Mr. Ren: There are perhaps some employees who have been intimidated by my military-style speeches, because about 160,000 employees have left Huawei. For example, in 2014, the company made a decision on bonuses, which received over 70,000 negative comments, leading to a modification of that decision. Ren zhengfei himself attributes his success to several characteristics. We chose a tough road. Every night, we took turns fueling the stove, because if it went out, we would have frozen. AI will benefit our society. However, most of us. Is only slower computing good for us? The contrasts were stark. The law governs what's in between the transaction. 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. 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. Do these seven lessons primarily make Zhengfei a cerebral type of leader as the power of the mind is placed so central to his philosophy? 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. 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 we couldn't make ends meet, we wouldn't be able to survive. The country wanted to reform and open its doors. Autocratic leadership: It is also known as pragmatic leadership. Organisations need to implement leadership innovation to secure a successful and profitable future, as Ren Zhengfei has done with his multinational company Huawei. Is that useful to the company, or do you find that a distraction? What else can we talk about? So he emphasized action. In 2019, soon after Metro Bank revealed an accounting error involving the misclassification of more than $1 billion in loans, Hill resigned. Over the past century, which countries and companies have made the US scared? Nevertheless, as the market evolved and employee characteristics shifted, the shortcomings of Ren's management model grew ever apparent. KPMG wouldn't hide anything for us. CNBC is the leading global broadcaster of live business and financial news and information, reporting directly from the major financial markets around the globe with regional headquarters Singapore, Abu Dhabi, London, and New York. Do you think Huawei is at that point yet? Mr. Ren: I don't know about technology, management, or finance. In Huaweis early years, Zhengfei retained authority on major decisions such as corporate development strategies and culture building, but fully empowered employees when it comes to R&D, manager appointment, compensation & benefit allocation, and other areas. In 1963, he studied at the Chongqing Institute of Civil Engineering and Architecture. 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. Our relationship with the Chinese government is primarily defined by these two points. We don't talk about anything else, because we know that our communication is being monitored. We believe US laws are open, transparent, fair, and just. We only focus on edge computing. Arjun Kharpal: Mr. Ren, you've said in the past that the US government hasn't seen Huawei's technology and source code. Does China feel under pressure from President Trump's tactics in the negotiations? Ren described it as a blend of three qualities: extreme resilience, a willingness to self-sacrifice, and sharp predator instincts. Arjun Kharpal: You were in the People's Liberation Army. Some governments have criticized the relationship between Huawei and the Chinese government. She's, of course, facing extradition to the U.S. How did you feel after her arrest in December? Mr. Ren: When I was a kid, I didn't have many hobbies mainly because my family was poor. For the rest, let the organization keep doing what it does well. The negotiations between China and the US have nothing to do with Huawei. He said recently that could potentially wipe out humanity. But by 2003 Sainsburys had followed suit by which time Tesco had a five-year head start and an expanding user base. The Opportunities and Challenges of Global Teams. I hadn't realized that the communications industry was so cruel. Mr. Ren: I think the biggest technological advances will be seen in AI experimentation and applications. 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. Have you thought of retiring any time soon? The US has highly developed technology, but it also has a shortage in labor. So it's impossible for me to enjoy the same prestige as Jobs. Those with organizational intelligence have the following competencies: they can effectively communicate the top strategic priorities, foster an organization-wide sense of how we do things here, get things done even in the absence of consensus, stage moments of theater, and rebel from the top. What we have is not some kind of nuclear bomb or weapon. Recommended Lists: Scorpio Entrepreneurs When attending a summit in Croatia, Premier Li also told our employees not to install backdoors. 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. We will expand it, and dive deeper into it. It will never happen. Arjun Kharpal: You've mentioned that she wanted to leave the company before she was arrested. We did not know that these small things were designed to connect the whole city or even the whole world. So we won't do that. In 1994, Huawei is still a company that has been working for no more than seven years. CNBC is a division of NBCUniversal. Second, thanks to the Western management approaches we brought in, our operational costs were also kept low. But what we've seen publicly is senior officials in the government talking at times on Huawei's behalf. Data is a real-time snapshot *Data is delayed at least 15 minutes. 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. Huawei responded to customers 24/7. I am just taking as a bucket of "glue". 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. You have entered an incorrect email address! We remained focused on this same single point. It allows a leader to impose expectations and define the outcomes. So we would never follow anyone's instructions to install backdoors. 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. This revolution was also referred to as the bloodless revolution because the victory of William of Orange was achieved without bloodshed. Arjun Kharpal: Have you tried to reach out to the president to speak to him about it? As Ren was dissatisfied with his job, he planned to, Despite of his low profile, Ren has managed to transform small business into a successful. Ren's own military experience shaped Huawei's early corporate culture and management structure. Harvard Business Publishing is an affiliate of Harvard Business School. This case is undergoing legal procedures, and we believe it will be solved in court. So I don't think there will be a significant impact on Huawei's business. PIC:A portrait of Ren Zhengfei, the founder of Huawei. No backdoors. One defining feature of the Huawei culture is that it is able to bring together opposing forces and tendencies. Would you invite Donald Trump and his administration to your campus here in Shenzhen to let them see the technology that you have, to put their fears at rest? 