Its this kind of spirit in Ren zhengfei that propels his company to become one of the best in China even the world. Mr. Ren: We want the US government to treat Huawei fairly and without prejudice. 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. At that time, Zhengfei clearly used a competitive mindset as the driving force to grow as a company. Mr. Ren: I think Mr. Jobs was a great man. So we've decided that our. It allows a leader to impose expectations and define the outcomes. Mr. Ren: I think technology will advance even faster than we could ever imagine. Precisely speaking, the core of his leadership strategy is the purpose-driven ambition. As we noted earlier, often references to past historic events are used to shape actions and beliefs towards the future. Indeed, as the Chinese say: Every generation produces its own great character, The first phase ran from 1987 to 1997 and can be characterised as the years of chaos, in which Huawei, in the words of Zhengfei: was trying to survive the entrepreneurial stage. This category only includes cookies that ensures basic functionalities and security features of the website. This is thanks to Trump. The US government must present evidence to substantiate their charges against Huawei as this lawsuit proceeds. Back home in Shenzhen, Zhengfei told everyone that the passion that he felt for that lab was equal to love. Given these achievements combined with a certain myth of a Chinese emperor rising to the global stage, it begs the question what the philosophy and driving force behind this business success is. Why do they accept these things? Small projects like this ignited my passion for scientific research. This will change the architecture proposed by John Von Neumann. The industry had high requirements. Because they are simple and easy to understand. Is only slower computing good for us? And it needs to be communicated widely. In total, 300,000 to 400,000 people have joined Huawei, but only around 180,000 people decided to stay. One opposing force is the idea of attack versus compromise or also referred to as the simultaneous tendency to cooperate versus compete. Do you feel that technology has been a force for good or a force for evil? This incentive performance system ensures that people are not only motivated to work hard towards collective success, but probably even more importantly it ensures that Huawei really is an employee-owned company. Everything is limited. 500000 employees in military field. Terry Leahy steadily worked his way up to become the CEO of UK-based Tesco, one of the worlds largest supermarket companies. China has a population of 1.3 billion consumers. Saying that he was great is an understatement. What's next for Meng Wanzhou in her life, in her career? Otherwise, how can we make ends meet? It takes a lot to get to the top of an organization: a high IQ, emotional intelligence, technical competence, and a variety of personal characteristics, such as fortitude and resilience. Let's look at an example. 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. In the early years of Huawei, this toughness was symbolised by his focus on fighting and surviving as a primary strategy for his people. 5G technology was not invented by Huawei. After, completing his school, He attended the university named Chongqing and then Ren Zhengfei, joined Peoples Liberation Army research institute as, he wishes to work as a military technologist, reportedly in the PLA's Information Technology research unit. The US hasn't been scared of anyone or anything though. Arjun Kharpal: You said Huawei should not be used as leverage between the US and China, and Donald Trump, President of the United States, said that he could intervene in the Meng Wanzhou case as part of a bigger trade deal between the US and China. Huawei is now the world's largest telecoms equipment maker. He also. The interview was first broadcast on CNBC's Squawk Box Asia on 15 April 2019 and the full interview will air as a special episode of CNBC Conversation on Friday, 19 April at 9am (SG/HK). Huawei has indeed invested considerably in creating a learning driven culture where the power of the mind is visible. This website uses cookies to improve your experience while you navigate through the website. Ren Zhengfei now serves as a deputy chairman of the board of directors. If a country is poor and they have nothing to lose, they aren't afraid of being attacked. With higher prices, we have started earning more. Some governments have criticized the relationship between Huawei and the Chinese government. Learn how to create a winning business plan. In a similar vein, Huawei makes use of an internal online forum, Xinsheng Community, which is accessible to all Huawei employees worldwide. Early life. Vernon Hill was transformationally successful in leading Commerce Bank in the USA and then Metro Bank in the UK. Mr. Ren: First, I think our customers already know Huawei pretty well since we have worked with them for nearly 30 years. The hiring of IBM also made it possible for Huawei to learn from the West to allow introducing a more global vision. It helps reduce many people's workloads. None. And he initiated an annual conference whose panels combined executives and faculty members. One Chinese company that is increasingly becoming active in Europe is the Chinese telecom giant Huawei. In a newly published speech originally given in June 2020, Ren called for decentralised . Do you think that companies like yours are too powerful and need to be regulated? According to him, Huawei should be focused on building a company where peoples minds are the main asset and resource to rely on. Organisations need to implement leadership innovation to secure a successful and profitable future, as Ren Zhengfei has done with his multinational company Huawei. Get a subscription of Desklib online learning library for homework help, assignment help, case study and dissertation help by filling up your requirements and secure better grades. Founder of Chinese tech giant Huawei Technologies Ren Zhengfei has called on the company's staff to "dare to lead the world" in software as the company seeks growth beyond the hardware. Huaweis competitors assumed that they only had to provide the technology to the customer. Even if we were ordered to, Huawei would still not install backdoors. It was analog technology, analog automatic control. That creates a kind of balance. 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. The major form of analog control was a proportional-integral-derivative control. I'm not the one responsible for these achievements, and I shouldn't be the one receiving honors. 