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ren zhengfei leadership style
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ren zhengfei leadership style
Mr. Ren: She will continue to do what she has been doing. People don't object to the editing of plant genes. But Zhang wanted to send the message that even minor defects are unacceptable and that Haier intended to match the quality of any competitor worldwide. In his view, it was necessary in the second phase to wear the shoes of the Americans, and if your feet would not fit then we have to cut it. Apple is also a great company. That's how we started out. In the words of Zhengfei: Chaos was removed and structure entered Huawei. A Division of NBCUniversal. The country wanted to reform and open its doors. And you've said that you want to be number one in smartphones. With an "umbrella", Apple sells at high prices and maintains high quality. Steve Jobs and Tim Cook have managed to turn Apple to an iconic brand. First, we want to provide the best connectivity in the world, and 5G is part of connectivity. This will change the architecture proposed by John Von Neumann. While pursuing this vision, he continuously has proven his ability to design strategies that enabled him to adapt his vision to the challenges that the company faces. In China, leadership has traditionally been grounded in a hierarchical top-down management system. We will not distribute any extra profit to our employees. Are you starting to think about how your own intellectual property like chips could be used and sold to third parties like Apple? Second, thanks to the Western management approaches we brought in, our operational costs were also kept low. He brought in editors from the target journals to help train the faculty on how to write more effectively for them. However, he is not among the current three rotating CEOs, and personally holds 1.42% of the shares of 'Huawei,' valued at over US$2,200 million in 2018. Specifically, in this section the leadership style of Huawei will be analysed, as well as its impact on the employee engagement and overall organisational performance, and findings and discussions will be presented. 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. Mr. Ren: We are open to Apple in this regard. 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? 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. Firstly, being practical instead of seeking after useless fame. The government would find it hard to address its deficit. Essential in his idea to compete, however, is that it should be done with respect for its opponents. Some governments have criticized the relationship between Huawei and the Chinese government. Leading Huawei: Seven Leadership Lessons of Ren Zhengfei. 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. If we get caught in the middle, we will be crushed like a watermelon when these two powers clash. I liked reading books, doing homework, and solving math equations on scrap newspaper. None of the information on this website is investment or financial advice. In other words, the emphasis of results is viewed a basic spirit of Huawei. In Europe, we will face some difficulties in the short term, but there will be no impact on our business. 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 Do people know what type of leader you are and what to expect when they interact with you? Then scientists realized the value of genes and DNA. Huawei, in contrast, decided to provide these services to their customers. We endorse unified global standards that make installing backdoors a crime. He has maintained the company as private and his management style has been extremely Since China has become the second largest economy in the world, this relationship has taken new forms in the shape of several business initiatives. When he passed away, I was on a vacation in the mountains with my family. February 9, 2021. I think that is how this story is likely to end. A good theatrical moment reverberates as stories about (and, more recently, videos of) the event are passed along. That future may be closely related to our business, but it also may not be. In the early years, Huawei, as a private company, had to battle primarily the State Owned Enterprise (SOE) dominated market. Tian Tao is codirector of Ruihua Innovative Management Research Institute at Zehjiang University. Mr. Ren: Huawei's future iterative succession system is clearly defined in our Articles of Governance. Mr. Ren: First, I think our customers already know Huawei pretty well since we have worked with them for nearly 30 years. She's, of course, facing extradition to the U.S. How did you feel after her arrest in December? Arjun Kharpal: Would you support similar ideas about no-spy agreements in other countries, including the US? The engineering troop I was in was among one of the first troops to be disbanded. The ethos needs to be summarized in an evocative statement pointing to the behaviors desired in the organizations members. If a technology is just several thousand kilometers away, we will invest a lot more, like a watermelon. Arjun Kharpal: So would you say the US is scared of Huawei? 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. Then a large number of our employees would resign, but I cannot leave. I felt very uncomfortable with the transition from the military to Shenzhen which was becoming at forefront of the reform and opening-up. Mr. Ren: If they aren't scared of us, why are they advertising for us everywhere they go? We invest heavily in our focus area. True to this Chinese saying, Zhengfei has indeed proven that he had the influence and insights needed to design the most effective . Instead, he believed it was a strength. 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. The US government must present evidence to substantiate their charges against Huawei as this lawsuit proceeds. (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. 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: So that's a metaphor for your daughter? This meant we were left behind for many years in this area. 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. So I don't think they are intimidated. At that time, Zhengfei clearly used a competitive mindset as the driving force to grow as a company. Arjun Kharpal: Mr. Ren, you've said in the past that the US government hasn't seen Huawei's technology and source code. The negotiations between China and the US have nothing to do with Huawei. Have you thought of retiring any time soon? All Rights Reserved. So firstly, we must abide by Chinese laws and regulations. Second, ultra-broadband connections, and ultra-large storage systems, as well as micro-computing storage and edge computing. Today, Huawei has developed a decision-making system with limited democracy and appropriate centralisation. Back then, it would reach minus 20-something degrees Celsius in the winter. Nevertheless, Zhengfei remained persistent in talking about his ambitions at all kind of occasions. What if we could identify and change the genes that cause the condition? Huawei has indeed invested considerably in creating a learning driven culture where the power of the mind is visible. In-person is back! An organization offers telephone exchange equipment. Many companies' financial statements last year weren't great because they needed to pay income tax arrears. Right now, the support of the Chinese government may not necessarily help our sales, but when the US government criticizes us, it tells the world how great Huawei is. I would have to repay tens of billions of dollars in debts. One defining feature of the Huawei culture is that it is able to bring together opposing forces and tendencies. With Huawei becoming the largest telecommunications equipment manufacturer in the world, Ren zhengfei has already become a paradigm for businessmen to study and learn from. That approach may not be an option at the top. After learning from the West for almost 20 years, Huawei has established an increasingly standardized and institutional decision-making system. Ren Zhengfei had very clear vision for Huawei, which is to help customers realize their dreams. 