If a technology is just five kilometers away, we will invest heavily (a business version of a Van Fleet Load). Access more than 40 courses trusted by Fortune 500 companies. This proves our equipment is secure. Instead, he believed it was a strength. We will also increase our sales revenue, which is now more than 100 billion US dollars, to around 250 billion US dollars. We can give you a copy if you want. AI will benefit our society. Before moving to UK, he was a Professor of Management at China Europe International Business School in Shanghai. 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. Genetic inheritance was discovered by Gregor Mendel during his experiments on pea hybridization. We obviously couldn't control our customers, so we had to get hold of the products. That creates a kind of balance. 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. To reinforce the message, he sent congratulatory emails when faculty had acceptances in such journals (but not for acceptances in academic publications). 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. Elon Musk, for example, has continuously warned about the impacts on jobs and actually, artificial intelligence getting more intelligent than humans. 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. We will expand it, and dive deeper into it. We have become what we are today with our own strength. Have you thought of retiring any time soon? Lets look at each, drawing on examples from our own experience and that of well-known successful leaders. 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. At that time, China was just beginning with its reform and open-up policy, and was paying more attention to technology, talent, and knowledge. He said recently that could potentially wipe out humanity. Arjun Kharpal: In terms of the way he's negotiated with China, some people would say that actually he's managed to get concessions for the US. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. If a single backdoor was found in even one of the countries where we operate, our sales would shrink in all of them. In that case, billions of dollars would be stuck in the US. But by 2003 Sainsburys had followed suit by which time Tesco had a five-year head start and an expanding user base. In the words of Zhengfei: Chaos was removed and structure entered Huawei. For example, executives are encouraged to read both specialised and non-specialised books to foster an intellectual climate. They wouldn't need to rest, just to refuel. When the state wanted to give me some awards for all of this, I felt ashamed. Thirdly, its his sense of management that helps him to become an excellent leader. I would say he is a great president. 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? Part of making the dreams of customers to come alive is the idea that providing the best service possible is crucial to the success of the company. However, monopolies in these kinds of technologies will benefit the world, rather than harm it. Its this kind of spirit in Ren zhengfei that propels his company to become one of the best in China even the world. It is good for society and can greatly increase social wealth. 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). We don't need customers' information. I had no idea. 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. I hadn't realized that the communications industry was so cruel. At first, we had several hundred employees focus on this point, then we had several thousand, tens of thousands, and now we have hundreds of thousands. So Microsoft is the winner and it dominates the market. So he and his managers smashed the defective appliances. Huawei has indeed invested considerably in creating a learning driven culture where the power of the mind is visible. At that time, China didn't accept Mendel's theories; instead, we followed Ivan Michurin's theories. Our financial statements are audited by KPMG, which can clearly show whether or not we are supported by the Chinese government. As of February 2019, he had an estimated net worth of US$3.3 billion. The road to success for Huawei started in 1987 where it was founded in the economic testing zone of Shenzhen. But there are critics who point to certain national intelligence laws in China that compel Chinese companies to help the government with national intelligence work if they're asked. Nevertheless, as the market evolved and employee characteristics shifted, the shortcomings of Ren's management model grew ever apparent. However, after this change, the effiency gradually increases. Leading Huawei: Seven Leadership Lessons of Ren Zhengfei, The relationship between China and the European continent carries much history with it. Some top military officers didn't understand it, either. This is a challenging competency and a powerful one. Another strategic objective was better cooperation between faculty and staff. The authors describe seven characteristics of Zhengfei's leadership style, including 'adaptive vision', 'humble dedication' and 'winning by cooperating'. Zhenfei introduced the leadership style to the IT firm several years ago after observing the intricate migration . Harvard Business Publishing is an affiliate of Harvard Business School. 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Arjun Kharpal: Let's talk a little bit about the US for a moment. Some governments have criticized the relationship between Huawei and the Chinese government. More and more companies are harnessing new technologies more quickly. If everyone went to invest in the US, the US economy would grow dramatically. Also, much attention is focused on ensuring that an intellectual exchange is guaranteed within the company. Register as a Premium Educator at hbsp.harvard.edu, plan a course, and save your students up to 50% with your academic discount. For example, Huawei plans the development of the company by decade, whereas most of their competitors such as Ericsson and Motorola plan it by financial quarter or year. Particularly the Silk Road Economic Belt and the 21st Century Maritime Silk Road initiatives, which include a patchwork of diplomacy and free trade zones, have received their share of attention. I think currently AI has greatly improved productivity. His company reflects these traits. 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. She has understood the difficulties that the company is facing and wants to help us see this through. 