Arjun Kharpal: Mr. Ren, I want to move onto a bigger picture of the world of technology. Many companies' financial statements last year weren't great because they needed to pay income tax arrears. So there is no need to worry too much about some comments posted on the Internet. Because they are simple and easy to understand. This is fundamental to solving problems. One Chinese company that is increasingly becoming active in Europe is the Chinese telecom giant Huawei. By the time I got my business license, I didn't have a single penny left. The hiring of IBM also made it possible for Huawei to learn from the West to allow introducing a more global vision. At this time, Ren Zhengfei's family was starving. (Academic publishing, he believed, was a necessary but not a sufficient condition for RSM to be recognized as a top business school.) I only care about the growth of my company. They also need to follow local laws and regulations and pay local taxes. Sales of our consumer business increased by more than 70% in the first quarter of the year. When I was young, I had no ideals. Apple is also a great company. We believe US laws are open, transparent, fair, and just. Second, Premier Li Keqiang reiterated this point at a press conference following a recent session of the National People's Congress. But this year, once the slate is wiped clean, the financial statements they will release in July will be much healthier. Ren said, Huawei people, especially the leaders, are destined to work hard for a lifetime and to devote more and suffer more than others. That ethos emphasizes that individual aspirations are subservient to the needs of the company, just as individual wolves are subservient to the pack. Whether or not we can get back to business in the US depends on whether our customers want to buy from us. Arjun Kharpal: Mr. Ren, we spoke about Apple and Steve Jobs. The industry had high requirements. The negotiations between China and the US have nothing to do with Huawei. Get this delivered to your inbox, and more info about our products and services. If a technology is just several thousand kilometers away, we will invest a lot more, like a watermelon. CNBC.com is the preeminent financial news source on the web, featuring an unprecedented amount of video, real-time market analysis, web-exclusive live video and analytical financial tools. We are supportive of this. Back then, we couldn't use testing instruments from foreign countries. 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. Is that something you would welcome? Ren Zhengfei leads Huawei Technologies, one of the world's largest manufacturer of telecommunication hardware and mobile phones. We are going to make this happen. Publication Date: Combining storage and computing will enable devices to run faster. 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. Lets look at each, drawing on examples from our own experience and that of well-known successful leaders. 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? By submitting your email, you agree to our Terms & Conditions and Privacy Policy. 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. We live in a very connected world. Arjun Kharpal: Mr. Ren, as we come to the end of the conversation, I want to focus on your future. What did she speak about? But if you were in the room with the US President, what would be your message to him? However, most of us. However, monopolies in these kinds of technologies will benefit the world, rather than harm it. However, most of us didn't really understand how important this decision made by the CPC's Central Committee was. 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. These cookies do not store any personal information. It takes a lot to get to the top of an organization: a high IQ, emotional intelligence, technical competence, and a variety of personal characteristics, such as fortitude and resilience. The country paid little attention to technology and knowledge, but we were working on a project that required technology and knowledge. Ren is the son of school teachers and grew up in a mountainous town . These difficulties will make her stronger and prepare her for even greater things ahead. Mr. Ren: Regarding the allegations against Meng Wanzhou and Huawei, the US Department of Justice has sued Huawei, and Huawei has pleaded not guilty in the court. 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For example, Huawei equipment broke down frequently, so Huawei technical engineers went to customer equipment rooms to repair the equipment at night when the equipment was not being used. People back then thought his discovery was useless and ignored it for 100 years. 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. Tanks can cross a swamp, but needles can pierce hard things through. 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). 5G technology was not invented by Huawei. A common theme in everything that Ren Zhengfei as a leader undertakes is the ability to reflect, think and act. We will put more money into research in new frontiers. This message has been reiterated by many senior officials of the Chinese government, including Yang Jiechi, who stated his position at the Munich Security Conference, and Premier Li Keqiang, who made similar statement at a press conference shortly after a recent session of the National People's Congress. Therefore, we will count on the law to address these issues. Huaweis competitors assumed that they only had to provide the technology to the customer. If we didn't abide by those laws and regulations, we wouldn't survive even a day. He is recognized as a leader who motivates to facilitate innovation at all levels. 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 across three phases, each lasting about a decade. 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!. After I joined the army, I was tasked to establish a chemical fiber factory in Liaoyang, a city in the northeast of China. If we couldn't make ends meet, we wouldn't be able to survive. And there is concern that some of these large technology companies just have too much power. Arjun Kharpal: Do you feel that your military-style speeches empower the employees here? It is an invention of Erdal Arikan, a Turkish professor in mathematics. Huawei is to a large extent no stranger to this system. This is a copyrighted PDF. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Your email address will not be published. The leadership of Ren Zhengfei, however, does differ from this rather "controlling only" style in important ways. On one hand he possesses the characteristics of a controlling leader who makes all the decisions. People will be afraid of getting trapped there. This meant we were left behind for many years in this area. Of course, several decades from now, that would potentially cause other side effects that we can't predict, but mitigating the side effects is better than immediate death. This category only includes cookies that ensures basic functionalities and security features of the website. Use the strengths of your organization to achieve your goals. None. Mr. Ren: I think the most essential factors to judge guilt are facts and evidence. We will comply with European cyber security standards and the GDPR. You dont want to be like John DeLorean, who battled nearly everything on his way up in and then out of General Motors. According to him, Huawei should be focused on building a company where peoples minds are the main asset and resource to rely on. The US doesn't need to conquer the world through violence. We'll buy them directly." 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. They need to recognize what aspects of the status quo need to be challenged and they need the discipline to avoid wasting time rebelling in ways that are not strategic and wont move the organization forward. Back then, China was still going through the Cultural Revolution. China also didn't have its own testing instruments, so I invented one. Ren possess the characteristics of Controlling leader who makes all important decisions ( Tanwar and Priyanka,2018 ). Zhengfei has a strong interest and passion for learning about historic events. This approach transformed Huawei into a company of strivers and fueled rapid business growth. Firstly, being practical instead of seeking after useless fame. 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. He is frequently quoted as saying that the most important thing to value is the power to think. Some top military officers didn't understand it, either. Ren Zhengfei has lead Huawei to become a global brand making the top global 100 by 2017 (Huawei 2017). 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. And he initiated an annual conference whose panels combined executives and faculty members. And care must be taken that they dont conflict with the desired ethos. This proves our equipment is secure. Those with organizational intelligence have the following competencies: they can effectively communicate the top strategic priorities, foster an organization-wide sense of how we do things here, get things done even in the absence of consensus, stage moments of theater, and rebel from the top. HBR Learnings online leadership training helps you hone your skills with courses like Business Plan Development. Mr. Ren: They are more than welcome to come visit us in Shenzhen. His company reflects these traits. And then, once we had established some market presence, we began to build up capital. The authors describe seven characteristics of Zhengfei's leadership style, including 'adaptive vision', 'humble dedication' and 'winning by cooperating'. He said recently that could potentially wipe out humanity. 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. Ren Zhengfei is known for avoiding quick decisions and forcing himself to take time to reflect. These figures show that we are still growing, not declining. The country wanted to reform and open its doors. 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. They are buying our products in large quantities as the US government is advertising for us. It emphasized clear-cut goals, hard-and-fast rules, employee dedication and absolute obedience. I happened to have this invention, and the value of my invention was exaggerated by the country, which led to a promotion for me. In the early years Huawei had the tradition to regularly invite scholars from the East and the West to talk about the histories of their countries. Otherwise, they will become overweight and won't be able to move fast. Is it your ultimate aim to get back to business in the US market or just clear your name there? Our company was very small then and almost had no capital or technology. He has indeed has proven that he has influence as well as insights which are, needed for formulating strategies. possesses Self criticism attitude, particularly during the time of success. The Laissez-Fair Leadership Style 1085 Words | 5 Pages They are engaging elements of transformational leadership in which leaders get great illustrations who increased in value, respected, replicated and trusted by subordinates ; . Arjun Kharpal: You said you've not had any communication with Donald Trump. Zhengfei was very clear about this ambition and demanded that all Huawei employees would adopt the US-based way of looking at business as introduced by IBM. Mr. Ren: We are open to Apple in this regard. and pay only $8.75 each, Buy 11 - 49 Western companies are no different. Nevertheless, as the market evolved and employee characteristics shifted, the shortcomings of Ren's management model grew ever apparent. Otherwise, we wouldn't be able to enter the network equipment industry. Arjun Kharpal: Do you have a succession plan in place when you eventually do retire? With Huawei becoming the largest telecommunications equipment manufacturer in the world, Ren zhengfei has already become a paradigm for businessmen to study and learn from. 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. Academics were reluctant to engage with executives. Technology has moved on so rapidly in the past few years that a lot of people are talking about the impact of technology on society. Arjun Kharpal: Would you support similar ideas about no-spy agreements in other countries, including the US? Steve Jobs is known more internationally. 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. 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. 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.