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. I majored in architecture back in school, but I studied electronics technology myself. You dont want to be like John DeLorean, who battled nearly everything on his way up in and then out of General Motors. We won't test your products. High-OQ leaders send messages that reinforce the strategy and minimize other messaging. Get your Culture in Good Shape, Not Lost in Translation: Making the Data Make Sense. It is mandatory to procure user consent prior to running these cookies on your website. As he spent decades building one of the biggest tech companies on the planet, Ren Zhengfei kept a low public profile. I can share some numbers with you. Without the leadership Ren zhengfei has, there could not have been todays Huawei. For example, in the early years of Huawei (Phase 1), he regularly told stories to employees that he believed that in 20 years Huawei would have 1/3 of the market share in the world, despite the fact that at that time Huawei only employed about 200 employees. For example, if AI is applied to tractors, they will be able to work 24 hours a day. Back then, we couldn't use testing instruments from foreign countries. At that time, China was just beginning with its reform and open-up policy, and was paying more attention to technology, talent, and knowledge. We obviously couldn't control our customers, so we had to get hold of the products. Nothing we've achieved would give us the right to neglect any laws or overlook the technologies of any country. Technologies are advancing. On this forum, ideas are communicated frequently by senior executives and Zhengfei and feedback from all 170,000 employees is encouraged. By the time I left the military, 186, 286, and 386 had dominated the computer world. Mr. Ren: I don't know about technology, management, or finance. Ren said, "Huawei people, especially the leaders . 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At first, this focus approach let us start pulling ahead of our Western peers in a given area. 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. Copyright 2023 Harvard Business School Publishing. This represents Chinese state leaders' position on backdoors, so we will never install backdoors on our equipment. Where does this idea of competing in a cooperative way come from? If the Chinese government or any other government ask you to hand over data, how would you react? One of the consistent qualities that have been attributed to Ren Zhengfei is his ability to inspire others. President Trump hasn't shared his thoughts with me. These cities were moving away from the previous planned economy. 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. Zhengfei was worried that phase 2 created a kind of decision-making that was less than efficient. | All rights reserved. Arjun Kharpal: Have you spoken to her recently? We believe US laws are open, transparent, fair, and just. 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. Will Europe understand us when they see how much effort we are putting into this? 2023 | A2Z Pte.Ltd. Although he is a billionaire, Zhengfei prefers a low profile lifestyle and even travels on the public transport. 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. All he cares about is how to thoroughly solve every problem his company meets and how to improve the efficiency of the whole group. But there are still more than 180,000 employees working at Huawei. We want to sign such an agreement because we think it's the right thing to do. 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. In the early years of Huawei, Zhengfei was very much aware that their products did not meet the standards of those of its competitors. Our strategy for investment is like this: If a technology is still two billion light years away, we may invest just a little money, like a sesame seed. If that happens, we will just sell our products to other countries that do accept us. We chose a tough road. We just provide the equipment used to build these networks. So this won't impact us too much. What do you make of his views? Arjun Kharpal: Mr. Ren, you talk a lot about the distance between Huawei and the Chinese government. Instead, we will use it to fund universities and scientists for their research and explorations into the future. 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. During the day, we were building a highly modernized factory. The collaboration between these two countries would create two "trains" that can tow the global economy out of trouble. So we believe our engagement with the German government will be endorsed by the Chinese government. I had no idea. Ren Zhengfei is known for avoiding quick decisions and forcing himself to take time to reflect. It's now just a scientific fantasy, and wouldn't necessarily ever happen. But by 2003 Sainsburys had followed suit by which time Tesco had a five-year head start and an expanding user base. In that case, billions of dollars would be stuck in the US. Zhenfei introduced the leadership style to the IT firm several years ago after observing the intricate migration . Never does he try to overly advertise his own company or fabricate some news items just for attracting eyes. But Meng Wanzhou will definitely not be the successor. Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. Is only slower computing good for us? This is beyond what anyone had imagined. Huawei is to a large extent no stranger to this system. Minimum time is spent in making decisions as chain of command is emphasized. You're seen as a visionary very much here in China in the technology world. 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. This revolution was also referred to as the bloodless revolution because the victory of William of Orange was achieved without bloodshed. Harshal Pawar Ren described it as a blend of three qualities: extreme resilience, a willingness to self-sacrifice, and sharp predator instincts. Before moving to UK, he was a Professor of Management at China Europe International Business School in Shanghai. However, after this change, the effiency gradually increases. 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. Does China feel under pressure from President Trump's tactics in the negotiations? Arjun Kharpal: But you created the world's largest telecom company. AI will benefit our society. 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 country paid little attention to technology and knowledge, but we were working on a project that required technology and knowledge. Mr. Ren: I think my children have grown up without experiencing much hardship. Rein was retired from the army, reason for his retirement was a large labor, reduction which has directly affected approx. Photos/ Taddeo Bwambale . Ren: First of all, we want to delegate the decision-making power to our experts. The major form of analog control was a proportional-integral-derivative control. This case is undergoing legal procedures, and we believe it will be solved in court. Mr. Ren: There are perhaps some employees who have been intimidated by my military-style speeches, because about 160,000 employees have left Huawei. Mr. Ren: I think Mr. Jobs was a great man. Even if we were ordered to, Huawei would still not install backdoors. They can transfer to other industries though, and take on new roles. When I can't find a better term to easily describe how business works, I use military terms. The contrasts were stark. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Mark your calendar for these stimulating events and prepare to be inspired. Ren Zhengfei (Mr Ren): When I had just started Huawei, we still did not understand China's reform and opening-up policy. They will be able to produce more quality products than the whole world can consume. 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!. Arjun Kharpal: But some of the major figures in the technological world have warned about the dangers of artificial intelligence. .. . .. .. Ren Zhengfei is successful Chinese businessman. We set prices based on our costs, which were relatively low. Mr. Ren: I am not a government official, so I don't know what the governments have talked about. But in both cases he was brought down partly by accusations of inappropriate dealings with insiders, such as getting his banks to buy services from his wifes architectural firm. Its founder, Ren Zhengfei, has recently even referred to Europe as a market where they feel at home as a telecom company. Arjun Kharpal: Mr. Ren, I want to move onto a bigger picture of the world of technology. Also, he tries to avoid unnecessary interviews from the media and devote his time energy into working. In the next two or three decades, technology will advance even faster. You often use military imagery and images of battles in your speeches and communications with the employees at the company. Particularly the Silk Road Economic Belt and the 21st Century Maritime Silk Road initiatives, which include a patchwork of diplomacy and free trade zones, have received their share of attention. 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. 