However, it kills employees creativity and . And he left other core aspects of the business, such as steadily improving the retail offer (Every little helps), untouched. But this year, once the slate is wiped clean, the financial statements they will release in July will be much healthier. If a technology is just five kilometers away, we will invest heavily (a business version of a Van Fleet Load). 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. 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. Arjun Kharpal: You mentioned the Ericsson CEO at the time said it was a bold move to jump into this space. 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. The story goes that Zhengfei was so moved by the work done in those labs that he cried. They will be able to produce more quality products than the whole world can consume. 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. It makes that he is characterised by his employees as someone who leads with his heart and moves with his mind. Huawei, one of the biggest company focusing on making communication tools like cellphones, is famous all over the world. After all these upheavals, she has changed her mind and doesn't want to leave. That's the shortcoming of Trump's approach. Nevertheless, Zhengfei remained persistent in talking about his ambitions at all kind of occasions. Sign up for free newsletters and get more CNBC delivered to your inbox. The second is the maturity tonotengage in unimportant issues. After I was discharged from the army, I ran into a big trouble at work. Arjun Kharpal: Mr. Ren, I want to move onto a bigger picture of the world of technology. Collective decision-making ensured that Huawei made fewer mistakes and absorbed collective wisdom, but it also caused rigidity. Since China has become the second largest economy in the world, this relationship has taken new forms in the shape of several business initiatives. They are buying our products in large quantities as the US government is advertising for us. Huawei has indeed invested considerably in creating a learning driven culture where the power of the mind is visible. 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. Is that useful to the company, or do you find that a distraction? The country wanted to reform and open its doors. President Trump hasn't shared his thoughts with me. If a technology is just several thousand kilometers away, we will invest a lot more, like a watermelon. In other words, the emphasis of results is viewed a basic spirit of Huawei. People don't object to the editing of plant genes. What Crisis? 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 revolution was also referred to as the bloodless revolution because the victory of William of Orange was achieved without bloodshed. You also have the option to opt-out of these cookies. This is a copyrighted PDF. 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. 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. When I look back on how Huawei developed in the telecom market, we actually made some missteps. If they have too much money, they would be obsessed with capital gains. For example, if AI is applied to tractors, they will be able to work 24 hours a day. This is a challenging competency and a powerful one. That requires stepping out of the normal flow of organizational life. The multinationals that were present in China at that time did not consider this to be their problem, but rather that of the customer. Its this kind of spirit in Ren zhengfei that propels his company to become one of the best in China even the world. For that reason he looked for alternative ways to attract customers. This helps the US greatly improve their national reserve. Media Contact:Clarence ChenCommunications Manager APAC, CNBC InternationalD: +65 6326 1123M: +65 9852 8630clarence.chen@cnbc.com. They wouldn't need to rest, just to refuel. Do you see that Huawei is a pawn in the broader US-China trade war that's going on at the moment? Leading Huawei: Seven Leadership Lessons of Ren Zhengfei, The relationship between China and the European continent carries much history with it. 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 he needed to adapt his style in light of new challenges at the company. Our scientists spotted it and spent 10 years turning his theories into the 5G standards of today. Publication Date: In Europe, we will face some difficulties in the short term, but there will be no impact on our business. We will put more money into research in new frontiers. 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. Access more than 40 courses trusted by Fortune 500 companies. I liked reading books, doing homework, and solving math equations on scrap newspaper. Do you still feel Europe is open to Huawei, or could one country blocking Huawei mean that the whole union stops Huawei from participating in 5G? As far as I know, Huawei has never been mentioned in any of the China-US talks or in any official news releases. So we will leave these issues up to the courts. 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. Arjun Kharpal: What guarantees can you give to customers that their data is safe? Even if AI poses other threats, we can manage them with laws and rules. If a country is poor and they have nothing to lose, they aren't afraid of being attacked. We are not that important in the bilateral relations between the two countries. But even if it did happen, it would be at least 30 years from now. Iterative succession must take place in an orderly fashion. It's not up to me to designate a successor. It's a wealthy country, so it has a lot to lose. A good theatrical moment reverberates as stories about (and, more recently, videos of) the event are passed along. When attending a summit in Croatia, Premier Li also told our employees not to install backdoors. But if investors are scared that they won't get their money back, they won't dare to invest in the US. Of course, several decades from now, that would potentially cause other side effects that we can't predict, but mitigating the side effects is better than immediate death. They have great technologies, skilled labor, and economic strength. Sheryl Sandberg is well-known for combining social skills and intelligence in a way that allowed her to break up the boys club at Facebook. 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). Steve Jobs is known more internationally. 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. But I don't think Huawei can help solve the disputes between the US and China. Take machine translation as an example. High-OQ leaders rebel from the top. So he emphasized action. Ren Zhengfei (Mr Ren): When I had just started Huawei, we still did not understand China's reform and opening-up policy. Leadership styles. In the early years of Huawei, Zhengfei was very much aware that their products did not meet the standards of those of its competitors. Divested mid-price range Honor brand in Nov 2020. Everyone at GE knew what to expect from Neutron Jack Welch. 