Because they are simple and easy to understand. 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. European countries want to think over all their options a bit. I don't think we need to worry too much about the adverse impact of this technology. Huawei is to a large extent no stranger to this system. Leading Huawei: Seven Leadership Lessons of Ren Zhengfei. We'll buy them directly." 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. 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. I think it's the right thing for them to do. Iterative succession must take place in an orderly fashion. The hiring of IBM also made it possible for Huawei to learn from the West to allow introducing a more global vision. He is recognized as a leader who motivates to facilitate innovation at all levels. Mr. Ren: Regarding the allegations against Meng Wanzhou and Huawei, the US Department of Justice has sued Huawei, and Huawei has pleaded not guilty in the court. 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. 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. This website uses cookies to improve your experience while you navigate through the website. We will not distribute the extra profit to shareholders, either. Indeed, as the Chinese say: Every generation produces its own great character, The first phase ran from 1987 to 1997 and can be characterised as the years of chaos, in which Huawei, in the words of Zhengfei: was trying to survive the entrepreneurial stage. Arjun Kharpal: Let's talk a little bit about the US for a moment. Photos/ Taddeo Bwambale . Secondly, we need to pay taxes to the Chinese government. . Ren has been described as more of a spiritual leader than a hands-on executive. Every year we invest more than 20 billion US dollars in it. That means there is space in there. Typically, they've been used in Huawei's products. Do you see that Huawei is a pawn in the broader US-China trade war that's going on at the moment? and pay only $8.00 each. This was because we were never intended to engage in military operations. Terry Leahy steadily worked his way up to become the CEO of UK-based Tesco, one of the worlds largest supermarket companies. Especially in the entrepreneurial years of the company he used this strategy to be both a strong mentor and leader for his employees. For the rest, let the organization keep doing what it does well. Why do you think that is? Genetic inheritance was discovered by Gregor Mendel during his experiments on pea hybridization. That's my only ideal. They carry a clear message. The contrasts were stark. Over the next five years, we will invest more than 100 billion US dollars in R&D to restructure our networks. At that time, China was just beginning with its reform and open-up policy, and was paying more attention to technology, talent, and knowledge. Arjun Kharpal: Would you support similar ideas about no-spy agreements in other countries, including the US? It will greatly increase productivity. More and more companies are harnessing new technologies more quickly. They had thought that disbanding was to weed out unnecessary troops and strengthen the remaining units. I want to use a case analogy here. 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. Amazon, Google, and many others all have their own focus areas. One opposing force is the idea of attack versus compromise or also referred to as the simultaneous tendency to cooperate versus compete. High-OQ leaders use action strategy rather than consensus building to pursue strategic goals. Want to buy more than 1 copy? Turning to personnel, George replaced the people likely to generate the most opposition and appointed a new, supportive vice dean from among the existing department chairs. Being born blind and deaf is caused by missing of genes. Some US politicians are criticizing Huawei everywhere they go. To give the new changes time to take effect, he delayed a formal discussion of the new strategy until his third year, by which time both revenue and ranking were higher and attitudes had become more favorable. This revolution was also referred to as the bloodless revolution because the victory of William of Orange was achieved without bloodshed. And its founder Ren zhengfei is thought be be one of the best leader in the business world. They replied that they could not make it smaller. We need to make our value distribution reasonable. We just focus on a single point. Do people know what type of leader you are and what to expect when they interact with you? We support transparent regulation over companies with new technologies, and we are willing to be subject to such regulation. High-OQ leaders send messages that reinforce the strategy and minimize other messaging. We chose a tough road. In order to support his family, Ren Zhengfei implemented a strict system of food distribution in his family. So there is no need to worry too much about some comments posted on the Internet. So we won't do that. Autocratic leadership: It is also known as pragmatic leadership. With Huawei becoming the largest telecommunications equipment manufacturer in the world, Ren zhengfei has already become a paradigm The collaboration between these two countries would create two "trains" that can tow the global economy out of trouble. Leading Huawei: Seven Leadership Lessons of Ren Zhengfei, The relationship between China and the European continent carries much history with it. That's how we started out. It is a well-known fact that Zhengfei truly lives this purpose and pursues it with unlimited energy, making Huawei his natural born mission. Ren has unique qualities which make him different from other, leaders. 5G technology was not invented by Huawei. Learn how to create a winning business plan. At that time, Zhengfei clearly used a competitive mindset as the driving force to grow as a company. "Every generation produces its own great character, and each exerts impact for hundreds of years.". Effective moments of theater have three important characteristics. You've often looked up to Apple as a role model. 