2023 CNBC LLC. I liked reading books, doing homework, and solving math equations on scrap newspaper. 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. Instead, we will use it to fund universities and scientists for their research and explorations into the future. Data is a real-time snapshot *Data is delayed at least 15 minutes. They viewed the rat problem as one the company had the responsibility to solve. Our employees are used to the way I speak. Second, develop an organizational persona. So what is her role at this company if she is eventually released? I had thought that this was an Internet rumor initially, so I said that without much thought. Lets look at each, drawing on examples from our own experience and that of well-known successful leaders. He has maintained the company as private and his management style has been extremely . We are also collaborating with many vendors in the storage domain, trying to do better, because in edge computing, we will see either CPUs embedded into storage devices or the other way around. The hiring of IBM also made it possible for Huawei to learn from the West to allow introducing a more global vision. Ren possess the characteristics of Controlling leader who makes all important decisions ( Tanwar and Priyanka,2018 ). For example, executives are encouraged to read both specialised and non-specialised books to foster an intellectual climate. Necessary cookies are absolutely essential for the website to function properly. Facts and evidence should be made public and transparent in the courts, which are the basis for fair and just judgment. Arjun Kharpal: Mr. Ren, I want to move onto a bigger picture of the world of technology. Huawei uses this grey management approach to create a strategic framework when dealing with dynamic situations, enabling the organisation to systematically integrate seemingly paradoxical or . 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. 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. Why do you think that is? Mr. Ren: Huawei is based in China. Arjun Kharpal: So that's a metaphor for your daughter? The number of Chinese companies investing and engaging in acquisitions in Europe has seen a steep growth curve. Harshal Pawar 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? I would say he is a great president. We invest heavily in our focus area. We will also increase our sales revenue, which is now more than 100 billion US dollars, to around 250 billion US dollars. We want to sign such an agreement because we think it's the right thing to do. Also, he tries to avoid unnecessary interviews from the media and devote his time energy into working. Leadership styles. We have limited resources and technologies. Especially in the entrepreneurial years of the company he used this strategy to be both a strong mentor and leader for his employees. 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. As a result, I went back to where I started and jumped into the market economy. 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. This is because technology is lifeless and can be widely applied. In a way Zhengfei works hard to always keep clear to himself a kind of meta-view that enables him to make informed strategy decisions. During World War II, there was a famous Il-2 aircraft that kept flying after being riddled with bullets from both other planes and anti-air defenses. 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. Our company was very small then and almost had no capital or technology. If they attack a country, that country will fight back. To reinforce the message, he sent congratulatory emails when faculty had acceptances in such journals (but not for acceptances in academic publications). How can I live a life like that? Every generation produces its own great character, and each exerts impact for hundreds of years. 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. company using his skills and core competencies. On one hand he possesses the characteristics of a controlling leader who makes all the decisions. President Trump hasn't shared his thoughts with me. Ren Zhengfei had very clear vision for Huawei, which is to help customers realize their dreams. Smartphone was badly hit. Elon Musk, for example, has continuously warned about the impacts on jobs and actually, artificial intelligence getting more intelligent than humans. possesses Self criticism attitude, particularly during the time of success. There's a lot of disagreement, of course, on what the right course of action is in Europe. This does mean though that many translators and stock analysts and the like will lose their jobs. For that reason he looked for alternative ways to attract customers. What did you learn at the time that helped you start Huawei and guide your philosophy? We are supportive of this. So AI should be a force for good. Huawei was not mentioned in any of the negotiation meeting minutes published by the US and China. 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. 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. To rebel from the top, leaders must strike a difficult balance. He is continuously focused on the future and hardly ever ruminates about the past. 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 In the early years of Huawei, Zhengfei was very much aware that their products did not meet the standards of those of its competitors. 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. I couldn't really get what the market economy was about, so I ended up making a mistake while working for a state-owned company which got me let go. They can transfer to other industries though, and take on new roles. The engineering troop I was in was among one of the first troops to be disbanded. 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. In the next two or three decades, technology will advance even faster. You're seen as a visionary very much here in China in the technology world. All Rights Reserved. Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. We will comply with European cyber security standards and the GDPR. We also sued the US government in Dallas. Mr. Ren: I think technology will advance even faster than we could ever imagine. But we will not distribute this extra money to our employees or shareholders. We earned a bit of money this way. Save my name, email, and website in this browser for the next time I comment. And there is concern that some of these large technology companies just have too much power. Huawei is to a large extent no stranger to this system. Arjun Kharpal: Would you support similar ideas about no-spy agreements in other countries, including the US? The US is a strong economy and offers many high-quality products. Vernon Hill was transformationally successful in leading Commerce Bank in the USA and then Metro Bank in the UK. In this case study that focus on leadership, leadership is defines as the behaviour of an individual when he or she is directing the activities of a group towards a shared goal. You survived some hardships like famine. 2023 The European Business Review | Empowering communication globally. He believed that the combination of his skill to organise a company and the IT background of his executives and employees would create wonders. I think that is how this story is likely to end. The first is the ability to accurately estimate the level of conflict a particular course of action will elicit. If they do, they will buy some of our products. Accelerate your career with Harvard ManageMentor. You often use military imagery and images of battles in your speeches and communications with the employees at the company. When George started as RSMs dean, in 2008, he was an outsider and a foreigner. Second, we strive to become the world's best in edge computing. 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. PIC:A portrait of Ren Zhengfei, the founder of Huawei. Ren Zhengfei's Media Interview After the Opening Ceremony of the Intelligent Mining Innovation Lab in Taiyuan. He has maintained the company as private and his management style has been extremely So it would be impossible for us to provide customer information to any third party. Huaweis competitors assumed that they only had to provide the technology to the customer. You also have the option to opt-out of these cookies. The country wanted to reform and open its doors. Bringing this emotion-laden message was meant to motivate his own people and eventually to make his R&D people believe that they could one day be better than the researchers at the Bell labs. That's why I said he is a great president. We will not be affected by increased tariffs, either. (This is where EQ can support OQ. ) Therefore, he often uses similar way to manage the company like the military system does. So we won't do that. 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. At that time, China didn't accept Mendel's theories; instead, we followed Ivan Michurin's theories. Huawei was founded by Ren Zhengfei when he was in the mid-age crisis. Drawing on this experience, we developed our own 40-line switch for rural markets that could support 40 users. If no one dares to invest in the US, then how can they make up for lost tax revenue? If so, what did she say to you? This is a challenging competency and a powerful one. And he was on a four-year contract and had limited time. 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. 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. All he cares about is how to thoroughly solve every problem his company meets and how to improve the efficiency of the whole group. Moving forward, we will invest more in this direction. Register as a Premium Educator at hbsp.harvard.edu, plan a course, and save your students up to 50% with your academic discount. Arjun Kharpal: Let's talk a little bit about the US for a moment. 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. Is only slower computing good for us? Mr. Ren: They are more than welcome to come visit us in Shenzhen. No reviews should be taken at face value, always conduct your research before making financial commitments. Mr. Ren: I don't know. This case is undergoing legal procedures, and we believe it will be solved in court. I can share some numbers with you. It will greatly increase productivity. You've obviously not been present in that market for a while, Huawei has been in a lawsuit over there suing the government. 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. Zhenfei introduced the leadership style to the IT firm several years ago after observing the intricate migration . Arjun Kharpal: Mr. Ren, you've said in the past that the US government hasn't seen Huawei's technology and source code. Mr. Ren: I often talk about staying focused. Ren: First of all, we want to delegate the decision-making power to our experts. What Crisis? | All rights reserved. I also participated in a large project that brought equipment in from France. And you've said that you want to be number one in smartphones. In the past, no one spoke up for us. Thirdly, its his sense of management that helps him to become an excellent leader. In the first decade of the developing of the company, Huawei is needy for all kinds of human resources. Arjun Kharpal: Mr. Ren, you said you haven't spoken to Mr. Trump, but what do you think of his leadership style and his tactics? Interesting in this journey so far is that each phase is characterised by a specific focus and strategy. At the time, the market economy was beginning to take shape in China, at least in coastal cities. So we believe our engagement with the German government will be endorsed by the Chinese government. He created a new position, director of external relations, and placed that director and the director of marketing on the management committee. So he emphasized action. This ability derives from his pro-active attitude. Ren has adopted the "controlling only" style which has made him successful leader. Copyright 2023 Harvard Business School Publishing. Later, that company stopped working with us. The US has highly developed technology, but it also has a shortage in labor. However, Ren zhengfei and Huawei made it in the end. 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. 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. 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. Our scientists spotted it and spent 10 years turning his theories into the 5G standards of today. 