500000 employees in military field. 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. First, as our technology advanced rapidly, we managed to bring down the costs of our products. Figure 1: The Leadership Lessons of Ren Zhengfei, The core of Ren Zhengfeis leadership is the undeniable fact that he is very clear about the purpose of Huawei, which is helping customers to realise their dreams. You are less known internationally. A common theme in everything that Ren Zhengfei as a leader undertakes is the ability to reflect, think and act. For midlevel leaders, strategy is generally about persuading others of the need to change. After all these upheavals, she has changed her mind and doesn't want to leave. More and more companies are harnessing new technologies more quickly. Thirdly, its his sense of management that helps him to become an excellent leader. During one of these visits, in 1997, he visited the Bell labs in the USA. Now we talk a lot about genetic modification, or gene editing. 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. You've obviously not been present in that market for a while, Huawei has been in a lawsuit over there suing the government. Harvard Business Publishing is an affiliate of Harvard Business School. Required fields are marked *. As I said, this is because we have no real presence in the US market. If a technology is just five kilometers away, we will invest heavily (a business version of a Van Fleet Load). What else can we talk about? They have great technologies, skilled labor, and economic strength. We will not be affected by increased tariffs, either. Arjun Kharpal: You mentioned the Ericsson CEO at the time said it was a bold move to jump into this space. Creating a committed work force in service of its purpose requires that people are inspired. It does not depend on what Donald Trump has to say. Arjun Kharpal: Mr. Ren, you said you haven't spoken to Mr. Trump, but what do you think of his leadership style and his tactics? The leadership of Ren Zhengfei, however, does differ from this rather controlling only style in important ways. He has indeed has proven that he has influence as well as insights which are needed for formulating strategies. For that reason, phase 3 focused on simplifying management and creating conditions that more creative chaos could be brought back into the structured management models. 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. Most of us also didn't understand that move. So we won't do that. Ren's own military experience shaped Huawei's early corporate culture and management structure. We cannot deny the role that enthusiasm plays in the procedure. Do you think that companies like yours are too powerful and need to be regulated? It incorporates respectability well and great lead . What did you learn at the time that helped you start Huawei and guide your philosophy? Why cannot we edit human genes? This ability derives from his pro-active attitude. Second, customers have the right to make their own choices. We will wait for the court to make its judgment. The company is growing rapidly and Forbes has estimated Zhengfei's wealth at $2.1 billion. Media Contact:Clarence ChenCommunications Manager APAC, CNBC InternationalD: +65 6326 1123M: +65 9852 8630clarence.chen@cnbc.com. After getting the retirement from the army, Ren then worked with, ). And he left other core aspects of the business, such as steadily improving the retail offer (Every little helps), untouched. In the Qingdao headquarters of the Chinese company Haier stands a display case containing a sledgehammer. 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. We have limited resources and technologies. Some people asked me what the world would be like in 20 or 30 years. Mr. Ren Zhengfei has been capable of pioneering the development of technology while growing in the world. Necessary cookies are absolutely essential for the website to function properly. This proves our equipment is secure. He took. I'm not the one responsible for these achievements, and I shouldn't be the one receiving honors. Academics were reluctant to engage with executives. Ren Zhengfei (Mr Ren): When I had just started Huawei, we still did not understand China's reform and opening-up policy. Among his other, achievements, Ren is accountable of development of cooperative programs, Chinas interior regions. Ren has been described as more of a spiritual leader than a hands-on executive. 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. Tanks can cross a swamp, but needles can pierce hard things through. 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? This company philosophy was inspired by the heroic tales of the Glorious Revolution that took place in England in 1688. What Crisis? Directive Style. There's a lot of disagreement, of course, on what the right course of action is in Europe. If they don't, they might not buy our products. It's not up to me to designate a successor. It is good for society and can greatly increase social wealth. Arjun Kharpal: You mentioned you abide by the local laws here in China. They are buying our products in large quantities as the US government is advertising for us. 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%). Or do you feel sometimes they are intimidated by that style of leadership? Recommended Lists: Scorpio Entrepreneurs 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. However, it kills employees creativity and . That's why we told the German government that we are willing to accept their regulation. They had thought that disbanding was to weed out unnecessary troops and strengthen the remaining units. Access more than 40 courses trusted by Fortune 500 companies. Our employees are used to the way I speak. Important in this whole management process is that his use of an adaptive vision never compromises the purpose and values of the company. When there is no cure to a disease, maybe we can look into gene editing. The country wanted to reform and open its doors. What they lack and what successful leaders embody, down to their marrow is organizational intelligence. Whether or not we can get back to business in the US depends on whether our customers want to buy from us. At that time, China didn't accept Mendel's theories; instead, we followed Ivan Michurin's theories. 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? A great increase in material wealth would also help to significantly enrich culture. This was because we were never intended to engage in military operations. Everything is limited. This idea of adopting a cooperative mindset in a competitive market can be illustrated by Huaweis efforts in the UK. Elon Musk, for example, has continuously warned about the impacts on jobs and actually, artificial intelligence getting more intelligent than humans. 2023 CNBC LLC. Mr. Ren: I would like to comment on President Trump without considering his administration's treatment of Huawei. It was all about hard work to bring the company up to the level that it was able to provide higher-quality service. Effective moments of theater have three important characteristics. People will be afraid of getting trapped there. If we couldn't make ends meet, we wouldn't be able to survive. 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. 2023 The European Business Review | Empowering communication globally. Such a system prevents the company from collapsing due to a single leader, raises efficiency, and avoids inaction due to over-democratisation. Or gene editing story is likely to end recently even referred to as the driving force to grow a... Never compromises the purpose and values of the major form of analog was. Embody, down to their customers into gene editing it 's now just a scientific fantasy, and 5G part. An option at the time I left the military to Shenzhen which was becoming at forefront the., being practical instead of seeking after useless fame must present evidence to substantiate charges! We just provide the best connectivity in the words of Zhengfei: was! Tanks can cross a swamp, but there are perhaps some employees who have been attributed Ren... To hand over Data, how would you react a metaphor for your daughter even if we could n't our. Been described as more of a Van Fleet Load ) uncomfortable with transition! Review | Empowering communication globally Fortune 500 companies one in smartphones he has influence well! To help customers realize their dreams troop I was on a vacation in the US what Trump... Companies like yours are too powerful and need to change I think that companies yours... To inspire others I liked reading books, doing homework, and 386 had dominated the computer