A good theatrical moment reverberates as stories about (and, more recently, videos of) the event are passed along. If a country is poor and they have nothing to lose, they aren't afraid of being attacked. He created a new position, director of external relations, and placed that director and the director of marketing on the management committee. CNBC is a division of NBCUniversal. Huawei has indeed invested considerably in creating a learning driven culture where the power of the mind is visible. 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. Our relationship with the Chinese government is primarily defined by these two points. Terry Leahy steadily worked his way up to become the CEO of UK-based Tesco, one of the worlds largest supermarket companies. In a similar vein, since the beginning of Huawei, it is a known fact that Zhengfei is not a technical expert, but he never saw that as a weakness. In a newly published speech originally given in June 2020, Ren called for decentralised . Mr. Ren: Collaboration and shared success. After he reduced taxes, he should have been friendlier to other countries and try to convince everyone that the US is a great place to invest. .. . .. .. Ren Zhengfei is successful Chinese businessman. This idea of adopting a cooperative mindset in a competitive market can be illustrated by Huaweis efforts in the UK. The TV channel is available in more than 415 million homes worldwide. In the early years, Huawei, as a private company, had to battle primarily the State Owned Enterprise (SOE) dominated market. Arjun Kharpal: You were in the People's Liberation Army. Does China feel under pressure from President Trump's tactics in the negotiations? We have limited resources and technologies. Arjun Kharpal: You said you've not had any communication with Donald Trump. Why cannot we edit human genes? By the time I got my business license, I didn't have a single penny left. Everyone at GE knew what to expect from Neutron Jack Welch. You survived some hardships like famine. Leadership Style Assignment : Ren Zhengfei. First, we want to provide the best connectivity in the world, and 5G is part of connectivity. Mr. Jobs was great not because he created Apple, but because he created an era, the mobile Internet era. 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.. Instead, we will use it to fund universities and scientists for their research and explorations into the future. His passion to be the best technology company they can be in service of the customer ensures that he has deserved the reputation of being eager to keep learning and stay informed all the time. Required fields are marked *. The US has highly developed technology, but it also has a shortage in labor. They replied that they could not make it smaller. So this won't impact us too much. They have great technologies, skilled labor, and economic strength. We also use third-party cookies that help us analyze and understand how you use this website. 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. Such a system prevents the company from collapsing due to a single leader, raises efficiency, and avoids inaction due to over-democratisation. Ren Zhengfei is known for avoiding quick decisions and forcing himself to take time to reflect. But he also has shortcomings. Therefore, Zhengfei acted more like a catfish in the high-level decision-making process, who has constantly created imbalance to inspire passion across the organisation. It is good for society and can greatly increase social wealth. Ren innovation skills and technical knowledge. I would say he is a great president. 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. I also participated in a large project that brought equipment in from France. 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. If they attack a country, that country will fight back. Get your Culture in Good Shape, Not Lost in Translation: Making the Data Make Sense. Make it smaller.[1] That moment of theater became part of Apples folklore, epitomizing Jobss relentless pursuit of perfection. If we couldn't make ends meet, we wouldn't be able to survive. 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. Secondly, we need to pay taxes to the Chinese government. The negotiations between China and the US have nothing to do with Huawei. Join us in Amsterdam for the 2023 European Compliance & Ethics Institute! To stay one step ahead of your competition, sign up today to our exclusive newsletters to receive exciting insights and vital know-how that you can apply today to drastically accelerate your performance. Nothing but life. None. To reinforce the message, he sent congratulatory emails when faculty had acceptances in such journals (but not for acceptances in academic publications). I don't know what the government officials have said, what concessions they have made, or what opportunities or benefits they've received. They are out of the ordinary and unexpected. So we won't do that. I could not keep up with the times. According to him, Huawei should be focused on building a company where peoples minds are the main asset and resource to rely on. Precisely speaking, the core of his leadership strategy is the purpose-driven ambition. At first, we had several hundred employees focus on this point, then we had several thousand, tens of thousands, and now we have hundreds of thousands. So we gritted our teeth and pushed ahead. 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. 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. We want to hear from you. Wearing nice clothes or seeking further education was not what I wanted. However, monopolies in these kinds of technologies will benefit the world, rather than harm it. Arjun Kharpal: Mr. Ren, we spoke about Apple and Steve Jobs. We just wanted to produce some small things that could easily be sold. At the same time, the company acknowledged the contributions of dedicated employees by remunerating them generously. Ren Zhengfei had very clear vision for Huawei, which is to help customers realize their dreams. If we get caught in the middle, we will be crushed like a watermelon when these two powers clash. The slogan at that time was: We shall drink to our hearts content to celebrate our success (ren sheng de yi xu jin huan), but if we should fail lets fight to our utmost until we all die (ju gong jin cui, si er hou yi). I happened to have this invention, and the value of my invention was exaggerated by the country, which led to a promotion for me. Do you think she's a hostage in this broader US-China trade battle? The first is the ability to accurately estimate the level of conflict a particular course of action will elicit. At that time, Zhengfei clearly used a competitive mindset as the driving force to grow as a company. Early life. When I look back on how Huawei developed in the telecom market, we actually made some missteps. 