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. As I said, this is because we have no real presence in the US market. He is also the author of the book The Huawei story and founder and Editor in Chief of Top Capital magazine. So I'll let her face what she is facing. We also had to understand the law. If you'd like to share this PDF, you can purchase copyright permissions by increasing the quantity. This is beyond what anyone had imagined. Mr. Ren: We have worked closely with our customers for 30 years. During World War II, there was a famous Il-2 aircraft that kept flying after being riddled with bullets from both other planes and anti-air defenses. Some people asked me what the world would be like in 20 or 30 years. Directive Style. There was no chance for us to step back and start another business. We will also increase our sales revenue, which is now more than 100 billion US dollars, to around 250 billion US dollars. It makes that he is characterised by his employees as someone who leads with his heart and moves with his mind. Do you think Huawei is at that point yet? What if we could identify and change the genes that cause the condition? In fact, the company only seems to be growing stronger. President Trump hasn't shared his thoughts with me. We need to make our value distribution reasonable. Indeed, as the Chinese say: Every generation produces its own great character, 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. Mr. Ren: If they aren't scared of us, why are they advertising for us everywhere they go? We want to sign such an agreement because we think it's the right thing to do. I think that is how this story is likely to end. We support transparent regulation over companies with new technologies, and we are willing to be subject to such regulation. Do people know what type of leader you are and what to expect when they interact with you? and pay only $8.25 each, Buy 500 or above Iterative succession must take place in an orderly fashion. Arjun Kharpal: Mr. Ren, we spoke about Apple and Steve Jobs. Arjun Kharpal: Let's talk a little bit about the US for a moment. We were living in an adobe house that only provided us a little shelter from the wind. We obviously couldn't control our customers, so we had to get hold of the products. 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. 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. We just focus on a single point. A good theatrical moment reverberates as stories about (and, more recently, videos of) the event are passed along. Mr. Ren Zhengfei has been capable of pioneering the development of technology while growing in the world. The importance of thinking, in his view, is that it provides the skills to connect the dots needed to work with an agile vision and strategy. That creates a kind of balance. 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? Make it smaller.[1] That moment of theater became part of Apples folklore, epitomizing Jobss relentless pursuit of perfection. Mr. Ren: Huawei is based in China. They can transfer to other industries though, and take on new roles. If they do, they will buy some of our products. I think he was super great. I can share some numbers with you. 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. You also have the option to opt-out of these cookies. This way, we will be able to make world-leading products. But opting out of some of these cookies may have an effect on your browsing experience. 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. I would say he is a great president. The second is the maturity tonotengage in unimportant issues. The Opportunities and Challenges of Global Teams. If I could not pay, I would be hounded by creditors every day. There is nothing else that I want to share with him. 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. If they don't, they might not buy our products. Save my name, email, and website in this browser for the next time I comment. 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. Ren Zhengfei is known for avoiding quick decisions and forcing himself to take time to reflect. Ren Zhengfei had very clear vision for Huawei, which is to help customers realize their dreams. If we didn't pay taxes or follow the laws and regulations in the over 170 countries where we operate, we wouldn't have survived in those countries. I believe China and the US should stress collaboration and shared success. The differences of leader skill in America and China. Creating a committed work force in service of its purpose requires that people are inspired. 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. 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). 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. Have you thought of retiring any time soon? I would be afraid that they would pull out suddenly and stop doing business with us. Huawei's founder Ren Zhengfei in a media interview 5 or 6 months ago said that the effect from the US sanctions has been less severe than he had feared. As a leader he was used to delivering a vision and as a mentor he was guiding his employees towards their goal. Underlying his focus on story telling is his strategy to energise people and introduce a sense of vitality to the projects that need to be undertaken. In-person is back! What company can outperform Microsoft in Office and Windows? To reinforce the message, he sent congratulatory emails when faculty had acceptances in such journals (but not for acceptances in academic publications). Neither side has mentioned Huawei, which means Huawei does not actually carry much weight. Zhengfei has a strong interest and passion for learning about historic events. What Is Blockchain Technology and Its Types? But Zhang wanted to send the message that even minor defects are unacceptable and that Haier intended to match the quality of any competitor worldwide. With higher prices, we have started earning more. HBR Learnings online leadership training helps you hone your skills with courses like Business Plan Development. Mr. Ren: She will continue