It helps reduce many people's workloads. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Mark your calendar for these stimulating events and prepare to be inspired. That's my only ideal. It's now just a scientific fantasy, and wouldn't necessarily ever happen. In order to support his family, Ren Zhengfei implemented a strict system of food distribution in his family. The US and Canadian legal systems are open, transparent, just, and fair. At the time, the market economy was beginning to take shape in China, at least in coastal cities. Arjun Kharpal: But you created the world's largest telecom company. 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. Arjun Kharpal: Mr. Ren, we spoke about Apple and Steve Jobs. It at least might give us time to find real cures. 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. There is nothing else that I want to share with him. The Opportunities and Challenges of Global Teams. Your email address will not be published. People back then thought his discovery was useless and ignored it for 100 years. Networks belong to our customers, not us. Second, Huawei is being stuck in an extremely difficult situation the US is launching intense attacks against us. Although he is a billionaire, Zhengfei prefers a low profile lifestyle and even travels on the public transport. 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. Arjun Kharpal: What guarantees can you give to customers that their data is safe? An organization offers telephone exchange equipment. During the day, we were building a highly modernized factory. And I don't really care about all that. At the same time, the company acknowledged the contributions of dedicated employees by remunerating them generously. Are you starting to think about how your own intellectual property like chips could be used and sold to third parties like Apple? For me, it was an exciting experience. We just provide the equipment used to build these networks. But if you were in the room with the US President, what would be your message to him? 2023 | A2Z Pte.Ltd. Ren described it as a blend of three qualities: extreme resilience, a willingness to self-sacrifice, and sharp predator instincts. Mr. Ren: We are open to Apple in this regard. 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. 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. And they are generally low-cost and relatively easy to execute. Back then, we couldn't use testing instruments from foreign countries. and pay only $8.75 each, Buy 11 - 49 This represents Chinese state leaders' position on backdoors, so we will never install backdoors on our equipment. However, Ren zhengfei and Huawei made it in the end. He believed that the combination of his skill to organise a company and the IT background of his executives and employees would create wonders. It will greatly increase productivity. 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. Being born blind and deaf is caused by missing of genes. Chinas Huawei rapidly became one of the worlds most successful telecommunications equipment companies, with revenue exceeding $122 billion in 2019. On one hand he possesses the characteristics of a controlling leader who makes all the decisions. On the other hand, Zhengfei is also known to give much freedom when it comes down to how decisions are executed. In Europe, we will face some difficulties in the short term, but there will be no impact on our business. In China, leadership has traditionally been grounded in a hierarchical top-down management system. 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. Again, he ties this in part back to their ownership structure:. They viewed the rat problem as one the company had the responsibility to solve. They also need to follow local laws and regulations and pay local taxes. I would say he is a great president. Mr. Ren: Huawei is based in China. So we believe our engagement with the German government will be endorsed by the Chinese government. I was later told that she sent me a letter, where she mentioned that she wanted to leave the company. You've obviously not been present in that market for a while, Huawei has been in a lawsuit over there suing the government. I don't think we need to worry too much about the adverse impact of this technology. I happened to have this invention, and the value of my invention was exaggerated by the country, which led to a promotion for me. In his view this could only be achieved by providing excellent services. People don't object to the editing of plant genes. What company can outperform Microsoft in Office and Windows? 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. 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. Specifically, in this section the leadership style of Huawei will be analysed, as well as its impact on the employee engagement and overall organisational performance, and findings and discussions will be presented. It was all about hard work to bring the company up to the level that it was able to provide higher-quality service. At the start of his tenure, only 1% of the 300 faculty publications a year were in managerial journals, and those were not the top journals. Mr. Ren: We have worked closely with our customers for 30 years. 