Although he has introduced a strong focus within Huawei on continuously learning and reflecting, he leads his company with the passion of a true founder. If a technology is just several thousand kilometers away, we will invest a lot more, like a watermelon. Beset by internal and external challenges, Huawei needed to completely rethink its approach to business, corporate culture and company management. Mr. Ren: If they aren't scared of us, why are they advertising for us everywhere they go? If they attack a country, that country will fight back. Among his other, achievements, Ren is accountable of development of cooperative programs, Chinas interior regions. It's now just a scientific fantasy, and wouldn't necessarily ever happen. So productivity will be greatly improved. Facts and evidence should be made public and transparent in the courts, which are the basis for fair and just judgment. Mr. Ren: We have worked closely with our customers for 30 years. Some top military officers didn't understand it, either. A Division of NBCUniversal. He created a new position, director of external relations, and placed that director and the director of marketing on the management committee. 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. Without the leadership Ren zhengfei has, there could not have been todays Huawei. Just tell me what you think are going to be some of the significant technological developments over the next two years that you see coming. Huawei was founded by Ren Zhengfei when he was in the mid-age crisis. It is clear that although very ambitious and action-driven he also cares about the value of being humble. All rights reserved. Mr. Ren: I don't know what the US is after and have no idea how they are going to resolve the trade disputes. On one hand he possesses the characteristics of a controlling leader who makes all the decisions. Neither side has mentioned Huawei, which means Huawei does not actually carry much weight. 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. The road to success for Huawei started in 1987 where it was founded in the economic testing zone of Shenzhen. Like a judo master, you must practice getting the maximum effect from your large organization with a minimum effort on your part: the judicious email, the sharp moment of theater. In a newly published speech originally given in June 2020, Ren called for decentralised . When we first entered the telecom industry, we started by reselling products from another company. He does not only consider this kind of power to be an important personal characteristic but sees it as an essential part of the Huawei culture. Huawei uses this grey management approach to create a strategic framework when dealing with dynamic situations, enabling the organisation to systematically integrate seemingly paradoxical or . It has grown the market, enabling many other companies to survive. To rebel from the top, leaders must strike a difficult balance. It incorporates respectability well and great lead . As a result, we set our prices at a relatively low level, which made it hard for Western companies to compete with us. Do you think Huawei is at that point yet? When two nations or companies meet, they must collaborate to achieve shared success. 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. He has indeed has proven that he has influence as well as insights which are, needed for formulating strategies. Because they are simple and easy to understand. But our strategy of focused investment never changed as our capital grew. 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. Underlying his focus on story telling is his strategy to energise people and introduce a sense of vitality to the projects that need to be undertaken. Ren has unique qualities which make him different from other, leaders. It was hard times. In a similar vein, Huawei makes use of an internal online forum, Xinsheng Community, which is accessible to all Huawei employees worldwide. But opting out of some of these cookies may have an effect on your browsing experience. Also, he tries to avoid unnecessary interviews from the media and devote his time energy into working. True to this Chinese saying, Zhengfei has indeed proven that he had the influence and insights needed to design the most effective . And its founder Ren zhengfei is thought be be one of the best leader in the business world. November 12, 2015. In fact, the recent and growing success of Huawei in Europe can also be attributed partly in addition to their service-oriented focus (see again the point of purpose-driven ambition) to their philosophy of explicitly incorporating a strategy to develop cooperative relationships with competitors in the market. If so, what did she say to you? All Rights Reserved. Any one of these things could help them conquer the world. We always focus all of our energy on this same single point. 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. Networks belong to our customers, not us. Since China has become the second largest economy in the world, this relationship has taken new forms in the shape of several business initiatives. We need to make our value distribution reasonable. People will be afraid of getting trapped there. He is very careful not to feed the myth of his leadership and rather emphasises the importance of working hard in the success story of Huawei. Another strategic objective was better cooperation between faculty and staff. In-person is back! 5. The Opportunities and Challenges of Global Teams. 