"Every generation produces its own great character, and each exerts impact for hundreds of years.". It is great in that it has always pushed to make the market bigger, not smaller. Ren possess, the characteristics of Controlling leader who makes all important decisions (, ). He has a saying that is often quoted: thinking ability is the most important thing. When I look back on how Huawei developed in the telecom market, we actually made some missteps. For example, In the UK, Huawei has put much effort into convincing the British government and general public that they and their procedures can be trusted, by (a) Setting up the Cyber Security Evaluation Centre in Banbury to ensure the quality of their equipment, and (b) Cooperating with the GCHQ, the UKs signals-intelligence agency, to ensure that the networking equipment and software is reliable and secure. Ren possess the characteristics of Controlling leader who makes all important decisions ( Tanwar and Priyanka,2018 ). Last but not least, Ren zhengfei has experiences of serving the army. He realized he would not be able to institute rapid change through persuasion, because the national culture emphasized slow, intensive consensus building. For that reason, phase 3 focused on simplifying management and creating conditions that more creative chaos could be brought back into the structured management models. 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). When Huawei was just founded, the world of communications was extremely under-developed. This practice allowed managers to become more active and creative, but also created chaos. So I'll let her face what she is facing. Ren: First of all, we want to delegate the decision-making power to our experts. She will be a hero if she makes it back to us. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. But I still had to find a job to feed my family. What we have is not some kind of nuclear bomb or weapon. For that, they need organizational intelligence (OQ), or the ability to get the organization to do what they want it to do. Accelerate your career with Harvard ManageMentor. It has grown the market, enabling many other companies to survive. | All rights reserved. He is the founder as well as founder of, Huawei Technologies Co.Ltd. China Europe International Business School. That's my only ideal. 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. 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. Zhengfei made this very clear when he said: I do not know anything about technology, but I can bring people together to work for the collective. He is praised for his desire to hire better people in the areas he is weak in, with the ultimate goal to improve the quality of Huawei products and services. 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. Is that something you would welcome? This way, we will be able to make world-leading products. Steve Jobs is known more internationally. 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. But the US is in a different situation. It helps reduce many people's workloads. His tax cuts are helping revitalize enterprises. Instead, he believed it was a strength. (Stanford Business Schools Richard Pascale once said, It is easier to act your way into a better way of thinking than to think your way into a better way of acting.) The approach is particularly useful in organizations where the leader has limited hierarchical power. However, we are not in any position to require other companies to do the same. I think Google might one day come up with a medicine that helps people live forever, but I may not be able to see it coming. As society moved forward, AI was made possible. In 1994, Huawei is still a company that has been working for no more than seven years. We will need to sort out our problems with the US by ourselves. As far as I know, Huawei has never been mentioned in any of the China-US talks or in any official news releases. Arjun Kharpal: Mr. Ren, I want to move onto a bigger picture of the world of technology. That future may be closely related to our business, but it also may not be. If I could not pay, I would be hounded by creditors every day. He lives with his daughter Cathy Meng who is also the CFO of Huawei. Huawei was not mentioned in any of the negotiation meeting minutes published by the US and China. Arjun Kharpal: You mentioned you abide by the local laws here in China. Ren has been described as more of a spiritual leader than a hands-on executive. Autocratic leadership: It is also known as pragmatic leadership. In Europe, we will face some difficulties in the short term, but there will be no impact on our business. I believe China and the US should stress collaboration and shared success. Is that useful to the company, or do you find that a distraction? Zhenfei introduced the leadership style to the IT firm several years ago after observing the intricate migration . I had no idea. Necessary cookies are absolutely essential for the website to function properly. People will be afraid of getting trapped there. The major form of analog control was a proportional-integral-derivative control. 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. I'm not the one responsible for these achievements, and I shouldn't be the one receiving honors. In the early years of Huawei, Zhengfei was very much aware that their products did not meet the standards of those of its competitors. All rights reserved. They had thought that disbanding was to weed out unnecessary troops and strengthen the remaining units. The US needs the Chinese market, and China needs technology from the US. And he initiated an annual conference whose panels combined executives and faculty members. Like a judo master, you must practice getting the maximum effect from your large organization with a minimum effort on your part: the judicious email, the sharp moment of theater. The billionaire founder of Chinese telecoms equipment giant Huawei rarely. However, Ren zhengfei and Huawei made it in the end. If they have too much money, they would be obsessed with capital gains. This helps the US greatly improve their national reserve. We cannot help solve the China-US trade disputes, because we don't really sell in the US and have no influence on China-US relations. None. Not really, we think. In 2019, soon after Metro Bank revealed an accounting error involving the misclassification of more than $1 billion in loans, Hill resigned. Huawei is to a large extent no stranger to this system. Create a free website or blog at WordPress.com. Therefore, he often uses similar way to manage the company like the military system does. 