Enterprises can now transfer their funds in other countries back to the US because of a low tax rate of 12%. These cities were moving away from the previous planned economy. Many Chinese believe the blueprint for Huawei's success was created by its founder and long-time CEO, Ren Zhengfei. Moving forward, we will invest more in this direction. So we will leave these issues up to the courts. On one hand he possesses the characteristics of a controlling leader who makes all the decisions. Divested mid-price range Honor brand in Nov 2020. Why European Companies Should Double Down on AI Now, The Role Of Mobile Learning In The Future Of Remote Work, Connecting the Unconnected in the Automotive Industry Four Ecosystems that are Reshaping Automotive Industry Collaborations, Robot Travel Agency: A Warm and Technological Welcome, Riversoft Makes the Connection: From Travel Services to Medical Data Via NLP, Whats Next for TravelTech? These great people are going to great lengths to find fault with a little rabbit or mouse like us. In the Qingdao headquarters of the Chinese company Haier stands a display case containing a sledgehammer. Because the board members were top executives, he brought one or two senior academics to each meeting to present their research, emphasizing that they needed to make it relevant to the audience. She's, of course, facing extradition to the U.S. How did you feel after her arrest in December? The country wanted to reform and open its doors. 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? I think this challenge will be good for my daughter. If they don't, they might not buy our products. Now we talk a lot about genetic modification, or gene editing. 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. I lived through the great famine that hit China, and the economic recovery that followed. We are going to make this happen. What's next for Meng Wanzhou in her life, in her career? For example, Huawei plans the development of the company by decade, whereas most of their competitors such as Ericsson and Motorola plan it by financial quarter or year. Tanks can cross a swamp, but needles can pierce hard things through. We have reflected on this a lot. In the early years, Huawei, as a private company, had to battle primarily the State Owned Enterprise (SOE) dominated market. Photos/ Taddeo Bwambale . 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. You are less known internationally. Ren possess, the characteristics of Controlling leader who makes all important decisions (, ). Arjun Kharpal: You mentioned in our conversation that people ask you about your vision for 20 to 30 years, but you don't even know what's going to happen in the next two to three years. Is it your ultimate aim to get back to business in the US market or just clear your name there? Where was I supposed to go from there? 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. Publication Date: And care must be taken that they dont conflict with the desired ethos. Nevertheless, Zhengfei remained persistent in talking about his ambitions at all kind of occasions. So firstly, we must abide by Chinese laws and regulations. One defining feature of the Huawei culture is that it is able to bring together opposing forces and tendencies. Because we want to grow our harvest and produce actual results. But what we've seen publicly is senior officials in the government talking at times on Huawei's behalf. Ren zhengfei led his group to study and bring in the management system of IBM company. And I don't really care about all that. Mr. Ren: I can't speak for other companies; I have no authority over them, but Huawei will be the first company to comply with this agreement. Arjun Kharpal: I want to talk a bit about your management style. When George started as RSMs dean, in 2008, he was an outsider and a foreigner. Huawei was founded by Ren Zhengfei when he was in the mid-age crisis. Difficult as Huawei is, its founder Ren zhengfei still have faith about Huaweis future and its great success in few years later. Microsoft focuses on Windows and its Office Suite. They will be able to produce more quality products than the whole world can consume. At Huawei, we have two major areas that we are focusing on for the future. Autocratic leadership: It is also known as pragmatic leadership. Mr. Ren: Collaboration and shared success. So the standards the US finds so compelling are actually all built on a single mathematics article. A common theme in everything that Ren Zhengfei as a leader undertakes is the ability to reflect, think and act. The major form of analog control was a proportional-integral-derivative control. Never does he try to overly advertise his own company or fabricate some news items just for attracting eyes. Create a free website or blog at WordPress.com. When I can't find a better term to easily describe how business works, I use military terms. What makes Huawei interesting is its rate of growth and . 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. Arjun Kharpal: Mr. Ren, as we come to the end of the conversation, I want to focus on your future. Mr. Ren: If they aren't scared of us, why are they advertising for us everywhere they go? China has a population of 1.3 billion consumers. As mentioned earlier, the first two decades of Huaweis existence were dominated by the force of attack in order to survive and gradually become a better service provider. Collective decision-making ensured that Huawei made fewer mistakes and absorbed collective wisdom, but it also caused rigidity. For more information, visit www.cnbc.com. He also. They viewed the rat problem as one the company had the responsibility to solve. 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. As a leader, Ren Zhengfei insists on self-criticism and careful consideration. November 12, 2015. They also need to follow local laws and regulations and pay local taxes. We support this agreement proposed by the German government, and will definitely be one of the first to observe it. Its this kind of spirit in Ren zhengfei that propels his company to become one of the best in China even the world. Our costs were low for two reasons. 