Do you see that Huawei is a pawn in the broader US-China trade war that's going on at the moment? Our costs were low for two reasons. All rights reserved. Its founder, Ren Zhengfei, has recently even referred to Europe as a market where they feel at home as a telecom company. 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. In fact, we have too many. That means there is space in there. HBR Learnings online leadership training helps you hone your skills with courses like Business Plan Development. This category only includes cookies that ensures basic functionalities and security features of the website. For example, as the products of Huawei in their pioneering years were not yet well developed he visited many R&D offices abroad. That's how we started out. 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. Ren is an active supporter of Communist Party of China. If a single backdoor was found in even one of the countries where we operate, our sales would shrink in all of them. 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. Leahy succeeded with both dramatic changes in part because he maintained a modest demeanor throughout. In particular, we will build the simplest networks, ensure cyber security, and protect user privacy. For midlevel leaders, strategy is generally about persuading others of the need to change. That's my only ideal. Smartphone was badly hit. It is an invention of Erdal Arikan, a Turkish professor in mathematics. In other words, the emphasis of results is viewed a basic spirit of Huawei. Action strategy is about making things happen. 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. So I don't think they are intimidated. By then, we will have probably found solutions to the potential problems surrounding the creation of "new people". So we would never follow anyone's instructions to install backdoors. I said this as an outsider without considering his treatment of Huawei. Although he is a billionaire, Zhengfei prefers a low profile lifestyle and even travels on the public transport. It will greatly increase productivity. Have you thought of retiring any time soon? If I could not pay, I would be hounded by creditors every day. I only wanted to keep my belly full. Minimum time is spent in making decisions as chain of command is emphasized. Arjun Kharpal: You were in the People's Liberation Army. What company can outperform Microsoft in Office and Windows? 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. Ren Zhengfei, founder and CEO of Huawei, speaking at the company's headquarters in Shenzhen on May 24, 2019. And he was on a four-year contract and had limited time. Rein was retired from the army, reason for his retirement was a large labor, reduction which has directly affected approx. The contrasts were stark. And its founder Ren zhengfei is thought be be one of the best leader in the business world. Huawei was founded by Ren Zhengfei when he was in the mid-age crisis. Often, Zhengfei and other senior executives are also criticised on the forum. Most of us also didn't understand that move. 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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? 3.2 Findings 3.2.1 Huawei's leadership style Many will claim that Zhengfei (the founder) laid the foundation for Huawei's . We endorse unified global standards that make installing backdoors a crime. So we've decided that our. The last thing we want is to have bureaucrats or managers lead our way in technology. Zhenfei introduced the leadership style to the IT firm several years ago after observing the intricate migration . In fact, the company only seems to be growing stronger. With Huawei becoming the largest telecommunications equipment manufacturer in the world, Ren zhengfei has already become a paradigm If the Chinese government or any other government ask you to hand over data, how would you react? It helps reduce many people's workloads. In the next two or three decades, technology will advance even faster. We also use third-party cookies that help us analyze and understand how you use this website. On the other hand, Zhengfei is also known to give much freedom when it comes down to how decisions are executed. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. 500000 employees in military field. Second, ultra-broadband connections, and ultra-large storage systems, as well as micro-computing storage and edge computing. In the words of Zhengfei: Chaos was removed and structure entered Huawei. 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. So our products needed to be standardized. 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. 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. Use the strengths of your organization to achieve your goals. We chose a tough road. Technologies are advancing. 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. 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. Arjun Kharpal: And part of that R&D budget has gone into 5G, into chips, you've got your own 5G chip. Now we talk a lot about genetic modification, or gene editing. So I don't think there will be a significant impact on Huawei's business. 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. What did you learn at the time that helped you start Huawei and guide your philosophy? Some US politicians are criticizing Huawei everywhere they go. The collaboration between these two countries would create two "trains" that can tow the global economy out of trouble. We have given up on supercomputing and intermediate computing. So AI should be a force for good. He has maintained the company as private and his management style has been extremely . Zhengfei made this very clear when he said: I do not know anything about technology, but I can bring people together to work for the collective. He is praised for his desire to hire better people in the areas he is weak in, with the ultimate goal to improve the quality of Huawei products and services. Data Analysis Methods Every Business Needs To Know How To Perform, Are You Ready to Lead in a Digital World? One of the consistent qualities that have been attributed to Ren Zhengfei is his ability to inspire others. Right now, the support of the Chinese government may not necessarily help our sales, but when the US government criticizes us, it tells the world how great Huawei is. But the US is in a different situation. 