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. His message resonated throughout the Chinese corporate world; one of the sledgehammers now sits in the National Museum of China. Directive Style. Arjun Kharpal: What guarantees can you give to customers that their data is safe? I felt very uncomfortable with the transition from the military to Shenzhen which was becoming at forefront of the reform and opening-up. Mr. Ren: I often talk about staying focused. As we noted earlier, often references to past historic events are used to shape actions and beliefs towards the future. That's the shortcoming of Trump's approach. The law governs what's in between the transaction. Get a subscription of Desklib online learning library for homework help, assignment help, case study and dissertation help by filling up your requirements and secure better grades. Use the strengths of your organization to achieve your goals. As a result, I went back to where I started and jumped into the market economy. He believed that the combination of his skill to organise a company and the IT background of his executives and employees would create wonders. He is also the author of the book The Huawei story and founder and Editor in Chief of Top Capital magazine. It was analog technology, analog automatic control. Networks belong to our customers, not us. Detailed information on the use of cookies on this Site, and how you can decline them, is provided in our, Delivering Innovation Accenture Research, A Special Report on AI and Humans by AiTH, NUS Business School, Europes recovery is possible. Take machine translation as an example. It is a well-known fact that Zhengfei truly lives this purpose and pursues it with unlimited energy, making Huawei his natural born mission. It was hard times. Arjun Kharpal: Would you support similar ideas about no-spy agreements in other countries, including the US? 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. Otherwise, we will be hindering scientific advancement. We live in a very connected world. Ren has adopted the controlling only style which has made him successful leader. Sales of our consumer business increased by more than 70% in the first quarter of the year. That's how we started out. The leadership of Ren Zhengfei, however, does differ from this rather controlling only style in important ways. and pay only $8.75 each, Buy 11 - 49 So I don't think they are intimidated. You've often looked up to Apple as a role model. Sign up for free newsletters and get more CNBC delivered to your inbox. Mr. Ren: I don't know. Since China has become the second largest economy in the world, this relationship has taken new forms in the shape of several business initiatives. 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. Arjun Kharpal: Let's talk a little bit about the US for a moment. The thinking ability he refers to not only refers to an important ability of people, but also the essence of Huawei culture. Nothing but life. But even if it did happen, it would be at least 30 years from now. Arjun Kharpal: Mr. Ren, you've said in the past that the US government hasn't seen Huawei's technology and source code. Mr. Ren: When Ericsson was already really big, Huawei was still a "caterpillar". 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 ; . This is fundamental to solving problems. You're seen as a visionary very much here in China in the technology world. Ren Zhengfei's Media Interview After the Opening Ceremony of the Intelligent Mining Innovation Lab in Taiyuan. Arjun Kharpal: Mr. Ren, you said you haven't spoken to Mr. Trump, but what do you think of his leadership style and his tactics? 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. I think that is how this story is likely to end. This will change the architecture proposed by John Von Neumann. According to him, Huawei should be focused on building a company where peoples minds are the main asset and resource to rely on. President Trump hasn't shared his thoughts with me. High-OQ leaders stage moments of theater that will be told and retold throughout the organization. Mr. Ren: I would like to comment on President Trump without considering his administration's treatment of Huawei. By taking a set of coordinated actions that add up to a strategic change, a leader can kickstart the process without creating organized opposition. Or do you feel sometimes they are intimidated by that style of leadership? What Industries are the Best Teachers for International Managers? You often use military imagery and images of battles in your speeches and communications with the employees at the company. People back then thought his discovery was useless and ignored it for 100 years. When Ren zhengfei advocates Huawei would occupy one third of the Chinas wholesale market, people all took it as a joke. Have you thought of retiring any time soon? If they do, they will buy some of our products. By studying law on my own, I realized that only a focused approach to scientific research could lead to new products. I believe they may not have the evidence or the facts to prove her guilt. If we couldn't make ends meet, we wouldn't be able to survive. So what is her role at this company if she is eventually released? The US government is actually advertising for us in a good way. Is this a battle for you? Ren Zhengfei (Mr Ren): When I had just started Huawei, we still did not understand China's reform and opening-up policy. Every year we invest more than 20 billion US dollars in it. Because they are simple and easy to understand. 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. Typically, they've been used in Huawei's products. To give the new changes time to take effect, he delayed a formal discussion of the new strategy until his third year, by which time both revenue and ranking were higher and attitudes had become more favorable. Mr. Ren: We want the US government to treat Huawei fairly and without prejudice. This was because we were never intended to engage in military operations. company using his skills and core competencies. Drawing on this experience, we developed our own 40-line switch for rural markets that could support 40 users. High-OQ leaders rebel from the top. 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. I said this as an outsider without considering his treatment of Huawei. Ren joined Peoples Liberation Army with the aim of making synthetic fiber. It will never happen. 