European countries want to think over all their options a bit. KPMG wouldn't hide anything for us. We are going to make this happen. If a single backdoor was found in even one of the countries where we operate, our sales would shrink in all of them. When I can't find a better term to easily describe how business works, I use military terms. Learn how to create a winning business plan. They are buying our products in large quantities as the US government is advertising for us. Don't worry that Huawei would end up having no successor. 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. For the rest, let the organization keep doing what it does well. Second, we strive to become the world's best in edge computing. Struggling a bit can be good for them. 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. The interview was first broadcast on CNBC's Squawk Box Asia on 15 April 2019 and the full interview will air as a special episode of CNBC Conversation on Friday, 19 April at 9am (SG/HK). Arjun Kharpal: You mentioned the Ericsson CEO at the time said it was a bold move to jump into this space. Our scientists spotted it and spent 10 years turning his theories into the 5G standards of today. From what has been discussed above, we can easily find the relationship between the leadership of Ren zhengfei and the rise of Huawei. We have raised our prices and now many people think Huawei is expensive. In his view this could only be achieved by providing excellent services. 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. Tanks can cross a swamp, but needles can pierce hard things through. The collaboration between these two countries would create two "trains" that can tow the global economy out of trouble. For example, as the products of Huawei in their pioneering years were not yet well developed he visited many R&D offices abroad. The billionaire founder of Chinese telecoms equipment giant Huawei rarely. We should not worry that it will hinder social progress. I think that is how this story is likely to end. And also, some countries have also said that Huawei could be a risk because it could work for the Chinese government and carry out espionage on behalf of Beijing. After I was discharged from the army, I ran into a big trouble at work. It is good for society and can greatly increase social wealth. 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. Never does he try to overly advertise his own company or fabricate some news items just for attracting eyes. 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. When he reduces taxes, he must be hoping to attract more investment. Instead, he believed it was a strength. Arjun Kharpal: A bit about the US market. Arjun Kharpal: I want to switch topic a little bit to talk about your daughter, Meng Wanzhou. At the time, the market economy was beginning to take shape in China, at least in coastal cities. I can share some numbers with you. Get this delivered to your inbox, and more info about our products and services. The US stock market may witness a significant rise this July. This selective messaging was not popular, but it was highly effective. We obviously couldn't control our customers, so we had to get hold of the products. There is nothing else that I want to share with him. After getting, retired from the military, Ren has planned to work in electronic business. A Division of NBCUniversal. The US government is actually advertising for us in a good way. Second, develop an organizational persona. I believe they may not have the evidence or the facts to prove her guilt. Nothing but life. Therefore, he often uses similar way to manage the company like the military system does. During China's Cultural Revolution, I designed a small instrument using my math skills, and actually received recognition from the government for this device. Ren Zhengfei (Mr Ren): When I had just started Huawei, we still did not understand China's reform and opening-up policy. We remained focused on this same single point. At Huawei, we have two major areas that we are focusing on for the future. When there is no cure to a disease, maybe we can look into gene editing. A common theme in everything that Ren Zhengfei as a leader undertakes is the ability to reflect, think and act. Sign up for free newsletters and get more CNBC delivered to your inbox. Without the leadership Ren zhengfei has, there could not have been todays Huawei. After I joined the army, I was tasked to establish a chemical fiber factory in Liaoyang, a city in the northeast of China. After limited discussion, George instituted a program that rewarded faculty who published in the top practitioner journals with a bonus of up to 15,000. This helps the US greatly improve their national reserve. After we were discharged, we were assigned to different places across China. Particularly the Silk Road Economic Belt and the 21, 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. This is because technology is lifeless and can be widely applied. Secondly, we need to pay taxes to the Chinese government. People will be afraid of getting trapped there. Is this a battle for you? And it needs to be communicated widely. What Industries are the Best Teachers for International Managers? What do you make of his views? As he spent decades building one of the biggest tech companies on the planet, Ren Zhengfei kept a low public profile. Arjun Kharpal: Mr. Ren, I want to move onto a bigger picture of the world of technology. We cannot deny the role that enthusiasm plays in the procedure. 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. Leahy succeeded with both dramatic changes in part because he maintained a modest demeanor throughout. Ren said, "Huawei people, especially the leaders . 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. Mr. Ren: I think Mr. Jobs was a great man. The industry had high requirements. It often makes sense to adopt a stealth strategy rather than a formally declared one and to bring people along gradually, as it starts to prove itself. However, monopolies in these kinds of technologies will benefit the world, rather than harm it. You've grown the company over 30 years to the size of it now. If they have too much money, they would be obsessed with capital gains. Rebelling from the top means taking on the biggest challenges only when you have the most firepower. What company can outperform Microsoft in Office and Windows? February 9, 2021. Mr. Ren: We have worked closely with our customers for 30 years. Since China has become the second largest economy in the world, this relationship has taken new forms in the shape of several business initiatives. How do you respond to some of these very, very strong criticisms from governments around the world? (This is where EQ can support OQ. ) But this year, once the slate is wiped clean, the financial statements they will release in July will be much healthier. But what we've seen publicly is senior officials in the government talking at times on Huawei's behalf. That's my only ideal. His message resonated throughout the Chinese corporate world; one of the sledgehammers now sits in the National Museum of China. It incorporates respectability well and great lead . Earn badges to share on LinkedIn and your resume. We want to hear from you. Your email address will not be published. Nevertheless, as the market evolved and employee characteristics shifted, the shortcomings of Ren's management model grew ever apparent. Data Analysis Methods Every Business Needs To Know How To Perform, Are You Ready to Lead in a Digital World? Everything is limited. The Opportunities and Challenges of Global Teams. Even with those qualities, many leaders fail at the top job often because they dont know how to get the organization to do what they want. We set prices based on our costs, which were relatively low. These cookies will be stored in your browser only with your consent. What they lack and what successful leaders embody, down to their marrow is organizational intelligence. He believed that the combination of his skill to organise a company and the IT background of his executives and employees would create wonders. We will also push the Chinese government to sign a cyber security agreement with the German government. However, Ren zhengfei and Huawei made it in the end. Therefore, Zhengfei acted more like a catfish in the high-level decision-making process, who has constantly created imbalance to inspire passion across the organisation. AI is also developing faster than what we can imagine. 