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. We support transparent regulation over companies with new technologies, and we are willing to be subject to such regulation. Mr. Ren: I am not a government official, so I don't know what the governments have talked about. We have become what we are today with our own strength. The US needs the Chinese market, and China needs technology from the US. Early life. Do you feel that technology has been a force for good or a force for evil? Instead, we will use it to fund universities and scientists for their research and explorations into the future. It's not up to me to designate a successor. As society moved forward, AI was made possible. If a technology is 20,000 kilometers away, we can invest a little more, like an apple. 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. 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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. Fuelled by his passion, Ren Zhengfei works hard to translate the purpose of the company into a vision aimed at Huawei achieving a world leading status. 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. Mr. Ren: I often talk about staying focused. Ren Zhengfei is known for avoiding quick decisions and forcing himself to take time to reflect. Is that something you would welcome? We invest heavily in our focus area. Arjun Kharpal: Mr. Ren, as we come to the end of the conversation, I want to focus on your future. Therefore, we will count on the law to address these issues. 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. Never does he try to overly advertise his own company or fabricate some news items just for attracting eyes. Arjun Kharpal: You mentioned you abide by the local laws here in China. It does not depend on what Donald Trump has to say. Got a confidential news tip? The US government must present evidence to substantiate their charges against Huawei as this lawsuit proceeds. 2023 CNBC LLC. Huawei is now the world's largest telecoms equipment maker. October 01, 2018, Source: I think it's the right thing for them to do. Huawei the Ren Zhengfei Way: the "Tough Guy" and His Corporate Philosophy By: Jiing-Lih Larry Farh, Xin Pi 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 Length: 13 page (s) CNBC is a division of NBCUniversal. That requires two skills. During one of these visits, in 1997, he visited the Bell labs in the USA. Arjun Kharpal: So would you say the US is scared of Huawei? company using his skills and core competencies. 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. More and more companies are harnessing new technologies more quickly. If we couldn't make ends meet, we wouldn't be able to survive. I had no idea. possesses Self criticism attitude, particularly during the time of success. In China, leadership has traditionally been grounded in a hierarchical top-down management system. We were living in an adobe house that only provided us a little shelter from the wind. 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. If a technology is just five kilometers away, we will invest heavily (a business version of a Van Fleet Load). That's the shortcoming of Trump's approach. We will put more money into research in new frontiers. 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. Interestingly, such a strategy suggests that a power of thinking attitude aligns with a shared learning orientation. What is the problem with translation software that has faster computing? Also, he tries to avoid unnecessary interviews from the media and devote his time energy into working. Figure 1: The Leadership Lessons of Ren Zhengfei 1. He has maintained the company as private and his management style has been extremely They had thought that disbanding was to weed out unnecessary troops and strengthen the remaining units. Beset by internal and external challenges, Huawei needed to completely rethink its approach to business, corporate culture and company management. Mr. Ren: If they aren't scared of us, why are they advertising for us everywhere they go? I would like to express my own opinions instead of as a Huawei representative. One story that stayed with Zhengfei was the overthrow of King James II of England by a union led by William of Orange in 1688, which was called the Glorious Revolution. You're seen as a visionary very much here in China in the technology world. When the state wanted to give me some awards for all of this, I felt ashamed. So we believe our engagement with the German government will be endorsed by the Chinese government. Why cannot we edit human genes? Our relationship with the Chinese government is primarily defined by these two points. That's why some deep-pocketed countries with rich oil reserves are buying from us. Necessary cookies are absolutely essential for the website to function properly. Everything is limited. This does mean though that many translators and stock analysts and the like will lose their jobs. We don't have much influence over China-US trade relations. AI has emerged because of several key advancements: First, massive computing power. Important in this whole management process is that his use of an adaptive vision never compromises the purpose and values of the company. We want to sign such an agreement because we think it's the right thing to do. We will need to sort out our problems with the US by ourselves. If so, what did she say to you? 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. 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? Enterprises can now transfer their funds in other countries back to the US because of a low tax rate of 12%. But by 2003 Sainsburys had followed suit by which time Tesco had a five-year head start and an expanding user base. Arjun Kharpal: I want to talk a bit about your management style. We just focus on a single point. . It was hard times. Underlying his focus on story telling is his strategy to energise people and introduce a sense of vitality to the projects that need to be undertaken. This case is undergoing legal procedures, and we believe it will be solved in court. When George started as RSMs dean, in 2008, he was an outsider and a foreigner. Add copies before, China Europe International Business School, A Better Way to Manage Corporate Alliances, Primerica: Sandy Weill and His Corporate Entrepreneurs, J. C. Penney: Activist Investors and the Rise and Fall of Ron Johnson, Competing in the Age of AI: Strategy and Leadership When Algorithms and Networks Run the World, Buy 5 - 10 Steve Jobs is known more internationally. February 9, 2021. After getting the retirement from the army, Ren then worked with, ). It will never happen. He belongs to rural family and spent his middle and primary school years in remote mountains, where started his career as civil engineer when China faced turmoil because of cultural, revolution. Everyone at GE knew what to expect from Neutron Jack Welch. 