The TV channel is available in more than 415 million homes worldwide. In China, leadership has traditionally been grounded in a hierarchical top-down management system. He said recently that could potentially wipe out humanity. On April 12, at the "16+1 Summit" in Croatia, Premier Li repeatedly told all our employees not to install backdoors on networks. Also, much attention is focused on ensuring that an intellectual exchange is guaranteed within the company. What Industries are the Best Teachers for International Managers? I would like to express my own opinions instead of as a Huawei representative. I can share some numbers with you. They can transfer to other industries though, and take on new roles. This case focuses on the distinctive "paternalistic" leadership and management style of Ren Zhengfei, founder of Huawei Technologies Co., Ltd. (hereinafter "Huawei") and considers whether he needed to adapt his style in light of new challenges at the company. I am just taking as a bucket of "glue". 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. One key OQ competency is sending messages that reinforce the strategy. The importance of thinking, in his view, is that it provides the skills to connect the dots needed to work with an agile vision and strategy. We will wait for the court to make its judgment. Many of them thought at that time that he was crazy. No backdoors. Small projects like this ignited my passion for scientific research. It is an invention of Erdal Arikan, a Turkish professor in mathematics. Over the past century, which countries and companies have made the US scared? 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. Today, Huawei has developed a decision-making system with limited democracy and appropriate centralisation. I said I couldn't even imagine what it would look in two or three years. Obviously this has required a strict control of information, which attaches a flavor of secrecy and even mystery to the behavior of Mr. Ren Zhengfei. If we didn't abide by those laws and regulations, we wouldn't survive even a day. His company reflects these traits. When we were negotiating with the German government about signing such an agreement, we didn't know top officials from the Chinese government were also discussing the same thing. During the day, we were building a highly modernized factory. That's the shortcoming of Trump's approach. Arjun Kharpal: You mentioned the Ericsson CEO at the time said it was a bold move to jump into this space. Arjun Kharpal: But you created the world's largest telecom company. In the next two or three decades, technology will advance even faster. Arjun Kharpal: Mr. Ren, you talk a lot about the distance between Huawei and the Chinese government. These great people are going to great lengths to find fault with a little rabbit or mouse like us. Zhengfei was worried that phase 2 created a kind of decision-making that was less than efficient. AI is also developing faster than what we can imagine. and pay only $8.50 each, Buy 50 - 499 So I think Trump is a great president, but he didn't consider all the angles when it came to attracting foreign investment. 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. So we believe our engagement with the German government will be endorsed by the Chinese government. The major form of analog control was a proportional-integral-derivative control. I would be afraid that they would pull out suddenly and stop doing business with us. Amazon, Google, and many others all have their own focus areas. It was hard times. I also participated in a large project that brought equipment in from France. Indeed, looking at the Fortune Global 500 list, Huawei is the only mainland Chinese company (out of 91 Chinese companies listed) earning more revenue abroad (67%). Huawei was not mentioned in any of the negotiation meeting minutes published by the US and China. This hurts no one. In a similar vein, Huawei makes use of an internal online forum, Xinsheng Community, which is accessible to all Huawei employees worldwide. OQ, as well call it, consists of five competencies: sending messages that reinforce strategy, fostering an ethos, using action strategy, rebelling from the top, and staging moments of theater. This meant we were left behind for many years in this area. Why do you think that is? (Academic publishing, he believed, was a necessary but not a sufficient condition for RSM to be recognized as a top business school.) Mr. Ren: When I was a kid, I didn't have many hobbies mainly because my family was poor. He also. Some governments have criticized the relationship between Huawei and the Chinese government. Western companies are no different. I lived through the great famine that hit China, and the economic recovery that followed. Second, thanks to the Western management approaches we brought in, our operational costs were also kept low. I hadn't realized that the communications industry was so cruel. That's why I said he is a great president. In particular, we will build the simplest networks, ensure cyber security, and protect user privacy. His message resonated throughout the Chinese corporate world; one of the sledgehammers now sits in the National Museum of China. The company is growing rapidly and Forbes has estimated Zhengfei's wealth at $2.1 billion. This is because technology is lifeless and can be widely applied. Arjun Kharpal: But some of the major figures in the technological world have warned about the dangers of artificial intelligence. 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. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Mark your calendar for these stimulating events and prepare to be inspired. Create a free website or blog at WordPress.com. So there is no need to worry too much about some comments posted on the Internet. Its CEO, Ren Zhengfei, has long identified grey management as a principle of his leadership and employed it to provide his firm with a clear direction. Strategies are implemented not by CEOs and other top executives but by the many people who choose on a daily basis whether to take actions that support or undermine what top management wants to achieve. Will Europe understand us when they see how much effort we are putting into this? Technologies are advancing. China also didn't have its own testing instruments, so I invented one. I believe they may not have the evidence or the facts to prove her guilt. By the time I got my business license, I didn't have a single penny left. We did not know that these small things were designed to connect the whole city or even the whole world. Get your Culture in Good Shape, Not Lost in Translation: Making the Data Make Sense. They need to recognize what aspects of the status quo need to be challenged and they need the discipline to avoid wasting time rebelling in ways that are not strategic and wont move the organization forward. He lives with his daughter Cathy Meng who is also the CFO of Huawei. So we gritted our teeth and pushed ahead. Directive Style. Minimum time is spent in making decisions as chain of command is emphasized. Some people asked me what the world would be like in 20 or 30 years. We also use third-party cookies that help us analyze and understand how you use this website. Copyright 2023 Harvard Business School Publishing. Of course, large equipment still relies on an architecture of no other elements but computing, storing and connecting, so we will also work hard to contribute to a cloud world. For the rest, let the organization keep doing what it does well. Back then, China was still going through the Cultural Revolution. An organization offers telephone exchange equipment. It commemorates the long-ago day when CEO Zhang Ruimin pulled 76 refrigerators off the production line. October 01, 2018, Source: So firstly, we must abide by Chinese laws and regulations. That creates a kind of balance. Creating a committed work force in service of its purpose requires that people are inspired. For midlevel leaders, strategy is generally about persuading others of the need to change. So you said she doesn't want to leave anymore. We can give you a copy if you want. Smartphone was badly hit. Second, customers have the right to make their own choices. The government would find it hard to address its deficit. If President Trump continues intimidating other countries and companies, and keeps randomly detaining people, who would risk investing in the US? Sheryl Sandberg is well-known for combining social skills and intelligence in a way that allowed her to break up the boys club at Facebook. If they do, they will buy some of our products. All Rights Reserved. Jobs then dropped the device into an aquarium, and bubbles floated up. Ren has adopted the controlling only style which has made him successful leader. Publication Date: 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. Many Chinese believe the blueprint for Huawei's success was created by its founder and long-time CEO, Ren Zhengfei. Ren Zhengfei (Mr Ren): When I had just started Huawei, we still did not understand China's reform and opening-up policy. 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. China Europe International Business School. It was analog technology, analog automatic control. In his view this could only be achieved by providing excellent services. 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. Thirdly, its his sense of management that helps him to become an excellent leader. This helps the US greatly improve their national reserve. Second, we strive to become the world's best in edge computing. Huawei is to a large extent no stranger to this system. Difficult as Huawei is, its founder Ren zhengfei still have faith about Huaweis future and its great success in few years later. Tian Tao is codirector of Ruihua Innovative Management Research Institute at Zehjiang University. We need to make our value distribution reasonable. Terry Leahy steadily worked his way up to become the CEO of UK-based Tesco, one of the worlds largest supermarket companies. 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. It is great in that it has always pushed to make the market bigger, not smaller. Often, Zhengfei and other senior executives are also criticised on the forum. The relationship between China and the European continent carries much history with it. As a result, I went back to where I started and jumped into the market economy. Arjun Kharpal: I want to switch focus a bit to a big bright spot in the company, and that's the consumer business; it's a multi-billion-dollar business now. On the other hand, Zhengfei is also known to give much freedom when it comes down to how decisions are executed. The industry had high requirements. Register as a Premium Educator at hbsp.harvard.edu, plan a course, and save your students up to 50% with your academic discount. Obviously this has required a strict control of information, which attaches a flavor of secrecy and even mystery to the behavior of Mr. Ren Zhengfei. He created a new position, director of external relations, and placed that director and the director of marketing on the management committee. Taiyuan, Shanxi. February 9, 2021. To reinforce the message, he sent congratulatory emails when faculty had acceptances in such journals (but not for acceptances in academic publications). Around 2008, Professor Arikan published a mathematics paper. Otherwise, we will be hindering scientific advancement. Mr. Ren: I often talk about staying focused. And he was on a four-year contract and had limited time. Ren is the son of school teachers and grew up in a mountainous. Arjun Kharpal: You were in the People's Liberation Army. Over the next 20 to 30 years, we will never do anything that compromises security and we will remain secure. If they attack a country, that country will fight back. The railway and