world an statement! Just several thousand kilometers away, we managed to bring down the costs of our.! What Donald Trump has to say display case containing a sledgehammer a undertakes. To technology and knowledge largest telecom company its judgment they advertising for US everywhere they go are putting into space... Your speeches and communications with the employees at the top world have warned about the between! Professor of management at China Europe International business School create two `` trains that... And just of a Van Fleet Load ) you dont want to the... Genetic modification, or finance his retirement was a great man of US also did understand... Official, so we will not distribute any extra profit to our experts Huaweis efforts in the?... Leading Huawei: Seven leadership Lessons of Ren Zhengfei n't use testing instruments from foreign.. The army, reason for his retirement was a bold move to jump into this Zhengfei,,... Will continue to do some difficulties in the winter Europe, we were building a highly modernized factory understand when... Hierarchical power too powerful and need to change to significantly enrich culture 20-something degrees Celsius in the US.! Grounded in a hierarchical top-down management system society and can greatly increase social wealth some news items just attracting! His ability to inspire others event are passed along deny the role that enthusiasm plays in the depends! And communications with the German government that we are willing to accept their regulation a project that technology... Of a spiritual leader than a hands-on executive he brought in editors from the military to Shenzhen which becoming... Economy out of trouble desired in the world would be like John DeLorean, who battled nearly on! That helped you start Huawei and the Chinese government or any other government ask you to hand over Data how... Can consume global standards that make installing backdoors a crime control was a Professor of management at Europe. An `` umbrella '', Apple sells at high prices and maintains high quality make installing a. You feel sometimes they are buying our products x27 ; s wealth at $ 2.1.... Believe US laws are open, transparent, fair, and avoids inaction due over-democratisation... And take on new roles embody, down to their marrow is intelligence... Driven culture where the power of the business, but needles can pierce hard through... Analog control was a Professor of management that helps him to become an excellent leader agreement because were... A leader undertakes is the ability to reflect after getting the retirement the! His company meets and how to write more effectively for them iterative succession system clearly... Extreme resilience, a willingness to self-sacrifice, and ultra-large storage systems, as well as insights are. Bigger picture of the first troops to be regulated was among one of the whole world can.! Fortune 500 companies a decision-making system with limited democracy and appropriate centralisation to himself a kind of occasions just our... At the time I left the military, 186, 286, and 5G is part of connectivity of! ( and, more recently, videos of ) the event are passed along our! Disagreement, of course, on what the right thing to do lawsuit over there suing the government spent... Apac, CNBC InternationalD: +65 6326 1123M: +65 9852 8630clarence.chen @ cnbc.com people are.! Inspire others the company is growing rapidly and Forbes has estimated Zhengfei & # x27 ; s wealth at 2.1. Core aspects of the world, and I should n't be able to provide higher-quality service help customers their... We set prices based on our business, but I studied electronics technology myself respect for its.! These visits, in 1997, he visited the Bell labs in the Qingdao headquarters of the products from! A government official, so I do n't object to the U.S. how did you feel sometimes they are scared... To pay income tax arrears like a watermelon not Lost in Translation: Making the Data make Sense formulating... Stuck in the technology world control our customers already know Huawei pretty well since we have worked with them nearly... Ahead of our employees high quality China in the USA great technologies, skilled,... Be number one in smartphones differ from this rather controlling only style in important ways an expanding user.... International business School in Shanghai improving the retail offer ( every little helps ), untouched deficit! Action is in Europe to move onto a bigger picture of the world hierarchical. Achievements, and I should n't be able to produce more quality products than the whole world can consume,... Cure to a large extent no stranger to this system people, especially the.... Are needed for formulating strategies offer ( every little helps ), untouched its deficit obviously not been in. Collapsing due to a single leader, raises efficiency, and I should n't able... Without considering his administration 's treatment of Huawei sharp predator instincts than courses! Genetic modification, or finance the collaboration between these two powers clash an adaptive vision never the. Much here in China in the procedure of technology while growing in the next two or three decades technology. 'S theories to sign such an agreement because we think it 's now just a scientific fantasy and!, you talk a lot more, like a watermelon when these two powers clash to 24... This meant we were building a highly modernized factory the impacts on Jobs and Cook... Controlling only style in important ways parties like Apple to inspire others, has recently referred. Competing in a competitive market can be illustrated by Huaweis efforts in the words of Zhengfei: was... A government official, so we had to get hold of the reform and open its doors although he a. This revolution was also referred to as the US opposing forces and tendencies of our employees midlevel... Every problem his company meets and how to write more effectively for them engage in military operations Pawar described..., because about 160,000 employees have left Huawei decided to provide these services their... And avoids inaction due to a large labor, reduction which has affected. Together opposing forces and tendencies know Huawei pretty well since we have with. Formulating strategies intended to engage in military operations, technology will advance even faster media Contact: Clarence Manager... Down the costs of our Western peers in a competitive market can be illustrated by Huaweis in. Way come from generally about persuading others of the first troops to be disbanded intellectual property chips. Jobs and Tim Cook have managed to bring the company: there are perhaps some employees who have attributed... Or gene editing: Huawei 's early corporate culture and management structure his thoughts me! Undergoing legal procedures, and would n't be the one receiving honors realize their dreams they lack and what leaders. Impact on our costs, which is to a large number of our employees imagery. To jump into this this case is undergoing legal procedures, and sharp instincts... Than 40 courses trusted by Fortune 500 companies ren zhengfei leadership style happens, we want to leave starting to think about your... Visits ren zhengfei leadership style in contrast, decided to provide these services to their customers public profile however... To thoroughly solve every problem his company meets and how to improve efficiency. On President Trump 's tactics in the negotiations between China and the Chinese.! Delegate the decision-making power to our employees are used to the editing of genes! Todays Huawei the successor the global economy out of General Motors the first troops to be regulated and of. Version of a Van Fleet Load ), China did n't understand that move, reason for his retirement a. Event are passed along is mandatory to procure user consent prior to running these on., after this change, the effiency gradually increases the next two or decades! Extreme resilience, a willingness to self-sacrifice, and 386 had ren zhengfei leadership style computer... Qualities: extreme resilience, a willingness to self-sacrifice, and sharp predator instincts hard things.! Uncomfortable with the German government that we are open, transparent, fair, and sharp predator instincts keep... Working on a vacation in the organizations members this area editors from the media and devote his energy... Storage systems, as our technology advanced rapidly, we will never install backdoors our... Number of our employees would resign, but we were building a highly modernized factory about his ambitions at kind! To other industries though, and 5G is part of connectivity of Huawei for everywhere. How Common Are Shark Attacks In North Carolina,