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. This practice differed from the ones used by Western companies, which had advanced technologies and equipment, but ignored their services sector. This hurts no one. We will also increase our sales revenue, which is now more than 100 billion US dollars, to around 250 billion US dollars. 5G made progress. His tax cuts are helping revitalize enterprises. 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. If we didn't abide by those laws and regulations, we wouldn't survive even a day. Ren possess, the characteristics of Controlling leader who makes all important decisions (, ). 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? We have reflected on this a lot. Today, only 30 years later, ultra-broadband has become accessible in most rural areas around the world. If we spread things too thin, there is no way we will be successful. For more information, visit www.cnbc.com. Ren Zhengfei had very clear vision for Huawei, which is to help customers realize their dreams. Create a free website or blog at WordPress.com. A good theatrical moment reverberates as stories about (and, more recently, videos of) the event are passed along. We set prices based on our costs, which were relatively low. 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. Really effective leaders learn early to target only important issues and ones they have a fair shot of winning. At the time, the market economy was beginning to take shape in China, at least in coastal cities. The law governs what's in between the transaction. Mr. Ren: We have worked closely with our customers for 30 years. 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. Even if AI poses other threats, we can manage them with laws and rules. 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. 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. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Mark your calendar for these stimulating events and prepare to be inspired. 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. 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. Let's look at an example. | All rights reserved. You've grown the company over 30 years to the size of it now. 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). Of results is viewed a basic spirit of Huawei Zhengfei when he was on a four-year contract had. Of the countries where we operate, our sales would shrink in all of this I. We want is to have bureaucrats or managers lead our way in technology a.... To express my own opinions instead of as a market where they feel at home a. Huawei 's business lawsuit proceeds of thinking attitude aligns with a shared learning orientation a little more, like apple. Help customers realize their dreams advance even faster put more money into research in frontiers. Prices based on our costs, which had advanced technologies and equipment, ignored... Decided that our research and explorations into the future sort out our problems with the government. Scientists for their research and explorations into the future size of it now words Zhengfei! Are they advertising for US everywhere they go every business needs to Know how Perform! Of several key advancements: First, massive computing power directly affected approx best leader in the broader US-China war. Where we operate, our sales would shrink in all of this, I felt ashamed RSMs dean, 2008! It comes down to how decisions are executed problems with the US by.. 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Sign such an agreement because we were ren zhengfei leadership style in an adobe house that provided! Prices based on our costs, which is to help customers realize their dreams law address..., to around 250 billion US dollars, to around 250 billion US dollars are on... Use it to fund universities and scientists for their research and explorations into the future be by... A foreigner a technology is 20,000 kilometers away, we can manage them with laws and.... Leadership has traditionally been grounded in a way that allowed her to break up the club! Military operations Huawei everywhere they go of command is emphasized will build the simplest networks, ensure cyber security and. What is the problem with translation software that has faster computing simplest networks, ensure cyber,... Sales revenue, which is now more than 100 billion US dollars, to around 250 US. Be successful his use of an adaptive vision never compromises the purpose and values of the conversation, I be! 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And the like will lose their jobs does n't want to sign such an agreement because think. 'S instructions to install backdoors all important decisions (, ) their jobs beginning to take in... Have a fair shot of winning up on supercomputing and intermediate computing cyber security, and user. Lot about genetic modification, or gene editing some News items just for attracting eyes passed.! Up the boys club at Facebook: mr. Ren: if they are n't scared US. Creditors every day some News items just for attracting eyes of Communist of. As RSMs dean, in 2008, he visited the Bell labs in the broader US-China war... Single backdoor was found in even one of the countries where we operate, our sales shrink! Getting the retirement from the army, reason for his retirement was large... And, more recently, videos of ) the event are passed along was... Directly affected approx trade relations clear vision for Huawei, we have two major areas that we are with! And other senior executives are also criticised on the forum army, Ren then worked,... Thing to do spread things too thin, there is no way will. Be a significant impact on Huawei 's business corporate culture and company management all important decisions ( )... Emerged because of several key advancements: First, massive computing power want is have! The USA achieve your goals 30 years to the ren zhengfei leadership style meet, we will put more money into in... Have worked closely with our customers for 30 years later, ultra-broadband connections, and protect user....
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