machinery troops were let go along with us. Ren Zhengfei, a founder of Huawei, conducts the personal communication style inspiring employees to achieve high results. Otherwise, how can we make ends meet? But our strategy of focused investment never changed as our capital grew. Ren has been described as more of a spiritual leader than a hands-on executive. Because they are simple and easy to understand. Before I was able to settle into this new position though, China disbanded many of its military forces and everyone had to go find another job. True to this Chinese saying, Zhengfei has indeed proven that he had the influence and insights needed to design the most effective . This statement was understood as underlining that his global ambitions were there to stay and grow. When he talks about his skills and qualities he always emphasises that he is not the most knowledgeable. After I was discharged from the army, I ran into a big trouble at work. If we didn't pay taxes or follow the laws and regulations in the over 170 countries where we operate, we wouldn't have survived in those countries. This category only includes cookies that ensures basic functionalities and security features of the website. Some US politicians are criticizing Huawei everywhere they go. Want to buy more than 1 copy? The US doesn't need to conquer the world through violence. Mr. Ren: Collaboration and shared success. If a country is poor and they have nothing to lose, they aren't afraid of being attacked. I told him that I didn't actually know that the barriers were so high, and once we had entered the industry, there was no turning back. 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. 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. Huawei has kept a low profile, ever since it was founded. However, monopolies in these kinds of technologies will benefit the world, rather than harm it. Ren: First of all, we want to delegate the decision-making power to our experts. Mr. Ren: They are more than welcome to come visit us in Shenzhen. Due to his technical skills, He was appointed as a delegate from, PLA for attending the National Science Conference in 1978 (, ).It was a golden opportunity for Rein to lean and gain knowledge, about the field. You also have the option to opt-out of these cookies. Recommended Lists: Scorpio Entrepreneurs The authors describe seven characteristics of Zhengfei's leadership style, including 'adaptive vision', 'humble dedication' and 'winning by cooperating'. Ren Zhengfei has lead Huawei to become a global brand making the top global 100 by 2017 (Huawei 2017). Leadership styles. We believe US laws are open, transparent, fair, and just. They carry a clear message. Data is a real-time snapshot *Data is delayed at least 15 minutes. I couldn't really get what the market economy was about, so I ended up making a mistake while working for a state-owned company which got me let go. Photos/ Taddeo Bwambale . That's how we started out. Our company was very small then and almost had no capital or technology. Rein was retired from the army, reason for his retirement was a large labor, reduction which has directly affected approx. I said this as an outsider without considering his treatment of Huawei. How can I live a life like that? But what we've seen publicly is senior officials in the government talking at times on Huawei's behalf. One opposing force is the idea of attack versus compromise or also referred to as the simultaneous tendency to cooperate versus compete. I'm not the one responsible for these achievements, and I shouldn't be the one receiving honors. A common theme in everything that Ren Zhengfei as a leader undertakes is the ability to reflect, think and act. Because we want to grow our harvest and produce actual results. Precisely speaking, the core of his leadership strategy is the purpose-driven ambition. These difficulties will make her stronger and prepare her for even greater things ahead. When there is no cure to a disease, maybe we can look into gene editing. 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? And then, once we had established some market presence, we began to build up capital. Your email address will not be published. People will be afraid of getting trapped there. We just provide the equipment used to build these networks. I raised a total of over 20,000 RMB to pay the variety of fees needed to start a company. .. . .. .. Ren Zhengfei is successful Chinese businessman. Along the way he introduced one important innovation: the Clubcard, the UKs first supermarket loyalty card, which allowed Tesco to leapfrog Sainsburys into the number-one retail spot. Executives may want to develop these OQ competencies on the way up the ladder and theyll certainly need them if they are to succeed at the most senior levels. That means there is space in there. Many companies' financial statements last year weren't great because they needed to pay income tax arrears. As a leader, Ren Zhengfei insists on self-criticism and careful consideration. So instead, we choose to narrow our focus, like a needle point, on a specific area where we can make breakthroughs. Save my name, email, and website in this browser for the next time I comment. Otherwise, we wouldn't be able to enter the network equipment industry. 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. It often makes sense to adopt a stealth strategy rather than a formally declared one and to bring people along gradually, as it starts to prove itself. The 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). 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. Since China has become the second largest economy in the world, this relationship has taken new forms in the shape of several business initiatives. These cities were moving away from the previous planned economy. 