to do what she has been doing. At that time, China didn't accept Mendel's theories; instead, we followed Ivan Michurin's theories. Huawei was not mentioned in any of the negotiation meeting minutes published by the US and China. To stay one step ahead of your competition, sign up today to our exclusive newsletters to receive exciting insights and vital know-how that you can apply today to drastically accelerate your performance. Figure 1: The Leadership Lessons of Ren Zhengfei, The core of Ren Zhengfeis leadership is the undeniable fact that he is very clear about the purpose of Huawei, which is helping customers to realise their dreams. Publication Date: This will change the architecture proposed by John Von Neumann. He has indeed has proven that he has influence as well as insights which are, needed for formulating strategies. However, there was no way back. He said, Those are air bubbles. Effective moments of theater have three important characteristics. The country wanted to reform and open its doors. 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.. Last but not least, Ren zhengfei has experiences of serving the army. I think this challenge will be good for my daughter. On October 25, 1944,Ren Zhengfei was born in Zhenning County, Guizhou Province.He spent his primary and junior high school in the mountain village near his home. So AI will make the world better, not worse. We cannot help solve the China-US trade disputes, because we don't really sell in the US and have no influence on China-US relations. 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. Collective decision-making ensured that Huawei made fewer mistakes and absorbed collective wisdom, but it also caused rigidity. The US is a strong economy and offers many high-quality products. Our scientists spotted it and spent 10 years turning his theories into the 5G standards of today. What did she speak about? Ren Zhengfei, founder and CEO of Huawei, speaking at the company's headquarters in Shenzhen on May 24, 2019. I had a vague feeling at the time though, that the communications industry was about to explode and so I started looking for opportunities in this market with tremendous potential. 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. 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. When the state wanted to give me some awards for all of this, I felt ashamed. 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. 5G technology was not invented by Huawei. Ren Zhengfei's Media Interview After the Opening Ceremony of the Intelligent Mining Innovation Lab in Taiyuan. Many scientists also proposed that genetic technology should be gradually integrated with electronic technology to create "new people". In his pursuit of the Huawei dream, Ren Zhengfei seems to know his own limitations and does not portray himself as the ultimate know-all leader. For example, executives are encouraged to read both specialised and non-specialised books to foster an intellectual climate. We will comply with European cyber security standards and the GDPR. We will not distribute any extra profit to our employees. We don't need customers' information. He is recognized as a leader who motivates to facilitate innovation at all levels. At first, this focus approach let us start pulling ahead of our Western peers in a given area. Famous is the story where Zhengfei in Huaweis fifth year of existence, suddenly rushed out of the kitchen when cooking for Huawei employees abroad his hobby is cooking and announced, Huawei will be a top three player in the global communications market 20 years from now!. He said recently that could potentially wipe out humanity. They wouldn't need to rest, just to refuel. When two nations or companies meet, they must collaborate to achieve shared success. 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? How do you respond to some of these very, very strong criticisms from governments around the world? Leahy succeeded with both dramatic changes in part because he maintained a modest demeanor throughout. Mr. Ren: I don't know what the US is after and have no idea how they are going to resolve the trade disputes. So instead, we choose to narrow our focus, like a needle point, on a specific area where we can make breakthroughs. For example, although his inspirational leadership style pushes forward the company and guides it through transformational phases, he is always quick to add that he may not be that good in bringing people together as many would like to believe. He is continuously focused on the future and hardly ever ruminates about the past. We cannot deny the role that enthusiasm plays in the procedure. But Meng Wanzhou will definitely not be the successor. People back then thought his discovery was useless and ignored it for 100 years. For the rest, let the organization keep doing what it does well. Trusted by 2+ million users, 1000+ happy students everyday, You are reading a previewUpload your documents to download or Become a Desklib member to get accesss. That requires two skills. Register as a Premium Educator at hbsp.harvard.edu, plan a course, and save your students up to 50% with your academic discount. We have given up on supercomputing and intermediate computing. The story goes that Zhengfei was so moved by the work done in those labs that he cried. This revolution was also referred to as the bloodless revolution because the victory of William of Orange was achieved without bloodshed. Among his other, achievements, Ren is accountable of development of cooperative programs, Chinas interior regions. He is the first president of a democracy to reduce taxes significantly within such a short period of time. One defining feature of the Huawei culture is that it is able to bring together opposing forces and tendencies. You've often looked up to Apple as a role model. 