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. Part of making the dreams of customers to come alive is the idea that providing the best service possible is crucial to the success of the company. Any one of these things could help them conquer the world. So he and his managers smashed the defective appliances. Its CEO, Ren Zhengfei, has long identified grey management as a principle of his leadership and employed it to provide his firm with a clear direction. Arjun Kharpal: I want to go back a little bit to talk about the US-China trade war because Meng Wanzhou was arrested in Canada on behalf of the US authorities. In a way Zhengfei works hard to always keep clear to himself a kind of meta-view that enables him to make informed strategy decisions. 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.. I can share some numbers with you. Mr. Ren: The first time I heard warnings about the societal impact of AI was from Bill Gates and Stephen Hawking. These great people are going to great lengths to find fault with a little rabbit or mouse like us. If I could not pay, I would be hounded by creditors every day. However, it kills employees creativity and . You've grown the company over 30 years to the size of it now. Take machine translation as an example. You survived some hardships like famine. And you've said that you want to be number one in smartphones. Steve Jobs is known more internationally. 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. Publication Date: 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. As a result, I went back to where I started and jumped into the market economy. As we noted earlier, often references to past historic events are used to shape actions and beliefs towards the future. It is clear that although very ambitious and action-driven he also cares about the value of being humble. Ren Zhengfei, founder and CEO of Huawei, speaking at the company's headquarters in Shenzhen on May 24, 2019. You have entered an incorrect email address! With an "umbrella", Apple sells at high prices and maintains high quality. It was analog technology, analog automatic control. It emphasized clear-cut goals, hard-and-fast rules, employee dedication and absolute obedience. If no one dares to invest in the US, then how can they make up for lost tax revenue? Mr. Ren Zhengfei has been capable of pioneering the development of technology while growing in the world. At the start of his tenure, only 1% of the 300 faculty publications a year were in managerial journals, and those were not the top journals. These cookies do not store any personal information. And they are generally low-cost and relatively easy to execute. We will put more money into research in new frontiers. This does mean though that many translators and stock analysts and the like will lose their jobs. 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. Second, ultra-broadband connections, and ultra-large storage systems, as well as micro-computing storage and edge computing. Directive Style. I had no idea. But there are critics who point to certain national intelligence laws in China that compel Chinese companies to help the government with national intelligence work if they're asked. However, after this change, the effiency gradually increases. Second, we strive to become the world's best in edge computing. Arjun Kharpal: You mentioned the Ericsson CEO at the time said it was a bold move to jump into this space. In fact, the company only seems to be growing stronger. 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. The road to success for Huawei started in 1987 where it was founded in the economic testing zone of Shenzhen. Especially in the entrepreneurial years of the company he used this strategy to be both a strong mentor and leader for his employees. That's my only ideal. Otherwise, we wouldn't be able to enter the network equipment industry. This focus on unlimited delivery of services helped Huawei to gain the reputation that they sincerely cared about the needs of their customers, and as a result gave them a competitive advantage. Apple is also a great company. In the past, no one spoke up for us. Our relationship with the Chinese government is primarily defined by these two points. Do these seven lessons primarily make Zhengfei a cerebral type of leader as the power of the mind is placed so central to his philosophy? No backdoors. Academics were reluctant to engage with executives. With Huawei becoming the largest telecommunications equipment manufacturer in the world, Ren zhengfei has already become a paradigm 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). Gradually, we have become a leader in this narrow, focused area. Our costs were low for two reasons. I think it's the right thing for them to do. Even if we were ordered to, Huawei would still not install backdoors. A common theme in everything that Ren Zhengfei as a leader undertakes is the ability to reflect, think and act. He lives with his daughter Cathy Meng who is also the CFO of Huawei. By studying law on my own, I realized that only a focused approach to scientific research could lead to new products. This helps the US greatly improve their national reserve. When there is no cure to a disease, maybe we can look into gene editing. So there is no need to worry too much about some comments posted on the Internet. Leadership styles. On the other hand, Zhengfei is also known to give much freedom when it comes down to how decisions are executed. A great increase in material wealth would also help to significantly enrich culture. Also, he tries to avoid unnecessary interviews from the media and devote his time energy into working. If a technology is just several thousand kilometers away, we will invest a lot more, like a watermelon. This will change the architecture proposed by John Von Neumann. We also sued the US government in Dallas. Arjun Kharpal: You were in the People's Liberation Army. During one of these visits, in 1997, he visited the Bell labs in the USA. AI will benefit our society. Autocratic leadership: It is also known as pragmatic leadership. After we were discharged, we were assigned to different places across China. However, monopolies in these kinds of technologies will benefit the world, rather than harm it. Join us in Amsterdam for the 2023 European Compliance & Ethics Institute! China has a population of 1.3 billion consumers. One of the consistent qualities that have been attributed to Ren Zhengfei is his ability to inspire others. For me, it was an exciting experience. He created a new position, director of external relations, and placed that director and the director of marketing on the management committee. For the rest, let the organization keep doing what it does well. Second, develop an organizational persona. And he initiated an annual conference whose panels combined executives and faculty members. All references must be sourced to a "CNBC Interview'. The government would find it hard to address its deficit. Use the strengths of your organization to achieve your goals. One key OQ competency is sending messages that reinforce the strategy. 