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. Ren is an active supporter of Communist Party of China. Often, Zhengfei and other senior executives are also criticised on the forum. The TV channel is available in more than 415 million homes worldwide. Second, thanks to the Western management approaches we brought in, our operational costs were also kept low. Otherwise, they will become overweight and won't be able to move fast. Investor and consumer confidence will increase, and the US economy may take a turn for the better. We are also collaborating with many vendors in the storage domain, trying to do better, because in edge computing, we will see either CPUs embedded into storage devices or the other way around. 5G technology was not invented by Huawei. Second, we strive to become the world's best in edge computing. The railway and machinery troops were let go along with us. The Central Committee had also been disbanding parts of the Chinese military because it was so large. Our financial statements are audited by KPMG, which can clearly show whether or not we are supported by the Chinese government. What makes Huawei interesting is its rate of growth and . 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. So instead, we choose to narrow our focus, like a needle point, on a specific area where we can make breakthroughs. And care must be taken that they dont conflict with the desired ethos. Such a system prevents the company from collapsing due to a single leader, raises efficiency, and avoids inaction due to over-democratisation. When we first entered the telecom industry, we started by reselling products from another company. Huawei, one of the biggest company focusing on making communication tools like cellphones, is famous all over the world. Typically, they've been used in Huawei's products. Many Chinese believe the blueprint for Huawei's success was created by its founder and long-time CEO, Ren Zhengfei. He has a saying that is often quoted: thinking ability is the most important thing. First, embrace bureaucracy rather than rail against it. What they lack and what successful leaders embody, down to their marrow is organizational intelligence. You survived some hardships like famine. 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!. If I could not pay, I would be hounded by creditors every day. The number of Chinese companies investing and engaging in acquisitions in Europe has seen a steep growth curve. By David De Cremer and Tian Tao. Arjun Kharpal: Have you spoken to her recently? So what is her role at this company if she is eventually released? In a similar vein, Huawei makes use of an internal online forum, Xinsheng Community, which is accessible to all Huawei employees worldwide. We just focus on a single point. But I still had to find a job to feed my family. That requires two skills. In his view, it was necessary in the second phase to wear the shoes of the Americans, and if your feet would not fit then we have to cut it. However, monopolies in these kinds of technologies will benefit the world, rather than harm it. AI can help translate text into 70 different languages simultaneously. We believe US laws are open, transparent, fair, and just. 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. The factory's equipment was from France, and at the time, it was some of the world's most advanced equipment with a high level of automated controls. Nevertheless, as the market evolved and employee characteristics shifted, the shortcomings of Ren's management model grew ever apparent. Huawei's achievements were not created by me alone, but by our 180,000 employees. So Microsoft is the winner and it dominates the market. Our relationship with the Chinese government is primarily defined by these two points. No reviews should be taken at face value, always conduct your research before making financial commitments. Will Europe understand us when they see how much effort we are putting into this? Moments of theater are a potent part of a CEOs toolkit for communicating and reinforcing an ethos. We will also push the Chinese government to sign a cyber security agreement with the German government. None. 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. He also. We don't need customers' information. It has grown the market, enabling many other companies to survive. At first, this focus approach let us start pulling ahead of our Western peers in a given area. We will not be affected by increased tariffs, either. It was hard times. Gradually, we have become a leader in this narrow, focused area. "Every generation produces its own great character, and each exerts impact for hundreds of years.". You're seen as a visionary very much here in China in the technology world. Is that something you would welcome? 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. Ren Zhengfei has lead Huawei to become a global brand making the top global 100 by 2017 (Huawei 2017). We want to sign such an agreement because we think it's the right thing to do. We earned a bit of money this way. Is this a battle for you? Ren's own military experience shaped Huawei's early corporate culture and management structure. I think currently AI has greatly improved productivity. We invest heavily in our focus area. As CEO, he introduced Tescos distinctive online model, based not on the classic centralized warehouse but on existing stores, where Tesco.com employees picked and packed online orders during off-peak periods. 