Second, we strive to become the world's best in edge computing. What Industries are the Best Teachers for International Managers? Zhenfei introduced the leadership style to the IT firm several years ago after observing the intricate migration . The Central Committee had also been disbanding parts of the Chinese military because it was so large. Mr. Ren: As technology develops, the future world will become "winner-takes-all". Leahy succeeded with both dramatic changes in part because he maintained a modest demeanor throughout. This case is undergoing legal procedures, and we believe it will be solved in court. Today, only 30 years later, ultra-broadband has become accessible in most rural areas around the world. Register as a Premium Educator at hbsp.harvard.edu, plan a course, and save your students up to 50% with your academic discount. Today, Huawei has developed a decision-making system with limited democracy and appropriate centralisation. In China, leadership has traditionally been grounded in a hierarchical top-down management system. Investor and consumer confidence will increase, and the US economy may take a turn for the better. Mr. Ren: First, it's understandable that government leaders would take pride in the great companies of their country. In the words of Zhengfei: Chaos was removed and structure entered Huawei. Google is now helping blind people see the world with nerve sensors, although they are not as good as human eyes. That approach may not be an option at the top. Because we want to grow our harvest and produce actual results. 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. Saying that he was great is an understatement. If I could not pay, I would be hounded by creditors every day. Mr. Ren: I don't know what the US is after and have no idea how they are going to resolve the trade disputes. Arjun Kharpal: But some of the major figures in the technological world have warned about the dangers of artificial intelligence. But by 2003 Sainsburys had followed suit by which time Tesco had a five-year head start and an expanding user base. At that time, China didn't accept Mendel's theories; instead, we followed Ivan Michurin's theories. Such a system prevents the company from collapsing due to a single leader, raises efficiency, and avoids inaction due to over-democratisation. 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. This category only includes cookies that ensures basic functionalities and security features of the website. Arjun Kharpal: You've mentioned that she wanted to leave the company before she was arrested. 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. The company is growing rapidly and Forbes has estimated Zhengfei's wealth at $2.1 billion. 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. When there is no cure to a disease, maybe we can look into gene editing. They are out of the ordinary and unexpected. I think this challenge will be good for my daughter. High-OQ leaders send messages that reinforce the strategy and minimize other messaging. In the Qingdao headquarters of the Chinese company Haier stands a display case containing a sledgehammer. Even if we were ordered to, Huawei would still not install backdoors. From what has been discussed above, we can easily find the relationship between the leadership of Ren zhengfei and the rise of Huawei. Sales of our consumer business increased by more than 70% in the first quarter of the year. Second, thanks to the Western management approaches we brought in, our operational costs were also kept low. Autocratic leadership: It is also known as pragmatic leadership. Photos/ Taddeo Bwambale . 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. 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? Ren zhengfei invested much money and other resources on learning and putting this management system into effect. We invest heavily in our focus area. Now we talk a lot about genetic modification, or gene editing. Leading Huawei: Seven Leadership Lessons of Ren Zhengfei. But even if it did happen, it would be at least 30 years from now. In our early days, we relied on only two multi-meters and one oscilloscope to develop the product. Many companies' financial statements last year weren't great because they needed to pay income tax arrears. So we won't do that. It has grown the market, enabling many other companies to survive. 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. Arjun Kharpal: But what was the personal effect of her arrest on you as a father? In the early years of Huawei, this toughness was symbolised by his focus on fighting and surviving as a primary strategy for his people. As society moved forward, AI was made possible. Everyone at GE knew what to expect from Neutron Jack Welch. 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. This is an idea that scares people, but right now, it is not yet anywhere near reality. 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. Our company was very small then and almost had no capital or technology. We will also increase our sales revenue, which is now more than 100 billion US dollars, to around 250 billion US dollars. He is frequently quoted as saying that the most important thing to value is the power to think. Why cannot we edit human genes? None. For the rest, let the organization keep doing what it does well. There is nothing else that I want to share with him. Some people asked me what the world would be like in 20 or 30 years. Nothing we've achieved would give us the right to neglect any laws or overlook the technologies of any country. Second, Huawei is being stuck in an extremely difficult situation the US is launching intense attacks against us. But the US is in a different situation. There's a lot of disagreement, of course, on what the right course of action is in Europe. 3.2 Findings 3.2.1 Huawei's leadership style Many will claim that Zhengfei (the founder) laid the foundation for Huawei's . What they lack and what successful leaders embody, down to their marrow is organizational intelligence. In a newly published speech originally given in June 2020, Ren called for decentralised . 