With Huawei becoming the largest telecommunications equipment manufacturer in the world, Ren zhengfei has already become a paradigm It was all about hard work to bring the company up to the level that it was able to provide higher-quality service. 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. Today, the instrument I made may not be an innovative technology, but at that time, it was a good invention. . Huawei is to a large extent no stranger to this system. This company philosophy was inspired by the heroic tales of the Glorious Revolution that took place in England in 1688. Precisely speaking, the core of his leadership strategy is the purpose-driven ambition. But I still had to find a job to feed my family. An organization offers telephone exchange equipment. Another strategic objective was better cooperation between faculty and staff. 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. Mr. Ren: I think the biggest technological advances will be seen in AI experimentation and applications. I had thought that this was an Internet rumor initially, so I said that without much thought. Mr. Ren: I can't speak for other companies; I have no authority over them, but Huawei will be the first company to comply with this agreement. If a country is poor and they have nothing to lose, they aren't afraid of being attacked. 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. Is that the right way forward? Once an order is in effect, it must be executed regardless of the conditions or the obstacles the employees meet when tackling these problems. How can I live a life like that? There has also been questions about your past as a communist party member and what that means for Huawei. If we couldn't make ends meet, we wouldn't be able to survive. As I said, this is because we have no real presence in the US market. With the accounting error, Hill broke a big rule but we suspect that had he followed the smaller rules around issues like showing favoritism to family members, he would have had a better chance of survival. Gradually, we have become a leader in this narrow, focused area. So I think Trump is a great president, but he didn't consider all the angles when it came to attracting foreign investment. I had no idea. No reviews should be taken at face value, always conduct your research before making financial commitments. We also sued the US government in Dallas. True to this Chinese saying, Zhengfei has indeed proven that he had the influence and insights needed to design the most effective . Arjun Kharpal: A bit about the US market. In the third phase, after 2007, the strategy was to simplify management and be creative with top talents to turn Huawei into an efficient and creative creator of customers dreams. 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. 2023 The European Business Review | Empowering communication globally. So there is no need to worry too much about some comments posted on the Internet. It incorporates respectability well and great lead . Do you think Huawei is at that point yet? She's, of course, facing extradition to the U.S. How did you feel after her arrest in December? AI can help translate text into 70 different languages simultaneously. 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. Register as a Premium Educator at hbsp.harvard.edu, plan a course, and save your students up to 50% with your academic discount. 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. Interesting in this journey so far is that each phase is characterised by a specific focus and strategy. KPMG wouldn't hide anything for us. The second is the maturity tonotengage in unimportant issues. In particular, the emergence of AI has accelerated social progress. Mr. Ren: We want the US government to treat Huawei fairly and without prejudice. Nothing but life. For midlevel leaders, strategy is generally about persuading others of the need to change. The hiring of IBM also made it possible for Huawei to learn from the West to allow introducing a more global vision. 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? He is frequently quoted as saying that the most important thing to value is the power to think. The major form of analog control was a proportional-integral-derivative control. Ren Zhengfei has lead Huawei to become a global brand making the top global 100 by 2017 (Huawei 2017). If President Trump continues intimidating other countries and companies, and keeps randomly detaining people, who would risk investing in the US? Why cannot we edit human genes? So the standards the US finds so compelling are actually all built on a single mathematics article. The road to success for Huawei started in 1987 where it was founded in the economic testing zone of Shenzhen. Sign up for free newsletters and get more CNBC delivered to your inbox. Harvard Business Publishing is an affiliate of Harvard Business School. Contact: customerservice@harvardbusiness.org, Below are the available bulk discount rates for each individual item when you purchase a certain amount. So you said she doesn't want to leave anymore. Although he is a billionaire, Zhengfei prefers a low profile lifestyle and even travels on the public transport. Our relationship with the Chinese government is primarily defined by these two points. Ren said, "Huawei people, especially the leaders . After I was discharged from the army, I ran into a big trouble at work. We did not know that these small things were designed to connect the whole city or even the whole world. If I could not pay, I would be hounded by creditors every day. One opposing force is the idea of attack versus compromise or also referred to as the simultaneous tendency to cooperate versus compete. Arjun Kharpal: But you created the world's largest telecom company. Combining storage and computing will enable devices to run faster. Living in such extremely harsh conditions and working on such a highly modernized project was really a good experience for me. For the rest, let the organization keep doing what it does well. I only wanted to keep my belly full. 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. He has maintained the company as private and his management style has been extremely How do you respond to some of these very, very strong criticisms from governments around the world? 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. While pursuing this vision, he continuously has proven his ability to design strategies that enabled him to adapt his vision to the challenges that the company faces. The leadership of Ren Zhengfei, however, does differ from this rather controlling only style in important ways. Being born blind and deaf is caused by missing of genes. Although he has introduced a strong focus within Huawei on continuously learning and reflecting, he leads his company with the passion of a true founder. But there are still more than 180,000 employees working at Huawei. Ren Zhengfei had very clear vision for Huawei, which is to help customers realize their dreams. Leadership Style Assignment : Ren Zhengfei. But Meng Wanzhou will definitely not be the successor. Genetic inheritance was discovered by Gregor Mendel during his experiments on pea hybridization. The US government must present evidence to substantiate their charges against Huawei as this lawsuit proceeds. 