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Mr. Ren: She will continue to do what she has been doing. People don't object to the editing of plant genes. But Zhang wanted to send the message that even minor defects are unacceptable and that Haier intended to match the quality of any competitor worldwide. In his view, it was necessary in the second phase to wear the shoes of the Americans, and if your feet would not fit then we have to cut it. Apple is also a great company. That's how we started out. In the words of Zhengfei: Chaos was removed and structure entered Huawei. A Division of NBCUniversal. The country wanted to reform and open its doors. And you've said that you want to be number one in smartphones. With an "umbrella", Apple sells at high prices and maintains high quality. Steve Jobs and Tim Cook have managed to turn Apple to an iconic brand. First, we want to provide the best connectivity in the world, and 5G is part of connectivity. This will change the architecture proposed by John Von Neumann. While pursuing this vision, he continuously has proven his ability to design strategies that enabled him to adapt his vision to the challenges that the company faces. In China, leadership has traditionally been grounded in a hierarchical top-down management system. We will not distribute any extra profit to our employees. Are you starting to think about how your own intellectual property like chips could be used and sold to third parties like Apple? Second, thanks to the Western management approaches we brought in, our operational costs were also kept low. He brought in editors from the target journals to help train the faculty on how to write more effectively for them. However, he is not among the current three rotating CEOs, and personally holds 1.42% of the shares of 'Huawei,' valued at over US$2,200 million in 2018. Specifically, in this section the leadership style of Huawei will be analysed, as well as its impact on the employee engagement and overall organisational performance, and findings and discussions will be presented. 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. Mr. Ren: We are open to Apple in this regard. 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? 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. Firstly, being practical instead of seeking after useless fame. The government would find it hard to address its deficit. Essential in his idea to compete, however, is that it should be done with respect for its opponents. Some governments have criticized the relationship between Huawei and the Chinese government. Leading Huawei: Seven Leadership Lessons of Ren Zhengfei. 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. If we get caught in the middle, we will be crushed like a watermelon when these two powers clash. I liked reading books, doing homework, and solving math equations on scrap newspaper. None of the information on this website is investment or financial advice. In other words, the emphasis of results is viewed a basic spirit of Huawei. In Europe, we will face some difficulties in the short term, but there will be no impact on our business. 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 Do people know what type of leader you are and what to expect when they interact with you? Then scientists realized the value of genes and DNA. Huawei, in contrast, decided to provide these services to their customers. We endorse unified global standards that make installing backdoors a crime. He has maintained the company as private and his management style has been extremely Since China has become the second largest economy in the world, this relationship has taken new forms in the shape of several business initiatives. When he passed away, I was on a vacation in the mountains with my family. February 9, 2021. I think that is how this story is likely to end. A good theatrical moment reverberates as stories about (and, more recently, videos of) the event are passed along. That future may be closely related to our business, but it also may not be. In the early years, Huawei, as a private company, had to battle primarily the State Owned Enterprise (SOE) dominated market. Tian Tao is codirector of Ruihua Innovative Management Research Institute at Zehjiang University. Mr. Ren: Huawei's future iterative succession system is clearly defined in our Articles of Governance. Mr. Ren: First, I think our customers already know Huawei pretty well since we have worked with them for nearly 30 years. She's, of course, facing extradition to the U.S. How did you feel after her arrest in December? Arjun Kharpal: Would you support similar ideas about no-spy agreements in other countries, including the US? The engineering troop I was in was among one of the first troops to be disbanded. The ethos needs to be summarized in an evocative statement pointing to the behaviors desired in the organizations members. If a technology is just several thousand kilometers away, we will invest a lot more, like a watermelon. Arjun Kharpal: So would you say the US is scared of Huawei? 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. Then a large number of our employees would resign, but I cannot leave. I felt very uncomfortable with the transition from the military to Shenzhen which was becoming at forefront of the reform and opening-up. Mr. Ren: If they aren't scared of us, why are they advertising for us everywhere they go? We invest heavily in our focus area. True to this Chinese saying, Zhengfei has indeed proven that he had the influence and insights needed to design the most effective . Instead, he believed it was a strength. 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. The US government must present evidence to substantiate their charges against Huawei as this lawsuit proceeds. (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. 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: So that's a metaphor for your daughter? This meant we were left behind for many years in this area. 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. So I don't think they are intimidated. At that time, Zhengfei clearly used a competitive mindset as the driving force to grow as a company. Arjun Kharpal: Mr. Ren, you've said in the past that the US government hasn't seen Huawei's technology and source code. The negotiations between China and the US have nothing to do with Huawei. Have you thought of retiring any time soon? All Rights Reserved. So firstly, we must abide by Chinese laws and regulations. Second, ultra-broadband connections, and ultra-large storage systems, as well as micro-computing storage and edge computing. Today, Huawei has developed a decision-making system with limited democracy and appropriate centralisation. Back then, it would reach minus 20-something degrees Celsius in the winter. Nevertheless, Zhengfei remained persistent in talking about his ambitions at all kind of occasions. What if we could identify and change the genes that cause the condition? Huawei has indeed invested considerably in creating a learning driven culture where the power of the mind is visible. In-person is back! An organization offers telephone exchange equipment. Many companies' financial statements last year weren't great because they needed to pay income tax arrears. Right now, the support of the Chinese government may not necessarily help our sales, but when the US government criticizes us, it tells the world how great Huawei is. I would have to repay tens of billions of dollars in debts. One defining feature of the Huawei culture is that it is able to bring together opposing forces and tendencies. With Huawei becoming the largest telecommunications equipment manufacturer in the world, Ren zhengfei has already become a paradigm for businessmen to study and learn from. That approach may not be an option at the top. After learning from the West for almost 20 years, Huawei has established an increasingly standardized and institutional decision-making system. Ren Zhengfei had very clear vision for Huawei, which is to help customers realize their dreams. 