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The story goes that Zhengfei was so moved by the work done in those labs that he cried. One of the consistent qualities that have been attributed to Ren Zhengfei is his ability to inspire others. What makes Huawei interesting is its rate of growth and . If they don't, they might not buy our products. In 1994, Huawei is still a company that has been working for no more than seven years. It is mandatory to procure user consent prior to running these cookies on your website. However, there was no way back. In a newly published speech originally given in June 2020, Ren called for decentralised . At the same time, the company acknowledged the contributions of dedicated employees by remunerating them generously. Then scientists realized the value of genes and DNA. This statement was understood as underlining that his global ambitions were there to stay and grow. Based on interviews with Huawei employees, its executives, and finally, Ren Zhengfei himself allowed us to arrive at 7 important leadership lessons that have made Huawei the company it is today (see Figure 1). Arjun Kharpal: But what was the personal effect of her arrest on you as a father? This is a challenging competency and a powerful one. We only focus on edge computing. During one of these visits, in 1997, he visited the Bell labs in the USA. In other words, the emphasis of results is viewed a basic spirit of Huawei. Taiyuan, Shanxi. All Rights Reserved. Second, ultra-broadband connections, and ultra-large storage systems, as well as micro-computing storage and edge computing. The US and Canadian legal systems are open, transparent, just, and fair. In a way obsessed by doing good for the customer, Zhengfei is relentless in communicating this purpose by means of stories to his employees and convincing them that they all should be dedicated to pursue the mission of the company: To connect people via communication.. We support this agreement proposed by the German government, and will definitely be one of the first to observe it. Ren Zhengfei's Media Interview After the Opening Ceremony of the Intelligent Mining Innovation Lab in Taiyuan. Otherwise, they will become overweight and won't be able to move fast. It helps reduce many people's workloads. We also sued the US government in Dallas. Ren is the son of school teachers and grew up in a mountainous. However, after this change, the effiency gradually increases. So our products needed to be standardized. Mr. Ren: She will continue to do what she has been doing. So we would never follow anyone's instructions to install backdoors. and pay only $8.25 each, Buy 500 or above 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. I want to use a case analogy here. The differences of leader skill in America and China. CNBC is the leading global broadcaster of live business and financial news and information, reporting directly from the major financial markets around the globe with regional headquarters Singapore, Abu Dhabi, London, and New York. And I don't really care about all that. The simpler and clearer, the better; organizational members at all levels suffer from information overload, so leaders need to be selective about what messages to send. We just focus on a single point. Why do they accept these things? It will never happen. You have entered an incorrect email address! Arjun Kharpal: Mr. Ren, as we come to the end of the conversation, I want to focus on your future. This way, we will be able to make world-leading products. It's now just a scientific fantasy, and wouldn't necessarily ever happen. His company reflects these traits. Huawei, one of the biggest company focusing on making communication tools like cellphones, is famous all over the world. We believe US laws are open, transparent, fair, and just. Mr. Ren: First, I think our customers already know Huawei pretty well since we have worked with them for nearly 30 years. In the past, no one spoke up for us. 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. 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. They viewed the rat problem as one the company had the responsibility to solve. The cost of using a warship is high. If we get caught in the middle, we will be crushed like a watermelon when these two powers clash. 2023 The European Business Review | Empowering communication globally. Will Europe understand us when they see how much effort we are putting into this? So we believe our engagement with the German government will be endorsed by the Chinese government. You survived some hardships like famine. I don't think we need to worry too much about the adverse impact of this technology. However, most of us. Our costs were low for two reasons. We were living in an adobe house that only provided us a little shelter from the wind. Mr. Ren: Huawei is based in China. 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. This is beyond what anyone had imagined. After getting the retirement from the army, Ren then worked with, ). Also, he tries to avoid unnecessary interviews from the media and devote his time energy into working. If we spread things too thin, there is no way we will be successful. 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. 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. That's why we told the German government that we are willing to accept their regulation. We will not distribute any extra profit to our employees. 2023 | A2Z Pte.Ltd. I had thought that this was an Internet rumor initially, so I said that without much thought. When two nations or companies meet, they must collaborate to achieve shared success. He made this persuasively clear by literally saying that it is necessary To cut off your feet to wear the shoe, In China, leadership has traditionally been grounded in a hierarchical top-down management system. If that happens, we will just sell our products to other countries that do accept us. It has grown the market, enabling many other companies to survive. Why cannot we edit human genes? 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. 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. The engineering troop I was in was among one of the first troops to be disbanded. By submitting your email, you agree to our Terms & Conditions and Privacy Policy. Directive Style. I would be afraid that they would pull out suddenly and stop doing business with us. Everyone at GE knew what to expect from Neutron Jack Welch. Huawei has indeed invested considerably in creating a learning driven culture where the power of the mind is visible. Wiped clean, the financial statements they will release in July will able... Raised our prices and now many people think Huawei is still a company and rise! Prices based on our costs, which were relatively low little bit talk. To do what She has been working for no more than seven years believe they may not have been Huawei! Discharged, we will not distribute any extra profit to our terms & Conditions and Privacy Policy relatively low,! Extra profit to our employees overly advertise his own company or fabricate some news items just attracting... Only provided US a little shelter from the army, Ren Zhengfei Huawei. 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