5G made progress. By the time I got my business license, I didn't have a single penny left. Arjun Kharpal: So would you say the US is scared of Huawei? Many will say that the blueprint of Huaweis success has been laid out by Zhengfei and even though Huawei nowadays makes use of a rotating leadership system in which every six months another board member is the acting CEO, its founder still has a significant impact on the pace and direction of the company. Sign up for free newsletters and get more CNBC delivered to your inbox. The road to success for Huawei started in 1987 where it was founded in the economic testing zone of Shenzhen. With AI, workers will be ten times more efficient, so the US will be a major technological powerhouse with an output equal to that of 3 billion people. At the same time, the company acknowledged the contributions of dedicated employees by remunerating them generously. The Central Committee had also been disbanding parts of the Chinese military because it was so large. But even if it did happen, it would be at least 30 years from now. Arjun Kharpal: But the US has put intense pressure on some of its allies in Europe, for example, Germany and the UK, to block Huawei from 5G networks. 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. 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. When designers showed the first iPod prototype to Steve Jobs, he said it was too big. If we get caught in the middle, we will be crushed like a watermelon when these two powers clash. So we believe our engagement with the German government will be endorsed by the Chinese government. 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 networking equipment and software is reliable and secure. The company is growing rapidly and Forbes has estimated Zhengfei's wealth at $2.1 billion. This fact inspired him to embrace the idea that one can win and still be cooperative. Use the strengths of your organization to achieve your goals. Facts and evidence should be made public and transparent in the courts, which are the basis for fair and just judgment. I hadn't realized that the communications industry was so cruel. His tax cuts are helping revitalize enterprises. When I can't find a better term to easily describe how business works, I use military terms. We will also push the Chinese government to sign a cyber security agreement with the German government. The US hasn't been scared of anyone or anything though. The relationship between China and the European continent carries much history with it. It has grown the market, enabling many other companies to survive. Some top military officers didn't understand it, either. As society moved forward, AI was made possible. For example, as the products of Huawei in their pioneering years were not yet well developed he visited many R&D offices abroad. These great people are going to great lengths to find fault with a little rabbit or mouse like us. It will greatly increase productivity. Zhengfei made this very clear when he said: I do not know anything about technology, but I can bring people together to work for the collective. He is praised for his desire to hire better people in the areas he is weak in, with the ultimate goal to improve the quality of Huawei products and services. In a similar vein, Huawei makes use of an internal online forum, Xinsheng Community, which is accessible to all Huawei employees worldwide. Along the way he introduced one important innovation: the Clubcard, the UKs first supermarket loyalty card, which allowed Tesco to leapfrog Sainsburys into the number-one retail spot. This represents Chinese state leaders' position on backdoors, so we will never install backdoors on our equipment. In the early years of Huawei, Zhengfei was very much aware that their products did not meet the standards of those of its competitors. It at least might give us time to find real cures. Mr. Ren: I don't know. At that time, China was just beginning with its reform and open-up policy, and was paying more attention to technology, talent, and knowledge. Arjun Kharpal: You mentioned the Ericsson CEO at the time said it was a bold move to jump into this space. For example, if AI is applied to tractors, they will be able to work 24 hours a day. What Industries are the Best Teachers for International Managers? 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. Now we talk a lot about genetic modification, or gene editing. We can give you a copy if you want. Ren described it as a blend of three qualities: extreme resilience, a willingness to self-sacrifice, and sharp predator instincts. I could not keep up with the times. 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. Enterprises can now transfer their funds in other countries back to the US because of a low tax rate of 12%. Over the next five years, we will invest more than 100 billion US dollars in R&D to restructure our networks. Ren is the son of school teachers and grew up in a mountainous town . It is clear that although very ambitious and action-driven he also cares about the value of being humble. Given these achievements combined with a certain myth of a Chinese emperor rising to the global stage, it begs the question what the philosophy and driving force behind this business success is. Got a confidential news tip? Therefore, we will count on the law to address these issues. With the accounting error, Hill broke a big rule but we suspect that had he followed the smaller rules around issues like showing favoritism to family members, he would have had a better chance of survival. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Your email address will not be published. Struggling a bit can be good for them. So I don't think they are intimidated. Precisely speaking, the core of his leadership strategy is the purpose-driven ambition. An adobe house that only provided US a little bit about the US is of! Part because he maintained a modest demeanor throughout it would be afraid that would... Doing business with US public and transparent in the courts, which means Huawei does not actually carry weight. Has mentioned Huawei, which is now more than 100 billion US dollars my.. Peers in a mountainous town value of being humble: let 's talk lot! 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