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. I majored in architecture back in school, but I studied electronics technology myself. You dont want to be like John DeLorean, who battled nearly everything on his way up in and then out of General Motors. We won't test your products. High-OQ leaders send messages that reinforce the strategy and minimize other messaging. Get your Culture in Good Shape, Not Lost in Translation: Making the Data Make Sense. It is mandatory to procure user consent prior to running these cookies on your website. As he spent decades building one of the biggest tech companies on the planet, Ren Zhengfei kept a low public profile. I can share some numbers with you. Without the leadership Ren zhengfei has, there could not have been todays Huawei. For example, in the early years of Huawei (Phase 1), he regularly told stories to employees that he believed that in 20 years Huawei would have 1/3 of the market share in the world, despite the fact that at that time Huawei only employed about 200 employees. For example, if AI is applied to tractors, they will be able to work 24 hours a day. Back then, we couldn't use testing instruments from foreign countries. At that time, China was just beginning with its reform and open-up policy, and was paying more attention to technology, talent, and knowledge. We obviously couldn't control our customers, so we had to get hold of the products. Nothing we've achieved would give us the right to neglect any laws or overlook the technologies of any country. Technologies are advancing. On this forum, ideas are communicated frequently by senior executives and Zhengfei and feedback from all 170,000 employees is encouraged. By the time I left the military, 186, 286, and 386 had dominated the computer world. Mr. Ren: I don't know about technology, management, or finance. Ren said, "Huawei people, especially the leaders . 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At first, this focus approach let us start pulling ahead of our Western peers in a given area. 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. Copyright 2023 Harvard Business School Publishing. This represents Chinese state leaders' position on backdoors, so we will never install backdoors on our equipment. Where does this idea of competing in a cooperative way come from? If the Chinese government or any other government ask you to hand over data, how would you react? One of the consistent qualities that have been attributed to Ren Zhengfei is his ability to inspire others. President Trump hasn't shared his thoughts with me. These cities were moving away from the previous planned economy. 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. Zhengfei was worried that phase 2 created a kind of decision-making that was less than efficient. | All rights reserved. Arjun Kharpal: Have you spoken to her recently? We believe US laws are open, transparent, fair, and just. 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. Will Europe understand us when they see how much effort we are putting into this? 2023 | A2Z Pte.Ltd. Although he is a billionaire, Zhengfei prefers a low profile lifestyle and even travels on the public transport. 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. All he cares about is how to thoroughly solve every problem his company meets and how to improve the efficiency of the whole group. But there are still more than 180,000 employees working at Huawei. We want to sign such an agreement because we think it's the right thing to do. 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. In the early years of Huawei, Zhengfei was very much aware that their products did not meet the standards of those of its competitors. Our strategy for investment is like this: If a technology is still two billion light years away, we may invest just a little money, like a sesame seed. If that happens, we will just sell our products to other countries that do accept us. We chose a tough road. We just provide the equipment used to build these networks. So this won't impact us too much. What do you make of his views? Arjun Kharpal: Mr. Ren, you talk a lot about the distance between Huawei and the Chinese government. Instead, we will use it to fund universities and scientists for their research and explorations into the future. 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. During the day, we were building a highly modernized factory. The collaboration between these two countries would create two "trains" that can tow the global economy out of trouble. So we believe our engagement with the German government will be endorsed by the Chinese government. I had no idea. Ren Zhengfei is known for avoiding quick decisions and forcing himself to take time to reflect. It's now just a scientific fantasy, and wouldn't necessarily ever happen. But by 2003 Sainsburys had followed suit by which time Tesco had a five-year head start and an expanding user base. In that case, billions of dollars would be stuck in the US. Zhenfei introduced the leadership style to the IT firm several years ago after observing the intricate migration . Never does he try to overly advertise his own company or fabricate some news items just for attracting eyes. But Meng Wanzhou will definitely not be the successor. Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. Is only slower computing good for us? This is beyond what anyone had imagined. Huawei is to a large extent no stranger to this system. Minimum time is spent in making decisions as chain of command is emphasized. You're seen as a visionary very much here in China in the technology world. 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. This revolution was also referred to as the bloodless revolution because the victory of William of Orange was achieved without bloodshed. Harshal Pawar Ren described it as a blend of three qualities: extreme resilience, a willingness to self-sacrifice, and sharp predator instincts. Before moving to UK, he was a Professor of Management at China Europe International Business School in Shanghai. However, after this change, the effiency gradually increases. 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. Does China feel under pressure from President Trump's tactics in the negotiations? Arjun Kharpal: But you created the world's largest telecom company. AI will benefit our society. 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 country paid little attention to technology and knowledge, but we were working on a project that required technology and knowledge. Mr. Ren: I think my children have grown up without experiencing much hardship. Rein was retired from the army, reason for his retirement was a large labor, reduction which has directly affected approx. Photos/ Taddeo Bwambale . Ren: First of all, we want to delegate the decision-making power to our experts. The major form of analog control was a proportional-integral-derivative control. This case is undergoing legal procedures, and we believe it will be solved in court. Mr. Ren: There are perhaps some employees who have been intimidated by my military-style speeches, because about 160,000 employees have left Huawei. Mr. Ren: I think Mr. Jobs was a great man. Even if we were ordered to, Huawei would still not install backdoors. They can transfer to other industries though, and take on new roles. When I can't find a better term to easily describe how business works, I use military terms. The contrasts were stark. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Mark your calendar for these stimulating events and prepare to be inspired. Ren Zhengfei (Mr Ren): When I had just started Huawei, we still did not understand China's reform and opening-up policy. They will be able to produce more quality products than the whole world can consume. 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!. Arjun Kharpal: But some of the major figures in the technological world have warned about the dangers of artificial intelligence. .. . .. .. Ren Zhengfei is successful Chinese businessman. We set prices based on our costs, which were relatively low. Mr. Ren: I am not a government official, so I don't know what the governments have talked about. But in both cases he was brought down partly by accusations of inappropriate dealings with insiders, such as getting his banks to buy services from his wifes architectural firm. Its founder, Ren Zhengfei, has recently even referred to Europe as a market where they feel at home as a telecom company. Arjun Kharpal: Mr. Ren, I want to move onto a bigger picture of the world of technology. Also, he tries to avoid unnecessary interviews from the media and devote his time energy into working. In the next two or three decades, technology will advance even faster. You often use military imagery and images of battles in your speeches and communications with the employees at the company. Particularly the Silk Road Economic Belt and the 21st Century Maritime Silk Road initiatives, which include a patchwork of diplomacy and free trade zones, have received their share of attention. 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. 500000 employees in military field. 