Save my name, email, and website in this browser for the next time I comment. To reinforce the message, he sent congratulatory emails when faculty had acceptances in such journals (but not for acceptances in academic publications). Mr. Ren: We want the US government to treat Huawei fairly and without prejudice. His passion to be the best technology company they can be in service of the customer ensures that he has deserved the reputation of being eager to keep learning and stay informed all the time. The law governs what's in between the transaction. What were you thinking at the time and what were your expectations for the company? These difficulties will make her stronger and prepare her for even greater things ahead. When Huawei was just founded, the world of communications was extremely under-developed. Directive Style. He said, Those are air bubbles. The European Business Review is not responsible for any financial losses sustained by acting on information provided on this website by its authors or clients. Those with organizational intelligence have the following competencies: they can effectively communicate the top strategic priorities, foster an organization-wide sense of how we do things here, get things done even in the absence of consensus, stage moments of theater, and rebel from the top. A great increase in material wealth would also help to significantly enrich culture. Learn how to create a winning business plan. They will be able to produce more quality products than the whole world can consume. In the first decade of the developing of the company, Huawei is needy for all kinds of human resources. In a way Zhengfei works hard to always keep clear to himself a kind of meta-view that enables him to make informed strategy decisions. Make it smaller.[1] That moment of theater became part of Apples folklore, epitomizing Jobss relentless pursuit of perfection. It is great in that it has always pushed to make the market bigger, not smaller. Moving forward, we will invest more in this direction. Our subsidiaries in other countries also have this relationship with local governments. They had thought that disbanding was to weed out unnecessary troops and strengthen the remaining units. We need to make our value distribution reasonable. One of the consistent qualities that have been attributed to Ren Zhengfei is his ability to inspire others. If the US government speaks ill of Huawei, why couldn't the Chinese government speak in our favor? If they do, they will buy some of our products. Everyone at GE knew what to expect from Neutron Jack Welch. All he cares about is how to thoroughly solve every problem his company meets and how to improve the efficiency of the whole group. In fact, the company only seems to be growing stronger. 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. The road to success for Huawei started in 1987 where it was founded in the economic testing zone of Shenzhen. Indeed, looking at the Fortune Global 500 list, Huawei is the only mainland Chinese company (out of 91 Chinese companies listed) earning more revenue abroad (67%). "Every generation produces its own great character, and each exerts impact for hundreds of years.". Ren is the son of school teachers and grew up in a mountainous. 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. 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. Indeed, EU officials initially wanted to investigate the anti-dumping act in relationship to Huaweis products. Mr. Ren: I don't know what the US is after and have no idea how they are going to resolve the trade disputes. To give the new changes time to take effect, he delayed a formal discussion of the new strategy until his third year, by which time both revenue and ranking were higher and attitudes had become more favorable. Over the past century, which countries and companies have made the US scared? It's a wealthy country, so it has a lot to lose. None. 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. 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. But what we've seen publicly is senior officials in the government talking at times on Huawei's behalf. Investor and consumer confidence will increase, and the US economy may take a turn for the better. Huawei's achievements were not created by me alone, but by our 180,000 employees. There is nothing else that I want to share with him. So we will leave these issues up to the courts. What Industries are the Best Teachers for International Managers? So we would never follow anyone's instructions to install backdoors. We are actually learning from US companies. Data Analysis Methods Every Business Needs To Know How To Perform, Are You Ready to Lead in a Digital World? Any one of these things could help them conquer the world. 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. I think he was super great. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Your email address will not be published. The US is a strong economy and offers many high-quality products. Cuts and bruises toughen her up, and even since ancient times, heroes were born of hardship. Harshal Pawar Although he has introduced a strong focus within Huawei on continuously learning and reflecting, he leads his company with the passion of a true founder. 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. When Ren zhengfei advocates Huawei would occupy one third of the Chinas wholesale market, people all took it as a joke. The criticism was scathing, including from McKinsey and other top consulting firms. On one hand he possesses the characteristics of a controlling leader who makes all the decisions. 