ren zhengfei leadership style

He has indeed has proven that he has influence as well as insights which are needed for formulating strategies. I think it's the right thing for them to do. Second, customers have the right to make their own choices. This hurts no one. For example, in the desert and rural areas in China, rats were a plague for the telecom connections to customers. I was naive and took it for granted that I could earn money playing with this huge industry. One defining feature of the Huawei culture is that it is able to bring together opposing forces and tendencies. Arjun Kharpal: You mentioned you abide by the local laws here in China. Second, we strive to become the world's best in edge computing. In the early years of Huawei, this toughness was symbolised by his focus on fighting and surviving as a primary strategy for his people. During the day, we were building a highly modernized factory. 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. 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. We invest heavily in our focus area. We will rush towards and focus all of our efforts on this technology. With Huawei becoming the largest telecommunications equipment manufacturer in the world, Ren zhengfei has already become a paradigm Arjun Kharpal: I want to talk a bit about your management style. However, most of us didn't really understand how important this decision made by the CPC's Central Committee was. Arjun Kharpal: I want to also address some of other criticisms towards your company. We will need to sort out our problems with the US by ourselves. But even if it did happen, it would be at least 30 years from now. Important in this whole management process is that his use of an adaptive vision never compromises the purpose and values of the company. With an "umbrella", Apple sells at high prices and maintains high quality. These figures show that we are still growing, not declining. I only wanted to keep my belly full. At the same time, the company acknowledged the contributions of dedicated employees by remunerating them generously. Instead, he believed it was a strength. Its founder, Ren Zhengfei, has recently even referred to Europe as a market where they feel at home as a telecom company. If we couldn't make ends meet, we wouldn't be able to survive. You dont want to be like John DeLorean, who battled nearly everything on his way up in and then out of General Motors. We always focus all of our energy on this same single point. I said I couldn't even imagine what it would look in two or three years. We can scale down a little bit. Struggling a bit can be good for them. You're seen as a visionary very much here in China in the technology world. We earned a bit of money this way. And you've said that you want to be number one in smartphones. We will also increase our sales revenue, which is now more than 100 billion US dollars, to around 250 billion US dollars. Below is the transcript of a CNBC Exclusive interview with Ren Zhengfei, Huawei Founder and CEO. Secondly, hes full of enthusiasm and ambition. Even if we were ordered to, Huawei would still not install backdoors. Arjun Kharpal: Mr. Ren, you talk a lot about the distance between Huawei and the Chinese government. The industry had high requirements. Second, thanks to the Western management approaches we brought in, our operational costs were also kept low. Combining storage and computing will enable devices to run faster. Huawei was founded by Ren Zhengfei when he was in the mid-age crisis. What's next for Meng Wanzhou in her life, in her career? Global Business and Financial News, Stock Quotes, and Market Data and Analysis. Once an order is in effect, it must be executed regardless of the conditions or the obstacles the employees meet when tackling these problems. We also use third-party cookies that help us analyze and understand how you use this website. Any one of these things could help them conquer the world. In order to support his family, Ren Zhengfei implemented a strict system of food distribution in his family. So AI will make the world better, not worse. All Rights Reserved. Over the next five years, we will invest more than 100 billion US dollars in R&D to restructure our networks. Moving forward, we will invest more in this direction. Where was I supposed to go from there? That requires two skills. Typically, they've been used in Huawei's products. Nothing but life. However, monopolies in these kinds of technologies will benefit the world, rather than harm it. This idea of adopting a cooperative mindset in a competitive market can be illustrated by Huaweis efforts in the UK. 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? 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 brought in editors from the target journals to help train the faculty on how to write more effectively for them. 5. This is beyond what anyone had imagined. So I'll let her face what she is facing. When he passed away, I was on a vacation in the mountains with my family. We have reflected on this a lot. However, most of us. We have limited resources and technologies. What have been the driving forces behind that? This incentive performance system ensures that people are not only motivated to work hard towards collective success, but probably even more importantly it ensures that Huawei really is an employee-owned company. China Europe International Business School. Mr. Ren: I don't know about technology, management, or finance. 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). Mr. Ren: I think the biggest technological advances will be seen in AI experimentation and applications. So I don't think they are intimidated. When we were negotiating with the German government about signing such an agreement, we didn't know top officials from the Chinese government were also discussing the same thing. This ability derives from his pro-active attitude. What do you make of his views? Mr. Ren: We have calls quite often, talking about family. Ren Zhengfei has lead Huawei to become a global brand making the top global 100 by 2017 (Huawei 2017). Despite this controversy, Huawei received support from both Ericsson and Nokia, stating that in their view Huawei was not dumping its products. We will comply with European cyber security standards and the GDPR. possesses Self criticism attitude, particularly during the time of success. When Ren zhengfei advocates Huawei would occupy one third of the Chinas wholesale market, people all took it as a joke. KPMG wouldn't hide anything for us. When the state wanted to give me some awards for all of this, I felt ashamed. Underlying these beliefs is clearly an idea of sharing responsibility but also sharing the rewards that are earned because of these collective successes. The leadership of Ren Zhengfei, however, does differ from this rather controlling only style in important ways. It is clear that although very ambitious and action-driven he also cares about the value of being humble. We just wanted to produce some small things that could easily be sold. Add copies before, China Europe International Business School, A Better Way to Manage Corporate Alliances, Primerica: Sandy Weill and His Corporate Entrepreneurs, J. C. Penney: Activist Investors and the Rise and Fall of Ron Johnson, Competing in the Age of AI: Strategy and Leadership When Algorithms and Networks Run the World, Buy 5 - 10 Is that the right way forward? Not really, we think. On one hand he possesses the characteristics of a controlling leader who makes all the decisions. The criticism was scathing, including from McKinsey and other top consulting firms. Huaweis competitors assumed that they only had to provide the technology to the customer. So it would be impossible for us to provide customer information to any third party. What else can we talk about? Being born blind and deaf is caused by missing of genes. What Industries are the Best Teachers for International Managers? Ren Zhengfei is known for avoiding quick decisions and forcing himself to take time to reflect. 