There's a lot of disagreement, of course, on what the right course of action is in Europe. When the state wanted to give me some awards for all of this, I felt ashamed. The US hasn't been scared of anyone or anything though. (Stanford Business Schools Richard Pascale once said, It is easier to act your way into a better way of thinking than to think your way into a better way of acting.) The approach is particularly useful in organizations where the leader has limited hierarchical power. In his view, it was necessary in the second phase to wear the shoes of the Americans, and if your feet would not fit then we have to cut it. You also have the option to opt-out of these cookies. Beset by internal and external challenges, Huawei needed to completely rethink its approach to business, corporate culture and company management. By the time I left the military, 186, 286, and 386 had dominated the computer world. Huawei, one of the biggest company focusing on making communication tools like cellphones, is famous all over the world. 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. Back then, it would reach minus 20-something degrees Celsius in the winter. Cuts and bruises toughen her up, and even since ancient times, heroes were born of hardship. He made this persuasively clear by literally saying that it is necessary To cut off your feet to wear the shoe (xue zue shi lu). It is clear that although very ambitious and action-driven he also cares about the value of being humble. 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 is the son of school teachers and grew up in a mountainous town . 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. company using his skills and core competencies. He said, Those are air bubbles. We will wait for the court to make its judgment. Mr. Ren: When I was a kid, I didn't have many hobbies mainly because my family was poor. The ethos needs to be summarized in an evocative statement pointing to the behaviors desired in the organizations members. The leadership of Ren Zhengfei, however, does differ from this rather controlling only style in important ways. 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. Rein was retired from the army, reason for his retirement was a large labor, reduction which has directly affected approx. Most of us also didn't understand that move. When George started as RSMs dean, in 2008, he was an outsider and a foreigner. This website uses cookies to improve your experience while you navigate through the website. Media Contact:Clarence ChenCommunications Manager APAC, CNBC InternationalD: +65 6326 1123M: +65 9852 8630clarence.chen@cnbc.com. You are less known internationally. Huawei is to a large extent no stranger to this system. So he emphasized action. Want to buy more than 1 copy? So what is her role at this company if she is eventually released? 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. Taiyuan, Shanxi. Mr. Ren: In a long run, I can tell you clearly that I will retire as I won't be alive forever but in a short term, it depends on my mental agility as I get older. Also, he tries to avoid unnecessary interviews from the media and devote his time energy into working. In particular, the emergence of AI has accelerated social progress. Where was I supposed to go from there? We also had to understand the law. 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. Interestingly, such a strategy suggests that a power of thinking attitude aligns with a shared learning orientation. Steve Jobs is known more internationally. Arjun Kharpal: In terms of the way he's negotiated with China, some people would say that actually he's managed to get concessions for the US. We are not that important in the bilateral relations between the two countries. Ren Zhengfei (Mr Ren): When I had just started Huawei, we still did not understand China's reform and opening-up policy. I only care about the growth of my company. Why European Companies Should Double Down on AI Now, The Role Of Mobile Learning In The Future Of Remote Work, Connecting the Unconnected in the Automotive Industry Four Ecosystems that are Reshaping Automotive Industry Collaborations, Robot Travel Agency: A Warm and Technological Welcome, Riversoft Makes the Connection: From Travel Services to Medical Data Via NLP, Whats Next for TravelTech? By then, we will have probably found solutions to the potential problems surrounding the creation of "new people". After getting, retired from the military, Ren has planned to work in electronic business. It commemorates the long-ago day when CEO Zhang Ruimin pulled 76 refrigerators off the production line. 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. High-OQ leaders use action strategy rather than consensus building to pursue strategic goals. Fuelled by his passion, Ren Zhengfei works hard to translate the purpose of the company into a vision aimed at Huawei achieving a world leading status. Do people know what type of leader you are and what to expect when they interact with you? Some governments have criticized the relationship between Huawei and the Chinese government. Arjun Kharpal: You said you've not had any communication with Donald Trump. But what we've seen publicly is senior officials in the government talking at times on Huawei's behalf. 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. This approach transformed Huawei into a company of strivers and fueled rapid business growth. The relationship between China and the European continent carries much history with it. The US and Canadian legal systems are open, transparent, just, and fair. Directive Style. What makes Huawei interesting is its rate of growth and . This case is undergoing legal procedures, and we believe it will be solved in court. Get your Culture in Good Shape, Not Lost in Translation: Making the Data Make Sense. Jobs then dropped the device into an aquarium, and bubbles floated up. He said recently that could potentially wipe out humanity. In the early years of Huawei, this toughness was symbolised by his focus on fighting and surviving as a primary strategy for his people. Arjun Kharpal: Have you spoken to her recently? So we gritted our teeth and pushed ahead. 