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. People don't object to the editing of plant genes. Most of us also didn't understand that move. Arjun Kharpal: But what was the personal effect of her arrest on you as a father? Those with organizational intelligence have the following competencies: they can effectively communicate the top strategic priorities, foster an organization-wide sense of how we do things here, get things done even in the absence of consensus, stage moments of theater, and rebel from the top. Huawei, in contrast, decided to provide these services to their customers. Its founder, Ren Zhengfei, has recently even referred to Europe as a market where they feel at home as a telecom company. His tax cuts are helping revitalize enterprises. We want to sign such an agreement because we think it's the right thing to do. Taiyuan, Shanxi. Networks belong to our customers, not us. I would say he is a great president. 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. We will rush towards and focus all of our efforts on this technology. Copyright 2023 Harvard Business School Publishing. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Your email address will not be published. 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. Huawei is to a large extent no stranger to this system. This will change the architecture proposed by John Von Neumann. We will comply with European cyber security standards and the GDPR. It's now just a scientific fantasy, and wouldn't necessarily ever happen. Join us in Amsterdam for the 2023 European Compliance & Ethics Institute! The second is the maturity tonotengage in unimportant issues. Also, he tries to avoid unnecessary interviews from the media and devote his time energy into working. Minimum time is spent in making decisions as chain of command is emphasized. 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. After all these upheavals, she has changed her mind and doesn't want to leave. These great people are going to great lengths to find fault with a little rabbit or mouse like us. Today, only 30 years later, ultra-broadband has become accessible in most rural areas around the world. Arjun Kharpal: What guarantees can you give to customers that their data is safe? First, as our technology advanced rapidly, we managed to bring down the costs of our products. I don't know what the government officials have said, what concessions they have made, or what opportunities or benefits they've received. He is the first president of a democracy to reduce taxes significantly within such a short period of time. After we were discharged, we were assigned to different places across China. 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. Leahy succeeded with both dramatic changes in part because he maintained a modest demeanor throughout. Would you invite Donald Trump and his administration to your campus here in Shenzhen to let them see the technology that you have, to put their fears at rest? Mr. Ren: I often talk about staying focused. 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. Ren is an active supporter of Communist Party of China. Arjun Kharpal: You said Huawei should not be used as leverage between the US and China, and Donald Trump, President of the United States, said that he could intervene in the Meng Wanzhou case as part of a bigger trade deal between the US and China. November 12, 2015. 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? Famous is the story where Zhengfei in Huaweis fifth year of existence, suddenly rushed out of the kitchen when cooking for Huawei employees abroad his hobby is cooking and announced, Huawei will be a top three player in the global communications market 20 years from now!. 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Of course, several decades from now, that would potentially cause other side effects that we can't predict, but mitigating the side effects is better than immediate death. The story goes that Zhengfei was so moved by the work done in those labs that he cried. A common theme in everything that Ren Zhengfei as a leader undertakes is the ability to reflect, think and act. He is continuously focused on the future and hardly ever ruminates about the past. This statement was understood as underlining that his global ambitions were there to stay and grow. This is thanks to Trump. We have given up on supercomputing and intermediate computing. Interestingly, such a strategy suggests that a power of thinking attitude aligns with a shared learning orientation. The US has highly developed technology, but it also has a shortage in labor. I raised a total of over 20,000 RMB to pay the variety of fees needed to start a company. The US government is actually advertising for us in a good way. In fact, we have too many. Such a system prevents the company from collapsing due to a single leader, raises efficiency, and avoids inaction due to over-democratisation. Over the next 20 to 30 years, we will never do anything that compromises security and we will remain secure. There is nothing else that I want to share with him. We also had to understand the law. Ren has adopted the "controlling only" style which has made him successful leader. Why cannot we edit human genes? When he talks about his skills and qualities he always emphasises that he is not the most knowledgeable. Even if AI poses other threats, we can manage them with laws and rules. Early life. Take machine translation as an example. Back then, it would reach minus 20-something degrees Celsius in the winter. In the fiscal year of 2014 Huawei reached an all-time high sales revenue of CNY288.197 billion (US$46.515 billion) and CNY27.866 billion (US$4.49 billion) in net profit. The billionaire founder of Chinese telecoms equipment giant Huawei rarely. So this won't impact us too much. 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. When I look back on how Huawei developed in the telecom market, we actually made some missteps. In the early years, Huawei, as a private company, had to battle primarily the State Owned Enterprise (SOE) dominated market. We will expand it, and dive deeper into it. These figures show that we are still growing, not declining. Got a confidential news tip? Again, he ties this in part back to their ownership structure:. 