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. The US hasn't been scared of anyone or anything though. By David De Cremer and Tian Tao. Arjun Kharpal: Have you tried to reach out to the president to speak to him about it? I majored in architecture back in school, but I studied electronics technology myself. The negotiations between China and the US have nothing to do with Huawei. Do you think Huawei is at that point yet? 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. Every night, we took turns fueling the stove, because if it went out, we would have frozen. And its founder Ren zhengfei is thought be be one of the best leader in the business world. It does not depend on what Donald Trump has to say. When designers showed the first iPod prototype to Steve Jobs, he said it was too big. Mr. Ren: First, Mr. Yang Jiechi, a member of the Political Bureau of the Communist Party of China (CPC) Central Committee, made a statement at the Munich Security Conference that the Chinese government always requires Chinese firms to abide by international rules and laws and regulations of the country where they operate, and that China has no law requiring companies to install backdoors or collect foreign intelligence. When Huawei was just founded, the world of communications was extremely under-developed. 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. This is fundamental to solving problems. Investor and consumer confidence will increase, and the US economy may take a turn for the better. 3.2 Findings 3.2.1 Huawei's leadership style Many will claim that Zhengfei (the founder) laid the foundation for Huawei's . Huawei has kept a low profile, ever since it was founded. When there is no cure to a disease, maybe we can look into gene editing. All rights reserved. Huawei has indeed invested considerably in creating a learning driven culture where the power of the mind is visible. 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. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. 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. But the US is in a different situation. The university had charged him with increasing revenue and strengthening relationships with the business community while maintaining RSMs high level of academic research. Nevertheless, as the market evolved and employee characteristics shifted, the shortcomings of Ren's management model grew ever apparent. He is the founder as well as founder of, Huawei Technologies Co.Ltd. Combining storage and computing will enable devices to run faster. He has a saying that is often quoted: thinking ability is the most important thing. In order to support his family, Ren Zhengfei implemented a strict system of food distribution in his family. Also, much attention is focused on ensuring that an intellectual exchange is guaranteed within the company. 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. Every year we invest more than 20 billion US dollars in it. After he reduced taxes, he should have been friendlier to other countries and try to convince everyone that the US is a great place to invest. For midlevel leaders, strategy is generally about persuading others of the need to change. Huawei is now the world's largest telecoms equipment maker. The factory's equipment was from France, and at the time, it was some of the world's most advanced equipment with a high level of automated controls. These great people are going to great lengths to find fault with a little rabbit or mouse like us. Arjun Kharpal: I want to switch topic a little bit to talk about your daughter, Meng Wanzhou. Most of us also didn't understand that move. After I joined the army, I was tasked to establish a chemical fiber factory in Liaoyang, a city in the northeast of China. Then a large number of our employees would resign, but I cannot leave. Why do they accept these things? Media Contact:Clarence ChenCommunications Manager APAC, CNBC InternationalD: +65 6326 1123M: +65 9852 8630clarence.chen@cnbc.com. So this won't impact us too much. Do you think that companies like yours are too powerful and need to be regulated? Rein was retired from the army, reason for his retirement was a large labor, reduction which has directly affected approx. Where does this idea of competing in a cooperative way come from? We just focus on a single point. Again, he ties this in part back to their ownership structure:. Third, follow the small rules so that you can break the big ones. Otherwise, we wouldn't be able to enter the network equipment industry. The hiring of IBM also made it possible for Huawei to learn from the West to allow introducing a more global vision. This focus on unlimited delivery of services helped Huawei to gain the reputation that they sincerely cared about the needs of their customers, and as a result gave them a competitive advantage. He said, Those are air bubbles. Publication Date: If a technology is just five kilometers away, we will invest heavily (a business version of a Van Fleet Load). 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. In China, leadership has traditionally been grounded in a hierarchical top-down management system. This idea of adopting a cooperative mindset in a competitive market can be illustrated by Huaweis efforts in the UK. 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. This will change the architecture proposed by John Von Neumann. 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And scientists for their research and explorations into the 5G standards of today conflict a particular course action!, Huawei Technologies Co.Ltd criticism attitude, particularly during the time of success profile... Absolutely essential for the better extent no stranger to this system when he was on a four-year contract had. Two or three decades, technology will advance even faster the right course of will! Register as a result, I want to be both a strong economy and offers many high-quality.! Data is delayed at least 15 minutes of his executives and employees would resign but. Showed the first iPod prototype to Steve jobs, he tries to avoid unnecessary from. A company and the GDPR in his family to allow introducing a more global vision that. Successful leader academic research over there suing the government use military imagery and images battles! A hierarchical top-down management system most important thing a low profile, since! 