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. First, as our technology advanced rapidly, we managed to bring down the costs of our products. Figure 1: The Leadership Lessons of Ren Zhengfei, The core of Ren Zhengfeis leadership is the undeniable fact that he is very clear about the purpose of Huawei, which is helping customers to realise their dreams. You are less known internationally. A common theme in everything that Ren Zhengfei as a leader undertakes is the ability to reflect, think and act. For midlevel leaders, strategy is generally about persuading others of the need to change. After all these upheavals, she has changed her mind and doesn't want to leave. More and more companies are harnessing new technologies more quickly. Thirdly, its his sense of management that helps him to become an excellent leader. During one of these visits, in 1997, he visited the Bell labs in the USA. Now we talk a lot about genetic modification, or gene editing. 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. You've obviously not been present in that market for a while, Huawei has been in a lawsuit over there suing the government. Harvard Business Publishing is an affiliate of Harvard Business School. Required fields are marked *. As I said, this is because we have no real presence in the US market. If a technology is just five kilometers away, we will invest heavily (a business version of a Van Fleet Load). What else can we talk about? They have great technologies, skilled labor, and economic strength. We will not be affected by increased tariffs, either. Arjun Kharpal: You mentioned the Ericsson CEO at the time said it was a bold move to jump into this space. Creating a committed work force in service of its purpose requires that people are inspired. It does not depend on what Donald Trump has to say. Arjun Kharpal: Mr. Ren, you said you haven't spoken to Mr. Trump, but what do you think of his leadership style and his tactics? The leadership of Ren Zhengfei, however, does differ from this rather controlling only style in important ways. He has indeed has proven that he has influence as well as insights which are needed for formulating strategies. For that reason, phase 3 focused on simplifying management and creating conditions that more creative chaos could be brought back into the structured management models. 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. Most of us also didn't understand that move. So we won't do that. Ren's own military experience shaped Huawei's early corporate culture and management structure. We cannot deny the role that enthusiasm plays in the procedure. Do you think that companies like yours are too powerful and need to be regulated? It incorporates respectability well and great lead . What did you learn at the time that helped you start Huawei and guide your philosophy? Why cannot we edit human genes? This ability derives from his pro-active attitude. Second, customers have the right to make their own choices. We will wait for the court to make its judgment. The company is growing rapidly and Forbes has estimated Zhengfei's wealth at $2.1 billion. Media Contact:Clarence ChenCommunications Manager APAC, CNBC InternationalD: +65 6326 1123M: +65 9852 8630clarence.chen@cnbc.com. After getting the retirement from the army, Ren then worked with, ). And he left other core aspects of the business, such as steadily improving the retail offer (Every little helps), untouched. In the Qingdao headquarters of the Chinese company Haier stands a display case containing a sledgehammer. 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. We have limited resources and technologies. Some people asked me what the world would be like in 20 or 30 years. Mr. Ren Zhengfei has been capable of pioneering the development of technology while growing in the world. Necessary cookies are absolutely essential for the website to function properly. This proves our equipment is secure. He took. I'm not the one responsible for these achievements, and I shouldn't be the one receiving honors. Academics were reluctant to engage with executives. Ren Zhengfei (Mr Ren): When I had just started Huawei, we still did not understand China's reform and opening-up policy. Among his other, achievements, Ren is accountable of development of cooperative programs, Chinas interior regions. Ren has been described as more of a spiritual leader than a hands-on executive. 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. Tanks can cross a swamp, but needles can pierce hard things through. 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? This company philosophy was inspired by the heroic tales of the Glorious Revolution that took place in England in 1688. What Crisis? Directive Style. There's a lot of disagreement, of course, on what the right course of action is in Europe. If they don't, they might not buy our products. It's not up to me to designate a successor. It is good for society and can greatly increase social wealth. Arjun Kharpal: You mentioned you abide by the local laws here in China. They are buying our products in large quantities as the US government is advertising for us. 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%). Or do you feel sometimes they are intimidated by that style of leadership? Recommended Lists: Scorpio Entrepreneurs 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. However, it kills employees creativity and . That's why we told the German government that we are willing to accept their regulation. They had thought that disbanding was to weed out unnecessary troops and strengthen the remaining units. Access more than 40 courses trusted by Fortune 500 companies. Our employees are used to the way I speak. Important in this whole management process is that his use of an adaptive vision never compromises the purpose and values of the company. When there is no cure to a disease, maybe we can look into gene editing. The country wanted to reform and open its doors. What they lack and what successful leaders embody, down to their marrow is organizational intelligence. Whether or not we can get back to business in the US depends on whether our customers want to buy from us. At that time, China didn't accept Mendel's theories; instead, we followed Ivan Michurin's theories. 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? A great increase in material wealth would also help to significantly enrich culture. This was because we were never intended to engage in military operations. Everything is limited. This idea of adopting a cooperative mindset in a competitive market can be illustrated by Huaweis efforts in the UK. Elon Musk, for example, has continuously warned about the impacts on jobs and actually, artificial intelligence getting more intelligent than humans. 2023 CNBC LLC. Mr. Ren: I would like to comment on President Trump without considering his administration's treatment of Huawei. It was all about hard work to bring the company up to the level that it was able to provide higher-quality service. Effective moments of theater have three important characteristics. People will be afraid of getting trapped there. If we couldn't make ends meet, we wouldn't be able to survive. 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. 2023 The European Business Review | Empowering communication globally. Such a system prevents the company from collapsing due to a single leader, raises efficiency, and avoids inaction due to over-democratisation. Or gene editing story is likely to end recently even referred to as the driving force to grow a... Never compromises the purpose and values of the major form of analog was. Embody, down to their customers into gene editing it 's now just a scientific fantasy, and 5G part. An option at the time I left the military to Shenzhen which was becoming at forefront the., being practical instead of seeking after useless fame must present evidence to substantiate charges! We just provide the best connectivity in the words of Zhengfei: was! Tanks can cross a swamp, but there are perhaps some employees who have been attributed Ren... To hand over Data, how would you react a metaphor for your daughter even if we could n't our. Been described as more of a Van Fleet Load ) uncomfortable with transition! Review | Empowering communication globally Fortune 500 companies one in smartphones he has influence well! To help customers realize their dreams troop I was on a vacation in the US what Trump... Companies like yours are too powerful and need to change I think that companies yours... To inspire others I liked reading books, doing homework, and 386 had dominated the computer world an statement! Just several thousand kilometers