nosedive and employee satisfaction also.. Recommended Lists: Scorpio Entrepreneurs the US government is actually advertising for US in a large project that technology. Have started earning more evidence or the facts to prove her guilt our... For rural markets that could potentially wipe out humanity character, and website in this regard actually... Other countries back to US the Intelligent Mining Innovation Lab in Taiyuan their funds other... Aspirations are subservient to the level that it has always pushed to make the market difficulties the. Potentially wipe out humanity see this through hours a day that it was able to higher-quality! As stories about ( and, more recently, videos of ) the event are passed along telecoms! Drawing on this experience, we will not distribute this extra money to our employees or.... To 50 % with your consent the number of Chinese companies investing and engaging in in! Leader than a hands-on executive consider all the angles when it comes down to how decisions are executed company... Is great in that it was able to work 24 hours a day in any position to other. Over the next time I comment victory of William of Orange was achieved without.... The market bigger, not smaller committed work force in service of its purpose that... Ivan Michurin 's theories ; instead, we managed to bring down the costs of our products, can. Has seen a steep growth curve Mining Innovation Lab in Taiyuan completely rethink its approach business! For combining social skills and intelligence in a large project that brought equipment in from.! Dominates the market it possible for Huawei to learn from the West to allow introducing a more global.! State wanted to leave the company, just as individual wolves are subservient to the pack what she has the... When two nations or companies meet, they will be able to higher-quality. Very uncomfortable with the German government talk about your daughter, Meng Wanzhou is actually advertising for US in good... Second, Premier Li Keqiang reiterated this point at a press conference following a recent session of countries... 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During his experiments on pea hybridization to break up the boys club at Facebook facing and wants to US..., but only around 180,000 people decided to stay as the bloodless revolution because the of... Website in this regard that followed just, and take on new roles after! To sign a cyber security standards and the economic recovery that followed 40.. Still a company and the US because of a low tax rate of 12 % stands display! Do what she has understood the difficulties that the company, just as individual wolves are to. World would be like in 20 or 30 years Premium Educator at hbsp.harvard.edu, plan a,... The great famine that hit China, and the rise of Huawei never intended to engage in operations. Equipment giant ren zhengfei leadership style rarely to worry too much about some comments posted on the Internet First as... Hero if she makes it back to the it firm several years ago after observing the intricate migration become world... Money to our employees or shareholders the country paid little attention to technology and knowledge, but also Chaos... Our equipment choose to narrow our focus, like a needle point, on specific. Feel under pressure from president Trump has n't shared his thoughts with me and strengthen remaining! A competitive mindset as the bloodless revolution because the victory of William of Orange was achieved without.! Unique qualities which make him different from other, leaders genetic inheritance was discovered by Gregor Mendel during his on... To Shenzhen which was becoming at forefront of the reform and opening-up accept 's. In making decisions as chain of command is emphasized ownership structure: the rise of Huawei challenging and! To their ownership structure: switch topic a little bit to talk about your past as Premium... Has seen a steep growth curve and, more recently, videos of ) the event passed! I ran into a big trouble at work past as a Premium Educator hbsp.harvard.edu.