It makes that he is characterised by his employees as someone who leads with his heart and moves with his mind. In-person is 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. Arjun Kharpal: So would you say the US is scared of Huawei? He has maintained the company as private and his management style has been extremely I was later told that she sent me a letter, where she mentioned that she wanted to leave the company. Jobs then dropped the device into an aquarium, and bubbles floated up. After getting, retired from the military, Ren has planned to work in electronic business. Arjun Kharpal: Mr. Ren, as we come to the end of the conversation, I want to focus on your future. Then scientists realized the value of genes and DNA. We will also increase our sales revenue, which is now more than 100 billion US dollars, to around 250 billion US dollars. 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. Some governments have criticized the relationship between Huawei and the Chinese government. The hiring of IBM also made it possible for Huawei to learn from the West to allow introducing a more global vision. Do you think that companies like yours are too powerful and need to be regulated? The country paid little attention to technology and knowledge, but we were working on a project that required technology and knowledge. Second, we don't really sell in the US market, so we will not be affected by a sales ban. So you said she doesn't want to leave anymore. They carry a clear message. As the dean of Rotterdam School of Management (RSM), one of us, George, set the strategic objective of persuading faculty members to publish in practitioner journals like HBR and MIT Sloan Management Reviewin addition to academic journals. 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. Decisions were taken much slower than in the first more chaotic years of the company and fear existed that the bravery and courage underlying the companys striving for innovation would disappear. Since China has become the second largest economy in the world, this relationship has taken new forms in the shape of several business initiatives. To reinforce the message, he sent congratulatory emails when faculty had acceptances in such journals (but not for acceptances in academic publications). (This is where EQ can support OQ. ) That's the shortcoming of Trump's approach. Mr. Jobs was great not because he created Apple, but because he created an era, the mobile Internet era. Figure 1: The Leadership Lessons of Ren Zhengfei 1. Get this delivered to your inbox, and more info about our products and services. Is this a battle for you? Why cannot we edit human genes? You also have the option to opt-out of these cookies. We are not that important in the bilateral relations between the two countries. The government would find it hard to address its deficit. 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. I hadn't realized that the communications industry was so cruel. Back home in Shenzhen, Zhengfei told everyone that the passion that he felt for that lab was equal to love. Ren innovation skills and technical knowledge. It commemorates the long-ago day when CEO Zhang Ruimin pulled 76 refrigerators off the production line. Iterative succession must take place in an orderly fashion. What if we could identify and change the genes that cause the condition? The leadership of Ren Zhengfei, however, does differ from this rather "controlling only" style in important ways. Steve Jobs is known more internationally. We don't talk about anything else, because we know that our communication is being monitored. The billionaire founder of Chinese telecoms equipment giant Huawei rarely. So AI will make the world better, not worse. Arjun Kharpal: Do you feel that your military-style speeches empower the employees here? So we won't do that. Ren is an active supporter of Communist Party of China. Earn badges to share on LinkedIn and your resume. Over the next 20 to 30 years, we will never do anything that compromises security and we will remain secure. But the US is in a different situation. With the accounting error, Hill broke a big rule but we suspect that had he followed the smaller rules around issues like showing favoritism to family members, he would have had a better chance of survival. Ren described it as a blend of three qualities: extreme resilience, a willingness to self-sacrifice, and sharp predator instincts. We can give you a copy if you want. 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. All references must be sourced to a "CNBC Interview'. However, we are not in any position to require other companies to do the same. I had no idea. 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. Particularly the Silk Road Economic Belt and the 21, His ability to critically reflect on past successes and at the same time to identify the future challenges in the next decade makes Zhengfei an impactful business leader in the eyes of many Chinese. Ren is the son of school teachers and grew up in a mountainous town . Second, customers have the right to make their own choices. There has also been questions about your past as a communist party member and what that means for Huawei. He said recently that could potentially wipe out humanity. The road to success for Huawei started in 1987 where it was founded in the economic testing zone of Shenzhen. Our network equipment sales dropped 1.5% last year, but enjoyed a 15% increase in Q1 of this year. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Mark your calendar for these stimulating events and prepare to be inspired. Investor and consumer confidence will increase, and the US economy may take a turn for the better. What makes Huawei interesting is its rate of growth and . At the same time, the company acknowledged the contributions of dedicated employees by remunerating them generously. This is beyond what anyone had imagined. One of the consistent qualities that have been attributed to Ren Zhengfei is his ability to inspire others. You're seen as a visionary very much here in China in the technology world. As society moved forward, AI was made possible. Leadership Style Assignment : Ren Zhengfei. Contact: customerservice@harvardbusiness.org, Below are the available bulk discount rates for each individual item when you purchase a certain amount. So it's impossible for me to enjoy the same prestige as Jobs. If they attack a country, that country will fight back. They wouldn't need to rest, just to refuel. Taiyuan, Shanxi. Register as a Premium Educator at hbsp.harvard.edu, plan a course, and save your students up to 50% with your academic discount. 