Ren Zhengfei has been CEO of Huawei since 1988, building it into the world's largest telecommunications equipment maker. 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.”. Piece offering Ren Zhengfei may sell Huawei’s 5G technology to a Western buyer. Nevertheless, Zhengfei remained persistent in talking about his ambitions at all kind of occasions. There is a story about Ren Zhengfei of Huawei that captures the essence of the humble style that we see in the five leaders. Ren Zhengfei turned a company with no intellectual property into the world’s largest telecom and made China a global leader in 5G technology. ( Log Out /  As can be expected of a man with an army background – he served in the People’s Liberation Army – he is known to be intense and tough and never loses control. Leading Huawei: Seven Leadership Lessons of Ren Zhengfei 1. Based on interviews with Huawei employees, its executives, and finally, Ren Zhengfei himself allowed us to arrive at 7 important leadership lessons that have made Huawei the company it is today (see Figure 1). Its founder, Ren Zhengfei… Oktober 1944 in Guizhou, China) ist ein chinesischer IT-Ingenieur und Unternehmer. Many will say that the blueprint of Huawei’s 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. On the other hand, Zhengfei is also known to give much freedom when it comes down to how decisions are executed. 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. Founding a tech giant 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. We cannot deny the role that enthusiasm plays in the procedure. Indeed, 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%). Tags. 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. although employees even management employees were not used to it, since it need a thorough change. At his retirement party, Jack Ma stepped onstage to celebrate Alibaba’s 20th anniversary looking every inch the rockstar complete with a leather jacket, shades, guitar, and jewellery. Ren Zhengfei's Interview with CNN November 26, 2019. The thousand- hand Bodhisattva dance was performed at the 2005 CCTV Spring Festival Gala by 21 hearing- impaired girls and boys from the China Disabled People’s Performing Art Troupe. 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. Zhengfei was worried that phase 2 created a kind of decision-making that was less than efficient. Despite this controversy, Huawei received support from both Ericsson and Nokia, stating that in their view Huawei was not dumping its products. Although Chinese giant Huawei surpassed Ericsson in 2012 to become the global telecom leader in terms of sales revenue and net profit, the company is still relatively unknown in the West. Ren Zhengfei has lead Huawei to become a global brand making the top global 100 by 2017 (Huawei 2017). His passion to be the best technology company they can be – in service of the customer – ensures that he has deserved the reputation of being eager to keep learning and stay informed all the time. Huawei CEO Ren Zhengfei remains positive, despite U.S. sanctions. 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. I will be very frank in my answers, including with any of your trickier questions. Billionaire telecom mogul Ren Zhengfei, founder and chief executive officer of Huawei Technologies Co., broke a years-long silence as his technology empire … As mentioned earlier, the first two decades of Huawei’s existence were dominated by the force of attack in order to survive and gradually become a better service provider. Ren Zhengfei is a Chinese entrepreneur and electronics engineer. Huawei uses this grey management approach to create a strategic framework when dealing with dynamic situations, enabling the organisation to systematically integrate seemingly paradoxical or competing factors. Change ), You are commenting using your Facebook account. Huawei has indeed invested considerably in creating a learning driven culture where the power of the mind is visible. Ren Zhengfei, right, the founder of Huawei, ... Ren was deemed one of 100 “excellent private entrepreneurs” who “firmly safeguard the leadership of the Chinese Communist party”. In the third phase, after 2007, the strategy was to simplify management and be creative with top talents to turn Huawei into an efficient and creative creator of customer’s dreams. 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. This is surprising because Huawei has been very active in 2014 and 2015 in securing many partnerships with European firms, ranging from a focus on cloud storage and cell phone applications in security areas. Tony Fernandes - Leadership in Organization 1. One of the consistent qualities that have been attributed to Ren Zhengfei is his ability to inspire others. An interesting consequence was that because of this purpose-driven strategy they acquired much experience in developing robust equipments and materials, which helped them later on to win several big business accounts in the Middle-East. Ren Zhengfei asked Fei Min, his executive vice president of R&D, to entertain the delegation. If anyone objects to it, I … I speak my mind. He is frequently quoted as saying that the most important thing to value is the power to think. The leadership of Ren Zhengfei, however, does differ from this rather “controlling only” style in important ways. Your advanced institutions, flexible innovation mechanisms, clearly-defined property … Mainly through to introduce Ren Zhengfei, who is the leader of Huawei Technologies Co. Ltd. It makes that he is characterised by his employees as someone who leads with his heart and moves with his mind. 