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. Many scientists also proposed that genetic technology should be gradually integrated with electronic technology to create "new people". Twenty or thirty years from now, outstanding talent may be able to combine genes with electronics technology to create new "people". Not really, we think. The authors describe seven characteristics of Zhengfei's leadership style, including 'adaptive vision', 'humble dedication' and 'winning by cooperating'. If the US thinks we can be used as a pawn, I'd say they probably have the wrong person. Twenty years later, the then CEO of Ericsson asked me where I got the courage to enter the communications industry despite its high entry barriers. Combining storage and computing will enable devices to run faster. 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. Before moving to UK, he was a Professor of Management at China Europe International Business School in Shanghai. If we couldn't make ends meet, we wouldn't be able to survive. We only focus on edge computing. Ren described it as a blend of three qualities: extreme resilience, a willingness to self-sacrifice, and sharp predator instincts. High-OQ leaders send messages that reinforce the strategy and minimize other messaging. As I said, this is because we have no real presence in the US market. Because they are simple and easy to understand. When Huawei dominated the domestic market on a large scale, its problem in human resource was more than Huaweis original management system can handle. However, most of us didn't really understand how important this decision made by the CPC's Central Committee was. Many companies' financial statements last year weren't great because they needed to pay income tax arrears. Arjun Kharpal: Mr. Ren, you talk a lot about the distance between Huawei and the Chinese government. So there is no need to worry too much about some comments posted on the Internet. 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. Ren Zhengfei is known for avoiding quick decisions and forcing himself to take time to reflect. That approach may not be an option at the top. CNBC is a division of NBCUniversal. Mr. Ren: Because I don't actually know technology that well, and I didn't invent anything. Arjun Kharpal: So would you say the US is scared of Huawei? What did you learn at the time that helped you start Huawei and guide your philosophy? However, we are not in any position to require other companies to do the same. The US needs the Chinese market, and China needs technology from the US. We endorse unified global standards that make installing backdoors a crime. I could not keep up with the times. Accelerate your career with Harvard ManageMentor. Again, he ties this in part back to their ownership structure:. Ren Zhengfei, a founder of Huawei, conducts the personal communication style inspiring employees to achieve high results. 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. 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: I want to switch topic a little bit to talk about your daughter, Meng Wanzhou. Why cannot we edit human genes? 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? But he also has shortcomings. Make it smaller.[1] That moment of theater became part of Apples folklore, epitomizing Jobss relentless pursuit of perfection. The law governs what's in between the transaction. What if we could identify and change the genes that cause the condition? That's why some deep-pocketed countries with rich oil reserves are buying from 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. How do you respond to some of these very, very strong criticisms from governments around the world? 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. 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? In total, 300,000 to 400,000 people have joined Huawei, but only around 180,000 people decided to stay. Jobs then dropped the device into an aquarium, and bubbles floated up. All he cares about is how to thoroughly solve every problem his company meets and how to improve the efficiency of the whole group. Ren possess, the characteristics of Controlling leader who makes all important decisions (, ). Second, we don't really sell in the US market, so we will not be affected by a sales ban. Autocratic leadership: It is also known as pragmatic leadership. We also had to understand the law. At Huawei, we often talk about the term of "Van Fleet Load", which was invented by a general of the US army. We will also push the Chinese government to sign a cyber security agreement with the German government. A Division of NBCUniversal. Then a large number of our employees would resign, but I cannot leave. One opposing force is the idea of attack versus compromise or also referred to as the simultaneous tendency to cooperate versus compete. The relationship between China and the European continent carries much history with it. I think currently AI has greatly improved productivity. With Huawei becoming the largest telecommunications equipment manufacturer in the world, Ren zhengfei has already become a paradigm for businessmen to study and learn from. I believe they may not have the evidence or the facts to prove her guilt. These difficulties will make her stronger and prepare her for even greater things ahead. They are out of the ordinary and unexpected. However, most of us. 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. I lived through the great famine that hit China, and the economic recovery that followed. It helps reduce many people's workloads. (Academic publishing, he believed, was a necessary but not a sufficient condition for RSM to be recognized as a top business school.) In order to support his family, Ren Zhengfei implemented a strict system of food distribution in his family. In the Qingdao headquarters of the Chinese company Haier stands a display case containing a sledgehammer. We just provide the equipment used to build these networks. Zhengfei has a strong interest and passion for learning about historic events. We invest heavily in our focus area. Back then, China was still going through the Cultural Revolution. 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. The road to success for Huawei started in 1987 where it was founded in the economic testing zone of Shenzhen. Beset by internal and external challenges, Huawei needed to completely rethink its approach to business, corporate culture and company management. Mr. Ren: I don't know. Gradually, we have become a leader in this narrow, focused area. 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. 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%). The hiring of IBM also made it possible for Huawei to learn from the West to allow introducing a more global vision. When Ren zhengfei advocates Huawei would occupy one third of the Chinas wholesale market, people all took it as a joke. 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 this time, Ren Zhengfei's family was starving. Arjun Kharpal: I want to talk a bit about your management style. Ren Zhengfei's Media Interview After the Opening Ceremony of the Intelligent Mining Innovation Lab in Taiyuan. It will greatly increase productivity. Ren has been described as more of a spiritual leader than a hands-on executive. What do you make of his views? Whether or not we can get back to business in the US depends on whether our customers want to buy from us. However, there was no way back. October 01, 2018, Source: Get this delivered to your inbox, and more info about our products and services. Is applied to tractors, they will release in July will be much healthier country, so will! 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