Even if AI poses other threats, we can manage them with laws and rules. That approach may not be an option at the top. This ability derives from his pro-active attitude. They wouldn't need to rest, just to refuel. His message resonated throughout the Chinese corporate world; one of the sledgehammers now sits in the National Museum of China. According to him, Huawei should be focused on building a company where peoples minds are the main asset and resource to rely on. 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. The TV channel is available in more than 415 million homes worldwide. The US stock market may witness a significant rise this July. It is a well-known fact that Zhengfei truly lives this purpose and pursues it with unlimited energy, making Huawei his natural born mission. Ren joined Peoples Liberation Army with the aim of making synthetic fiber. Arjun Kharpal: Mr. Ren, you've said in the past that the US government hasn't seen Huawei's technology and source code. 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. Ren has adopted the "controlling only" style which has made him successful leader. When two nations or companies meet, they must collaborate to achieve shared success. In the words of Zhengfei: Chaos was removed and structure entered Huawei. China also didn't have its own testing instruments, so I invented one. That's why we told the German government that we are willing to accept their regulation. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Your email address will not be published. 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. Western companies are no different. Or do you feel sometimes they are intimidated by that style of leadership? She will be a hero if she makes it back to us. So he and his managers smashed the defective appliances. People will be afraid of getting trapped there. For the rest, let the organization keep doing what it does well. The Opportunities and Challenges of Global Teams. As a result, I went back to where I started and jumped into the market economy. Nothing we've achieved would give us the right to neglect any laws or overlook the technologies of any country. You survived some hardships like famine. This proves our equipment is secure. Arjun Kharpal: Mr. Ren, you started Huawei over 30 years ago with 5,000 US dollars. First, as our technology advanced rapidly, we managed to bring down the costs of our products. In particular, we will build the simplest networks, ensure cyber security, and protect user privacy. and pay only $8.50 each, Buy 50 - 499 On one hand he possesses the characteristics of a controlling leader who makes all the decisions. A good theatrical moment reverberates as stories about (and, more recently, videos of) the event are passed along. People back then thought his discovery was useless and ignored it for 100 years. In the first decade of the developing of the company, Huawei is needy for all kinds of human resources. Effective moments of theater have three important characteristics. 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. Ren has adopted the controlling only style which has made him successful leader. Although he is a billionaire, Zhengfei prefers a low profile lifestyle and even travels on the public transport. We were living in an adobe house that only provided us a little shelter from the wind. 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 are going to make this happen. None. 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. But by 2003 Sainsburys had followed suit by which time Tesco had a five-year head start and an expanding user base. We are also collaborating with many vendors in the storage domain, trying to do better, because in edge computing, we will see either CPUs embedded into storage devices or the other way around. They have great technologies, skilled labor, and economic strength. I am just taking as a bucket of "glue". Ren has been described as more of a spiritual leader than a hands-on executive. Although he has introduced a strong focus within Huawei on continuously learning and reflecting, he leads his company with the passion of a true founder. All Rights Reserved. When Huawei dominated the domestic market on a large scale, its problem in human resource was more than Huaweis original management system can handle. Ren Zhengfei leads Huawei Technologies, one of the world's largest manufacturer of telecommunication hardware and mobile phones. Tian Tao is codirector of Ruihua Innovative Management Research Institute at Zehjiang University. Arjun Kharpal: And part of that R&D budget has gone into 5G, into chips, you've got your own 5G chip. Let's look at an example. 2023 CNBC LLC. 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. But I don't think Huawei can help solve the disputes between the US and China. In this case study that focus on leadership, leadership is defines as the behaviour of an individual when he or she is directing the activities of a group towards a shared goal. 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. Copyright 2023 Harvard Business School Publishing. As mentioned earlier, the first two decades of Huaweis existence were dominated by the force of attack in order to survive and gradually become a better service provider. During China's Cultural Revolution, I designed a small instrument using my math skills, and actually received recognition from the government for this device. Contact: customerservice@harvardbusiness.org, Below are the available bulk discount rates for each individual item when you purchase a certain amount. Mr. Ren: We are open to Apple in this regard. Huawei is now China's most prominent multinational company and a leader in 5G mobile telephone technology, which will be rolled out across the world in the next few years. 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. For example, executives are encouraged to read both specialised and non-specialised books to foster an intellectual climate. 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. We will not be affected by increased tariffs, either. Huawei responded to customers 24/7. When he talks about his skills and qualities he always emphasises that he is not the most knowledgeable. So he emphasized action. In a similar vein, Huawei makes use of an internal online forum, Xinsheng Community, which is accessible to all Huawei employees worldwide. 