Many scientists also proposed that genetic technology should be gradually integrated with electronic technology to create "new people". One Chinese company that is increasingly becoming active in Europe is the Chinese telecom giant Huawei. So I don't think there will be a significant impact on Huawei's business. Mr. Ren: They are more than welcome to come visit us in Shenzhen. When I look back on how Huawei developed in the telecom market, we actually made some missteps. 3.2 Findings 3.2.1 Huawei's leadership style Many will claim that Zhengfei (the founder) laid the foundation for Huawei's . Huawei, one of the biggest company focusing on making communication tools like cellphones, is famous all over the world. We believe US laws are open, transparent, fair, and just. Precisely speaking, the core of his leadership strategy is the purpose-driven ambition. Merck KGaA Darmstadt Germany Innovation Cup 2023, Back to the Future: The Return and Rise of E-Surveillance at Work, Innovation and Creation in Ever-Advancing Artificial Intelligence, Sounding the Alarm: Early Warning Systems to Build Nature-Positive and Climate Resilient Businesses, Accelerating Business Process Optimisation with Machine Learning, A Guide to Online Payment Transaction Fees and Pricing Models, Supply Chain Management Greater EVA Potential than Any Other Function, The Power of Women Entrepreneurs Across the World, Crisis? Get your Culture in Good Shape, Not Lost in Translation: Making the Data Make Sense. He has a saying that is often quoted: thinking ability is the most important thing. So firstly, we must abide by Chinese laws and regulations. We should not worry that it will hinder social progress. Cuts and bruises toughen her up, and even since ancient times, heroes were born of hardship. Over the next five years, we will invest more than 100 billion US dollars in R&D to restructure our networks. President Trump hasn't shared his thoughts with me. The industry had high requirements. Organisations need to implement leadership innovation to secure a successful and profitable future, as Ren Zhengfei has done with his multinational company Huawei. Neither side has mentioned Huawei, which means Huawei does not actually carry much weight. and pay only $8.25 each, Buy 500 or above 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. Mr. Ren: I think technology will advance even faster than we could ever imagine. 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. Mr. Ren: I think Mr. Jobs was a great man. 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. People back then thought his discovery was useless and ignored it for 100 years. With higher prices, we have started earning more. When George started as RSMs dean, in 2008, he was an outsider and a foreigner. Where was I supposed to go from there? You're seen as a visionary very much here in China in the technology world. Western companies are no different. We want to sign such an agreement because we think it's the right thing to do. The billionaire founder of Chinese telecoms equipment giant Huawei rarely. Some governments have criticized the relationship between Huawei and the Chinese government. Google is now helping blind people see the world with nerve sensors, although they are not as good as human eyes. In many ways the second skill is the more difficult one to develop; most top managers are competitive, and their natural reaction to a challenge is to take it head-on. In the early years of Huawei, Zhengfei was very much aware that their products did not meet the standards of those of its competitors. Photos/ Taddeo Bwambale . 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. In a newly published speech originally given in June 2020, Ren called for decentralised . For example, In the UK, Huawei has put much effort into convincing the British government and general public that they and their procedures can be trusted, by (a) Setting up the Cyber Security Evaluation Centre in Banbury to ensure the quality of their equipment, and (b) Cooperating with the GCHQ, the UKs signals-intelligence agency, to ensure that the networking equipment and software is reliable and secure. This is fundamental to solving problems. If you'd like to share this PDF, you can purchase copyright permissions by increasing the quantity. 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. I had no idea. 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. It's now just a scientific fantasy, and wouldn't necessarily ever happen. There was nothing much wrong with them just a few scratches and other minor defects. Secondly, hes full of enthusiasm and ambition. So Microsoft is the winner and it dominates the market. .. . .. .. Ren Zhengfei is successful Chinese businessman. Its fighting spirit, however, made it resistant to many negative influences and today Huawei can be called the only true global Chinese company. First, we want to provide the best connectivity in the world, and 5G is part of connectivity. You've grown the company over 30 years to the size of it now. If they attack a country, that country will fight back. 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. 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. When there is no cure to a disease, maybe we can look into gene editing. The thinking ability he refers to not only refers to an important ability of people, but also the essence of Huawei culture. Required fields are marked *. The law governs what's in between the transaction. 2023 | A2Z Pte.Ltd. Second, customers have the right to make their own choices. 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. Once an order is in effect, it must be executed regardless of the conditions or the obstacles the employees meet when tackling these problems. 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. If a single backdoor was found in even one of the countries where we operate, our sales would shrink in all of them. Huaweis competitors assumed that they only had to provide the technology to the customer. Our employees are used to the way I speak. Arjun Kharpal: Mr. Ren, you talk a lot about the distance between Huawei and the Chinese government. Therefore, we will count on the law to address these issues. 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. Especially in the entrepreneurial years of the company he used this strategy to be both a strong mentor and leader for his employees. It was all about hard work to bring the company up to the level that it was able to provide higher-quality service. Make it smaller.