This meant we were left behind for many years in this area. Today, only 30 years later, ultra-broadband has become accessible in most rural areas around the world. The US doesn't need to conquer the world through violence. He is frequently quoted as saying that the most important thing to value is the power to think. I believe they may not have the evidence or the facts to prove her guilt. Mr. Ren: Because I don't actually know technology that well, and I didn't invent anything. It is good for society and can greatly increase social wealth. 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.. Mr. Ren: I think the most essential factors to judge guilt are facts and evidence. The authors describe seven characteristics of Zhengfei's leadership style, including 'adaptive vision', 'humble dedication' and 'winning by cooperating'. But in both cases he was brought down partly by accusations of inappropriate dealings with insiders, such as getting his banks to buy services from his wifes architectural firm. Arjun Kharpal: I want to talk a bit about your management style. Arjun Kharpal: But some of the major figures in the technological world have warned about the dangers of artificial intelligence. Ren: First of all, we want to delegate the decision-making power to our experts. Ren zhengfei invested much money and other resources on learning and putting this management system into effect. China also didn't have its own testing instruments, so I invented one. Cuts and bruises toughen her up, and even since ancient times, heroes were born of hardship. The best illustration of how rewards are shared is the fact that Zhengfei only holds 1.4% of the companys total share capital whereas 82,471 employees hold the rest of the shares (stated in Huaweis 2014 Annual report, as of December 31, 2014). As CEO, he introduced Tescos distinctive online model, based not on the classic centralized warehouse but on existing stores, where Tesco.com employees picked and packed online orders during off-peak periods. 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. 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. So instead, we choose to narrow our focus, like a needle point, on a specific area where we can make breakthroughs. These cookies do not store any personal information. although employees even management employees were not used to it, since it need a thorough change. Mr. Ren: I am not a government official, so I don't know what the governments have talked about. 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. Huawei is to a large extent no stranger to this system. Do people know what type of leader you are and what to expect when they interact with you? Because they are simple and easy to understand. Want to buy more than 1 copy? Huawei responded to customers 24/7. 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? Vernon Hill was transformationally successful in leading Commerce Bank in the USA and then Metro Bank in the UK. We'll buy them directly." So we've decided that our. But if investors are scared that they won't get their money back, they won't dare to invest in the US. Huawei is to a large extent no stranger to this system. With higher prices, we have started earning more. Second, thanks to the Western management approaches we brought in, our operational costs were also kept low. Once an order is in effect, it must be executed regardless of the conditions or the obstacles the employees meet when tackling these problems. Data is a real-time snapshot *Data is delayed at least 15 minutes. It is mandatory to procure user consent prior to running these cookies on your website. So I think Trump is a great president, but he didn't consider all the angles when it came to attracting foreign investment. We obviously couldn't control our customers, so we had to get hold of the products. If no one dares to invest in the US, then how can they make up for lost tax revenue? October 01, 2018, Source: It was all about hard work to bring the company up to the level that it was able to provide higher-quality service. As we noted earlier, often references to past historic events are used to shape actions and beliefs towards the future. I think currently AI has greatly improved productivity. Our strategy for investment is like this: If a technology is still two billion light years away, we may invest just a little money, like a sesame seed. During China's Cultural Revolution, I designed a small instrument using my math skills, and actually received recognition from the government for this device. But the US is in a different situation. Do you think that companies like yours are too powerful and need to be regulated? Founder of Chinese tech giant Huawei Technologies Ren Zhengfei has called on the company's staff to "dare to lead the world" in software as the company seeks growth beyond the hardware. If everyone went to invest in the US, the US economy would grow dramatically. That approach may not be an option at the top. So we gritted our teeth and pushed ahead. AI will benefit our society. When attending a summit in Croatia, Premier Li also told our employees not to install backdoors. People will be afraid of getting trapped there. What makes Huawei interesting is its rate of growth and . Sign up for free newsletters and get more CNBC delivered to your inbox. 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. He said, Those are air bubbles. Consequently, Huawei's performance took a nosedive and employee satisfaction also sank. 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. Neither side has mentioned Huawei, which means Huawei does not actually carry much weight. Arjun Kharpal: But the US has put intense pressure on some of its allies in Europe, for example, Germany and the UK, to block Huawei from 5G networks. The country wanted to reform and open its doors. After getting, retired from the military, Ren has planned to work in electronic business. By submitting your email, you agree to our Terms & Conditions and Privacy Policy. 