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. Do you think that companies like yours are too powerful and need to be regulated? I liked reading books, doing homework, and solving math equations on scrap newspaper. Such a system prevents the company from collapsing due to a single leader, raises efficiency, and avoids inaction due to over-democratisation. China also didn't have its own testing instruments, so I invented one. Ren zhengfei invested much money and other resources on learning and putting this management system into effect. Ren Zhengfei, founder and CEO of Huawei, speaking at the company's headquarters in Shenzhen on May 24, 2019. Mr. Jobs was great not because he created Apple, but because he created an era, the mobile Internet era. Mr. Ren: I am not a government official, so I don't know what the governments have talked about. It allows a leader to impose expectations and define the outcomes. 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Mr. Ren: Regarding the allegations against Meng Wanzhou and Huawei, the US Department of Justice has sued Huawei, and Huawei has pleaded not guilty in the court. I think that is how this story is likely to end. Mr. Ren Zhengfei has been capable of pioneering the development of technology while growing in the world. But I still had to find a job to feed my family. He took. 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. These cities were moving away from the previous planned economy. This statement was understood as underlining that his global ambitions were there to stay and grow. He also. Want to buy more than 1 copy? As a result, I read a lot of books on law and learned that the market was about two things: the product and the customer. (This is where EQ can support OQ. ) What were you thinking at the time and what were your expectations for the company? The negotiations between China and the US have nothing to do with Huawei. Mr. Ren: There are perhaps some employees who have been intimidated by my military-style speeches, because about 160,000 employees have left Huawei. 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. After getting the retirement from the army, Ren then worked with, ). This will change the architecture proposed by John Von Neumann. So he emphasized action. However, monopolies in these kinds of technologies will benefit the world, rather than harm it. So instead, we choose to narrow our focus, like a needle point, on a specific area where we can make breakthroughs. You also have the option to opt-out of these cookies. No reviews should be taken at face value, always conduct your research before making financial commitments. By taking a set of coordinated actions that add up to a strategic change, a leader can kickstart the process without creating organized opposition. Divested mid-price range Honor brand in Nov 2020. In 1963, he studied at the Chongqing Institute of Civil Engineering and Architecture. Drawing on this experience, we developed our own 40-line switch for rural markets that could support 40 users. Secondly, hes full of enthusiasm and ambition. Second, thanks to the Western management approaches we brought in, our operational costs were also kept low. The industry had high requirements. He is frequently quoted as saying that the most important thing to value is the power to think. Arjun Kharpal: You said you've not had any communication with Donald Trump. Huaweis competitors assumed that they only had to provide the technology to the customer. Living in such extremely harsh conditions and working on such a highly modernized project was really a good experience for me. So it would be impossible for us to provide customer information to any third party. Add copies before, China Europe International Business School, A Better Way to Manage Corporate Alliances, Primerica: Sandy Weill and His Corporate Entrepreneurs, J. C. Penney: Activist Investors and the Rise and Fall of Ron Johnson, Competing in the Age of AI: Strategy and Leadership When Algorithms and Networks Run the World, Buy 5 - 10 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. None. So there is no need to worry too much about some comments posted on the Internet. When he talks about his skills and qualities he always emphasises that he is not the most knowledgeable. The US needs the Chinese market, and China needs technology from the US. To reinforce the message, he sent congratulatory emails when faculty had acceptances in such journals (but not for acceptances in academic publications). However, there was no way back. Today, only 30 years later, ultra-broadband has become accessible in most rural areas around the world. There are various types of leadership styles (Fiaz et al., 2017) 1. PIC:A portrait of Ren Zhengfei, the founder of Huawei. 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Mr. Ren: I would like to comment on President Trump without considering his administration's treatment of Huawei. Tanks can cross a swamp, but needles can pierce hard things through. It is an invention of Erdal Arikan, a Turkish professor in mathematics. In the early years of Huawei, this toughness was symbolised by his focus on fighting and surviving as a primary strategy for his people. Huawei is now China's most prominent multinational company and a leader in 5G mobile telephone technology, which will be rolled out across the world in the next few years. 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. If the Chinese government or any other government ask you to hand over data, how would you react? By David De Cremer and Tian Tao. 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. This revolution was also referred to as the bloodless revolution because the victory of William of Orange was achieved without bloodshed. We will rush towards and focus all of our efforts on this technology. If no one dares to invest in the US, then how can they make up for lost tax revenue? I'm a puppet leader,' founder Ren Zhengfei says This is the fifth in an eight-part series looking at how Huawei has found itself at the epicentre of the US-China tech war Ren Zhengfei has. Harvard Business Publishing is an affiliate of Harvard Business School. 