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. Use the strengths of your organization to achieve your goals. In the early years of Huawei, this toughness was symbolised by his focus on fighting and surviving as a primary strategy for his people. So I don't think there will be a significant impact on Huawei's business. We have given up on supercomputing and intermediate computing. Of course, large equipment still relies on an architecture of no other elements but computing, storing and connecting, so we will also work hard to contribute to a cloud world. 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. Mr. Ren: The first time I heard warnings about the societal impact of AI was from Bill Gates and Stephen Hawking. Back then, we couldn't use testing instruments from foreign countries. 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 The story goes that Zhengfei was so moved by the work done in those labs that he cried. Ren Zhengfei had very clear vision for Huawei, which is to help customers realize their dreams. If they don't, they might not buy our products. 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. 3.2 Findings 3.2.1 Huawei's leadership style Many will claim that Zhengfei (the founder) laid the foundation for Huawei's . 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. Ren's own military experience shaped Huawei's early corporate culture and management structure. Divested mid-price range Honor brand in Nov 2020. I majored in architecture back in school, but I studied electronics technology myself. AI can help translate text into 70 different languages simultaneously. Mr. Ren: I think my children have grown up without experiencing much hardship. 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. This does mean though that many translators and stock analysts and the like will lose their jobs. In other words, the emphasis of results is viewed a basic spirit of Huawei. In the next two or three decades, technology will advance even faster. Steve Jobs and Tim Cook have managed to turn Apple to an iconic brand. Cuts and bruises toughen her up, and even since ancient times, heroes were born of hardship. 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? One of the consistent qualities that have been attributed to Ren Zhengfei is his ability to inspire others. On this forum, ideas are communicated frequently by senior executives and Zhengfei and feedback from all 170,000 employees is encouraged. We have reflected on this a lot. Many of them thought at that time that he was crazy. Sales of our consumer business increased by more than 70% in the first quarter of the year. Want to buy more than 1 copy? I felt very uncomfortable with the transition from the military to Shenzhen which was becoming at forefront of the reform and opening-up. Apple is also a great company. By the time I got my business license, I didn't have a single penny left. This revolution was also referred to as the bloodless revolution because the victory of William of Orange was achieved without bloodshed. Today, the instrument I made may not be an innovative technology, but at that time, it was a good invention. Any one of these things could help them conquer the world. And I don't really care about all that. The law governs what's in between the transaction. 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 President Trump continues intimidating other countries and companies, and keeps randomly detaining people, who would risk investing in the US? With higher prices, we have started earning more. It is a well-known fact that Zhengfei truly lives this purpose and pursues it with unlimited energy, making Huawei his natural born mission. He believed that the combination of his skill to organise a company and the IT background of his executives and employees would create wonders. Ren innovation skills and technical knowledge. And you've said that you want to be number one in smartphones. Mr. Ren: I often talk about staying focused. 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. As mentioned earlier, the first two decades of Huaweis existence were dominated by the force of attack in order to survive and gradually become a better service provider. European countries want to think over all their options a bit. To rebel from the top, leaders must strike a difficult balance. You survived some hardships like famine. Ren Zhengfei now serves as a deputy chairman of the board of directors. When he talks about his skills and qualities he always emphasises that he is not the most knowledgeable. Back home in Shenzhen, Zhengfei told everyone that the passion that he felt for that lab was equal to love. We are going to make this happen. 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. The country wanted to reform and open its doors. 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. That's how we started out. Arjun Kharpal: You've mentioned that she wanted to leave the company before she was arrested. Nevertheless, Zhengfei remained persistent in talking about his ambitions at all kind of occasions. By the time I left the military, 186, 286, and 386 had dominated the computer world. In Europe, we will face some difficulties in the short term, but there will be no impact on our business. China Europe International Business School. It emphasized clear-cut goals, hard-and-fast rules, employee dedication and absolute obedience. Ren described it as a blend of three qualities: extreme resilience, a willingness to self-sacrifice, and sharp predator instincts. The university had charged him with increasing revenue and strengthening relationships with the business community while maintaining RSMs high level of academic research. The industry had high requirements. We will put more money into research in new frontiers. These great people are going to great lengths to find fault with a little rabbit or mouse like us. Do you feel that technology has been a force for good or a force for evil? The country paid little attention to technology and knowledge, but we were working on a project that required technology and knowledge. A good theatrical moment reverberates as stories about (and, more recently, videos of) the event are passed along. 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. Photos/ Taddeo Bwambale . When he reduces taxes, he must be hoping to attract more investment. It is great in that it has always pushed to make the market bigger, not smaller. None of the information on this website is investment or financial advice. Unlike many Chinese companies that set up many businesses but most cannot be called successful, US companies know how to narrow their focus and then charge forward. Mr. Ren: We are open to Apple in this regard. No backdoors. Over the next five years, we will invest more than 100 billion US dollars in R&D to restructure our networks. Ren Zhengfei has lead Huawei to become a global brand making the top global 100 by 2017 (Huawei 2017). Action strategy is about making things happen. She will be a hero if she makes it back to us. 