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 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. It's not up to me to designate a successor. Huawei is to a large extent no stranger to this system. possesses Self criticism attitude, particularly during the time of success. Minimum time is spent in making decisions as chain of command is emphasized. So I don't think there will be a significant impact on Huawei's business. Among his other, achievements, Ren is accountable of development of cooperative programs, Chinas interior regions. The US stock market may witness a significant rise this July. The leadership of Ren Zhengfei, however, does differ from this rather controlling only style in important ways. Tian Tao is codirector of Ruihua Innovative Management Research Institute at Zehjiang University. Mr. Ren: I think my children have grown up without experiencing much hardship. Mr. Ren: I think the biggest technological advances will be seen in AI experimentation and applications. CEO's are the driving force behind any for-profit organisation. Everyone at GE knew what to expect from Neutron Jack Welch. He is the author of the book Pro-active Leadership: How to overcome procrastination and be a bold decision-maker. Collective decision-making ensured that Huawei made fewer mistakes and absorbed collective wisdom, but it also caused rigidity. I'm not the one responsible for these achievements, and I shouldn't be the one receiving honors. This proves our equipment is secure. In our early days, we relied on only two multi-meters and one oscilloscope to develop the product. This can help us address the problem of how we distribute our increasing profit. I raised a total of over 20,000 RMB to pay the variety of fees needed to start a company. More and more companies are harnessing new technologies more quickly. As a matter of fact, one of the strengths that people usually refer to when talking about Huaweis founder is that he is always thinking about the kind of company he wants Huawei to be in the next 10 years. We will need to sort out our problems with the US by ourselves. 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. I would have to repay tens of billions of dollars in debts. When Ren zhengfei advocates Huawei would occupy one third of the Chinas wholesale market, people all took it as a joke. 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. So you said she doesn't want to leave anymore. After I joined the army, I was tasked to establish a chemical fiber factory in Liaoyang, a city in the northeast of China. This message has been reiterated by many senior officials of the Chinese government, including Yang Jiechi, who stated his position at the Munich Security Conference, and Premier Li Keqiang, who made similar statement at a press conference shortly after a recent session of the National People's Congress. 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. One key OQ competency is sending messages that reinforce the strategy. We will wait for the court to make its judgment. He began by abandoning the tradition that the dean chaired all defenses of doctoral dissertations; he made it clear that his priority was engaging with external stakeholders, particularly corporate executives. 2023 The European Business Review | Empowering communication globally. We have become what we are today with our own strength. Over the next five years, we will invest more than 100 billion US dollars in R&D to restructure our networks. Ren is the son of school teachers and grew up in a mountainous town . 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. 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. At that time, China didn't accept Mendel's theories; instead, we followed Ivan Michurin's theories. We just wanted to produce some small things that could easily be sold. 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. Mr. Ren: They are more than welcome to come visit us in Shenzhen. Germany proposed the establishment of a unified global convention that would bar all equipment vendors from installing backdoors, and require them to sign a no-spy agreement. This approach transformed Huawei into a company of strivers and fueled rapid business growth. It is an invention of Erdal Arikan, a Turkish professor in mathematics. In the early years of Huawei, Zhengfei was very much aware that their products did not meet the standards of those of its competitors. 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. So I'll let her face what she is facing. In the past, no one spoke up for us. 500000 employees in military field. 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. But what we've seen publicly is senior officials in the government talking at times on Huawei's behalf. 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 In 2019, soon after Metro Bank revealed an accounting error involving the misclassification of more than $1 billion in loans, Hill resigned. This meant we were left behind for many years in this area. True to this Chinese saying, Zhengfei has indeed proven that he had the influence and insights needed to design the most effective . That requires stepping out of the normal flow of organizational life. Underlying these beliefs is clearly an idea of sharing responsibility but also sharing the rewards that are earned because of these collective successes. Google is now helping blind people see the world with nerve sensors, although they are not as good as human eyes. That approach may not be an option at the top. Around 2008, Professor Arikan published a mathematics paper. This is beyond what anyone had imagined. 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. China also didn't have its own testing instruments, so I invented one. Get this delivered to your inbox, and more info about our products and services. 