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. Genetic inheritance was discovered by Gregor Mendel during his experiments on pea hybridization. On April 12, at the "16+1 Summit" in Croatia, Premier Li repeatedly told all our employees not to install backdoors on networks. Underlying these beliefs is clearly an idea of sharing responsibility but also sharing the rewards that are earned because of these collective successes. During the day, we were building a highly modernized factory. Huawei, one of the biggest company focusing on making communication tools like cellphones, is famous all over the world. It makes that he is characterised by his employees as someone who leads with his heart and moves with his mind. Back home in Shenzhen, Zhengfei told everyone that the passion that he felt for that lab was equal to love. Germany proposed the establishment of a unified global convention that would bar all equipment vendors from installing backdoors, and require them to sign a no-spy agreement. When we were negotiating with the German government about signing such an agreement, we didn't know top officials from the Chinese government were also discussing the same thing. Neither side has mentioned Huawei, which means Huawei does not actually carry much weight. Effective moments of theater have three important characteristics. Many will say that the blueprint of Huaweis success has been laid out by Zhengfei and even though Huawei nowadays makes use of a rotating leadership system in which every six months another board member is the acting CEO, its founder still has a significant impact on the pace and direction of the company. Figure 1: The Leadership Lessons of Ren Zhengfei, The core of Ren Zhengfeis leadership is the undeniable fact that he is very clear about the purpose of Huawei, which is helping customers to realise their dreams. Huawei is to a large extent no stranger to this system. By then, we will have probably found solutions to the potential problems surrounding the creation of "new people". The hiring of IBM also made it possible for Huawei to learn from the West to allow introducing a more global vision. First, we want to provide the best connectivity in the world, and 5G is part of connectivity. I could not keep up with the times. It is clear that although very ambitious and action-driven he also cares about the value of being humble. And its founder Ren zhengfei is thought be be one of the best leader in the business world. If a technology is 20,000 kilometers away, we can invest a little more, like an apple. Precisely speaking, the core of his leadership strategy is the purpose-driven ambition. Interestingly, such a strategy suggests that a power of thinking attitude aligns with a shared learning orientation. Arjun Kharpal: Have you spoken to her recently? It's now just a scientific fantasy, and wouldn't necessarily ever happen. The last thing we want is to have bureaucrats or managers lead our way in technology. Use the strengths of your organization to achieve your goals. Do you think she's a hostage in this broader US-China trade battle? 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. Purpose-driven Ambition The core of Ren Zhengfei's leadership is the undeniable fact that he is very clear about the purpose of Huawei, which is helping customers to realise their dreams. We will comply with European cyber security standards and the GDPR. And then, once we had established some market presence, we began to build up capital. November 12, 2015. 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. In the early years, Huawei, as a private company, had to battle primarily the State Owned Enterprise (SOE) dominated market. If they don't, they might not buy our products. When Huawei dominated the domestic market on a large scale, its problem in human resource was more than Huaweis original management system can handle. Arjun Kharpal: Mr. Ren, you talk a lot about the distance between Huawei and the Chinese government. Jobs then dropped the device into an aquarium, and bubbles floated up. He is very careful not to feed the myth of his leadership and rather emphasises the importance of working hard in the success story of Huawei. How can I live a life like that? Arjun Kharpal: Let's talk a little bit about the US for a moment. That creates a kind of balance. Although this multinational company surpassed Ericsson in 2012 as the world leader in terms of sales revenue and net profit, the company is still relatively unknown to the European business audience. When I look back on how Huawei developed in the telecom market, we actually made some missteps. Ren zhengfei led his group to study and bring in the management system of IBM company. Thirdly, its his sense of management that helps him to become an excellent leader. You often use military imagery and images of battles in your speeches and communications with the employees at the company. As he spent decades building one of the biggest tech companies on the planet, Ren Zhengfei kept a low public profile. He has indeed has proven that he has influence as well as insights which are, needed for formulating strategies. Tian Tao is codirector of Ruihua Innovative Management Research Institute at Zehjiang University. If the US government speaks ill of Huawei, why couldn't the Chinese government speak in our favor? He is recognized as a leader who motivates to facilitate innovation at all levels. Arjun Kharpal: So would you say the US is scared of Huawei? I had no idea. In Europe, we will face some difficulties in the short term, but there will be no impact on our business. 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. Mr. Ren: I don't know about technology, management, or finance. Arjun Kharpal: And part of that R&D budget has gone into 5G, into chips, you've got your own 5G chip. If you'd like to share this PDF, you can purchase copyright permissions by increasing the quantity. Recommended Lists: Scorpio Entrepreneurs His company reflects these traits. According to him, Huawei should be focused on building a company where peoples minds are the main asset and resource to rely on. Ren joined Peoples Liberation Army with the aim of making synthetic fiber. Creating a committed work force in service of its purpose requires that people are inspired. Does China feel under pressure from President Trump's tactics in the negotiations? And he was on a four-year contract and had limited time. All he cares about is how to thoroughly solve every problem his company meets and how to improve the efficiency of the whole group. The railway and machinery troops were let go along with us. I would have to repay tens of billions of dollars in debts. Microsoft focuses on Windows and its Office Suite. 