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. One Chinese company that is increasingly becoming active in Europe is the Chinese telecom giant Huawei. Huawei founder Ren Zhengfei (centre) likes to resort to military metaphors to motivate his employees - Alle Rechte vorbehalten Daniel Gramage / EC - Audiovisual Service Many Chinese believe the blueprint for Huawei's success was created by its founder and long-time CEO, Ren Zhengfei. Figure 1: The Leadership Lessons of Ren Zhengfei, The core of Ren Zhengfei’s leadership is the undeniable fact that he is very clear about the purpose of Huawei, which is helping customers to realise their dreams. Below is the transcript of a CNBC Exclusive interview with Ren Zhengfei, Huawei Founder and CEO. You are the founder of Huawei. This statement was understood as underlining that his global ambitions were there to stay and grow. It was all about hard work to bring the company up to the level that it was able to provide higher-quality service. Reuters Events Free Webinar – The Impact of The Pandemic On... How to Install an Expedition Style Roof Rack to Your Land Rover, Implementation of the Latest Technologies in Online Casinos, How Online Casinos Are Using New Tech to Grow Their Products, 7 Features Of Cannabis And Magic Mushrooms That Make Everyone Love Them, 7 Exercises That Will Make You Feel Great, Connecting Through Narrative: 5 Business Examples. This fact inspired him to embrace the idea that one can win and still be cooperative. Not really, we think. Art and Craft Supplies You Can Buy Online in Melbourne, Awards galore: a look at Utility Warehouse’s accolades, Top Female Leaders Special Feature for International Women’s Day Celebration. This is surprising because Huawei has been very active in 2014 and 2015 in securing many partnerships with European firms, ranging from a focus on cloud storage and cell phone applications in security areas. Characterized by his employees as someone who 'leads with his heart and moves with his mind', Zhengfei's purpose, inspiration and humility in leading China's most global company will provide inspiration for leaders everywhere. This practice allowed managers to become more active and creative, but also created chaos. 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. Although this multinational company surpassed Ericsson in 2012 as the world leader in terms of sales revenue and net profit, the company is still relatively unknown to the European business audience. In this leadership style, the output in the short run may increase drastically, but due to stringent rules and procedures, there could be a high labor turnover. Ren Zhengfei leads Huawei Technologies, one of the world's largest manufacturer of telecommunication hardware and mobile phones. Huawei is to a large extent no stranger to this system. Indeed, as the Chinese say: Every generation produces its own great character (Jiang shan dai you ren cai chu) and each exerts impact for hundreds of years (Ge ling feng sao shu bai nian). 8 Management and leadership Revision case study 1 (page 152) Leadership styles at McNuggets 1 Which style of leadership/management seems to be used at. In the early years of Huawei, Zhengfei was very much aware that their products did not meet the standards of those of its competitors. Decisions were taken much slower than in the first – more chaotic – years of the company and fear existed that the bravery and courage underlying the company’s striving for innovation would disappear. Zhengfei, one of the richest Chinese, held only 1.42 percent of shares in company and the rest, 98.56 per … In this article David De Cremer and Tian Tao discuss the seven important leadership lessons that have made Huawei the company it is today. In light of that question, I was asked by several universities to talk about the management structure and leadership style of one of their biggest business champions, which is Huawei. 'America doesn't represent the world' Ren… Huawei founder Ren Zhengfei says the US government's campaign to label his company a security threat will end up damaging the country's international reputation. In a similar vein, Huawei makes use of an internal online forum, Xinsheng Community, which is accessible to all Huawei employees worldwide. Ren Zhengfei at the World Economic Forum in Davos, Switzerland, in 2015. 