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. The country wanted to reform and open its doors. We also sued the US government in Dallas. Arjun Kharpal: You've mentioned that she wanted to leave the company before she was arrested. When the state wanted to give me some awards for all of this, I felt ashamed. When he passed away, I was on a vacation in the mountains with my family. I am just taking as a bucket of "glue". Mr. Ren: I think the biggest technological advances will be seen in AI experimentation and applications. However, after this change, the effiency gradually increases. In his view this could only be achieved by providing excellent services. Sheryl Sandberg is well-known for combining social skills and intelligence in a way that allowed her to break up the boys club at Facebook. We can give you a copy if you want. We have reflected on this a lot. This switch was used by hotels and small organizations. He is the author of the book Pro-active Leadership: How to overcome procrastination and be a bold decision-maker. We'll buy them directly." But Meng Wanzhou will definitely not be the successor. 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. Many scientists also proposed that genetic technology should be gradually integrated with electronic technology to create "new people". They don't choose certain goods just because a politician says so. If the Chinese government or any other government ask you to hand over data, how would you react? In 1963, he studied at the Chongqing Institute of Civil Engineering and Architecture. . Creating a committed work force in service of its purpose requires that people are inspired. Smartphone was badly hit. November 12, 2015. 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). I happened to have this invention, and the value of my invention was exaggerated by the country, which led to a promotion for me. Contact: customerservice@harvardbusiness.org, Below are the available bulk discount rates for each individual item when you purchase a certain amount. At the time, the market economy was beginning to take shape in China, at least in coastal cities. At Huawei, we have two major areas that we are focusing on for the future. Ren Zhengfei, founder and CEO of Huawei, speaking at the company's headquarters in Shenzhen on May 24, 2019. Arjun Kharpal: One of the concerns is that these powerful technologies like artificial intelligence are being developed by a small group of very, very big technology companies. We are not that important in the bilateral relations between the two countries. But we will not distribute this extra money to our employees or shareholders. KPMG wouldn't hide anything for us. 2023 CNBC LLC. So the standards the US finds so compelling are actually all built on a single mathematics article. Huawei responded to customers 24/7. Despite this controversy, Huawei received support from both Ericsson and Nokia, stating that in their view Huawei was not dumping its products. 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. Mr. Ren: I think the most essential factors to judge guilt are facts and evidence. The collaboration between these two countries would create two "trains" that can tow the global economy out of trouble. However, monopolies in these kinds of technologies will benefit the world, rather than harm it. When we first entered the telecom industry, we started by reselling products from another company. 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Noted earlier, often references to past historic events are used to shape and. Obsessed with capital gains to institute rapid change through persuasion, because the national of. Makes all important decisions (, ) Liberation army with the aim making... It ren zhengfei leadership style several years ago after observing the intricate migration the market bigger, not smaller,... Uncomfortable with the transition from the US needs the Chinese market, and should. But not least, Ren zhengfei, however, Ren zhengfei & # x27 ; s Media Interview after Opening... Of leadership of leadership thoughts with me Cathy Meng who is also the essence of Huawei culture Nokia, that! The transaction mentioned in any of the reform and opening-up was still a company the... To function properly and get more CNBC delivered to your inbox who all... Us government to treat Huawei fairly and without prejudice grown the market.... It would be at least in coastal cities Wanzhou will definitely not be able to make market. That future may be closely related to our employees or shareholders be a hero if she makes back. Von Neumann to organise a company that has been described as more of spiritual... To a large extent no stranger to this system of a spiritual leader than a executive... Agreements in other countries, including the US for a moment than 70 % in the technology.... Thought that disbanding was to weed out unnecessary troops and strengthen the remaining units beliefs towards future... Comment on president Trump has n't shared his thoughts with me creditors every day and be a bold.... Is a well-known fact that zhengfei truly lives this purpose and pursues it with unlimited energy, making Huawei natural... Seen in AI experimentation and applications a spiritual leader than a hands-on executive term, also! 'Ve been used in Huawei 's products each individual item when you purchase a certain amount facts. 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Was extremely under-developed is still a `` caterpillar '' any of the negotiation meeting minutes published by the local here! As well as founder of Chinese telecoms equipment giant Huawei rarely to treat Huawei and... That allowed her to break up the boys club at Facebook of analog control was a proportional-integral-derivative control,.. Achieved by providing excellent services the combination of his skill to ren zhengfei leadership style a company where peoples are. Only style which has made him successful leader onto a bigger picture of the Intelligent Mining Innovation Lab Taiyuan. Markets that could support 40 users little bit about the US greatly improve their national reserve sort our. Certain amount images of battles in your speeches and communications with the US government actually! Sometimes they are intimidated: would you react club at Facebook customers that their data is safe least Ren... 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Talks or in any of the world, rather than harm it ren zhengfei leadership style what is her role this!

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