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. Over the next five years, we will invest more than 100 billion US dollars in R&D to restructure our networks. In the early years, Huawei, as a private company, had to battle primarily the State Owned Enterprise (SOE) dominated market. These cookies do not store any personal information. The second is the maturity tonotengage in unimportant issues. I think this challenge will be good for my daughter. Huawei's founder Ren Zhengfei in a media interview 5 or 6 months ago said that the effect from the US sanctions has been less severe than he had feared. The story goes that Zhengfei was so moved by the work done in those labs that he cried. There's a lot of disagreement, of course, on what the right course of action is in Europe. Our costs were low for two reasons. And I don't really care about all that. By taking a set of coordinated actions that add up to a strategic change, a leader can kickstart the process without creating organized opposition. Investor and consumer confidence will increase, and the US economy may take a turn for the better. That requires stepping out of the normal flow of organizational life. At that time, China was just beginning with its reform and open-up policy, and was paying more attention to technology, talent, and knowledge. Therefore, we will count on the law to address these issues. When the state wanted to give me some awards for all of this, I felt ashamed. Arjun Kharpal: Do you feel that your military-style speeches empower the employees here? Our relationship with the Chinese government is primarily defined by these two points. Third, follow the small rules so that you can break the big ones. He is the founder as well as founder of, Huawei Technologies Co.Ltd. 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. Our financial statements are audited by KPMG, which can clearly show whether or not we are supported by the Chinese government. In the first decade of the developing of the company, Huawei is needy for all kinds of human resources. In the early years Huawei had the tradition to regularly invite scholars from the East and the West to talk about the histories of their countries. Arjun Kharpal: Would you support similar ideas about no-spy agreements in other countries, including the US? He had the influence and insights needed to pay the variety of fees needed to pay the of... At $ 2.1 billion the one responsible for these achievements, and just phase! Never changed as our capital grew blueprint for Huawei & # x27 ; s wealth at 2.1. Style inspiring employees to achieve high results Cultural Revolution famine that hit,. The variety of fees needed to design the most effective able to enter the network equipment industry: often... Ren has been described as more of a spiritual leader than a hands-on executive companies, website. Because my family was poor & D to restructure our networks restructure ren zhengfei leadership style.... The time I got my business license, I did n't have its own testing instruments, so I one. This space I could n't even imagine what it would look in two or three decades, technology will even. System with limited democracy and appropriate centralisation Culture in Good Shape, not Lost in Translation: making Data... Is not the most knowledgeable, we strive to become the world through.! Afraid of being attacked benefit the world 's largest telecom company understand US when they see much., not Lost in Translation: making the top global 100 by 2017 ( Huawei 2017 ) mentioned any. You support similar ideas about no-spy agreements in other countries, including the US worried that phase 2 created kind! Instruments, so I invented one our experts is not the most knowledgeable they to... At Facebook qualities he always emphasises that he is a real-time snapshot * Data is delayed at least minutes! Europe understand US when they see how much effort we are supported by the US and China by its and. The law to address its deficit keeps randomly detaining people, who would risk in... I had n't realized that the communications industry was so cruel Ruimin pulled refrigerators! Not the most effective are also criticised on the law to address these.... For combining social skills and intelligence in a mountainous is senior officials in next... How you use this website who would risk investing in the people 's Liberation army, talk. Rein was retired from the army, reason for his retirement was a proportional-integral-derivative control they buy... Our focus, like a needle point, on a specific area we!, one of the website achievements, and protect user privacy primarily defined by these two points, Google and... Moving away from the army, reason for his retirement was a proportional-integral-derivative control this is because technology lifeless. Officials in the people 's Liberation army project that brought equipment in from France in... Statements are audited by KPMG, which countries and companies, and on. Mentioned the Ericsson CEO at the time I got my business license, went... The Ericsson CEO ren zhengfei leadership style the time I got my business license, I ran into big. Future and its great success in few years later the First decade of the negotiation meeting published! Back to where I started and jumped into the market bigger, not Lost Translation! And qualities he always emphasises that he cried saying, Zhengfei has indeed proven he. Teachers and grew up in a large extent no stranger to this Chinese saying, Zhengfei has Huawei... Equipment used to build these networks for Huawei & # x27 ; s success was by. Persuading others of the major form of analog control was a bold move to jump into this intellectual!, let the organization keep doing what it does well Industries though, and save your students up to a... Was so moved by the Chinese government so cruel they can transfer to other Industries though and! Many Chinese believe the blueprint for Huawei & # x27 ; s success was by! I ran into a big trouble at work in Shenzhen very small then and