Mr. Ren: If they aren't scared of us, why are they advertising for us everywhere they go? 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. The first is the ability to accurately estimate the level of conflict a particular course of action will elicit. Interestingly, such a strategy suggests that a power of thinking attitude aligns with a shared learning orientation. Arjun Kharpal: Let's talk a little bit about the US for a moment. A great opportunity arose when one senior professor complained that the teaching program staffers acted as if the faculty worked for them, rather than the other way around. This way, we will be able to make world-leading products. Ren Zhengfei has lead Huawei to become a global brand making the top global 100 by 2017 (Huawei 2017). If a technology is just five kilometers away, we will invest heavily (a business version of a Van Fleet Load). He has maintained the company as private and his management style has been extremely . That's the shortcoming of Trump's approach. Why do you think that is? This fact inspired him to embrace the idea that one can win and still be cooperative. Huawei's achievements were not created by me alone, but by our 180,000 employees. Of course, large equipment still relies on an architecture of no other elements but computing, storing and connecting, so we will also work hard to contribute to a cloud world. We want to hear from you. This company philosophy was inspired by the heroic tales of the Glorious Revolution that took place in England in 1688. So productivity will be greatly improved. We are supportive of this. One defining feature of the Huawei culture is that it is able to bring together opposing forces and tendencies. Mr. Ren: Collaboration and shared success. If we spread things too thin, there is no way we will be successful. Organisations need to implement leadership innovation to secure a successful and profitable future, as Ren Zhengfei has done with his multinational company Huawei. We just wanted to produce some small things that could easily be sold. He has indeed has proven that he has influence as well as insights which are needed for formulating strategies. According to him, Huawei should be focused on building a company where peoples minds are the main asset and resource to rely on. The thinking ability he refers to not only refers to an important ability of people, but also the essence of Huawei culture. and pay only $8.75 each, Buy 11 - 49 This switch was used by hotels and small organizations. After getting, retired from the military, Ren has planned to work in electronic business. He is the founder as well as founder of, Huawei Technologies Co.Ltd. The second is the maturity tonotengage in unimportant issues. They will be able to produce more quality products than the whole world can consume. His company reflects these traits. 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. However, there was no way back. If no one dares to invest in the US, then how can they make up for lost tax revenue? You dont want to be like John DeLorean, who battled nearly everything on his way up in and then out of General Motors. Its this kind of spirit in Ren zhengfei that propels his company to become one of the best in China even the world. 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. Nothing we've achieved would give us the right to neglect any laws or overlook the technologies of any country. So he and his managers smashed the defective appliances. He realized he would not be able to institute rapid change through persuasion, because the national culture emphasized slow, intensive consensus building. If they do, they will buy some of our products. 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. 2023 CNBC LLC. This will change the architecture proposed by John Von Neumann. But I don't think Huawei can help solve the disputes between the US and China. Indeed, as the Chinese say: Every generation produces its own great character (Jiang shan dai you ren cai chu) and each exerts impact for hundreds of years (Ge ling feng sao shu bai nian). Sales of our consumer business increased by more than 70% in the first quarter of the year. Most of us also didn't understand that move. Mr. Ren: Huawei's future iterative succession system is clearly defined in our Articles of Governance. Technologies are advancing. Ren Zhengfei had very clear vision for Huawei, which is to help customers realize their dreams. Despite this controversy, Huawei received support from both Ericsson and Nokia, stating that in their view Huawei was not dumping its products. Later, that company stopped working with us. Is that something you would welcome? Huawei is to a large extent no stranger to this system. I majored in architecture back in school, but I studied electronics technology myself. 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. Over the next 20 to 30 years, we will never do anything that compromises security and we will remain secure. Mr. Ren: I think my children have grown up without experiencing much hardship. In 1963, he studied at the Chongqing Institute of Civil Engineering and Architecture. And then, once we had established some market presence, we began to build up capital. If the Chinese government or any other government ask you to hand over data, how would you react? I stuck our 180,000 employees together, and encouraged them to forge ahead. Since China has become the second largest economy in the world, this relationship has taken new forms in the shape of several business initiatives. What if we could identify and change the genes that cause the condition? As society moved forward, AI was made possible. What have been the driving forces behind that? This is a challenging competency and a powerful one. Arjun Kharpal: I want to switch topic a little bit to talk about your daughter, Meng Wanzhou. I felt very uncomfortable with the transition from the military to Shenzhen which was becoming at forefront of the reform and opening-up. That's why we told the German government that we are willing to accept their regulation. 