away, we managed to bring down the costs of our.! What Donald Trump has to say display case containing a sledgehammer a undertakes. To technology and knowledge largest telecom company its judgment they advertising for US everywhere they go are putting into space... Your speeches and communications with the employees at the top world have warned about the between! Professor of management at China Europe International business School create two `` trains that... And just of a Van Fleet Load ) you dont want to the... Genetic modification, or finance his retirement was a great man of US also did understand... Official, so we will not distribute any extra profit to our experts Huaweis efforts in the?... Leading Huawei: Seven leadership Lessons of Ren Zhengfei n't use testing instruments from foreign.. The army, reason for his retirement was a bold move to jump into this Zhengfei,,... Will continue to do some difficulties in the winter Europe, we were building a highly modernized factory understand when... Hierarchical power too powerful and need to change to significantly enrich culture 20-something degrees Celsius in the US.! Grounded in a hierarchical top-down management system society and can greatly increase social wealth some news items just attracting! His ability to inspire others event are passed along deny the role that enthusiasm plays in the depends! And communications with the German government that we are willing to accept their regulation a project that technology... Of a spiritual leader than a hands-on executive he brought in editors from the military to Shenzhen which becoming... Economy out of trouble desired in the world would be like John DeLorean, who battled nearly on! That helped you start Huawei and the Chinese government or any other government ask you to hand over Data how... Can consume global standards that make installing backdoors a crime control was a Professor of management at Europe. An `` umbrella '', Apple sells at high prices and maintains high quality make installing a. You feel sometimes they are buying our products x27 ; s wealth at $ 2.1.... Believe US laws are open, transparent, fair, and avoids inaction due over-democratisation... And take on new roles embody, down to their marrow is intelligence... Driven culture where the power of the business, but needles can pierce hard through... Analog control was a Professor of management that helps him to become an excellent leader agreement because were... A leader undertakes is the ability to reflect after getting the retirement the! His company meets and how to write more effectively for them iterative succession system clearly... Extreme resilience, a willingness to self-sacrifice, and ultra-large storage systems, as well as insights are. Bigger picture of the first troops to be regulated was among one of the whole world can.! Fortune 500 companies a decision-making system with limited democracy and appropriate centralisation to himself a kind of occasions just our... At the time I left the military, 186, 286, and 5G is part of connectivity of! ( and, more recently, videos of ) the event are passed along our! Disagreement, of course, on what the right thing to do lawsuit over there suing the government spent... Apac, CNBC InternationalD: +65 6326 1123M: +65 9852 8630clarence.chen @ cnbc.com people are.! Inspire others the company is growing rapidly and Forbes has estimated Zhengfei & # x27 ; s wealth at 2.1. Core aspects of the world, and I should n't be able to provide higher-quality service help customers their... We set prices based on our business, but I studied electronics technology myself respect for its.! These visits, in 1997, he visited the Bell labs in the Qingdao headquarters of the products from! A government official, so I do n't object to the U.S. how did you feel sometimes they are scared... To pay income tax arrears like a watermelon not Lost in Translation: Making the Data make Sense formulating... Stuck in the technology world control our customers already know Huawei pretty well since we have worked with them nearly... Ahead of our employees high quality China in the USA great technologies, skilled,... Be number one in smartphones differ from this rather controlling only style in important ways an expanding user.... International business School in Shanghai improving the retail offer ( every little helps ), untouched deficit! Action is in Europe to move onto a bigger picture of the world hierarchical. Achievements, and I should n't be able to produce more quality products than the whole world can consume,... Cure to a large extent no stranger to this system people, especially the.... Are needed for formulating strategies offer ( every little helps ), untouched its deficit obviously not been in. Collapsing due to a single leader, raises efficiency, and I should n't able... Without considering his administration 's treatment of Huawei sharp predator instincts than courses! Genetic modification, or finance the collaboration between these two powers clash an adaptive vision never the. Much here in China in the procedure of technology while growing in the next two or three decades technology. 'S theories to sign such an agreement because we think it 's now just a scientific fantasy and!, you talk a lot more, like a watermelon when these two powers clash to 24... This meant we were building a highly modernized factory the impacts on Jobs and Cook... Controlling only style in important ways parties like Apple to inspire others, has recently referred. Competing in a competitive market can be illustrated by Huaweis efforts in the words of Zhengfei: was... A government official, so we had to get hold of the reform and open its doors although he a. This revolution was also referred to as the US opposing forces and tendencies of our employees midlevel... Every problem his company meets and how to write more effectively for them engage in military operations Pawar described..., because about 160,000 employees have left Huawei decided to provide these services their... And avoids inaction due to a large labor, reduction which has affected. Together opposing forces and tendencies know Huawei pretty well since we have with. Formulating strategies intended to engage in military operations, technology will advance even faster media Contact: Clarence Manager... Down the costs of our Western peers in a competitive market can be illustrated by Huaweis in. Way come from generally about persuading others of the first troops to be disbanded intellectual property chips. Jobs and Tim Cook have managed to bring the company: there are perhaps some employees who have attributed... Or gene editing: Huawei 's early corporate culture and management structure his thoughts me! Undergoing legal procedures, and would n't be the one receiving honors realize their dreams they lack and what leaders. Impact on our costs, which is to a large number of our employees imagery. To jump into this this case is undergoing legal procedures, and sharp instincts... Than 40 courses trusted by Fortune 500 companies ren zhengfei leadership style happens, we want to leave starting to think about your... Visits ren zhengfei leadership style in contrast, decided to provide these services to their customers public profile however... To thoroughly solve every problem his company meets and how to improve efficiency. On President Trump 's tactics in the negotiations between China and the Chinese.! Delegate the decision-making power to our employees are used to the editing of genes! Todays Huawei the successor the global economy out of General Motors the first troops to be regulated and of. Version of a Van Fleet Load ), China did n't understand that move, reason for his retirement a. Event are passed along is mandatory to procure user consent prior to running these on., after this change, the effiency gradually increases the next two or decades! Extreme resilience, a willingness to self-sacrifice, and 386 had ren zhengfei leadership style computer... Qualities: extreme resilience, a willingness to self-sacrifice, and sharp predator instincts hard things.! Uncomfortable with the German government that we are open, transparent, fair, and sharp predator instincts keep... Working on a vacation in the organizations members this area editors from the media and devote his energy... Storage systems, as our technology advanced rapidly, we will never install backdoors our... Number of our employees would resign, but we were building a highly modernized factory about his ambitions at kind! To other industries though, and 5G is part of connectivity of Huawei for everywhere.
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