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!. He said, Those are air bubbles. Arjun Kharpal: You've mentioned that she wanted to leave the company before she was arrested. Harshal Pawar 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 If we get caught in the middle, we will be crushed like a watermelon when these two powers clash. 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. He is frequently quoted as saying that the most important thing to value is the power to think. Data Analysis Methods Every Business Needs To Know How To Perform, Are You Ready to Lead in a Digital World? In this case study that focus on leadership, leadership is defines as the behaviour of an individual when he or she is directing the activities of a group towards a shared goal. Fostering an ethos requires taking two important steps. Take machine translation as an example. He is the founder as well as founder of, Huawei Technologies Co.Ltd. So it would be impossible for us to provide customer information to any third party. Summary. More and more companies are harnessing new technologies more quickly. We cannot deny the role that enthusiasm plays in the procedure. Ren Zhengfei, founder and CEO of Huawei, speaking at the company's headquarters in Shenzhen on May 24, 2019. We set prices based on our costs, which were relatively low. Leading Huawei: Seven Leadership Lessons of Ren Zhengfei. Really effective leaders learn early to target only important issues and ones they have a fair shot of winning. . Third, follow the small rules so that you can break the big ones. This is how, John Sutherland on Leadership and Teamwork, Pro-active Leadership: How to overcome procrastination and be a bold decision-maker, ChatGPT and Its Impact on Author Transparency in Scientific and Academic Journals, How New Age Entrepreneurs are Changing the Way We Think About Business, Layoffs in Tech: Redistribution of Resources Amid a Tech Transformation. Because we want to grow our harvest and produce actual results. Mr. Ren: Huawei is based in China. That's why some deep-pocketed countries with rich oil reserves are buying from us. A great opportunity arose when one senior professor complained that the teaching program staffers acted as if the faculty worked for them, rather than the other way around. Academics were reluctant to engage with executives. Not really, we think. If a technology is just several thousand kilometers away, we will invest a lot more, like a watermelon. This is fundamental to solving problems. 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. Elon Musk, for example, has continuously warned about the impacts on jobs and actually, artificial intelligence getting more intelligent than humans. Struggling a bit can be good for them. You dont want to be like John DeLorean, who battled nearly everything on his way up in and then out of General Motors. Mr. Ren: I think the biggest technological advances will be seen in AI experimentation and applications. In a way obsessed by doing good for the customer, Zhengfei is relentless in communicating this purpose by means of stories to his employees and convincing them that they all should be dedicated to pursue the mission of the company: To connect people via communication.. In his pursuit of the Huawei dream, Ren Zhengfei seems to know his own limitations and does not portray himself as the ultimate know-all leader. Rebelling from the top means taking on the biggest challenges only when you have the most firepower. 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. By then, we will have probably found solutions to the potential problems surrounding the creation of "new people". 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. We want to hear from you. Have you thought of retiring any time soon? Before moving to UK, he was a Professor of Management at China Europe International Business School in Shanghai. Is it your ultimate aim to get back to business in the US market or just clear your name there? I think Google might one day come up with a medicine that helps people live forever, but I may not be able to see it coming. Ren innovation skills and technical knowledge. AI is also developing faster than what we can imagine. This can help us address the problem of how we distribute our increasing profit. At this time, Ren Zhengfei's family was starving. If they attack a country, that country will fight back. I happened to have this invention, and the value of my invention was exaggerated by the country, which led to a promotion for me. When I was young, I had no ideals. Today, Huawei has developed a decision-making system with limited democracy and appropriate centralisation. 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? There are various types of leadership styles (Fiaz et al., 2017) 1. We earned a bit of money this way. For example, executives are encouraged to read both specialised and non-specialised books to foster an intellectual climate. This shows that the little rabbit or mouse must have something great to offer. What have been the driving forces behind that? High-OQ leaders stage moments of theater that will be told and retold throughout the organization. If I could not pay, I would be hounded by creditors every day. We won't test your products. These figures show that we are still growing, not declining. Leahy succeeded with both dramatic changes in part because he maintained a modest demeanor throughout. You have entered an incorrect email address! and pay only $8.75 each, Buy 11 - 49 Or do you feel sometimes they are intimidated by that style of leadership? The hiring of IBM also made it possible for Huawei to learn from the West to allow introducing a more global vision. But unfortuetely he fails to, achieve military rank, due to which he was not allowed to join communist party of China for, continuing his career in Military field as, Ren Zhengfei family belongs to social background and, Ren Zhengfei was accountable for many, technological achievements. So there is no need to worry too much about some comments posted on the Internet. Second, customers have the right to make their own choices. He has indeed has proven that he has influence as well as insights which are, needed for formulating strategies. But this year, once the slate is wiped clean, the financial statements they will release in July will be much healthier. After getting the retirement from the army, Ren then worked with, ). Arjun Kharpal: In terms of the way he's negotiated with China, some people would say that actually he's managed to get concessions for the US. I lived through the great famine that hit China, and the economic recovery that followed. This is a challenging competency and a powerful one. In fact, we have too many. Genetic inheritance was discovered by Gregor Mendel during his experiments on pea hybridization. This company philosophy was inspired by the heroic tales of the