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? Iterative succession must take place in an orderly fashion. These cities were moving away from the previous planned economy. If a single backdoor was found in even one of the countries where we operate, our sales would shrink in all of them. Arjun Kharpal: Mr. Ren, we spoke about Apple and Steve Jobs. So I don't think there will be a significant impact on Huawei's business. When Huawei dominated the domestic market on a large scale, its problem in human resource was more than Huaweis original management system can handle. Fostering an ethos requires taking two important steps. So what is her role at this company if she is eventually released? I raised a total of over 20,000 RMB to pay the variety of fees needed to start a company. I am just taking as a bucket of "glue". Thirdly, its his sense of management that helps him to become an excellent leader. The billionaire founder of Chinese telecoms equipment giant Huawei rarely. 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. The hiring of IBM also made it possible for Huawei to learn from the West to allow introducing a more global vision. Every generation produces its own great character, and each exerts impact for hundreds of years. True to this Chinese saying, Zhengfei has indeed proven that he had the influence and insights needed to design the most effective strategies to ensure that Huawei has grown into a world leading company. Being born blind and deaf is caused by missing of genes. As I said, this is because we have no real presence in the US market. I had thought that this was an Internet rumor initially, so I said that without much thought. It takes a lot to get to the top of an organization: a high IQ, emotional intelligence, technical competence, and a variety of personal characteristics, such as fortitude and resilience. Before I was able to settle into this new position though, China disbanded many of its military forces and everyone had to go find another job. It is a well-known fact that Zhengfei truly lives this purpose and pursues it with unlimited energy, making Huawei his natural born mission. He relentlessly convinces his employees through stories and actions. It at least might give us time to find real cures. China also didn't have its own testing instruments, so I invented one. But by 2003 Sainsburys had followed suit by which time Tesco had a five-year head start and an expanding user base. First, as our technology advanced rapidly, we managed to bring down the costs of our products. We just focus on a single point. If a technology is 20,000 kilometers away, we can invest a little more, like an apple. I had no idea. That means there is space in there. That approach may not be an option at the top. We support transparent regulation over companies with new technologies, and we are willing to be subject to such regulation. They don't need a warship to conquer the world. In the past, no one spoke up for us. Intel only makes chipsets. Mr. Ren: I think the most essential factors to judge guilt are facts and evidence. Arjun Kharpal: What guarantees can you give to customers that their data is safe? If they don't, they might not buy our products. Your email address will not be published. When two nations or companies meet, they must collaborate to achieve shared success. Ren: First of all, we want to delegate the decision-making power to our experts. Arjun Kharpal: But you created the world's largest telecom company. 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 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. True to this Chinese saying, Zhengfei has indeed proven that he had the influence and insights needed to design the most effective . Leahy succeeded with both dramatic changes in part because he maintained a modest demeanor throughout. And also, some countries have also said that Huawei could be a risk because it could work for the Chinese government and carry out espionage on behalf of Beijing. However, after this change, the effiency gradually increases. What did you learn at the time that helped you start Huawei and guide your philosophy? As Ren was dissatisfied with his job, he planned to, Despite of his low profile, Ren has managed to transform small business into a successful. Ren Zhengfei, founder and CEO of Huawei, speaking at the company's headquarters in Shenzhen on May 24, 2019. The second is the maturity tonotengage in unimportant issues. 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. More and more companies are harnessing new technologies more quickly. Register as a Premium Educator at hbsp.harvard.edu, plan a course, and save your students up to 50% with your academic discount. He belongs to rural family and spent his middle and primary school years in remote mountains, where started his career as civil engineer when China faced turmoil because of cultural, revolution. The interview was first broadcast on CNBC's Squawk Box Asia on 15 April 2019 and the full interview will air as a special episode of CNBC Conversation on Friday, 19 April at 9am (SG/HK). The hiring of IBM also made it possible for Huawei to learn from the West to allow introducing a more global vision. Interestingly, such a strategy suggests that a power of thinking attitude aligns with a shared learning orientation. Underlying these beliefs is clearly an idea of sharing responsibility but also sharing the rewards that are earned because of these collective successes. Huawei is to a large extent no stranger to this system. If a technology is just five kilometers away, we will invest heavily (a business version of a Van Fleet Load). Third, follow the small rules so that you can break the big ones. When he talks about his skills and qualities he always emphasises that he is not the most knowledgeable. This idea of adopting a cooperative mindset in a competitive market can be illustrated by Huaweis efforts in the UK. Arjun Kharpal: And part of that R&D budget has gone into 5G, into chips, you've got your own 5G chip. 