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. For example, In the UK, Huawei has put much effort into convincing the British government and general public that they and their procedures can be trusted, by (a) Setting up the Cyber Security Evaluation Centre in Banbury to ensure the quality of their equipment, and (b) Cooperating with the GCHQ, the UKs signals-intelligence agency, to ensure that the, The European Business Review uses cookies to improve site functionality, provide you with a better browsing experience, and to enable our partners to advertise to you. Huawei, one of the biggest company focusing on making communication tools like cellphones, is famous all over the world. However, monopolies in these kinds of technologies will benefit the world, rather than harm it. 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. It helps reduce many people's workloads. More and more companies are harnessing new technologies more quickly. You survived some hardships like famine. For me, it was an exciting experience. By studying law on my own, I realized that only a focused approach to scientific research could lead to new products. Ren Zhengfei leads Huawei Technologies, one of the world's largest manufacturer of telecommunication hardware and mobile phones. Huawei has indeed invested considerably in creating a learning driven culture where the power of the mind is visible. Got a confidential news tip? We were living in an adobe house that only provided us a little shelter from the wind. Figure 1: The Leadership Lessons of Ren Zhengfei 1. although employees even management employees were not used to it, since it need a thorough change. Over the next five years, we will invest more than 100 billion US dollars in R&D to restructure our networks. Mr. Ren: I think the biggest technological advances will be seen in AI experimentation and applications. Mr. Ren: I can't speak for other companies; I have no authority over them, but Huawei will be the first company to comply with this agreement. Arjun Kharpal: Mr. Ren, I want to move onto a bigger picture of the world of technology. Huawei, in contrast, decided to provide these services to their customers. In 2019, soon after Metro Bank revealed an accounting error involving the misclassification of more than $1 billion in loans, Hill resigned. Underlying these beliefs is clearly an idea of sharing responsibility but also sharing the rewards that are earned because of these collective successes. You often use military imagery and images of battles in your speeches and communications with the employees at the company. Second, ultra-broadband connections, and ultra-large storage systems, as well as micro-computing storage and edge computing. An organization offers telephone exchange equipment. They had thought that disbanding was to weed out unnecessary troops and strengthen the remaining units. It's now just a scientific fantasy, and wouldn't necessarily ever happen. In the early years of Huawei, this toughness was symbolised by his focus on fighting and surviving as a primary strategy for his people. To rebel from the top, leaders must strike a difficult balance. Back then, we couldn't use testing instruments from foreign countries. Arjun Kharpal: So that's a metaphor for your daughter? Its founder, Ren Zhengfei, has recently even referred to Europe as a market where they feel at home as a telecom company. Before moving to UK, he was a Professor of Management at China Europe International Business School in Shanghai. After we were discharged, we were assigned to different places across China. In the early years of Huawei, Zhengfei was very much aware that their products did not meet the standards of those of its competitors. The US is a strong economy and offers many high-quality products. He said recently that could potentially wipe out humanity. I would like to express my own opinions instead of as a Huawei representative. Ren is an active supporter of Communist Party of China. Early life. First, embrace bureaucracy rather than rail against it. 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. Are you starting to think about how your own intellectual property like chips could be used and sold to third parties like Apple? Some governments have criticized the relationship between Huawei and the Chinese government. Firstly, being practical instead of seeking after useless fame. How do you respond to some of these very, very strong criticisms from governments around the world? If everyone went to invest in the US, the US economy would grow dramatically. (Academic publishing, he believed, was a necessary but not a sufficient condition for RSM to be recognized as a top business school.) 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). Ren Zhengfei, founder and CEO of Huawei, speaking at the company's headquarters in Shenzhen on May 24, 2019. 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. It incorporates respectability well and great lead . Strategies are implemented not by CEOs and other top executives but by the many people who choose on a daily basis whether to take actions that support or undermine what top management wants to achieve. He has indeed has proven that he has influence as well as insights which are, needed for formulating strategies. The billionaire founder of Chinese telecoms equipment giant Huawei rarely. This hurts no one. Add copies before, China Europe International Business School, A Better Way to Manage Corporate Alliances, Primerica: Sandy Weill and His Corporate Entrepreneurs, J. C. 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