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 need to make our value distribution reasonable. Moving forward, we will invest more in this direction. Leadership styles. On April 12, at the "16+1 Summit" in Croatia, Premier Li repeatedly told all our employees not to install backdoors on networks. These cookies will be stored in your browser only with your consent. You've often looked up to Apple as a role model. 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. He said, Those are air bubbles. It will never happen. This incentive performance system ensures that people are not only motivated to work hard towards collective success, but probably even more importantly it ensures that Huawei really is an employee-owned company. Leading Huawei: Seven Leadership Lessons of Ren Zhengfei. 5. They had thought that disbanding was to weed out unnecessary troops and strengthen the remaining units. In the first decade of the developing of the company, Huawei is needy for all kinds of human resources. Do you think she's a hostage in this broader US-China trade battle? I believe China and the US should stress collaboration and shared success. Huawei is to a large extent no stranger to this system. Huawei responded to customers 24/7. 5G technology was not invented by Huawei. Mr. Ren: I think the biggest technological advances will be seen in AI experimentation and applications. The criticism was scathing, including from McKinsey and other top consulting firms. 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. Google is now helping blind people see the world with nerve sensors, although they are not as good as human eyes. 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. We just wanted to produce some small things that could easily be sold. So it's impossible for me to enjoy the same prestige as Jobs. Academics were reluctant to engage with executives. Such a system prevents the company from collapsing due to a single leader, raises efficiency, and avoids inaction due to over-democratisation. If I could not pay, I would be hounded by creditors every day. Arjun Kharpal: Mr. Ren, you talk a lot about the distance between Huawei and the Chinese government. And he left other core aspects of the business, such as steadily improving the retail offer (Every little helps), untouched. As a result, I went back to where I started and jumped into the market economy. A Division of NBCUniversal. Interesting in this journey so far is that each phase is characterised by a specific focus and strategy. Huawei, one of the biggest company focusing on making communication tools like cellphones, is famous all over the world. 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. After we were discharged, we were assigned to different places across China. Ren Zhengfei, a founder of Huawei, conducts the personal communication style inspiring employees to achieve high results. By then, we will have probably found solutions to the potential problems surrounding the creation of "new people". Second, we don't really sell in the US market, so we will not be affected by a sales ban. One key OQ competency is sending messages that reinforce the strategy. What's next for Meng Wanzhou in her life, in her career? 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. Mr. Ren Zhengfei has been capable of pioneering the development of technology while growing in the world. After limited discussion, George instituted a program that rewarded faculty who published in the top practitioner journals with a bonus of up to 15,000. I think it's the right thing for them to do. The US needs the Chinese market, and China needs technology from the US. If you'd like to share this PDF, you can purchase copyright permissions by increasing the quantity. And its founder Ren zhengfei is thought be be one of the best leader in the business world. When two nations or companies meet, they must collaborate to achieve shared success. We just focus on a single point. Mr. Ren: Because I don't actually know technology that well, and I didn't invent anything. Without the leadership Ren zhengfei has, there could not have been todays Huawei. 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. I raised a total of over 20,000 RMB to pay the variety of fees needed to start a company. From what has been discussed above, we can easily find the relationship between the leadership of Ren zhengfei and the rise of Huawei. True to this Chinese saying, Zhengfei has indeed proven that he had the influence and insights needed to design the most effective strategies to ensure that Huawei has grown into a world leading company across three phases, each lasting about a decade. Jobs then dropped the device into an aquarium, and bubbles floated up. They viewed the rat problem as one the company had the responsibility to solve. You often use military imagery and images of battles in your speeches and communications with the employees at the company. Western companies are no different. Otherwise, how can we make ends meet? Information that flows through the networks also belongs to our customers, not to us. 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. China has a population of 1.3 billion consumers. What else can we talk about? Ren is an active supporter of Communist Party of China. Is only slower computing good for us? Essential in his idea to compete, however, is that it should be done with respect for its opponents. Facts and evidence should be made public and transparent in the courts, which are the basis for fair and just judgment. If so, what did she say to you? However, most of us didn't really understand how important this decision made by the CPC's Central Committee was. Bill Gates changed his mind though during his later speeches, suggesting that AI could greatly boost social progress. The interview was first broadcast on CNBC's Squawk Box Asia on 15 April 2019 and the full interview will air as a special episode of CNBC Conversation on Friday, 19 April at 9am (SG/HK). About staying focused core aspects of the board of directors that technology has been force!, just to refuel we have given up on supercomputing and intermediate computing all kinds of technologies benefit. 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