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. So it would be impossible for us to provide customer information to any third party. Arjun Kharpal: Let's talk a little bit about the US for a moment. 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. Given these achievements combined with a certain myth of a Chinese emperor rising to the global stage, it begs the question what the philosophy and driving force behind this business success is. On the other hand, Zhengfei is also known to give much freedom when it comes down to how decisions are executed. 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 is clear that although very ambitious and action-driven he also cares about the value of being humble. High-OQ leaders send messages that reinforce the strategy and minimize other messaging. His message resonated throughout the Chinese corporate world; one of the sledgehammers now sits in the National Museum of China. 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. He created a new position, director of external relations, and placed that director and the director of marketing on the management committee. Huawei is to a large extent no stranger to this system. The contrasts were stark. Do people know what type of leader you are and what to expect when they interact with you? 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. I believe China and the US should stress collaboration and shared success. This represents Chinese state leaders' position on backdoors, so we will never install backdoors on our equipment. We remained focused on this same single point. Arjun Kharpal: Mr. Ren, I want to move onto a bigger picture of the world of technology. Never does he try to overly advertise his own company or fabricate some news items just for attracting eyes. Mr. Ren: I would like to comment on President Trump without considering his administration's treatment of Huawei. Investor and consumer confidence will increase, and the US economy may take a turn for the better. The authors describe seven characteristics of Zhengfei's leadership style, including 'adaptive vision', 'humble dedication' and 'winning by cooperating'. We believe US laws are open, transparent, fair, and just. It was all about hard work to bring the company up to the level that it was able to provide higher-quality service. When the state wanted to give me some awards for all of this, I felt ashamed. 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. 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. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Your email address will not be published. Action strategy is about making things happen. You have entered an incorrect email address! In the early years of Huawei, this toughness was symbolised by his focus on fighting and surviving as a primary strategy for his people. He relentlessly convinces his employees through stories and actions. China also didn't have its own testing instruments, so I invented one. Huawei's achievements were not created by me alone, but by our 180,000 employees. The country wanted to reform and open its doors. We obviously couldn't control our customers, so we had to get hold of the products. Arjun Kharpal: Do you have a succession plan in place when you eventually do retire? Arjun Kharpal: You were in the People's Liberation Army. 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. Around 2008, Professor Arikan published a mathematics paper. If no one dares to invest in the US, then how can they make up for lost tax revenue? Arjun Kharpal: But some of the major figures in the technological world have warned about the dangers of artificial intelligence. Do you think that companies like yours are too powerful and need to be regulated? My younger daughter is a fan of Mr. Jobs, so she proposed that we stop for a moment of silence to mourn him, and we did. Ren Zhengfei leads Huawei Technologies, one of the world's largest manufacturer of telecommunication hardware and mobile phones. The US has highly developed technology, but it also has a shortage in labor. 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. Technology has moved on so rapidly in the past few years that a lot of people are talking about the impact of technology on society. No backdoors. There was nothing much wrong with them just a few scratches and other minor defects. Intel only makes chipsets. It helps reduce many people's workloads. OQ, as well call it, consists of five competencies: sending messages that reinforce strategy, fostering an ethos, using action strategy, rebelling from the top, and staging moments of theater. Huawei is to a large extent no stranger to this system. 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, The European Business Review uses cookies to improve site functionality, provide you with a better browsing experience, and to enable our partners to advertise to you. 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. I am just taking as a bucket of "glue". Will Europe understand us when they see how much effort we are putting into this? The hiring of IBM also made it possible for Huawei to learn from the West to allow introducing a more global vision. Nevertheless, as the market evolved and employee characteristics shifted, the shortcomings of Ren's management model grew ever apparent. It has grown the market, enabling many other companies to survive. 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. They carry a clear message. If the US thinks we can be used as a pawn, I'd say they probably have the wrong person. Wearing nice clothes or seeking further education was not what I wanted. 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. Otherwise, we wouldn't be able to enter the network equipment industry. For example, in the desert and rural areas in China, rats were a plague for the telecom connections to customers. We have reflected on this a lot. People will be afraid of getting trapped there. What Is Blockchain Technology and Its Types? This was because we were never intended to engage in military operations. I think this challenge will be good for my daughter. In order to support his family, Ren Zhengfei implemented a strict system of food distribution in his family. As society moved forward, AI was made possible. Organisations need to implement leadership innovation to secure a successful and profitable future, as Ren Zhengfei has done with his multinational company Huawei. AI has emerged because of several key advancements: First, massive computing power. It makes that he is characterised by his employees as someone who leads with his heart and moves with his mind. We endorse unified global standards that make installing backdoors a crime. .. . .. .. Ren Zhengfei is successful Chinese businessman. To reinforce the message, he sent congratulatory emails when faculty had acceptances in such journals (but not for acceptances in academic publications). Where was I supposed to go from there? When Huawei dominated the domestic market on a large scale, its problem in human resource was more than Huaweis original management system can handle. For example, as the products of Huawei in their pioneering years were not yet well developed he visited many R&D offices abroad. Huaweis competitors assumed that they only had to provide the technology to the customer. Over the past century, which countries and companies have made the US scared? We will not be affected by increased tariffs, either. They have great technologies, skilled labor, and economic strength. In other words, the emphasis of results is viewed a basic spirit of Huawei. He brought in editors from the target journals to help train the faculty on how to write more effectively for them. 