ren zhengfei leadership styleren zhengfei leadership style

Many companies' financial statements last year weren't great because they needed to pay income tax arrears. I think this challenge will be good for my daughter. After learning from the West for almost 20 years, Huawei has established an increasingly standardized and institutional decision-making system. In that case, billions of dollars would be stuck in the US. To give you a simple example. 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. Leahy succeeded with both dramatic changes in part because he maintained a modest demeanor throughout. Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. Mr. Ren: If they aren't scared of us, why are they advertising for us everywhere they go? President Trump hasn't shared his thoughts with me. At Huawei, we often talk about the term of "Van Fleet Load", which was invented by a general of the US army. We will expand it, and dive deeper into it. However, most of us didn't really understand how important this decision made by the CPC's Central Committee was. You survived some hardships like famine. Early life. Its fighting spirit, however, made it resistant to many negative influences and today Huawei can be called the only true global Chinese company. All rights reserved. Leadership Style Assignment : Ren Zhengfei. She will be a hero if she makes it back to us. Arjun Kharpal: You said Huawei should not be used as leverage between the US and China, and Donald Trump, President of the United States, said that he could intervene in the Meng Wanzhou case as part of a bigger trade deal between the US and China. 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. 3.2 Findings 3.2.1 Huawei's leadership style Many will claim that Zhengfei (the founder) laid the foundation for Huawei's . 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. Dong Mingzhu, Chinas most successful businesswoman and the head of Gree Electric, has a persona that says, Where Sister Dong walks, no grass grows meaning she is really, really tough. People back then thought his discovery was useless and ignored it for 100 years. February 9, 2021. Got a confidential news tip? The European Business Review is not responsible for any financial losses sustained by acting on information provided on this website by its authors or clients. Our costs were low for two reasons. Instead, he believed it was a strength. 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. Otherwise, we wouldn't be able to enter the network equipment industry. However, we are not in any position to require other companies to do the same. In the early years, Huawei, as a private company, had to battle primarily the State Owned Enterprise (SOE) dominated market. Accelerate your career with Harvard ManageMentor. Obviously this has required a strict control of information, which attaches a flavor of secrecy and even mystery to the behavior of Mr. Ren Zhengfei. These experiences taught me to endure hardships. This is thanks to Trump. The TV channel is available in more than 415 million homes worldwide. When we first entered the telecom industry, we started by reselling products from another company. Thirdly, its his sense of management that helps him to become an excellent leader. To rebel from the top, leaders must strike a difficult balance. There's a lot of disagreement, of course, on what the right course of action is in Europe. The last thing we want is to have bureaucrats or managers lead our way in technology. Back then, it would reach minus 20-something degrees Celsius in the winter. However, there was no way back. As society moved forward, AI was made possible. Most of us also didn't understand that move. 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). What else can we talk about? The leadership of Ren Zhengfei, however, does differ from this rather controlling only style in important ways. Steve Jobs is known more internationally. By the time I got my business license, I didn't have a single penny left. 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. Zhengfei has a strong interest and passion for learning about historic events. Second, thanks to the Western management approaches we brought in, our operational costs were also kept low. They will be able to produce more quality products than the whole world can consume. Mr. Ren: Because I don't actually know technology that well, and I didn't invent anything. Arjun Kharpal: I want to talk a bit about your management style. So I don't think there will be a significant impact on Huawei's business. Directive Style. High-OQ leaders foster an understanding, or ethos, of who we are. When leaders move from managing individuals or small groups to leading entire organizations, they need to create a shared understanding of whats important and what the organization stands for in other words, an ethos. The US stock market may witness a significant rise this July. 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. Huawei has kept a low profile, ever since it was founded. A Division of NBCUniversal. Not really, we think. We also had to understand the law. This represents Chinese state leaders' position on backdoors, so we will never install backdoors on our equipment. Why do I like to use military terms? Some US politicians are criticizing Huawei everywhere they go. In 1994, Huawei is still a company that has been working for no more than seven years. Otherwise, how can we make ends meet? I said this as an outsider without considering his treatment of Huawei. But by 2003 Sainsburys had followed suit by which time Tesco had a five-year head start and an expanding user base. You're seen as a visionary very much here in China in the technology world. That means there is space in there. Organisations need to implement leadership innovation to secure a successful and profitable future, as Ren Zhengfei has done with his multinational company Huawei. In fact, the recent and growing success of Huawei in Europe can also be attributed partly in addition to their service-oriented focus (see again the point of purpose-driven ambition) to their philosophy of explicitly incorporating a strategy to develop cooperative relationships with competitors in the market. 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. Do you think that companies like yours are too powerful and need to be regulated? After I joined the army, I was tasked to establish a chemical fiber factory in Liaoyang, a city in the northeast of China. It is clear that although very ambitious and action-driven he also cares about the value of being humble. KPMG wouldn't hide anything for us. Also, he tries to avoid unnecessary interviews from the media and devote his time energy into working. So you said she doesn't want to leave anymore. 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. We don't have much influence over China-US trade relations. Huawei, in contrast, decided to provide these services to their customers. This selective messaging was not popular, but it was highly effective. Second, develop an organizational persona. And I don't really care about all that. The leadership of Ren Zhengfei, however, does differ from this rather controlling only style in important ways. After we were discharged, we were assigned to different places across China. Google is now helping blind people see the world with nerve sensors, although they are not as good as human eyes. Second, we strive to become the world's best in edge computing. We have given up on supercomputing and intermediate computing. Mr. Ren: Huawei is based in China. He belongs to rural family and spent his middle and primary school years in remote mountains, where started his career as civil engineer when China faced turmoil because of cultural, revolution. Arjun Kharpal: So would you say the US is scared of Huawei? We did not know that these small things were designed to connect the whole city or even the whole world. As we noted earlier, often references to past historic events are used to shape actions and beliefs towards the future. It was hard times. So AI should be a force for good. Tian Tao is codirector of Ruihua Innovative Management Research Institute at Zehjiang University. Leading Huawei: Seven Leadership Lessons of Ren Zhengfei, The relationship between China and the European continent carries much history with it. By the time I left the military, 186, 286, and 386 had dominated the computer world. So we won't do that. 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. Huawei the Ren Zhengfei Way: the "Tough Guy" and His Corporate Philosophy By: Jiing-Lih Larry Farh, Xin Pi 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 Length: 13 page (s) document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Your email address will not be published. When I was young, I had no ideals. Over the next five years, we will invest more than 100 billion US dollars in R&D to restructure our networks. Our company was very small then and almost had no capital or technology. However, after this change, the effiency gradually increases. 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. 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. On April 12, at the "16+1 Summit" in Croatia, Premier Li repeatedly told all our employees not to install backdoors on networks. Such a system prevents the company from collapsing due to a single leader, raises efficiency, and avoids inaction due to over-democratisation. When he reduces taxes, he must be hoping to attract more investment. Action strategy is about making things happen. Quality products than the whole city or even the whole world can consume and avoids inaction due a... Be stuck in the winter an excellent leader when I was young, I did n't anything... He also cares about the value of being humble as good as human eyes collapsing due to.! 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