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? In the words of Zhengfei: Chaos was removed and structure entered Huawei. Ren possess, the characteristics of Controlling leader who makes all important decisions (, ). Among his other, achievements, Ren is accountable of development of cooperative programs, Chinas interior regions. We support transparent regulation over companies with new technologies, and we are willing to be subject to such regulation. All Rights Reserved. On October 25, 1944,Ren Zhengfei was born in Zhenning County, Guizhou Province.He spent his primary and junior high school in the mountain village near his home. When the state wanted to give me some awards for all of this, I felt ashamed. Mr. Ren: The first time I heard warnings about the societal impact of AI was from Bill Gates and Stephen Hawking. Zhengfei has a strong interest and passion for learning about historic events. Nothing we've achieved would give us the right to neglect any laws or overlook the technologies of any country. My younger daughter is a fan of Mr. Jobs, so she proposed that we stop for a moment of silence to mourn him, and we did. 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. In the early years of Huawei, Zhengfei was very much aware that their products did not meet the standards of those of its competitors. On the other hand, Zhengfei is also known to give much freedom when it comes down to how decisions are executed. Publication Date: Mr. Ren Zhengfei has been capable of pioneering the development of technology while growing in the world. The US is a strong economy and offers many high-quality products. If everyone went to invest in the US, the US economy would grow dramatically. 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. It is great in that it has always pushed to make the market bigger, not smaller. What do you make of his views? CNBC.com is the preeminent financial news source on the web, featuring an unprecedented amount of video, real-time market analysis, web-exclusive live video and analytical financial tools. (This is where EQ can support OQ. ) These figures show that we are still growing, not declining. So there is no need to worry too much about some comments posted on the Internet. Today, the instrument I made may not be an innovative technology, but at that time, it was a good invention. As he spent decades building one of the biggest tech companies on the planet, Ren Zhengfei kept a low public profile. These difficulties will make her stronger and prepare her for even greater things ahead. Arjun Kharpal: I want to also address some of other criticisms towards your company. The US government is actually advertising for us in a good way. European countries want to think over all their options a bit. He is the founder as well as founder of, Huawei Technologies Co.Ltd. Based on interviews with Huawei employees, its executives, and finally, Ren Zhengfei himself allowed us to arrive at 7 important leadership lessons that have made Huawei the company it is today (see Figure 1). They had thought that disbanding was to weed out unnecessary troops and strengthen the remaining units. Apple is also a great company. This statement was understood as underlining that his global ambitions were there to stay and grow. 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. High-OQ leaders stage moments of theater that will be told and retold throughout the organization. When two nations or companies meet, they must collaborate to achieve shared success. Over the past century, which countries and companies have made the US scared? How can I live a life like that? 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? We will rush towards and focus all of our efforts on this technology. It will greatly increase productivity. Without the leadership Ren zhengfei has, there could not have been todays Huawei. Action strategy is about making things happen. February 9, 2021. Huawei has indeed invested considerably in creating a learning driven culture where the power of the mind is visible. Arjun Kharpal: I want to talk a bit about your management style. For more information, visit www.cnbc.com. Copyright 2023 Harvard Business School Publishing. The engineering troop I was in was among one of the first troops to be disbanded. We will comply with European cyber security standards and the GDPR. HBR Learnings online leadership training helps you hone your skills with courses like Business Plan Development. 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. 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. Huawei, one of the biggest company focusing on making communication tools like cellphones, is famous all over the world. Otherwise, we wouldn't be able to enter the network equipment industry. One story that stayed with Zhengfei was the overthrow of King James II of England by a union led by William of Orange in 1688, which was called the Glorious Revolution. Huawei responded to customers 24/7. For example, as the products of Huawei in their pioneering years were not yet well developed he visited many R&D offices abroad. 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? So George revamped the universitys advisory board meetings. After getting, retired from the military, Ren has planned to work in electronic business. Mr. Ren: We want the US government to treat Huawei fairly and without prejudice. In the early years of Huawei, this toughness was symbolised by his focus on fighting and surviving as a primary strategy for his people. It does not depend on what Donald Trump has to say. We invest heavily in our focus area. 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. Ren Zhengfei (Mr Ren): When I had just started Huawei, we still did not understand China's reform and opening-up policy. It incorporates respectability well and great lead . At that time, Ren zhengfei often told all kinds of stories to encourage its employees to imagine the splendid future and try to cast them into reality with their own hands. Ren Zhengfei, founder and CEO of Huawei, speaking at the company's headquarters in Shenzhen on May 24, 2019. Mr. Ren: I think technology will advance even faster than we could ever imagine. They wouldn't need to rest, just to refuel. Mr. Ren: I don't know what the US is after and have no idea how they are going to resolve the trade disputes. 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. This introductory chapter offers an overview of the entire book on the management transformation of Huawei. Cuts and bruises toughen her up, and even since ancient times, heroes were born of hardship. I was later told that she sent me a letter, where she mentioned that she wanted to leave the company. We don't have much influence over China-US trade relations. Its this kind of spirit in Ren zhengfei that propels his company to become one of the best in China even the world. Then scientists realized the value of genes and DNA. So our products needed to be standardized. 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. Essential in his idea to compete, however, is that it should be done with respect for its opponents. What have been the driving forces behind that? | All rights reserved. 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 Us scared it comes down to how decisions are executed to do with.! Faster than we could n't make ends meet, we would n't be able to enter the equipment... 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