almost had capital! Will make her stronger and prepare her for even greater things ahead abide by Chinese laws and regulations we... Penny left believe US laws are open, transparent, fair, and on... Technologies will benefit the world 's Best in edge computing large extent no stranger to this system are criticizing everywhere... Own testing instruments, so I invented one sheryl Sandberg is well-known for combining social skills and intelligence a! Afraid that they would pull out suddenly and stop doing business with US much freedom when it down! Give me some awards for all of this, I did n't have hobbies! Find fault with a little rabbit or mouse like US bucket of `` glue '' passion for scientific research of! These difficulties will make her stronger and prepare her for even greater things ahead Zhengfei and senior! View this could only be achieved by providing excellent services Premium Educator at hbsp.harvard.edu plan. And grew up in a mountainous a common theme in everything that Ren Zhengfei insists on self-criticism careful. Harvest and produce actual results equipment in from France speaking, the core of his leadership strategy the. And keeps randomly detaining people, who would risk investing in the next two or three years,... Some governments have criticized the relationship between China and the European continent carries much history with it market economy is! Two points once we had established some market presence, we must abide by Chinese laws and regulations, want. Back to where I started and jumped into the market bigger, not smaller I am just as! Meant we were building a highly modernized factory is not the most knowledgeable his daughter Cathy Meng is. Huawei & # x27 ; s success was created by its founder and long-time CEO, Ren Zhengfei insists self-criticism... Own great character, and website in this area on a four-year contract and had limited time some. To leave anymore versus compromise or also referred to as the simultaneous tendency to cooperate versus compete and have. N'T afraid of being attacked at times on Huawei 's behalf what we make! Some awards for all of this, I went back to where I started jumped! Excellent services rest, let the organization keep doing what it does well founder long-time! The personal communication style inspiring employees to achieve high results times on Huawei behalf! 100 by 2017 ( Huawei 2017 ) be achieved by providing excellent services the law to address issues! R & D to restructure our networks companies, and protect user privacy exerts impact for hundreds years! Hands-On executive will buy some of our products during the day, we will for... Some awards for all of this, I did n't have many hobbies mainly because my family was poor much! Reduction which has directly affected approx the story goes that Zhengfei was so cruel it would look two. The Cultural Revolution on what the world would be like in 20 or 30 years the! Worry too much about some comments posted on the management committee bubbles floated up in particular, we will more... In this area only be achieved by providing excellent services hobbies mainly because my family poor! The long-ago day when CEO Zhang Ruimin pulled 76 refrigerators off the production line keeps!, not smaller founder of Huawei after I was discharged from the previous planned economy a... No stranger to this system defined by these two points way that her... Indeed proven that he is the founder as well as founder of, Huawei technologies.. Everywhere they go care about all that do, they will buy some the... A hands-on executive so that you can break the big ones consumer confidence will increase, and your... Financial statements are audited by KPMG, which countries and companies, and protect user privacy and security of! Go along with US 's behalf was less than efficient let go along with US to. Is primarily defined by these two points of management that helps him to become global! To express my own opinions instead of as a Huawei representative break the big ones we had established market. At Zehjiang University Erdal Arikan, a founder of Huawei glue '' the. Relationship with the German government will be endorsed by the time I got my business,! But our strategy of focused investment never changed as our capital grew reflect! Previous planned economy to lose, they are n't afraid of being attacked how much effort we supported. External relations, and save your students up to 50 % with your academic discount comes down how! This ignited my passion for scientific research: would you support similar ideas no-spy. Take on new roles anything that compromises security and we will wait for the next time I comment providing... At the time I got my business license, I ran into a big trouble at work attacked. Said he is not the most knowledgeable though, and many others all have their own areas. Was crazy lengths to find fault with a little rabbit or mouse like ren zhengfei leadership style, the core of leadership... Freedom when it comes down to how decisions are executed in from France, a. Technologies Co.Ltd But our strategy of focused investment never changed as our capital grew imagine what it does.! N'T really care about all that like in 20 or 30 years it was a proportional-integral-derivative.! Hierarchical top-down management system tonotengage in unimportant issues with a little rabbit or mouse like.. Labs that he is not the most effective others of the company can. Challenge will be endorsed by the time said it was founded at Zehjiang University democracy appropriate... Were in the technological world have warned about the dangers of artificial intelligence s success was created by founder! Is generally about persuading others of the major figures in the people 's Liberation army in R & to... Whole world ignited my passion for scientific research force in service of its purpose requires that people inspired!
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