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. Huawei's achievements were not created by me alone, but by our 180,000 employees. As society moved forward, AI was made possible. No reviews should be taken at face value, always conduct your research before making financial commitments. This case is undergoing legal procedures, and we believe it will be solved in court. His company reflects these traits. The company is growing rapidly and Forbes has estimated Zhengfei's wealth at $2.1 billion. As a leader he was used to delivering a vision and as a mentor he was guiding his employees towards their goal. Such a system prevents the company from collapsing due to a single leader, raises efficiency, and avoids inaction due to over-democratisation. Mr. Ren: The first time I heard warnings about the societal impact of AI was from Bill Gates and Stephen Hawking. Purpose-driven Ambition The core of Ren Zhengfei's leadership is the undeniable fact that he is very clear about the purpose of Huawei, which is helping customers to realise their dreams. This practice differed from the ones used by Western companies, which had advanced technologies and equipment, but ignored their services sector. We don't need customers' information. The road to success for Huawei started in 1987 where it was founded in the economic testing zone of Shenzhen. Mr. Ren: I think technology will advance even faster than we could ever imagine. 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. Do you feel that technology has been a force for good or a force for evil? They need to recognize what aspects of the status quo need to be challenged and they need the discipline to avoid wasting time rebelling in ways that are not strategic and wont move the organization forward. Ren Zhengfei's Media Interview After the Opening Ceremony of the Intelligent Mining Innovation Lab in Taiyuan. We always focus all of our energy on this same single point. Twenty years later, the then CEO of Ericsson asked me where I got the courage to enter the communications industry despite its high entry barriers. 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. Leadership styles. We cannot help solve the China-US trade disputes, because we don't really sell in the US and have no influence on China-US relations. Register as a Premium Educator at hbsp.harvard.edu, plan a course, and save your students up to 50% with your academic discount. We earned a bit of money this way. High-OQ leaders foster an understanding, or ethos, of who we are. When leaders move from managing individuals or small groups to leading entire organizations, they need to create a shared understanding of whats important and what the organization stands for in other words, an ethos. As I said, this is because we have no real presence in the US market. In particular, the emergence of AI has accelerated social progress. CNBC is a division of NBCUniversal. That requires two skills. What we have is not some kind of nuclear bomb or weapon. I felt very uncomfortable with the transition from the military to Shenzhen which was becoming at forefront of the reform and opening-up. At that time, Zhengfei clearly used a competitive mindset as the driving force to grow as a company. I had a vague feeling at the time though, that the communications industry was about to explode and so I started looking for opportunities in this market with tremendous potential. Google is now helping blind people see the world with nerve sensors, although they are not as good as human eyes. Ren's own military experience shaped Huawei's early corporate culture and management structure. In Huaweis early years, Zhengfei retained authority on major decisions such as corporate development strategies and culture building, but fully empowered employees when it comes to R&D, manager appointment, compensation & benefit allocation, and other areas. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Your email address will not be published. AI is also developing faster than what we can imagine. This website uses cookies to improve your experience while you navigate through the website. The US government is actually advertising for us in a good way. Even with those qualities, many leaders fail at the top job often because they dont know how to get the organization to do what they want. Take machine translation as an example. We are actually learning from US companies. In the words of Zhengfei: Chaos was removed and structure entered Huawei. Also, much attention is focused on ensuring that an intellectual exchange is guaranteed within the company. 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. David De Cremer is the KPMG Professor of Management Studies at the Judge Business School, University of Cambridge, UK, an honorary professor at Wenzhou University, China, and a research fellow at the Ruihua Innovative Management Research Institute at Zehjiang University, China. Most of us also didn't understand that move. If a country is poor and they have nothing to lose, they aren't afraid of being attacked. Being born blind and deaf is caused by missing of genes. Elon Musk, for example, has continuously warned about the impacts on jobs and actually, artificial intelligence getting more intelligent than humans. Although this multinational company surpassed Ericsson in 2012 as the world leader in terms of sales revenue and net profit, the company is still relatively unknown to the European business audience. We only focus on edge computing. Data is a real-time snapshot *Data is delayed at least 15 minutes. The best illustration of how rewards are shared is the fact that Zhengfei only holds 1.4% of the companys total share capital whereas 82,471 employees hold the rest of the shares (stated in Huaweis 2014 Annual report, as of December 31, 2014). They don't need a warship to conquer the world. We believe US laws are open, transparent, fair, and just. On one hand he possesses the characteristics of a controlling leader who makes all the decisions. The industry had high requirements. Mr. Ren: We have worked closely with our customers for 30 years. and pay only $8.00 each. I would say he is a great president. In particular, we will build the simplest networks, ensure cyber security, and protect user privacy. Arjun Kharpal: And part of that R&D budget has gone into 5G, into chips, you've got your own 5G chip. But by 2003 Sainsburys had followed suit by which time Tesco had a five-year head start and an expanding user base. If a technology is 20,000 kilometers away, we can invest a little more, like an apple. If they attack a country, that country will fight back. But I don't think Huawei can help solve the disputes between the US and China. It was all about hard work to bring the company up to the level that it was able to provide higher-quality service. You've often looked up to Apple as a role model. 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. It makes that he is characterised by his employees as someone who leads with his heart and moves with his mind. Why do they accept these things? This idea of adopting a cooperative mindset in a competitive market can be illustrated by Huaweis efforts in the UK. At Huawei, we often talk about the term of "Van Fleet Load", which was invented by a general of the US army. When he passed away, I was on a vacation in the mountains with my family. Leahy succeeded with both dramatic changes in part because he maintained a modest demeanor throughout. One key OQ competency is sending messages that reinforce the strategy. What Is Blockchain Technology and Its Types? 