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. I stuck our 180,000 employees together, and encouraged them to forge ahead. Data is a real-time snapshot *Data is delayed at least 15 minutes. 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. Is this a battle for you? Never does he try to overly advertise his own company or fabricate some news items just for attracting eyes. These cities were moving away from the previous planned economy. We always focus all of our energy on this same single point. What Is Blockchain Technology and Its Types? We can give you a copy if you want. Second, Premier Li Keqiang reiterated this point at a press conference following a recent session of the National People's Congress. Figure 1: The Leadership Lessons of Ren Zhengfei 1. 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? So I don't think there will be a significant impact on Huawei's business. KPMG wouldn't hide anything for us. If a technology is just five kilometers away, we will invest heavily (a business version of a Van Fleet Load). Media Contact:Clarence ChenCommunications Manager APAC, CNBC InternationalD: +65 6326 1123M: +65 9852 8630clarence.chen@cnbc.com. Ren Zhengfei had very clear vision for Huawei, which is to help customers realize their dreams. Huawei's achievements were not created by me alone, but by our 180,000 employees. We are going to make this happen. Huawei is to a large extent no stranger to this system. I majored in architecture back in school, but I studied electronics technology myself. We chose a tough road. This introductory chapter offers an overview of the entire book on the management transformation of Huawei. In order to support his family, Ren Zhengfei implemented a strict system of food distribution in his family. possesses Self criticism attitude, particularly during the time of success. and pay only $8.50 each, Buy 50 - 499 This is a challenging competency and a powerful one. HBR Learnings online leadership training helps you hone your skills with courses like Business Plan Development. This ability derives from his pro-active attitude. 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. This fact inspired him to embrace the idea that one can win and still be cooperative. although employees even management employees were not used to it, since it need a thorough change. In fact, the company only seems to be growing stronger. 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. This does mean though that many translators and stock analysts and the like will lose their jobs. The European Business Review is not responsible for any financial losses sustained by acting on information provided on this website by its authors or clients. Our subsidiaries in other countries also have this relationship with local governments. When attending a summit in Croatia, Premier Li also told our employees not to install backdoors. The authors describe seven characteristics of Zhengfei's leadership style, including 'adaptive vision', 'humble dedication' and 'winning by cooperating'. You've obviously not been present in that market for a while, Huawei has been in a lawsuit over there suing the government. I raised a total of over 20,000 RMB to pay the variety of fees needed to start a company. Western companies are no different. 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. At this time, Ren Zhengfei's family was starving. So the standards the US finds so compelling are actually all built on a single mathematics article. First, as our technology advanced rapidly, we managed to bring down the costs of our products. So we believe our engagement with the German government will be endorsed by the Chinese government. 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. It is good for society and can greatly increase social wealth. 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. CEO's are the driving force behind any for-profit organisation. When he talks about his skills and qualities he always emphasises that he is not the most knowledgeable. Like a judo master, you must practice getting the maximum effect from your large organization with a minimum effort on your part: the judicious email, the sharp moment of theater. Even if AI poses other threats, we can manage them with laws and rules. Elon Musk, for example, has continuously warned about the impacts on jobs and actually, artificial intelligence getting more intelligent than humans. The negotiations between China and the US have nothing to do with Huawei. It is a well-known fact that Zhengfei truly lives this purpose and pursues it with unlimited energy, making Huawei his natural born mission. This way, we will be able to make world-leading products. How do you respond to some of these very, very strong criticisms from governments around the world? One Chinese company that is increasingly becoming active in Europe is the Chinese telecom giant Huawei. 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. Learn how to create a winning business plan. I believe they may not have the evidence or the facts to prove her guilt. At that time, Zhengfei clearly used a competitive mindset as the driving force to grow as a company. Steve Jobs and Tim Cook have managed to turn Apple to an iconic brand. I think that is how this story is likely to end. This is beyond what anyone had imagined. 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. Ren Zhengfei, founder and CEO of Huawei, speaking at the company's headquarters in Shenzhen on May 24, 2019. That requires two skills. Earn badges to share on LinkedIn and your resume. You've often looked up to Apple as a role model. 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. One defining feature of the Huawei culture is that it is able to bring together opposing forces and tendencies. We just wanted to produce some small things that could easily be sold. If we spread things too thin, there is no way we will be successful. Mr. Ren: I don't know. Arjun Kharpal: I want to talk a bit about your management style. Amazon, Google, and many others all have their own focus areas. 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