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. His tax cuts are helping revitalize enterprises. Ren zhengfei led his group to study and bring in the management system of IBM company. As a leader he was used to delivering a vision and as a mentor he was guiding his employees towards their goal. Everything is limited. What did you learn at the time that helped you start Huawei and guide your philosophy? 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? Since China has become the second largest economy in the world, this relationship has taken new forms in the shape of several business initiatives. This category only includes cookies that ensures basic functionalities and security features of the website. The leadership of Ren Zhengfei, however, does differ from this rather controlling only style in important ways. It is great in that it has always pushed to make the market bigger, not smaller. This company philosophy was inspired by the heroic tales of the Glorious Revolution that took place in England in 1688. If the US government speaks ill of Huawei, why couldn't the Chinese government speak in our favor? Amazon, Google, and many others all have their own focus areas. Huawei was not mentioned in any of the negotiation meeting minutes published by the US and China. How can I live a life like that? Ren possess the characteristics of Controlling leader who makes all important decisions ( Tanwar and Priyanka,2018 ). In the Qingdao headquarters of the Chinese company Haier stands a display case containing a sledgehammer. I felt very uncomfortable with the transition from the military to Shenzhen which was becoming at forefront of the reform and opening-up. February 9, 2021. This ability derives from his pro-active attitude. Why do I like to use military terms? We always focus all of our energy on this same single point. Second, Huawei is being stuck in an extremely difficult situation the US is launching intense attacks against us. That's why we told the German government that we are willing to accept their regulation. Ren described it as a blend of three qualities: extreme resilience, a willingness to self-sacrifice, and sharp predator instincts. Mr. Ren: Because I don't actually know technology that well, and I didn't invent anything. They had thought that disbanding was to weed out unnecessary troops and strengthen the remaining units. Why cannot we edit human genes? Mr. Ren Zhengfei has been capable of pioneering the development of technology while growing in the world. But the US is in a different situation. Instead of issuing an EQ response to mollify the professor, George sent an OQ response: We all work for RSM.. We endorse unified global standards that make installing backdoors a crime. Arjun Kharpal: Let's talk a little bit about the US for a moment. Mr. Ren: I don't know about technology, management, or finance. Huawei, one of the biggest company focusing on making communication tools like cellphones, is famous all over the world. But this year, once the slate is wiped clean, the financial statements they will release in July will be much healthier. 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Another strategic objective was better cooperation between faculty and staff. So we gritted our teeth and pushed ahead. At Huawei, we often talk about the term of "Van Fleet Load", which was invented by a general of the US army. and pay only $8.50 each, Buy 50 - 499 More and more companies are harnessing new technologies more quickly. 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. 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. We will rush towards and focus all of our efforts on this technology. HBR Learnings online leadership training helps you hone your skills with courses like Business Plan Development. And care must be taken that they dont conflict with the desired ethos. The billionaire founder of Chinese telecoms equipment giant Huawei rarely. Arjun Kharpal: And part of that R&D budget has gone into 5G, into chips, you've got your own 5G chip. Because they are simple and easy to understand. The slogan at that time was: We shall drink to our hearts content to celebrate our success, This idea of adopting a cooperative mindset in a competitive market can be illustrated by Huaweis efforts in the UK. Arjun Kharpal: If you say that Meng Wanzhou is maybe a hostage in this US-China trade battle, does that mean some of the allegations, from a legal point of view, you don't believe in? According to him, Huawei should be focused on building a company where peoples minds are the main asset and resource to rely on. However, we are not in any position to require other companies to do the same. Arjun Kharpal: So would you say the US is scared of Huawei? This is a challenging competency and a powerful one. But we will not distribute this extra money to our employees or shareholders. Ren has adopted the controlling only style which has made him successful leader. . Struggling a bit can be good for them. What did she speak about? Steve Jobs and Tim Cook have managed to turn Apple to an iconic brand. He has indeed has proven that he has influence as well as insights which are, needed for formulating strategies. It's not up to me to designate a successor. Save my name, email, and website in this browser for the next time I comment. Organisations need to implement leadership innovation to secure a successful and profitable future, as Ren Zhengfei has done with his multinational company Huawei. Mr. Ren: She will continue to do what she has been doing. During the day, we were building a highly modernized factory. Interestingly, such a strategy suggests that a power of thinking attitude aligns with a shared learning orientation. Mr. Ren: Collaboration and shared success. 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