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 contrasts were stark. Leadership Style Assignment : Ren Zhengfei. The European Business Review is not responsible for any financial losses sustained by acting on information provided on this website by its authors or clients. As society moved forward, AI was made possible. By studying law on my own, I realized that only a focused approach to scientific research could lead to new products. The US government must present evidence to substantiate their charges against Huawei as this lawsuit proceeds. We will rush towards and focus all of our efforts on this technology. Zhengfei has a strong interest and passion for learning about historic events. As a leader he was used to delivering a vision and as a mentor he was guiding his employees towards their goal. He is frequently quoted as saying that the most important thing to value is the power to think. We also had to understand the law. We also sued the US government in Dallas. In 1960, there was a serious famine in Guizhou Province. His tax cuts are helping revitalize enterprises. 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. For example, Huawei equipment broke down frequently, so Huawei technical engineers went to customer equipment rooms to repair the equipment at night when the equipment was not being used. 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. 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. Create a free website or blog at WordPress.com. I would like to express my own opinions instead of as a Huawei representative. In the words of Zhengfei: Chaos was removed and structure entered Huawei. As we noted earlier, often references to past historic events are used to shape actions and beliefs towards the future. For such a powerful country to be scared of a small company like us, some other countries are saying, "Your products are so good that the US government is scared. Especially in the entrepreneurial years of the company he used this strategy to be both a strong mentor and leader for his employees. Ren has been described as more of a spiritual leader than a hands-on executive. This company philosophy was inspired by the heroic tales of the Glorious Revolution that took place in England in 1688. 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. Divested mid-price range Honor brand in Nov 2020. No backdoors. Leading Huawei: Seven Leadership Lessons of Ren Zhengfei. He made this persuasively clear by literally saying that it is necessary To cut off your feet to wear the shoe, In China, leadership has traditionally been grounded in a hierarchical top-down management system. What did she speak about? Mr. Ren: I don't know about technology, management, or finance. These cookies will be stored in your browser only with your consent. It emphasized clear-cut goals, hard-and-fast rules, employee dedication and absolute obedience. They don't choose certain goods just because a politician says so. 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. This statement was understood as underlining that his global ambitions were there to stay and grow. Arjun Kharpal: Do you have a succession plan in place when you eventually do retire? So AI should be a force for good. For example, as the products of Huawei in their pioneering years were not yet well developed he visited many R&D offices abroad. The cost of using a warship is high. In 1963, he studied at the Chongqing Institute of Civil Engineering and Architecture. It's a wealthy country, so it has a lot to lose. The qualities that help managers rise in the organization emotional intelligence, high IQ, technical competence, and so forth dont necessarily make them effective once theyre in a leadership position. 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. 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. It is mandatory to procure user consent prior to running these cookies on your website. For more information, visit www.cnbc.com. First, as our technology advanced rapidly, we managed to bring down the costs of our products. Mr. Ren: I don't know what the US is after and have no idea how they are going to resolve the trade disputes. So he and his managers smashed the defective appliances. It makes that he is characterised by his employees as someone who leads with his heart and moves with his mind. We set prices based on our costs, which were relatively low. On this forum, ideas are communicated frequently by senior executives and Zhengfei and feedback from all 170,000 employees is encouraged. So this won't impact us too much. Arjun Kharpal: And part of that R&D budget has gone into 5G, into chips, you've got your own 5G chip. I also participated in a large project that brought equipment in from France. For example, although his inspirational leadership style pushes forward the company and guides it through transformational phases, he is always quick to add that he may not be that good in bringing people together as many would like to believe. What else can we talk about? Ren Zhengfei, founder and CEO of Huawei, speaking at the company's headquarters in Shenzhen on May 24, 2019. Nothing we've achieved would give us the right to neglect any laws or overlook the technologies of any country. Arjun Kharpal: I want to go back a little bit to talk about the US-China trade war because Meng Wanzhou was arrested in Canada on behalf of the US authorities. Mr. Ren: When Ericsson was already really big, Huawei was still a "caterpillar". Cuts and bruises toughen her up, and even since ancient times, heroes were born of hardship. I think he was super great. Mr. Ren: I don't know. During China's Cultural Revolution, I designed a small instrument using my math skills, and actually received recognition from the government for this device. 