[1] That moment of theater became part of Apples folklore, epitomizing Jobss relentless pursuit of perfection. Because we want to grow our harvest and produce actual results. If they have too much money, they would be obsessed with capital gains. But I don't think Huawei can help solve the disputes between the US and China. The last thing we want is to have bureaucrats or managers lead our way in technology. I think this challenge will be good for my daughter. 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. 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. 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. And there is concern that some of these large technology companies just have too much power. 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 . And I don't really care about all that. That's my only ideal. The hiring of IBM also made it possible for Huawei to learn from the West to allow introducing a more global vision. Arjun Kharpal: But the US has put intense pressure on some of its allies in Europe, for example, Germany and the UK, to block Huawei from 5G networks. Access more than 40 courses trusted by Fortune 500 companies. For example, in the early years of Huawei (Phase 1), he regularly told stories to employees that he believed that in 20 years Huawei would have 1/3 of the market share in the world, despite the fact that at that time Huawei only employed about 200 employees. Over the past century, which countries and companies have made the US scared? For the rest, let the organization keep doing what it does well. In-person is back! 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!. That means there is space in there. Mr. Ren: Because I don't actually know technology that well, and I didn't invent anything. Saying that he was great is an understatement. Mr. Ren: I am not a government official, so I don't know what the governments have talked about. Moving forward, we will invest more in this direction. Summary. If we get caught in the middle, we will be crushed like a watermelon when these two powers clash. Is that something you would welcome? 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. Today, only 30 years later, ultra-broadband has become accessible in most rural areas around the world. Tian Tao is codirector of Ruihua Innovative Management Research Institute at Zehjiang University. Mr. Ren: Huawei is based in China. Arjun Kharpal: But you created the world's largest telecom company. These figures show that we are still growing, not declining. Zhengfei is a big fan of the practice of story telling and makes extensive use of it as a vehicle to deliver his ideas to employees in a passionate manner. 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. We can scale down a little bit. Indeed, EU officials initially wanted to investigate the anti-dumping act in relationship to Huaweis products. Arjun Kharpal: I want to talk a bit about your management style. 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. On this forum, ideas are communicated frequently by senior executives and Zhengfei and feedback from all 170,000 employees is encouraged. Mr. Ren: If they aren't scared of us, why are they advertising for us everywhere they go? I raised a total of over 20,000 RMB to pay the variety of fees needed to start a company. The authors describe seven characteristics of Zhengfei's leadership style, including 'adaptive vision', 'humble dedication' and 'winning by cooperating'. Some US politicians are criticizing Huawei everywhere they go. These cookies do not store any personal information. Ren: First of all, we want to delegate the decision-making power to our experts. Underlying these beliefs is clearly an idea of sharing responsibility but also sharing the rewards that are earned because of these collective successes. What Is Blockchain Technology and Its Types? Therefore, he often uses similar way to manage the company like the military system does. Mr. Ren: I would like to comment on President Trump without considering his administration's treatment of Huawei. 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. But in both cases he was brought down partly by accusations of inappropriate dealings with insiders, such as getting his banks to buy services from his wifes architectural firm. 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. At Huawei, we often talk about the term of "Van Fleet Load", which was invented by a general of the US army. He is the first president of a democracy to reduce taxes significantly within such a short period of time. I'm not the one responsible for these achievements, and I shouldn't be the one receiving honors. 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. Huawei was founded by Ren Zhengfei when he was in the mid-age crisis. People will be afraid of getting trapped there. One opposing force is the idea of attack versus compromise or also referred to as the simultaneous tendency to cooperate versus compete. She's, of course, facing extradition to the U.S. How did you feel after her arrest in December? Secondly, we need to pay taxes to the Chinese government. Arjun Kharpal: I want to also address some of other criticisms towards your company. 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. Ren has adopted the "controlling only" style which has made him successful leader. Strategies are implemented not by CEOs and other top executives but by the many people who choose on a daily basis whether to take actions that support or undermine what top management wants to achieve. When he talks about his skills and qualities he always emphasises that he is not the most knowledgeable. That's why we told the German government that we are willing to accept their regulation. 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? The multinationals that were present in China at that time did not consider this to be their problem, but rather that of the customer. We invest heavily in our focus area. I think Google might one day come up with a medicine that helps people live forever, but I may not be able to see it coming. Intel only makes chipsets. Leadership Style Assignment : Ren Zhengfei. It will never happen. Second, thanks to the Western management approaches we brought in, our operational costs were also kept low. Is only slower computing good for us? After I was discharged from the army, I ran into a big trouble at work. Huawei, in contrast, decided to provide these services to their customers. So there is no need to worry too much about some comments posted on the Internet. There has also been questions about your past as a communist party member and what that means for Huawei. Arjun Kharpal: Mr. Ren, I want to move onto a bigger picture of the world of technology. I also participated in a large project that brought equipment in from France. We obviously couldn't control our customers, so we had to get hold of the products. So I'll let her face what she is facing. In particular, the emergence of AI has accelerated social progress. If everyone went to invest in the US, the US economy would grow dramatically. 