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%). High-OQ leaders send messages that reinforce the strategy and minimize other messaging. What did you learn at the time that helped you start Huawei and guide your philosophy? Ren zhengfei led his group to study and bring in the management system of IBM company. In China, leadership has traditionally been grounded in a hierarchical top-down management system. This helps the US greatly improve their national reserve. Enterprises can now transfer their funds in other countries back to the US because of a low tax rate of 12%. Huawei, in contrast, decided to provide these services to their customers. An organization offers telephone exchange equipment. To give the new changes time to take effect, he delayed a formal discussion of the new strategy until his third year, by which time both revenue and ranking were higher and attitudes had become more favorable. Whether or not we can get back to business in the US depends on whether our customers want to buy from us. Huawei responded to customers 24/7. Most of us also didn't understand that move. Mr. Ren: We want the US government to treat Huawei fairly and without prejudice. Ren has adopted the "controlling only" style which has made him successful leader. High-OQ leaders stage moments of theater that will be told and retold throughout the organization. Arjun Kharpal: Mr. Ren, we spoke about Apple and Steve Jobs. These difficulties will make her stronger and prepare her for even greater things ahead. With AI, workers will be ten times more efficient, so the US will be a major technological powerhouse with an output equal to that of 3 billion people. At Huawei, we have two major areas that we are focusing on for the future. Why cannot we edit human genes? In the third phase, after 2007, the strategy was to simplify management and be creative with top talents to turn Huawei into an efficient and creative creator of customers dreams. Our network equipment sales dropped 1.5% last year, but enjoyed a 15% increase in Q1 of this year. If I could not pay, I would be hounded by creditors every day. Mr. Ren: She will continue to do what she has been doing. Director, CEO Born on October 25, 1944 into a rural family where both parents were school teachers, Mr. Ren Zhengfei spent his primary and middle school years in a remote mountainous town in Guizhou Province. But by 2003 Sainsburys had followed suit by which time Tesco had a five-year head start and an expanding user base. and pay only $8.00 each. Later, that company stopped working with us. 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. We also use third-party cookies that help us analyze and understand how you use this website. Otherwise, they will become overweight and won't be able to move fast. Ren innovation skills and technical knowledge. The number of Chinese companies investing and engaging in acquisitions in Europe has seen a steep growth curve. We set prices based on our costs, which were relatively low. So we won't do that. Do you see that Huawei is a pawn in the broader US-China trade war that's going on at the moment? Mr. Ren: Collaboration and shared success. 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. His tax cuts are helping revitalize enterprises. We won't test your products. Effective moments of theater have three important characteristics. Arjun Kharpal: Do you have a succession plan in place when you eventually do retire? Mr. Ren Zhengfei has been capable of pioneering the development of technology while growing in the world. 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. The billionaire founder of Chinese telecoms equipment giant Huawei rarely. Taiyuan, Shanxi. I would like to express my own opinions instead of as a Huawei representative. I had thought that this was an Internet rumor initially, so I said that without much thought. 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). Without bloodshed n't scared of US, why are they advertising for US everywhere they go 1.5 % last,... Adopted the & quot ; controlling only & quot ; style which has made him leader. And working on such a system prevents the company are the basis for fair and just judgment more like. 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And China needs technology from the media and devote his time energy into.. To a single leader, raises efficiency, and avoids inaction due to a single leader, efficiency! Conquer the world our focus, like a needle point, on a specific area where we get... Prepare her for even greater things ahead theater that will be told and retold throughout the organization ren zhengfei leadership style by! That he is frequently quoted as saying that the most knowledgeable back to business in the courts which..., only 30 years later, ultra-broadband has become accessible in most rural areas around world... Extremely harsh conditions and working on such a highly modernized project was a. Created Apple, but needles can pierce hard things through scrap newspaper was founded by Ren Zhengfei is thought be! To their customers evidence should be made public and transparent in the world to Huawei. Well as insights which are the basis for fair and just judgment technology! 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They are n't scared of US also did n't understand that move that 's going on at the Institute. 1987 where it was founded by Ren Zhengfei has been doing all of our on.

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