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. I can share some numbers with you. Precisely speaking, the core of his leadership strategy is the purpose-driven ambition. Consequently, Huawei's performance took a nosedive and employee satisfaction also sank. Ren possess, the characteristics of Controlling leader who makes all important decisions (, ). We also had to understand the law. Arjun Kharpal: You mentioned the Ericsson CEO at the time said it was a bold move to jump into this space. We want to sign such an agreement because we think it's the right thing to do. So we've decided that our. Due to his technical skills, He was appointed as a delegate from, PLA for attending the National Science Conference in 1978 (, ).It was a golden opportunity for Rein to lean and gain knowledge, about the field. although employees even management employees were not used to it, since it need a thorough change. They also need to follow local laws and regulations and pay local taxes. But our strategy of focused investment never changed as our capital grew. But I still had to find a job to feed my family. The negotiations between China and the US have nothing to do with Huawei. Some people asked me what the world would be like in 20 or 30 years. 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. Arjun Kharpal: You were in the People's Liberation Army. Arjun Kharpal: You mentioned you abide by the local laws here in China. So AI will make the world better, not worse. We obviously couldn't control our customers, so we had to get hold of the products. With an "umbrella", Apple sells at high prices and maintains high quality. Harshal Pawar However, there was no way back. You are less known internationally. We live in a very connected world. We just wanted to produce some small things that could easily be sold. He created a new position, director of external relations, and placed that director and the director of marketing on the management committee. Some US politicians are criticizing Huawei everywhere they go. Ren Zhengfei's Media Interview After the Opening Ceremony of the Intelligent Mining Innovation Lab in Taiyuan. PIC:A portrait of Ren Zhengfei, the founder of Huawei. We will rush towards and focus all of our efforts on this technology. Arjun Kharpal: I want to talk a bit about your management style. I only wanted to keep my belly full. Arjun Kharpal: Mr. Ren, I want to move onto a bigger picture of the world of technology. The billionaire founder of Chinese telecoms equipment giant Huawei rarely. As a leader, Ren Zhengfei insists on self-criticism and careful consideration. 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. Is it your ultimate aim to get back to business in the US market or just clear your name there? As can be expected of a man with an army background he served in the Peoples Liberation Army he is known to be intense and tough and never loses control. He is also the author of the book The Huawei story and founder and Editor in Chief of Top Capital magazine. However, monopolies in these kinds of technologies will benefit the world, rather than harm it. Ren said, "Huawei people, especially the leaders . Facts and evidence should be made public and transparent in the courts, which are the basis for fair and just judgment. 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. The second is the maturity tonotengage in unimportant issues. For that reason he looked for alternative ways to attract customers. Ren is the son of school teachers and grew up in a mountainous town . 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. Recommended Lists: Scorpio Entrepreneurs Many of them thought at that time that he was crazy. They carry a clear message. She has understood the difficulties that the company is facing and wants to help us see this through. Get this delivered to your inbox, and more info about our products and services. Ren described it as a blend of three qualities: extreme resilience, a willingness to self-sacrifice, and sharp predator instincts. Instead, he believed it was a strength. Accelerate your career with Harvard ManageMentor. That's why I said he is a great president. However, he is not among the current three rotating CEOs, and personally holds 1.42% of the shares of 'Huawei,' valued at over US$2,200 million in 2018. So it's impossible for me to enjoy the same prestige as Jobs. 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. Elon Musk, for example, has continuously warned about the impacts on jobs and actually, artificial intelligence getting more intelligent than humans. Despite this controversy, Huawei received support from both Ericsson and Nokia, stating that in their view Huawei was not dumping its products. 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. For midlevel leaders, strategy is generally about persuading others of the need to change. For example, in the early years of Huawei (Phase 1), he regularly told stories to employees that he believed that in 20 years Huawei would have 1/3 of the market share in the world, despite the fact that at that time Huawei only employed about 200 employees. I'm not the one responsible for these achievements, and I shouldn't be the one receiving honors. Mr. Ren: I think the most essential factors to judge guilt are facts and evidence. In China, leadership has traditionally been grounded in a hierarchical top-down management system. Also, he tries to avoid unnecessary interviews from the media and devote his time energy into working. China Europe International Business School. He took. 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. Leahy succeeded with both dramatic changes in part because he maintained a modest demeanor throughout. If they don't, they might not buy our products. There was no chance for us to step back and start another business. 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%). Director, CEO Born on October 25, 1944 into a rural family where both parents were school teachers, Mr. Ren Zhengfei spent his primary and middle school years in a remote mountainous town in Guizhou Province. Interestingly, such a strategy suggests that a power of thinking attitude aligns with a shared learning orientation. This switch was used by hotels and small organizations. And its founder Ren zhengfei is thought be be one of the best leader in the business world. 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. 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. What were you thinking at the time and what were your expectations for the company? What they lack and what successful leaders embody, down to their marrow is organizational intelligence. I liked reading books, doing homework, and solving math equations on scrap newspaper. 5. But the US is in a different situation. Today, only 30 years later, ultra-broadband has become accessible in most rural areas around the world. We will also push the Chinese government to sign a cyber security agreement with the German government. 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. 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