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. At the time, the market economy was beginning to take shape in China, at least in coastal cities. So we gritted our teeth and pushed ahead. Ren zhengfei invested much money and other resources on learning and putting this management system into effect. We have become what we are today with our own strength. This case is undergoing legal procedures, and we believe it will be solved in court. This website uses cookies to improve your experience while you navigate through the website. This is beyond what anyone had imagined. 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. 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. After learning from the West for almost 20 years, Huawei has established an increasingly standardized and institutional decision-making system. I want to use a case analogy here. And it needs to be communicated widely. But he also has shortcomings. and pay only $8.75 each, Buy 11 - 49 We'll buy them directly." 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. In his pursuit of the Huawei dream, Ren Zhengfei seems to know his own limitations and does not portray himself as the ultimate know-all leader. After getting, retired from the military, Ren has planned to work in electronic business. So the standards the US finds so compelling are actually all built on a single mathematics article. It commemorates the long-ago day when CEO Zhang Ruimin pulled 76 refrigerators off the production line. Register as a Premium Educator at hbsp.harvard.edu, plan a course, and save your students up to 50% with your academic discount. And its founder Ren zhengfei is thought be be one of the best leader in the business world. It was all about hard work to bring the company up to the level that it was able to provide higher-quality service. So instead, we choose to narrow our focus, like a needle point, on a specific area where we can make breakthroughs. Ren Zhengfei now serves as a deputy chairman of the board of directors. I said this as an outsider without considering his treatment of Huawei. (This is where EQ can support OQ. ) 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. We can give you a copy if you want. 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. 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. The university had charged him with increasing revenue and strengthening relationships with the business community while maintaining RSMs high level of academic research. This is thanks to Trump. Ren said, Huawei people, especially the leaders, are destined to work hard for a lifetime and to devote more and suffer more than others. That ethos emphasizes that individual aspirations are subservient to the needs of the company, just as individual wolves are subservient to the pack. As a result, I went back to where I started and jumped into the market economy. We are going to make this happen. This revolution was also referred to as the bloodless revolution because the victory of William of Orange was achieved without bloodshed. The US stock market may witness a significant rise this July. Ren Zhengfei had very clear vision for Huawei, which is to help customers realize their dreams. Otherwise, they will become overweight and won't be able to move fast. Drawing on this experience, we developed our own 40-line switch for rural markets that could support 40 users. 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%). And then, once we had established some market presence, we began to build up capital. 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? Ren Zhengfei, a founder of Huawei, conducts the personal communication style inspiring employees to achieve high results. Mr. Ren: We have calls quite often, talking about family. Being born blind and deaf is caused by missing of genes. Our scientists spotted it and spent 10 years turning his theories into the 5G standards of today. Huawei responded to customers 24/7. At this time, Ren Zhengfei's family was starving. We will rush towards and focus all of our efforts on this technology. 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. Really effective leaders learn early to target only important issues and ones they have a fair shot of winning. 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. In a similar vein, Huawei makes use of an internal online forum, Xinsheng Community, which is accessible to all Huawei employees worldwide. Among his other, achievements, Ren is accountable of development of cooperative programs, Chinas interior regions. Huawei is to a large extent no stranger to this system. The railway and machinery troops were let go along with us. He believed that the combination of his skill to organise a company and the IT background of his executives and employees would create wonders. 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. The second is the maturity tonotengage in unimportant issues. The number of Chinese companies investing and engaging in acquisitions in Europe has seen a steep growth curve. In his view this could only be achieved by providing excellent services. Why do they accept these things? Trusted by 2+ million users, 1000+ happy students everyday, You are reading a previewUpload your documents to download or Become a Desklib member to get accesss. We have reflected on this a lot. What Industries are the Best Teachers for International Managers? Huawei has indeed invested considerably in creating a learning driven culture where the power of the mind is visible. Instead of issuing an EQ response to mollify the professor, George sent an OQ response: We all work for RSM.. The road to success for Huawei started in 1987 where it was founded in the economic testing zone of Shenzhen. Ren possess the characteristics of Controlling leader who makes all important decisions ( Tanwar and Priyanka,2018 ). Zhengfei was worried that phase 2 created a kind of decision-making that was less than efficient. 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