One opposing force is the idea of attack versus compromise or also referred to as the simultaneous tendency to cooperate versus compete. But if you were in the room with the US President, what would be your message to him? 5G made progress. Mr. Ren: We are open to Apple in this regard. It was all about hard work to bring the company up to the level that it was able to provide higher-quality service. 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I would have to repay tens of billions of dollars in debts. We want to hear from you. If no one dares to invest in the US, then how can they make up for lost tax revenue? 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. But by 2003 Sainsburys had followed suit by which time Tesco had a five-year head start and an expanding user base. Gradually, we have become a leader in this narrow, focused area. Arjun Kharpal: What guarantees can you give to customers that their data is safe? He has a saying that is often quoted: thinking ability is the most important thing. Back home in Shenzhen, Zhengfei told everyone that the passion that he felt for that lab was equal to love. 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. They replied that they could not make it smaller. Unlike many Chinese companies that set up many businesses but most cannot be called successful, US companies know how to narrow their focus and then charge forward. We need to make our value distribution reasonable. Required fields are marked *. 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. 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. We have become what we are today with our own strength. possesses Self criticism attitude, particularly during the time of success. I am just taking as a bucket of "glue". The railway and machinery troops were let go along with us. On the other hand, Zhengfei is also known to give much freedom when it comes down to how decisions are executed. Today, only 30 years later, ultra-broadband has become accessible in most rural areas around the world. If you'd like to share this PDF, you can purchase copyright permissions by increasing the quantity. 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. 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. We don't have much influence over China-US trade relations. So we won't do that. 2023 | A2Z Pte.Ltd. (This is where EQ can support OQ. ) Use the strengths of your organization to achieve your goals. That's my only ideal. 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. We have given up on supercomputing and intermediate computing. Mr. Ren: We want the US government to treat Huawei fairly and without prejudice. We believe US laws are open, transparent, fair, and just. Nevertheless, Zhengfei remained persistent in talking about his ambitions at all kind of occasions. 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. 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. The story goes that Zhengfei was so moved by the work done in those labs that he cried. True to this Chinese saying, Zhengfei has indeed proven that he had the influence and insights needed to design the most effective . Investor and consumer confidence will increase, and the US economy may take a turn for the better. 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. He has indeed has proven that he has influence as well as insights which are, needed for formulating strategies. It commemorates the long-ago day when CEO Zhang Ruimin pulled 76 refrigerators off the production line. Have you thought of retiring any time soon? Our costs were low for two reasons. Mr. Ren: First, it's understandable that government leaders would take pride in the great companies of their country. When he reduces taxes, he must be hoping to attract more investment. 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. In the next two or three decades, technology will advance even faster. In the past, no one spoke up for us. Mr. Ren: I think technology will advance even faster than we could ever imagine. We only focus on edge computing. Over the next 20 to 30 years, we will never do anything that compromises security and we will remain secure. If a technology is just several thousand kilometers away, we will invest a lot more, like a watermelon. Mr. Ren: When I was a kid, I didn't have many hobbies mainly because my family was poor. During China's Cultural Revolution, I designed a small instrument using my math skills, and actually received recognition from the government for this device. However, we are not in any position to require other companies to do the same. We will also increase our sales revenue, which is now more than 100 billion US dollars, to around 250 billion US dollars. 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. Do you think she's a hostage in this broader US-China trade battle? This is surprising because Huawei has been very active in 2014 and 2015 in securing many partnerships with European firms, ranging from a focus on cloud storage and cell phone applications in security areas. This will change the architecture proposed by John Von Neumann. You dont want to be like John DeLorean, who battled nearly everything on his way up in and then out of General Motors. This hurts no one. This can help us address the problem of how we distribute our increasing profit. If a technology is just five kilometers away, we will invest heavily (a business version of a Van Fleet Load). During the day, we were building a highly modernized factory. Part of making the dreams of customers to come alive is the idea that providing the best service possible is crucial to the success of the company. Harvard Business Publishing is an affiliate of Harvard Business School. Most of us also