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. Huawei’s Ren Zhengfei, at his first public appearance meeting western journalists. After Ren successfully reverse engineered a tool that was needed to test equipment at the fiber factory, a supervisor helped him become a party member. Later, Roach said, in disappointment, “He was rejecting a team with $3 trillion.” We meet Ren Zhengfei and the corporate leadership every year for a polite but frank dialogue of a kind that I doubt takes place anywhere else in the Chinese industry. Firstly, being practical instead of seeking after useless fame. 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. 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. The multinationals that were present in China at that time did not consider this to be their problem, but rather that of the customer. And its founder Ren zhengfei is thought be be one of the best leader in the business world. Ren peppers his speeches with military metaphors and proudly calls his rough style of leadership „wolf culture“. ( Log Out /  This leadership style is also called as a dictatorial or perish style, where the subordinates are required to perform the task as directed by the superiors. June 1, 2017 - 15:45-17:30. Ren Zhengfei Quick Facts. In Zhang Yiming’s internal letters, the way to open the letter is to quote the recent events of byte skipping and quickly explain the reason for writing. During one of these visits, in 1997, he visited the Bell labs in the USA. It was all about hard work to bring the company up to the level that it was able to provide higher-quality service. 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. Washington says he had help from Beijing. The following is a company-provided transcript of responses from the founder of Huawei Technologies Ren Zhengfei to questions at a media round table that took place in Shenzhen on January 15. 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. Save my name, email, and website in this browser for the next time I comment. Why is France Keen to Block Facebook’s Libra in Europe? Back home in Shenzhen, Zhengfei told everyone that the passion that he felt for that lab was equal to love. 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Huaweis revenue from overseas markets exceeded that from the Chinese market for the first time in 2005. ( Log Out /  As can be expected of a man with an army background – he served in the People’s Liberation Army – he is known to be intense and tough and never loses control. 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. ( Log Out /  In the early years of Huawei, this toughness was symbolised by his focus on fighting and surviving as a primary strategy for his people. Its founder, Ren Zhengfei, has recently even referred to Europe as a market where they feel at home as a telecom company. Creating a committed work force in service of its purpose requires that people are inspired. 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. Change ), You are commenting using your Twitter account. Ren zhengfei himself attributes his success to several characteristics. This case focuses on the distinctive "paternalistic" leadership and management style of Ren Zhengfei, founder of Huawei Technologies Co., Ltd. (hereinafter "Huawei") and considers whether he needed to adapt his style in light of new challenges at the company. When he talks about his skills and qualities he always emphasises that he is not the most knowledgeable. In 2012, Huawei surpassed Ericsson at that time the world leader in telecommunications and networks in terms of sales revenue and net profit, and this tren… For that reason he looked for alternative ways to attract customers. According to Belasco and Stayer, this story represents the traditional leadership style where one leader gives direction and therefore becomes indispensable, creating a situation where followers will not know what to do if the leader is no longer present. Shenzhen, China. He is the author of the book Pro-active Leadership: How to overcome procrastination and be a bold decision-maker. Particularly the Silk Road Economic Belt and the 21st Century Maritime Silk Road initiatives, which include a patchwork of diplomacy and free trade zones, have received their share of attention. Compared with Ren Zhengfei’s unconventional style, Zhang Yiming prefers a concise style. 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”. Company’s day to day activities are run by three different executives, each one of them retains the position of CEO every six months on a rotational basis. According to him, Huawei should be focused on building a company where people’s minds are the main asset and resource to rely on. The slogan at that time was: We shall drink to our heart’s content to celebrate our success, Delivering Innovation – Accenture Research, A Special Report on AI and Humans by AiTH, NUS Business School, Pro-active Leadership: How to overcome procrastination and be a bold decision-maker, An Effective Intersection of Automation and Productivity: Interview with TimeXtender CEO, Heine Krog Iversen, Diamonds In The Rough: Spotting Opportunity During A Crisis, A Day in the Life of a Social Media Manager, Zhang Yiming: The Self-made Billionaire and Entrepreneur Behind TikTok Boom, Skills Every Leader Should Possess and Why They’re Important for Business Success. 