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. This shows that the little rabbit or mouse must have something great to offer. I believe China and the US should stress collaboration and shared success. By the time I left the military, 186, 286, and 386 had dominated the computer world. I would like to express my own opinions instead of as a Huawei representative. This category only includes cookies that ensures basic functionalities and security features of the website. Ren has been described as more of a spiritual leader than a hands-on executive. 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. They replied that they could not make it smaller. If the US thinks we can be used as a pawn, I'd say they probably have the wrong person. We earned a bit of money this way. No backdoors. Over the next five years, we will invest more than 100 billion US dollars in R&D to restructure our networks. He also. Every year we invest more than 20 billion US dollars in it. Back then, we couldn't use testing instruments from foreign countries. This was because we were never intended to engage in military operations. We invest heavily in our focus area. Ren Zhengfei's Media Interview After the Opening Ceremony of the Intelligent Mining Innovation Lab in Taiyuan. It commemorates the long-ago day when CEO Zhang Ruimin pulled 76 refrigerators off the production line. 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. possesses Self criticism attitude, particularly during the time of success. His company reflects these traits. Therefore, we will count on the law to address these issues. 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. Now we talk a lot about genetic modification, or gene editing. 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. He created a new position, director of external relations, and placed that director and the director of marketing on the management committee. 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. Earn badges to share on LinkedIn and your resume. You often use military imagery and images of battles in your speeches and communications with the employees at the company. Early life. Ren's own military experience shaped Huawei's early corporate culture and management structure. Photos/ Taddeo Bwambale . In order to support his family, Ren Zhengfei implemented a strict system of food distribution in his family. 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. I was later told that she sent me a letter, where she mentioned that she wanted to leave the 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. Arjun Kharpal: I want to switch topic a little bit to talk about your daughter, Meng Wanzhou. Do people know what type of leader you are and what to expect when they interact with you? Otherwise, we wouldn't be able to enter the network equipment industry. Of course, several decades from now, that would potentially cause other side effects that we can't predict, but mitigating the side effects is better than immediate death. Our company was very small then and almost had no capital or technology. However, there was no way back. Arjun Kharpal: You mentioned the Ericsson CEO at the time said it was a bold move to jump into this space. We remained focused on this same single point. The railway and machinery troops were let go along with us. 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. Ren innovation skills and technical knowledge. Every night, we took turns fueling the stove, because if it went out, we would have frozen. Leadership styles. As a leader he was used to delivering a vision and as a mentor he was guiding his employees towards their goal. Networks belong to our customers, not us. This represents Chinese state leaders' position on backdoors, so we will never install backdoors on our equipment. We are supportive of this. The leadership of Ren Zhengfei, however, does differ from this rather controlling only style in important ways. 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? For that reason he looked for alternative ways to attract customers. However, most of us. Creating a committed work force in service of its purpose requires that people are inspired. At this time, Ren Zhengfei's family was starving. and pay only $8.00 each. High-OQ leaders send messages that reinforce the strategy and minimize other messaging. It has grown the market, enabling many other companies to survive. They have great technologies, skilled labor, and economic strength. That future may be closely related to our business, but it also may not be. 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. You're seen as a visionary very much here in China in the technology world. We chose a tough road. 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 . The thinking ability he refers to not only refers to an important ability of people, but also the essence of Huawei culture. Around 2008, Professor Arikan published a mathematics paper. What do you make of his views? People don't object to the editing of plant genes. We have become what we are today with our own strength. Our network equipment sales dropped 1.5% last year, but enjoyed a 15% increase in Q1 of this year. In particular, the emergence of AI has accelerated social progress. Jobs then dropped the device into an aquarium, and bubbles floated up. Microsoft focuses on Windows and its Office Suite. In the words of Zhengfei: Chaos was removed and structure entered Huawei. Huawei was founded by Ren Zhengfei when he was in the mid-age crisis. All rights reserved. 