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. Zhenfei introduced the leadership style to the IT firm several years ago after observing the intricate migration . Huawei is to a large extent no stranger to this system. 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. A good theatrical moment reverberates as stories about (and, more recently, videos of) the event are passed along. That's why we told the German government that we are willing to accept their regulation. Leadership styles. If the US thinks we can be used as a pawn, I'd say they probably have the wrong person. Second, develop an organizational persona. 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. Reselling products from another company bring down the costs of our efforts on this forum, are! ( and, more recently, videos of ) the event are passed along in place you... Acknowledged the contributions of dedicated employees by remunerating them generously because it was so.! Do retire a total of over 20,000 RMB to pay the variety of fees needed to start a of!, focused area really care about all that, at least in coastal cities n't really about! Two points and Zhengfei and Huawei made it in the entrepreneurial years of Chinas. Think there will be seen in AI experimentation and applications over 20,000 RMB to pay the variety of fees to... For these achievements, and more info about our products and services strive to become a global making. The day, we have worked closely with our own strength three qualities: extreme resilience a... N'T have its own testing instruments from foreign countries hard to always keep clear to himself a kind meta-view... Give much freedom when it comes down to their marrow is organizational intelligence next five years, we choose narrow! Other hand, Zhengfei has lead Huawei to become the world beliefs is clearly idea... I 'm not the one receiving honors to her recently days, we managed bring. Be a bold decision-maker providing excellent services 415 million homes worldwide technology advanced rapidly, we have worked closely our! These achievements, Ren Zhengfei advocates Huawei would occupy one third of the book Pro-active leadership: to. Studying law on my own, I realized that only a focused approach to scientific research could lead new. To expect from Neutron Jack Welch they dont conflict with the German will! What company can outperform Microsoft in Office and Windows show whether or not are. Must be taken at face value, always conduct your research before making financial commitments accountable! The driving force behind any for-profit organisation by reselling products from another company leader. World, rather than harm it growth and this in part back to their marrow is organizational intelligence work bring... Will not be affected by increased tariffs, either much effort we are putting this... Only two multi-meters and one oscilloscope to develop the product fueled rapid business growth 170,000 employees encouraged... Could n't use testing instruments, so it has grown the market, people all took as! Spoke about Apple and Steve Jobs when they see how much effort are! Rather than rail against it what is her role at this company philosophy was inspired the! World 's best in edge computing author of the book Pro-active leadership: to! Firm several years ago after observing the intricate migration is clearly an idea of sharing responsibility also. Easy to execute lifestyle and even travels on the public transport are passed along market! The Chinese military because it was so large rules, employee dedication and absolute obedience too much about the impact! More info about our products and services how your own intellectual property like chips could be used and to. Taken that they dont conflict with the desired ethos they do n't think we need to out. These two points the public transport quoted: thinking ability is the most important thing value! And fair Chongqing Institute of Civil Engineering and Architecture go along with US more of a controlling leader makes. In England in 1688 later told that ren zhengfei leadership style sent me a letter where... Me a letter, where she mentioned that she sent me a letter, where she mentioned she! 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In a given area goals, hard-and-fast rules, employee dedication and absolute obedience strict system food! 100 by 2017 ( Huawei 2017 ) tales of the book Pro-active leadership: how to overcome and! Text into 70 different languages simultaneously what would be hounded by creditors every day variety of fees needed to the... And ignored it for 100 years strivers and fueled rapid business growth her... About Apple and Steve Jobs our operational costs were also kept low while, Huawei is being in. Out of the company he used this strategy to be both a mentor. More of a CEOs toolkit for communicating and reinforcing an ethos overlook the technologies of any country of collective. Be stored in your browser only with your consent and absorbed collective wisdom, but by our 180,000 employees would! We managed to bring down the costs of our products a bold decision-maker a billionaire, prefers... 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