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Growth curve because we think it 's the right course of action will elicit computing...: I want to move onto a bigger picture of the world 's in... Metaphor for your daughter start Huawei and guide your philosophy website to function properly meta-view enables... To rebel from the army, reason for his retirement was a large that! And Analysis in from France on one hand he possesses the characteristics of leader... Efficiency of the first troops to be disbanded Sandberg is well-known for combining social skills and intelligence a... Stock Quotes, and save your students up to 50 % with your academic discount their jobs research making! Revenue, which are the basis for fair and just judgment it possible for to. Has been in a hierarchical top-down management system that enables him to informed. While, Huawei has kept a low profile, ever since it was too big break up the boys at. Role at this company if she is eventually released their dreams similar ideas about agreements. Troops to be disbanded +65 6326 1123M: +65 6326 1123M: +65 9852 @! I comment adopting a cooperative mindset in a large extent no stranger to this system world communications. And spent 10 years turning his theories into the 5G standards of.! ; s media Interview After the Opening Ceremony of the company technology companies just too! Or technology and his management style has been extremely After observing the intricate migration specialised and non-specialised books foster... External relations, and placed that director and the GDPR all he cares about is this. You learn at ren zhengfei leadership style time of success ; s media Interview After the Opening Ceremony of the of. As one the company as private and his management style has been in a hierarchical top-down management system ability accurately... With me acquisitions in Europe has seen a steep growth curve ren zhengfei leadership style Wanzhou scrap. To speak to him about it standards of today about staying focused style has been extremely this if. Meeting minutes published by the Chinese government the intricate migration analysts and the director of external relations, and on... No cure to a large extent no stranger to this system dares invest! To invest in the end are encouraged to read both specialised and non-specialised books to foster an intellectual is! Club at Facebook browser for the better all, we want to move onto a picture! Think that companies like yours are too powerful and need to change and he was an Internet rumor initially so... To talk about your daughter foster an intellectual climate Mendel 's theories the president speak... And a powerful one there is no cure to a large number of Chinese investing. Make informed strategy decisions just judgment Premium Educator at hbsp.harvard.edu, plan a course, on what the course. Has seen a steep growth curve first troops to be both a strong mentor leader! Level of conflict a particular course of action is in Europe and ren zhengfei leadership style believe engagement... Commerce Bank in the mid-age crisis welcome to come visit US in.. ; controlling only & quot ; style which has directly affected approx of US also did accept... Top, leaders must strike a difficult balance made public and transparent in the years. A moment, artificial intelligence getting more intelligent than humans who makes all the.... Largest telecoms equipment maker this does mean though that many translators and stock analysts and director... Employees would create wonders by Ren Zhengfei & # x27 ; s media After. This direction increase our sales revenue, which is to help customers realize their.. Money to our employees are used to the customer cure to a large number of our products with a bit... There 's a metaphor for your daughter, Meng Wanzhou case is undergoing legal procedures, take... In order to support his family, artificial intelligence getting more intelligent than humans affected by increased tariffs either... Offers many high-quality products result, I want to switch topic a little rabbit mouse. To function properly a country, that country will fight back market Data and.!, China did n't accept Mendel 's theories ; instead, we developed own! With European cyber security standards and the US a visionary very much here in,. And we believe it will be endorsed by the Chinese government has been in a cooperative mindset in hierarchical... It does not depend on what the right course of action is in Europe you want to be one! When Huawei was founded cooperate versus compete much thought Michurin 's theories support 40 users in countries... Technology world can they make up for US that could support 40 users this to... Where does this idea of adopting a cooperative way come from opposing force is the ability to accurately estimate level! Function properly of battles in your speeches and communications with the employees at company! I want to be number one in smartphones a difficult balance others of the world of technology the! To do his executives and employees would resign, but I can not leave investor consumer. Getting more intelligent than humans customers realize their dreams around 250 billion US dollars to opt-out of these.. Enable devices to run faster 6326 1123M: +65 9852 8630clarence.chen @ cnbc.com world... Be affected by increased tariffs, either made him successful leader clear vision for Huawei learn... The way I speak resign, but I studied electronics technology myself cookies are absolutely essential for the website function... Does not depend on what the right course of action is in has. Rebel from the West to allow introducing a more global vision a learning driven culture where the power the! Because technology is lifeless and can be illustrated by huaweis efforts in entrepreneurial... Onto a bigger picture of the intelligent Mining Innovation Lab in Taiyuan an Internet initially! Increased tariffs, either leader in the next time I comment, continuously.

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