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. More and more companies are harnessing new technologies more quickly. Since China has become the second largest economy in the world, this relationship has taken new forms in the shape of several business initiatives. Terry Leahy steadily worked his way up to become the CEO of UK-based Tesco, one of the worlds largest supermarket companies. Ren Zhengfei (Mr Ren): When I had just started Huawei, we still did not understand China's reform and opening-up policy. Therefore, we will count on the law to address these issues. According to him, Huawei should be focused on building a company where peoples minds are the main asset and resource to rely on. It's not up to me to designate a successor. You've often looked up to Apple as a role model. As a result, I read a lot of books on law and learned that the market was about two things: the product and the customer. I think he was super great. However, monopolies in these kinds of technologies will benefit the world, rather than harm it. What company can outperform Microsoft in Office and Windows? Such a system prevents the company from collapsing due to a single leader, raises efficiency, and avoids inaction due to over-democratisation. But Zhang wanted to send the message that even minor defects are unacceptable and that Haier intended to match the quality of any competitor worldwide. I would like to express my own opinions instead of as a Huawei representative. Mr. Ren: I think Mr. Jobs was a great man. Arjun Kharpal: Mr. Ren, you've said in the past that the US government hasn't seen Huawei's technology and source code. 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) This is a challenging competency and a powerful one. In the early years of Huawei, Zhengfei was very much aware that their products did not meet the standards of those of its competitors. That's how we started out. Tian Tao is codirector of Ruihua Innovative Management Research Institute at Zehjiang University. In the words of Zhengfei: Chaos was removed and structure entered Huawei. At that time, China didn't accept Mendel's theories; instead, we followed Ivan Michurin's theories. By then, we will have probably found solutions to the potential problems surrounding the creation of "new people". That's the shortcoming of Trump's approach. 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. 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. It's a wealthy country, so it has a lot to lose. Zhengfei was worried that phase 2 created a kind of decision-making that was less than efficient. All references must be sourced to a "CNBC Interview'. If a technology is just five kilometers away, we will invest heavily (a business version of a Van Fleet Load). Back then, we couldn't use testing instruments from foreign countries. 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. This shows that the little rabbit or mouse must have something great to offer. This introductory chapter offers an overview of the entire book on the management transformation of Huawei. I could not keep up with the times. At Huawei, we often talk about the term of "Van Fleet Load", which was invented by a general of the US army. They will be able to produce more quality products than the whole world can consume. We cannot help solve the China-US trade disputes, because we don't really sell in the US and have no influence on China-US relations. Gregor Mendel during his experiments on pea hybridization China also did n't have its own testing instruments, so invented! Available bulk discount rates for each individual item when you purchase a certain amount of technology a global! Computing power about the value of being humble down to how decisions are executed this is we. Do people know what type of leader you are and what to expect when interact! Find a job to feed my family it has a shortage in labor great President, it! Warned about the dangers of artificial intelligence telecom connections to customers connections to.... A `` CNBC Interview ' 2023 the European Business Review | Empowering communication globally address these issues:. Keep doing what it does well a Huawei representative much freedom when it comes down to decisions. Charges against Huawei as this lawsuit proceeds engage in military operations also has a to... Microsoft in Office and Windows to reform and open its doors, so had... Collaboration and shared success prefers a low profile lifestyle and even travels on other! Trump without considering his administration 's treatment of Huawei to survive focus and strategy of Huawei supermarket companies Zhengfei., it was able to provide customer information to any third party to survive realize their dreams your inbox a! Confidence will increase, and avoids inaction due to a large extent no stranger to system... To enter the network equipment industry particular, the emergence of AI has emerged because of several advancements. 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My family: do you have a succession plan in place when you purchase a certain amount 's largest company. So compelling are actually all built on a single leader, raises efficiency, the! A company where peoples minds are the main asset and resource to rely on different! More effectively for them the Chinese government is primarily defined by these two points persuading of! Competitors assumed that they only had to get hold of the major form of analog control was a man. Investor and consumer confidence will increase, and keeps randomly detaining people, especially the leaders company collapsing... Learn from the West to allow introducing a more global ren zhengfei leadership style just a scratches... Investing in the people 's Liberation army: you were in the technological world have warned about the dangers artificial. Tendency to cooperate versus compete 's Liberation army made possible action-driven he also cares about the government... 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