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. Bringing this emotion-laden message was meant to motivate his own people and eventually to make his R&D people believe that they could one day be better than the researchers at the Bell labs. You aren't afraid to ask any question you want. Huawei Technologies has promoted Sabrina Meng Wanzhou, its chief financial officer (CFO) and daughter of company founder Ren Zhengfei, to vice-chairwoman … All he cares about is how to thoroughly solve every problem his company meets and how to improve the efficiency of the whole group. 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. Ren: My management style is characterized by compromise. Ren Zhengfei Photograph: Gautam Singh/AP After leaving the army, Ren landed in Shenzhen, designated a special economic zone as part of China’s transition to a market economy. Ren Zhengfei requires his employees to work pretty hard; and due to the Chinese culture shown in Hofstede, China gains a really high score (80) in power distance, which also illustrates the autocratic leadership in Huawei company (Hofstede 2016). He is the founder and CEO of Shenzhen-based Huawei, the world's largest manufacturer of telecommunications equipment and second largest manufacturer of smartphones.As of February 2019, he had a net worth of US$35.5 billion. Essential in his idea to compete, however, is that it should be done with respect for its opponents. Zhengfei has a strong interest and passion for learning about historic events. Since China has become the second largest economy in the world, this relationship has taken new forms in the shape of several business initiatives. Fill in your details below or click an icon to log in: You are commenting using your WordPress.com account. Ren Zhengfei – is a story that ... on the ‘individual leadership of Ren Zhengfei ... France. Below is the transcript of a CNBC exclusive interview with Huawei Founder & CEO, Ren Zhengfei. The best illustration of how rewards are shared is the fact that Zhengfei only holds 1.4% of the company’s total share capital whereas 82,471 employees hold the rest of the shares (stated in Huawei’s 2014 Annual report, as of December 31, 2014). 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. 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. This revolution was also referred to as the bloodless revolution because the victory of William of Orange was achieved without bloodshed. He believed that the combination of his skill to organise a company and the IT background of his executives and employees would create wonders. Change ), The differences of leader skill in America and China. on the ‘individual leadership of Ren Zhengfei’ (330) whose ‘strengths ’ include a marked appetite for ‘adventure and risk’ (331). Famous is the story where Zhengfei in Huawei’s 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!”. This ability derives from his pro-active attitude. “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. The interview was first broadcast on CNBC's Squawk Box Asia on … The slogan at that time was: We shall drink to our heart’s content to celebrate our success (ren sheng de yi xu jin huan), but if we should fail let’s fight to our utmost until we all die (ju gong jin cui, si er hou yi). While it will make … The story goes that Zhengfei was so moved by the work done in those labs that he cried. Instead, he believed it was a strength. Humble leadership Zhengfei emphasizes his strength in putting people together and his belief in the value of talking from the core to do ‘good’ for the organization. In his view this could only be achieved by providing excellent services. Ren Zhengfei leads Huawei Technologies, one of the world’s largest manufacturer of telecommunication hardware and mobile phones. Once an order is in effect, it must be executed regardless of the conditions or the obstacles the employees meet when tackling these problems. 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. It is a well-known fact that Zhengfei truly lives this purpose and pursues it with unlimited energy, making Huawei his natural born mission. Read "Leading Huawei: seven leadership lessons of Ren Zhengfei" by De Cremer and Tao, All China Review, 12 November 2015. Ren Zhengfei: Be straightforward and ask any questions you want. Reuters Events launches a new and revamped Global Responsible Business Week... Steps to Find Event Space Rental in Chicago. Zhengfei 1 culture “ reigns and strategy: how to thoroughly solve every problem his meets... Bloodless revolution because the victory of William of Orange was achieved without bloodshed of! Huawei started in 1987 where it was able to provide higher-quality service maybe that 's an American style narrative! 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