didn't understand that move. Is that something you would welcome? company using his skills and core competencies. So he emphasized action. First, embrace bureaucracy rather than rail against it. It does not depend on what Donald Trump has to say. In 1960, there was a serious famine in Guizhou Province. Combining storage and computing will enable devices to run faster. Mr. Ren: There are perhaps some employees who have been intimidated by my military-style speeches, because about 160,000 employees have left Huawei. We just focus on a single point. His message resonated throughout the Chinese corporate world; one of the sledgehammers now sits in the National Museum of China. Arjun Kharpal: A bit about the US market. So I'll let her face what she is facing. In Europe, we will face some difficulties in the short term, but there will be no impact on our business. 5. Rebelling from the top means taking on the biggest challenges only when you have the most firepower. The secret is to take advantage of opportunities to do something symbolic in a surprising, high-impact way that will capture the attention (and, hopefully, the hearts and minds) of the organizations members. People don't object to the editing of plant genes. But we will not distribute this extra money to our employees or shareholders. Collective decision-making ensured that Huawei made fewer mistakes and absorbed collective wisdom, but it also caused rigidity. Where does this idea of competing in a cooperative way come from? 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. Looking at the Fortune Global 500 list, Huawei is the only mainland Chinese company (out of 91 Chinese companies listed) earning more revenue abroad (67%). We also use third-party cookies that help us analyze and understand how you use this website. He said, Those are air bubbles. Arjun Kharpal: But some of the major figures in the technological world have warned about the dangers of artificial intelligence. He has maintained the company as private and his management style has been extremely . As I said, this is because we have no real presence in the US market. That's why we told the German government that we are willing to accept their regulation. Media Contact:Clarence ChenCommunications Manager APAC, CNBC InternationalD: +65 6326 1123M: +65 9852 8630clarence.chen@cnbc.com. I don't know what the government officials have said, what concessions they have made, or what opportunities or benefits they've received. I felt very uncomfortable with the transition from the military to Shenzhen which was becoming at forefront of the reform and opening-up. Recommended Lists: Scorpio Entrepreneurs 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. Thirdly, its his sense of management that helps him to become an excellent leader. The first is the ability to accurately estimate the level of conflict a particular course of action will elicit. One defining feature of the Huawei culture is that it is able to bring together opposing forces and tendencies. AI will benefit our society. Are you starting to think about how your own intellectual property like chips could be used and sold to third parties like Apple? Arjun Kharpal: I want to talk a bit about your management style. Mr. Ren Zhengfei has been capable of pioneering the development of technology while growing in the world. But this year, once the slate is wiped clean, the financial statements they will release in July will be much healthier. Since China has become the second largest economy in the world, this relationship has taken new forms in the shape of several business initiatives. Fostering an ethos requires taking two important steps. Early life. Earn badges to share on LinkedIn and your resume. Huawei has indeed invested considerably in creating a learning driven culture where the power of the mind is visible. Mr. Ren: They are more than welcome to come visit us in Shenzhen. In particular, we will build the simplest networks, ensure cyber security, and protect user privacy. Huawei is to a large extent no stranger to this system. The leadership of Ren Zhengfei, however, does differ from this rather "controlling only" style in important ways. These figures show that we are still growing, not declining. Ren has unique qualities which make him different from other, leaders. 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. Really effective leaders learn early to target only important issues and ones they have a fair shot of winning. 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. When I can't find a better term to easily describe how business works, I use military terms. One key OQ competency is sending messages that reinforce the strategy. There has also been questions about your past as a communist party member and what that means for Huawei. He lives with his daughter Cathy Meng who is also the CFO of Huawei. The hiring of IBM also made it possible for Huawei to learn from the West to allow introducing a more global vision. In 2019, soon after Metro Bank revealed an accounting error involving the misclassification of more than $1 billion in loans, Hill resigned. Arjun Kharpal: One of the concerns is that these powerful technologies like artificial intelligence are being developed by a small group of very, very big technology companies. Data is a real-time snapshot *Data is delayed at least 15 minutes. His passion to be the best technology company they can be in service of the customer ensures that he has deserved the reputation of being eager to keep learning and stay informed all the time. He is the founder as well as founder of, Huawei Technologies Co.Ltd. What we have is not some kind of nuclear bomb or weapon. 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