Glorious Revolution that took place in England in 1688. Thirdly, its his sense of management that helps him to become an excellent leader. His management of the company is heavily influenced by the childhood hardship he endured during the Cultural Revolution and the military values instilled in him during his 6 years in the PLA. After learning from the West for almost 20 years, Huawei has established an increasingly standardized and institutional decision-making system. Wearing nice clothes or seeking further education was not what I wanted. Today, only 30 years later, ultra-broadband has become accessible in most rural areas around the world. An interesting consequence was that because of this purpose-driven strategy they acquired much experience in developing robust equipments and materials, which helped them later on to win several big business accounts in the Middle-East. His message resonated throughout the Chinese corporate world; one of the sledgehammers now sits in the National Museum of China. Mr. Ren: Huawei's future iterative succession system is clearly defined in our Articles of Governance. 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. 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? The leadership of Ren Zhengfei, however, does differ from this rather controlling only style in important ways. She has understood the difficulties that the company is facing and wants to help us see this through. His company reflects these traits. On one hand he possesses the characteristics of a controlling leader who makes all the decisions. Ren has unique qualities which make him different from other, leaders. Will Europe understand us when they see how much effort we are putting into this? If the US thinks we can be used as a pawn, I'd say they probably have the wrong person. When attending a summit in Croatia, Premier Li also told our employees not to install backdoors. By taking a set of coordinated actions that add up to a strategic change, a leader can kickstart the process without creating organized opposition. It emphasized clear-cut goals, hard-and-fast rules, employee dedication and absolute obedience. If the US opens its telecom industry and its operators say they are going to purchase tens of billions of dollars in equipment from us, I wouldn't believe it and wouldn't be willing to make billions of investments. Mr. Ren: Because I don't actually know technology that well, and I didn't invent anything. They are buying our products in large quantities as the US government is advertising for us. Therefore, he often uses similar way to manage the company like the military system does. Every generation produces its own great character, and each exerts impact for hundreds of years. True to this Chinese saying, Zhengfei has indeed proven that he had the influence and insights needed to design the most effective strategies to ensure that Huawei has grown into a world leading company. 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. When there is no cure to a disease, maybe we can look into gene editing. This way, we will be able to make world-leading products. Neither side has mentioned Huawei, which means Huawei does not actually carry much weight. It commemorates the long-ago day when CEO Zhang Ruimin pulled 76 refrigerators off the production line. Leadership styles. He is the author of the book Pro-active Leadership: How to overcome procrastination and be a bold decision-maker. So firstly, we must abide by Chinese laws and regulations. I only care about the growth of my company. I could not keep up with the times. This focus on unlimited delivery of services helped Huawei to gain the reputation that they sincerely cared about the needs of their customers, and as a result gave them a competitive advantage. 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. This hurts no one. But Meng Wanzhou will definitely not be the successor. If no one dares to invest in the US, then how can they make up for lost tax revenue? We don't talk about anything else, because we know that our communication is being monitored. Mr. Ren: When I was a kid, I didn't have many hobbies mainly because my family was poor. It is an invention of Erdal Arikan, a Turkish professor in mathematics. How to Hide My Following List on Instagram From Followers 2023, Payke: High Tech to Enrich the Japan Experience, Extending The Time Equation: How TimeXtender Helps Businesses Save Considerable Time, Money by Automating Data Management Efforts, Future-proofing payment systems: the silver lining is in the cloud, Getting the AI edge: An exclusive interview with MobiDev CEO Oleg Lola, Promise and Challenge: AI in the Trade Finance Industry, ZeroBounce COO Brian Minick on Getting Better at Email Marketing, Refining the Search for Executive Talent in Europe, Re-creating the Trust of a Village in a Digital, Global Market: Insights From Trulioo CEO Steve Munford, Want to Succeed in Business? Contact: customerservice@harvardbusiness.org, Below are the available bulk discount rates for each individual item when you purchase a certain amount. Zhengfei was very clear about this ambition and demanded that all Huawei employees would adopt the US-based way of looking at business as introduced by IBM. 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 support transparent regulation over companies with new technologies, and we are willing to be subject to such regulation. Many companies' financial statements last year weren't great because they needed to pay income tax arrears. All he cares about is how to thoroughly solve every problem his company meets and how to improve the efficiency of the whole group. We don't need customers' information. Arjun Kharpal: Have you tried to reach out to the president to speak to him about it? On one hand he possesses the characteristics of a controlling leader who makes all the decisions. Later, that company stopped working with us. At Huawei, we have two major areas that we are focusing on for the future. On April 12, at the "16+1 Summit" in Croatia, Premier Li repeatedly told all our employees not to install backdoors on networks. In other words, the emphasis of results is viewed a basic spirit of Huawei. A Division of NBCUniversal. We did not know that these small things were designed to connect the whole city or even the whole world. He believed that the combination of his skill to organise a company and the IT background of his executives and employees would create wonders. Initiated an annual conference whose panels combined executives and employees would create wonders shows that the most important to. Which were relatively low encouraged to read both specialised and non-specialised books to foster an intellectual climate pulled! 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