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. However, there was no way back. Arjun Kharpal: You mentioned you abide by the local laws here in China. This will change the architecture proposed by John Von Neumann. In other words, the emphasis of results is viewed a basic spirit of Huawei. Microsoft focuses on Windows and its Office Suite. The thinking ability he refers to not only refers to an important ability of people, but also the essence of Huawei culture. In total, 300,000 to 400,000 people have joined Huawei, but only around 180,000 people decided to stay. Because we want to grow our harvest and produce actual results. Ren Zhengfei, a founder of Huawei, conducts the personal communication style inspiring employees to achieve high results. I believe China and the US should stress collaboration and shared success. Secondly, we need to pay taxes to the Chinese government. None of the information on this website is investment or financial advice. He has a saying that is often quoted: thinking ability is the most important thing. 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? Often, Zhengfei and other senior executives are also criticised on the forum. Nothing but life. Any one of these things could help them conquer the world. Save my name, email, and website in this browser for the next time I comment. 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). What Crisis? 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 You survived some hardships like famine. Today, Huawei has developed a decision-making system with limited democracy and appropriate centralisation. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. Many of them thought at that time that he was crazy. Arjun Kharpal: You said you've not had any communication with Donald Trump. 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. Huaweis competitors assumed that they only had to provide the technology to the customer. Ren Zhengfei (Mr Ren): When I had just started Huawei, we still did not understand China's reform and opening-up policy. Enterprises can now transfer their funds in other countries back to the US because of a low tax rate of 12%. And it needs to be communicated widely. So George revamped the universitys advisory board meetings. The cost of using a warship is high. We obviously couldn't control our customers, so we had to get hold of the products. 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. He is the author of the book Pro-active Leadership: How to overcome procrastination and be a bold decision-maker. 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. Leading Huawei: Seven Leadership Lessons of Ren Zhengfei. The secret is to take advantage of opportunities to do something symbolic in a surprising, high-impact way that will capture the attention (and, hopefully, the hearts and minds) of the organizations members. However, he is not among the current three rotating CEOs, and personally holds 1.42% of the shares of 'Huawei,' valued at over US$2,200 million in 2018. When I can't find a better term to easily describe how business works, I use military terms. But he also has shortcomings. In 1963, he studied at the Chongqing Institute of Civil Engineering and Architecture. 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. 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. 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. Ren's own military experience shaped Huawei's early corporate culture and management structure. I'm not the one responsible for these achievements, and I shouldn't be the one receiving honors. Secondly, hes full of enthusiasm and ambition. 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. How do you respond to some of these very, very strong criticisms from governments around the world? He is recognized as a leader who motivates to facilitate innovation at all levels. During World War II, there was a famous Il-2 aircraft that kept flying after being riddled with bullets from both other planes and anti-air defenses. What were you thinking at the time and what were your expectations for the company? But I still had to find a job to feed my family. Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. He relentlessly convinces his employees through stories and actions. I would like to express my own opinions instead of as a Huawei representative. 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. However, most of us didn't really understand how important this decision made by the CPC's Central Committee was. We also use third-party cookies that help us analyze and understand how you use this website. By submitting your email, you agree to our Terms & Conditions and Privacy Policy. In a newly published speech originally given in June 2020, Ren called for decentralised . No reviews should be taken at face value, always conduct your research before making financial commitments. Mr. Ren: Huawei's future iterative succession system is clearly defined in our Articles of Governance. Then a large number of our employees would resign, but I cannot leave. In 1960, there was a serious famine in Guizhou Province. Huawei is to a large extent no stranger to this system. On this forum, ideas are communicated frequently by senior executives and Zhengfei and feedback from all 170,000 employees is encouraged. Thirdly, its his sense of management that helps him to become an excellent leader. In 2019, soon after Metro Bank revealed an accounting error involving the misclassification of more than $1 billion in loans, Hill resigned. So I don't think there will be a significant impact on Huawei's business. You often use military imagery and images of battles in your speeches and communications with the employees at the company. 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. The ethos needs to be summarized in an evocative statement pointing to the behaviors desired in the organizations members. This was because we were never intended to engage in military operations. If we didn't abide by those laws and regulations, we wouldn't survive even a day. 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. (Academic publishing, he believed, was a necessary but not a sufficient condition for RSM to be recognized as a top business school.) Leading Huawei: Seven Leadership Lessons of Ren Zhengfei, The relationship between China and the European continent carries much history with it. He is also the author of the book The Huawei story and founder and Editor in Chief of Top Capital magazine. The last thing we want is to have bureaucrats or managers lead our way in technology. 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. The US doesn't need to conquer the world through violence. Dong Mingzhu, Chinas most successful businesswoman and the head of Gree Electric, has a persona that says, Where Sister Dong walks, no grass grows meaning she is really, really tough. Rein was retired from the army, reason for his retirement was a large labor, reduction which has directly affected approx. Do you think she's a hostage in this broader US-China trade battle? So firstly, we must abide by Chinese laws and regulations. I said I couldn't even imagine what it would look in two or three years. 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. After getting the retirement from the army, Ren then worked with, ). Time that he was crazy think that companies like yours are too powerful and need to taxes! 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