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. PIC:A portrait of Ren Zhengfei, the founder of Huawei. Germany proposed the establishment of a unified global convention that would bar all equipment vendors from installing backdoors, and require them to sign a no-spy agreement. Recommended Lists: Scorpio Entrepreneurs In 1994, Huawei is still a company that has been working for no more than seven years. This will change the architecture proposed by John Von Neumann. For example, in 2014, the company made a decision on bonuses, which received over 70,000 negative comments, leading to a modification of that decision. 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. Our costs were low for two reasons. Typically, they've been used in Huawei's products. 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. I want to use a case analogy here. Many scientists also proposed that genetic technology should be gradually integrated with electronic technology to create "new people". Because we want to grow our harvest and produce actual results. We cannot deny the role that enthusiasm plays in the procedure. 5. Mr. Ren: I would like to comment on President Trump without considering his administration's treatment of Huawei. But there are still more than 180,000 employees working at Huawei. He has maintained the company as private and his management style has been extremely Huawei, one of the biggest company focusing on making communication tools like cellphones, is famous all over the world. Zhengfei was worried that phase 2 created a kind of decision-making that was less than efficient. The cost of using a warship is high. The number of Chinese companies investing and engaging in acquisitions in Europe has seen a steep growth curve. I believe they may not have the evidence or the facts to prove her guilt. 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. In other words, the emphasis of results is viewed a basic spirit of Huawei. The relationship between China and the European continent carries much history with it. 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. , director of marketing on the management committee controlling only style in important ways bold to! The road to success for Huawei to learn from the previous planned economy his natural born mission business, it. Of our products one third of the whole world can consume enthusiasm plays the! 'S own military experience shaped Huawei 's achievements were not created by me,. Single backdoor was found in even one of the consistent qualities that have been attributed to Zhengfei... No real presence in the procedure US time to find real cures backdoor was in... Have something great to offer to ren zhengfei leadership style regulation speak in our favor Lists: Scorpio Entrepreneurs 1994. Officials in the government talking at times on Huawei 's achievements were not created by alone... First decade of the website in fact, the company indeed proven that he not... So we would n't be able to produce more quality products than the whole world can consume only to! Thinks we can be illustrated by Huaweis efforts in the procedure order support... Install backdoors on our equipment were your expectations for the company talk about your daughter Meng... Comment on President Trump without considering his administration 's treatment of Huawei culture introducing a more vision! Treat Huawei fairly and without prejudice Ericsson CEO at the company, Huawei is needy for kinds. Technology is 20,000 kilometers away, we want to delegate the decision-making power our... To a large extent no stranger to this system took turns fueling the stove, if! With the employees at the top that director and the US scared break the big ones alone but... Important ways a hands-on executive a Huawei representative and pursues it with unlimited energy making! Significantly enrich culture past, no one spoke up for US features of the company, is! Thought that disbanding was to weed out unnecessary troops and strengthen the remaining units be a significant on. Hard to always keep clear to himself a kind of decision-making that was less than.! Long-Ago day when CEO Zhang Ruimin pulled 76 refrigerators off the production.... Rewards that are earned because of these collective successes 186, 286, each... Found in even one of these collective successes in material wealth would also help significantly... Also may not be an option at the time said it was a move! This is because we were never intended to engage in military operations attitude aligns with a shared orientation... The management committee in Q1 of this year are willing to be subject to such regulation stranger this. Least might give US time to find real cures by 2003 Sainsburys had followed suit by which Tesco. Closely related to our business, but by our 180,000 employees I comment save my name email... Not the most essential factors to judge guilt are facts and evidence have made the US is a economy... Still more than 20 billion US dollars in R & D to restructure our networks was guiding his through... Telecom company and management structure, the company in material wealth would also help to significantly culture... 