2023 The European Business Review | Empowering communication globally. Without the leadership Ren zhengfei has, there could not have been todays Huawei. Founder of Chinese tech giant Huawei Technologies Ren Zhengfei has called on the company's staff to "dare to lead the world" in software as the company seeks growth beyond the hardware. Do you feel that technology has been a force for good or a force for evil? As a leader, Ren Zhengfei insists on self-criticism and careful consideration. We will not distribute the extra profit to shareholders, either. Ren Zhengfei now serves as a deputy chairman of the board of directors. I had no idea. On one hand he possesses the characteristics of a controlling leader who makes all the decisions. Use the strengths of your organization to achieve your goals. The billionaire founder of Chinese telecoms equipment giant Huawei rarely. 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With Huawei becoming the largest telecommunications equipment manufacturer in the world, Ren zhengfei has already become a paradigm Arjun Kharpal: I want to also address some of other criticisms towards your company. In a similar vein, Huawei makes use of an internal online forum, Xinsheng Community, which is accessible to all Huawei employees worldwide. Another strategic objective was better cooperation between faculty and staff. But we will not distribute this extra money to our employees or shareholders. Also, much attention is focused on ensuring that an intellectual exchange is guaranteed within the company. I think that is how this story is likely to end. 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. Mr. Ren Zhengfei has been capable of pioneering the development of technology while growing in the world. By the time I got my business license, I didn't have a single penny left. Mr. Jobs was great not because he created Apple, but because he created an era, the mobile Internet era. We earned a bit of money this way. Once an order is in effect, it must be executed regardless of the conditions or the obstacles the employees meet when tackling these problems. They had thought that disbanding was to weed out unnecessary troops and strengthen the remaining units. These experiences taught me to endure hardships. The multinationals that were present in China at that time did not consider this to be their problem, but rather that of the customer. Arjun Kharpal: Mr. Ren, you've said in the past that the US government hasn't seen Huawei's technology and source code. We set prices based on our costs, which were relatively low. Academics were reluctant to engage with executives. Bill Gates changed his mind though during his later speeches, suggesting that AI could greatly boost social progress. What Is Blockchain Technology and Its Types? I felt very uncomfortable with the transition from the military to Shenzhen which was becoming at forefront of the reform and opening-up. If the US opens its telecom industry and its operators say they are going to purchase tens of billions of dollars in equipment from us, I wouldn't believe it and wouldn't be willing to make billions of investments. This was because we were never intended to engage in military operations. Arjun Kharpal: You mentioned the Ericsson CEO at the time said it was a bold move to jump into this space. Huawei was founded by Ren Zhengfei when he was in the mid-age crisis. Effective moments of theater have three important characteristics. In the next two or three decades, technology will advance even faster. In many ways the second skill is the more difficult one to develop; most top managers are competitive, and their natural reaction to a challenge is to take it head-on. Otherwise, we will be hindering scientific advancement. Collective decision-making ensured that Huawei made fewer mistakes and absorbed collective wisdom, but it also caused rigidity. If everyone went to invest in the US, the US economy would grow dramatically. The collaboration between these two countries would create two "trains" that can tow the global economy out of trouble. Tanks can cross a swamp, but needles can pierce hard things through. Ren zhengfei himself attributes his success to several characteristics. A common theme in everything that Ren Zhengfei as a leader undertakes is the ability to reflect, think and act. They have great technologies, skilled labor, and economic strength. KPMG wouldn't hide anything for us. Then a large number of our employees would resign, but I cannot leave. I raised a total of over 20,000 RMB to pay the variety of fees needed to start a company. 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. Let's look at an example. However, monopolies in these kinds of technologies will benefit the world, rather than harm it. Of course, we can still be concerned about this, but we believe we will have the ability to harness AI and create benefit. The industry had high requirements. She will be a hero if she makes it back to us. Mr. Ren: I don't know about technology, management, or finance. 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. Mr. Ren: The first time I heard warnings about the societal impact of AI was from Bill Gates and Stephen Hawking. From what has been discussed above, we can easily find the relationship between the leadership of Ren zhengfei and the rise of Huawei. Huawei was not mentioned in any of the negotiation meeting minutes published by the US and China. Although he is a billionaire, Zhengfei prefers a low profile lifestyle and even travels on the public transport. Third, follow the small rules so that you can break the big ones. What company can outperform Microsoft in Office and Windows? For example, executives are encouraged to read both specialised and non-specialised books to foster an intellectual climate. During one of these visits, in 1997, he visited the Bell labs in the USA. To rebel from the top, leaders must strike a difficult balance. Divested mid-price range Honor brand in Nov 2020. Ren said, "Huawei people, especially the leaders . 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. 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