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. Arjun Kharpal: What guarantees can you give to customers that their data is safe? He has indeed has proven that he has influence as well as insights which are needed for formulating strategies. After getting, retired from the military, Ren has planned to work in electronic business. Arjun Kharpal: Do you have a succession plan in place when you eventually do retire? 2023 | A2Z Pte.Ltd. He is recognized as a leader who motivates to facilitate innovation at all levels. In total, 300,000 to 400,000 people have joined Huawei, but only around 180,000 people decided to stay. Arjun Kharpal: Mr. Ren, you started Huawei over 30 years ago with 5,000 US dollars. Second, Huawei is being stuck in an extremely difficult situation the US is launching intense attacks against us. But there are still more than 180,000 employees working at Huawei. As can be expected of a man with an army background he served in the Peoples Liberation Army he is known to be intense and tough and never loses control. 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%). If a technology is just several thousand kilometers away, we will invest a lot more, like a watermelon. We will rush towards and focus all of our efforts on this technology. Mr. Ren: She will continue to do what she has been doing. Otherwise, they will become overweight and won't be able to move fast. Cuts and bruises toughen her up, and even since ancient times, heroes were born of hardship. 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. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Your email address will not be published. When I look back on how Huawei developed in the telecom market, we actually made some missteps. If they do, they will buy some of our products. David De Cremer is the KPMG Professor of Management Studies at the Judge Business School, University of Cambridge, UK, an honorary professor at Wenzhou University, China, and a research fellow at the Ruihua Innovative Management Research Institute at Zehjiang University, China. Detailed information on the use of cookies on this Site, and how you can decline them, is provided in our, Delivering Innovation Accenture Research, A Special Report on AI and Humans by AiTH, NUS Business School, Europes recovery is possible. Indeed, EU officials initially wanted to investigate the anti-dumping act in relationship to Huaweis products. In the next two or three decades, technology will advance even faster. By studying law on my own, I realized that only a focused approach to scientific research could lead to new products. We just focus on a single point. When I can't find a better term to easily describe how business works, I use military terms. 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 productivity will be greatly improved. These figures show that we are still growing, not declining. According to him, Huawei should be focused on building a company where peoples minds are the main asset and resource to rely on. Why cannot we edit human genes? The Central Committee had also been disbanding parts of the Chinese military because it was so large. But if you were in the room with the US President, what would be your message to him? During one of these visits, in 1997, he visited the Bell labs in the USA. For me, it was an exciting experience. The billionaire founder of Chinese telecoms equipment giant Huawei rarely. This ability derives from his pro-active attitude. Moments of theater are a potent part of a CEOs toolkit for communicating and reinforcing an ethos. At the time, the market economy was beginning to take shape in China, at least in coastal cities. For that reason he looked for alternative ways to attract customers. That's my only ideal. Arjun Kharpal: But what was the personal effect of her arrest on you as a father? If the US opens its telecom industry and its operators say they are going to purchase tens of billions of dollars in equipment from us, I wouldn't believe it and wouldn't be willing to make billions of investments. 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. We invest heavily in our focus area. Arjun Kharpal: One of the concerns is that these powerful technologies like artificial intelligence are being developed by a small group of very, very big technology companies. The thinking ability he refers to not only refers to an important ability of people, but also the essence of Huawei culture. Networks belong to our customers, not us. Jobs then dropped the device into an aquarium, and bubbles floated up. Strong leaders usually have strong views about how things should be done, which can lead them to take on too many fights too early in their careers. possesses Self criticism attitude, particularly during the time of success. But unfortuetely he fails to, achieve military rank, due to which he was not allowed to join communist party of China for, continuing his career in Military field as, Ren Zhengfei family belongs to social background and, Ren Zhengfei was accountable for many, technological achievements. If a country is poor and they have nothing to lose, they aren't afraid of being attacked. That's why some deep-pocketed countries with rich oil reserves are buying from us. Huawei's achievements were not created by me alone, but by our 180,000 employees. Mr. Ren: First, Mr. Yang Jiechi, a member of the Political Bureau of the Communist Party of China (CPC) Central Committee, made a statement at the Munich Security Conference that the Chinese government always requires Chinese firms to abide by international rules and laws and regulations of the country where they operate, and that China has no law requiring companies to install backdoors or collect foreign intelligence. Ren Zhengfei, a founder of Huawei, conducts the personal communication style inspiring employees to achieve high results. Thirdly, its his sense of management that helps him to become an excellent leader. This practice differed from the ones used by Western companies, which had advanced technologies and equipment, but ignored their services sector. Bringing this emotion-laden message was meant to motivate his own people and eventually to make his R&D people believe that they could one day be better than the researchers at the Bell labs. If a technology is just five kilometers away, we will invest heavily (a business version of a Van Fleet Load). The US stock market may witness a significant rise this July. 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. Is that useful to the President to speak to him about it doing it! 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