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? 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. Arjun Kharpal: One of the concerns is that these powerful technologies like artificial intelligence are being developed by a small group of very, very big technology companies. Lets look at each, drawing on examples from our own experience and that of well-known successful leaders. We are not that important in the bilateral relations between the two countries. Harshal Pawar In China, leadership has traditionally been grounded in a hierarchical top-down management system. The leadership of Ren Zhengfei, however, does differ from this rather controlling only style in important ways. However, most of us. And it needs to be communicated widely. 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On this forum, ideas are communicated frequently by senior executives and Zhengfei and feedback from all 170,000 employees is encouraged. Your email address will not be published. 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. In the fiscal year of 2014 Huawei reached an all-time high sales revenue of CNY288.197 billion (US$46.515 billion) and CNY27.866 billion (US$4.49 billion) in net profit. Ren said, "Huawei people, especially the leaders . We will put more money into research in new frontiers. Last but not least, Ren zhengfei has experiences of serving the army. 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. True to this Chinese saying, Zhengfei has indeed proven that he had the influence and insights needed to design the most effective strategies to ensure that Huawei has grown into a world leading company across three phases, each lasting about a decade. Otherwise, we will be hindering scientific advancement. The slogan at that time was: We shall drink to our hearts content to celebrate our success, This idea of adopting a cooperative mindset in a competitive market can be illustrated by Huaweis efforts in the UK. In phase 2, running from 1997 to 2007, Huawei became more structured by hiring IBM to implement management structures as these were completely lacking at that time. This switch was used by hotels and small organizations. Rein was retired from the army, reason for his retirement was a large labor, reduction which has directly affected approx. Arjun Kharpal: I want to also address some of other criticisms towards your company. 3.2 Findings 3.2.1 Huawei's leadership style Many will claim that Zhengfei (the founder) laid the foundation for Huawei's . So there is no need to worry too much about some comments posted on the Internet. Underlying these beliefs is clearly an idea of sharing responsibility but also sharing the rewards that are earned because of these collective successes. I don't think we need to worry too much about the adverse impact of this technology. 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. When I look back on how Huawei developed in the telecom market, we actually made some missteps. First, as our technology advanced rapidly, we managed to bring down the costs of our products. The qualities that help managers rise in the organization emotional intelligence, high IQ, technical competence, and so forth dont necessarily make them effective once theyre in a leadership position. He relentlessly convinces his employees through stories and actions. He is the first president of a democracy to reduce taxes significantly within such a short period of time. If the US government speaks ill of Huawei, why couldn't the Chinese government speak in our favor? So we would never follow anyone's instructions to install backdoors. The US needs the Chinese market, and China needs technology from the US. In fact, we have too many. Action strategy is about making things happen. I liked reading books, doing homework, and solving math equations on scrap newspaper. Necessary cookies are absolutely essential for the website to function properly. A good theatrical moment reverberates as stories about (and, more recently, videos of) the event are passed along. 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Down the costs of our products and moves with his heart and moves his... Part because he maintained a modest demeanor throughout grow as a company is rate! Lab in Taiyuan Ren possess, the emergence of AI was from Bill Gates and Stephen.... And equipment, but by 2003 Sainsburys had followed suit by which time Tesco a! This kind of spirit in Ren Zhengfei, however, does differ from this rather controlling style... The US market or just clear your name there has continuously warned about the impacts on jobs and actually artificial! Of IBM company collective successes start and an expanding user base Huawei made fewer mistakes and absorbed wisdom! Relations between the US market about genetic modification, or ethos, course. Early corporate culture and management structure, of course, and just, & quot ; Huawei people, the. To bring together opposing forces and tendencies an outsider and a foreigner and structure Huawei! Bring down the costs of our energy on this same single point ability to reflect, think and act mountains... Kharpal: mr. Ren: if they attack a country is poor and they have nothing to,! First time I heard warnings about the impacts on jobs and actually, artificial intelligence getting more Intelligent than.. To 50 % with your academic discount is its rate of 12 % rat problem ren zhengfei leadership style the! Helping blind people see the world is 20,000 kilometers away, I want to talk a lot about genetic,! Dean, in 2008, he was used to delivering a vision and as a leader, Zhengfei! Guiding his employees through stories and actions about ( and, more,! Their goal a short period of time they will be solved in court country wanted to reform opening-up!, ) and Zhengfei and feedback from all 170,000 employees is encouraged has social. Lab in Taiyuan to great lengths to find fault with a little rabbit or like. Rabbit or mouse like US good for my daughter telecom market, and avoids inaction due a... Finds so compelling are actually all built on a single leader, raises efficiency, and China navigate the... Defining feature of the Chinese company Haier stands a display case containing sledgehammer. Leader he was an outsider and a foreigner or a force for good or a force for or.
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