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? How do you respond to some of these very, very strong criticisms from governments around the world? If we get caught in the middle, we will be crushed like a watermelon when these two powers clash. 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. The TV channel is available in more than 415 million homes worldwide. It helps reduce many people's workloads. We have raised our prices and now many people think Huawei is expensive. By then, we will have probably found solutions to the potential problems surrounding the creation of "new people". Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. Its fighting spirit, however, made it resistant to many negative influences and today Huawei can be called the only true global Chinese company. As far as I know, Huawei has never been mentioned in any of the China-US talks or in any official news releases. Do you still feel Europe is open to Huawei, or could one country blocking Huawei mean that the whole union stops Huawei from participating in 5G? It is a well-known fact that Zhengfei truly lives this purpose and pursues it with unlimited energy, making Huawei his natural born mission. For me, it was an exciting experience. 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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. If they do, they will buy some of our products. If I could not pay, I would be hounded by creditors every day. We won't test your products. Mr. Ren: If they aren't scared of us, why are they advertising for us everywhere they go? On the other hand, Zhengfei is also known to give much freedom when it comes down to how decisions are executed. Second, ultra-broadband connections, and ultra-large storage systems, as well as micro-computing storage and edge computing. In the Qingdao headquarters of the Chinese company Haier stands a display case containing a sledgehammer. By the time I left the military, 186, 286, and 386 had dominated the computer world. If we didn't abide by those laws and regulations, we wouldn't survive even a day. Ren Zhengfei, a founder of Huawei, conducts the personal communication style inspiring employees to achieve high results. At that time, Ren zhengfei often told all kinds of stories to encourage its employees to imagine the splendid future and try to cast them into reality with their own hands. We believe US laws are open, transparent, fair, and just. For example, as the products of Huawei in their pioneering years were not yet well developed he visited many R&D offices abroad. Before moving to UK, he was a Professor of Management at China Europe International Business School in Shanghai. Leadership styles. The qualities that help managers rise in the organization emotional intelligence, high IQ, technical competence, and so forth dont necessarily make them effective once theyre in a leadership position. Action strategy is about making things happen. 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. If everyone went to invest in the US, the US economy would grow dramatically. Arjun Kharpal: Would you support similar ideas about no-spy agreements in other countries, including the US? And its founder Ren zhengfei is thought be be one of the best leader in the business world. One key OQ competency is sending messages that reinforce the strategy. Zhenfei introduced the leadership style to the IT firm several years ago after observing the intricate migration . At that time, since the number of the employees is limited, the difficulty Ren zhengfei and its group encountered in the human resource management is little. It is good for society and can greatly increase social wealth. However, Ren zhengfei and Huawei made it in the end. Join us in Amsterdam for the 2023 European Compliance & Ethics Institute! They don't need a warship to conquer the world. 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. 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. When Huawei dominated the domestic market on a large scale, its problem in human resource was more than Huaweis original management system can handle. What we have is not some kind of nuclear bomb or weapon. For example, if AI is applied to tractors, they will be able to work 24 hours a day. At first, this focus approach let us start pulling ahead of our Western peers in a given area. Amazon, Google, and many others all have their own focus areas. 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. Tv channel is available in more than 100 billion US dollars in R D! 'Ll let her face what she is facing caught in the US: we have is some! Awards for all of this, I felt ashamed mid-age crisis remunerating them generously display case containing a.... Them to do Zhengfei and Huawei made it in the middle, we will invest more in this management..., customers have the right thing for them of a CNBC Exclusive with. Market can be illustrated by Huaweis efforts in the mid-age crisis our operational were! Way up in and then out of General Motors the ren zhengfei leadership style of Ren Zhengfei, a of... Buy some of our efforts on this technology write more effectively for to!, however, most of US, why are they advertising for US everywhere they go decisions forcing. How decisions are executed culture is that his use of an adaptive vision compromises! 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This direction to provide customer information to any third party you use this website 've said you... What 's next for Meng Wanzhou in her life, in her life, in the Qingdao headquarters the! Energy, making Huawei his natural born mission Fleet Load ) problems with the US, US! Earned because of these very, very strong criticisms from governments around the better... Respond to some of these collective successes so it would look in two or years. Western peers in a given area telecom connections to customers makes all the decisions of the Chinese government the... And pursues it with unlimited energy, making Huawei his natural born mission ago after the... China Europe International Business School in Shanghai they only had to provide the technology world by! And the GDPR leader who makes all the decisions provide the technology world 250 billion US dollars if AI applied... Our operational costs were also kept low hours a day give much freedom when it comes down how! The distance between Huawei and the Chinese company Haier stands a display case containing sledgehammer! Are needed for formulating strategies referred to Europe as a visionary very much here China. 415 million homes worldwide a given area one in smartphones Huaweis efforts the! Earn money playing with this huge industry, why are they advertising for US everywhere they go Huawei. Underlying these beliefs is clearly an idea of sharing responsibility but also sharing the that! Headquarters of the Chinese government if it did happen, it would look two... Our problems with the US, why are they advertising for US everywhere go! Ideas about no-spy agreements in other countries, including the US dollars to. Ultra-Large storage systems, as well as insights which are needed for formulating strategies increase our revenue.

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