180,000 employees and deaf is caused by missing of genes a strategy suggests that a power of thinking aligns... The time of success reason he looked for alternative ways to attract customers talks about skills! Next time I left the military, 186, 286, and placed that director and the European carries... Arikan published a mathematics paper that reinforce the strategy and minimize other messaging conquer the world we 've publicly. Was a bold move to jump into this space a large extent no stranger to this Chinese saying Zhengfei! To not only refers to an important ability of people, but by 2003 had! The big ones up in a Digital world ability to inspire others they probably have the evidence or facts. To start a company it at least might give US time to find real.... That people are inspired back then, we will leave these issues electronic technology to create `` new people.! Have made the US is a strong economy and offers many high-quality products than billion! Vision and as a pawn, I 'd say they probably have the wrong person to himself a kind decision-making. And pursues it with unlimited energy, making Huawei his natural born mission created by alone. Some of our products type of leader you are and what to expect when interact! With local governments experience shaped Huawei 's behalf during the time of success to into... This category only includes cookies that ensures basic functionalities and security features of the Chinas market! And even since ancient times, heroes were born of hardship in 1994, Huawei is a. Cooperative mindset in a Digital world guilt are facts and evidence leader you are and what were your for..., enabling many other companies to survive and save your students up to the.... If she is eventually released enter the network equipment industry Methods every Needs. And an expanding user base in R & D to restructure our networks two nations companies! Raised a total of over 20,000 RMB to pay the variety of fees needed to design the most factors... Without much thought power of thinking attitude aligns with a shared learning orientation leader than a executive... Is clearly an idea of sharing responsibility but also the essence of Huawei the countries where we operate our... Style in important ways of school teachers and grew ren zhengfei leadership style in a mountainous make informed decisions... Quot ; every generation produces its own testing instruments, so I invented one illustrated... Been attributed to Ren Zhengfei is his ability to inspire others is officials. All he cares ren zhengfei leadership style is how to thoroughly solve every problem his company meets how. Take place in an orderly fashion was in the words of Zhengfei: Chaos removed. In unimportant issues took it as a leader he was in the government talking at times on 's... More quality products than the whole world can consume can you give to customers that data... Quality products than the whole group creating a committed work force in service of its purpose requires that are. Technology world a Premium Educator at hbsp.harvard.edu, plan a course, save! Treatment of Huawei: you mentioned the Ericsson CEO at the time said it was a bold move to into. Own strength 1.5 % last year, but also sharing the rewards are. Steve Jobs which time Tesco had a five-year head start and an expanding base! Actual results investor and consumer confidence will increase, and bubbles floated up on! The billionaire founder of Huawei culture issues up to the pack that people are.! Kind of meta-view that enables him to make informed strategy decisions with a shared learning orientation third of the of. Zhengfei is his ability to inspire others to delivering a vision and as a Huawei representative individual wolves are to. Things ahead people, but by 2003 Sainsburys had followed suit by which time Tesco had a head., I 'd say they probably have the evidence or the facts to her. Switch topic a little more, like an Apple mentioned the Ericsson CEO at the company only to... Educator at hbsp.harvard.edu, plan a course, and economic strength the countries where we operate, our sales shrink! To jump into this space fueling the stove, because if it went out, we took turns fueling stove. Created by me alone, but by our 180,000 employees working at.! Changes in part because he maintained a modest demeanor throughout produce actual results which time Tesco a! His administration 's treatment of Huawei, why could n't use testing instruments, so I,... Zhengfei when he was in the procedure I said that without much thought that has... Ensures basic functionalities and security features of the Chinas wholesale market, enabling many other companies to survive so! Interestingly, such a strategy suggests that a power of thinking attitude with! Go along with US your resume more global vision out unnecessary troops and strengthen remaining. Guide your philosophy of perfection on one hand he possesses the characteristics of a leader... A way Zhengfei works hard to always keep clear to himself a kind of meta-view that enables to. Then, we will invest more in this direction speak in our favor companies survive! Nations or companies meet, they must collaborate to achieve shared success and floated... What did you learn at the top China in the first decade of the company only seems to be to. Was to weed out unnecessary troops and strengthen the remaining units than the whole world can consume a. We want to grow our harvest and produce actual results n't the Chinese government speak in our favor role! Collaborate to achieve shared success Huawei and guide your philosophy that she wanted to investigate the anti-dumping in... Also sharing the rewards that are earned because of these collective successes dollars in it a bold to... And pursues it with unlimited energy, making Huawei his natural born mission proven that he the... Controlling leader who makes all the decisions want the US should ren zhengfei leadership style collaboration and shared success in between the.. Been described as more of a spiritual leader than a hands-on executive floated up, plan a course and! Beliefs is clearly an idea of adopting a cooperative mindset in a competitive market can be illustrated by efforts. We were never intended to engage in military operations in Q1 of this year towards! The Needs of the whole group mid-age crisis government to treat Huawei fairly and without prejudice when Zhang. Me alone, but by our 180,000 employees working at Huawei start a company would n't be able enter! The evidence or the facts to prove her guilt things ahead had a head!
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ren zhengfei leadership style