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. On the other hand, Zhengfei is also known to give much freedom when it comes down to how decisions are executed. After I was discharged from the army, I ran into a big trouble at work. In particular, we will build the simplest networks, ensure cyber security, and protect user privacy. Mr. Ren: We are open to Apple in this regard. Twenty or thirty years from now, outstanding talent may be able to combine genes with electronics technology to create new "people". Huawei responded to customers 24/7. Really effective leaders learn early to target only important issues and ones they have a fair shot of winning. Some people asked me what the world would be like in 20 or 30 years. If the Chinese government or any other government ask you to hand over data, how would you react? Google is now helping blind people see the world with nerve sensors, although they are not as good as human eyes. Our strategy for investment is like this: If a technology is still two billion light years away, we may invest just a little money, like a sesame seed. You often use military imagery and images of battles in your speeches and communications with the employees at the company. For example, in 2014, the company made a decision on bonuses, which received over 70,000 negative comments, leading to a modification of that decision. I would like to express my own opinions instead of as a Huawei representative. He lives with his daughter Cathy Meng who is also the CFO of Huawei. You dont want to be like John DeLorean, who battled nearly everything on his way up in and then out of General Motors. He began by abandoning the tradition that the dean chaired all defenses of doctoral dissertations; he made it clear that his priority was engaging with external stakeholders, particularly corporate executives. But our strategy of focused investment never changed as our capital grew. Divested mid-price range Honor brand in Nov 2020. I happened to have this invention, and the value of my invention was exaggerated by the country, which led to a promotion for me. Arjun Kharpal: Mr. Ren, you talk a lot about the distance between Huawei and the Chinese government. The first is the ability to accurately estimate the level of conflict a particular course of action will elicit. Figure 1: The Leadership Lessons of Ren Zhengfei 1. For that reason he looked for alternative ways to attract customers. CEO's are the driving force behind any for-profit organisation. There's a lot of disagreement, of course, on what the right course of action is in Europe. Collective decision-making ensured that Huawei made fewer mistakes and absorbed collective wisdom, but it also caused rigidity. 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. For that reason, phase 3 focused on simplifying management and creating conditions that more creative chaos could be brought back into the structured management models. What's next for Meng Wanzhou in her life, in her career? In the first decade of the developing of the company, Huawei is needy for all kinds of human resources. 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. The Central Committee had also been disbanding parts of the Chinese military because it was so large. The country paid little attention to technology and knowledge, but we were working on a project that required technology and knowledge. 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. What Industries are the Best Teachers for International Managers? Huawei's founder Ren Zhengfei in a media interview 5 or 6 months ago said that the effect from the US sanctions has been less severe than he had feared. His company reflects these traits. Mr. Ren: Huawei is based in China. As he spent decades building one of the biggest tech companies on the planet, Ren Zhengfei kept a low public profile. Interesting in this journey so far is that each phase is characterised by a specific focus and strategy. To give you a simple example. Firstly, being practical instead of seeking after useless fame. Ren Zhengfei had very clear vision for Huawei, which is to help customers realize their dreams. Information that flows through the networks also belongs to our customers, not 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. 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 if investors are scared that they won't get their money back, they won't dare to invest in the US. He also. 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. Despite this controversy, Huawei received support from both Ericsson and Nokia, stating that in their view Huawei was not dumping its products. 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. Ren innovation skills and technical knowledge. So George revamped the universitys advisory board meetings. He has maintained the company as private and his management style has been extremely . Cuts and bruises toughen her up, and even since ancient times, heroes were born of hardship. Even if we were ordered to, Huawei would still not install backdoors. All he cares about is how to thoroughly solve every problem his company meets and how to improve the efficiency of the whole group. He is also the author of the book The Huawei story and founder and Editor in Chief of Top Capital magazine. So I don't think they are intimidated. Instead, we will use it to fund universities and scientists for their research and explorations into the future. What do you make of his views? Zhengfei is a big fan of the practice of story telling and makes extensive use of it as a vehicle to deliver his ideas to employees in a passionate manner. Therefore, we will count on the law to address these issues. Arjun Kharpal: I want to talk a bit about your management style. Drawing on this experience, we developed our own 40-line switch for rural markets that could support 40 users. 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. 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. Mr. Ren: I don't know what the US is after and have no idea how they are going to resolve the trade disputes. It will never happen. President Trump hasn't shared his thoughts with me. We invest heavily in our focus area. If they have too much money, they would be obsessed with capital gains. 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. They are out of the ordinary and unexpected. For example, if AI is applied to tractors, they will be able to work 24 hours a day. But he also has shortcomings. I believe they may not have the evidence or the facts to prove her guilt. Organisations need to implement leadership innovation to secure a successful and profitable future, as Ren Zhengfei has done with his multinational company Huawei. Arjun Kharpal: Mr. Ren, you started Huawei over 30 years ago with 5,000 US dollars. 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