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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 customers dreams. It was analog technology, analog automatic control. Steve Jobs and Tim Cook have managed to turn Apple to an iconic brand. At that time, since the number of the employees is limited, the difficulty Ren zhengfei and its group encountered in the human resource management is little. You also have the option to opt-out of these cookies. Instead, we will use it to fund universities and scientists for their research and explorations into the future. Use the strengths of your organization to achieve your goals. Arjun Kharpal: So that's a metaphor for your daughter? At first, we had several hundred employees focus on this point, then we had several thousand, tens of thousands, and now we have hundreds of thousands. So George revamped the universitys advisory board meetings. 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. One key OQ competency is sending messages that reinforce the strategy. Many Chinese believe the blueprint for Huawei's success was created by its founder and long-time CEO, Ren Zhengfei. I liked reading books, doing homework, and solving math equations on scrap newspaper. Arjun Kharpal: In terms of the way he's negotiated with China, some people would say that actually he's managed to get concessions for the US. This was because we were never intended to engage in military operations. With an "umbrella", Apple sells at high prices and maintains high quality. The slogan at that time was: We shall drink to our hearts content to celebrate our success (ren sheng de yi xu jin huan), but if we should fail lets fight to our utmost until we all die (ju gong jin cui, si er hou yi). Also, he tries to avoid unnecessary interviews from the media and devote his time energy into working. Mr. Ren: They are more than welcome to come visit us in Shenzhen. I also participated in a large project that brought equipment in from France. Many of them thought at that time that he was crazy. On this forum, ideas are communicated frequently by senior executives and Zhengfei and feedback from all 170,000 employees is encouraged. Mr. Ren: I think technology will advance even faster than we could ever imagine. 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. Ren Zhengfei, a founder of Huawei, conducts the personal communication style inspiring employees to achieve high results. Jobs then dropped the device into an aquarium, and bubbles floated up. These figures show that we are still growing, not declining. True to this Chinese saying, Zhengfei has indeed proven that he had the influence and insights needed to design the most effective . 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!. On one hand he possesses the characteristics of a controlling leader who makes all the decisions. If a single backdoor was found in even one of the countries where we operate, our sales would shrink in all of them. She has understood the difficulties that the company is facing and wants to help us see this through. 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. Is it your ultimate aim to get back to business in the US market or just clear your name there? It's now just a scientific fantasy, and wouldn't necessarily ever happen. This hurts no one. Ren Zhengfei's Media Interview After the Opening Ceremony of the Intelligent Mining Innovation Lab in Taiyuan. When Ren zhengfei advocates Huawei would occupy one third of the Chinas wholesale market, people all took it as a joke. Just tell me what you think are going to be some of the significant technological developments over the next two years that you see coming. 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%). Let's look at an example. Mr. Ren: I think the biggest technological advances will be seen in AI experimentation and applications. We did not know that these small things were designed to connect the whole city or even the whole world. It often makes sense to adopt a stealth strategy rather than a formally declared one and to bring people along gradually, as it starts to prove itself. That creates a kind of balance. Do you feel that technology has been a force for good or a force for evil? . Zhengfei is a big fan of the practice of story telling and makes extensive use of it as a vehicle to deliver his ideas to employees in a passionate manner. They can transfer to other industries though, and take on new roles. The engineering troop I was in was among one of the first troops to be disbanded. Arjun Kharpal: A bit about the US market. In the next two or three decades, technology will advance even faster. Arjun Kharpal: Mr. Ren, as we come to the end of the conversation, I want to focus on your future. He is the founder as well as founder of, Huawei Technologies Co.Ltd. And its founder Ren zhengfei is thought be be one of the best leader in the business world. At that time, China was just beginning with its reform and open-up policy, and was paying more attention to technology, talent, and knowledge. Ren Zhengfei now serves as a deputy chairman of the board of directors. High-OQ leaders stage moments of theater that will be told and retold throughout the organization. As mentioned earlier, the first two decades of Huaweis existence were dominated by the force of attack in order to survive and gradually become a better service provider. 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. So we won't do that. Ren described it as a blend of three qualities: extreme resilience, a willingness to self-sacrifice, and sharp predator instincts. It helps reduce many people's workloads. Is this a battle for you? 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. This is an idea that scares people, but right now, it is not yet anywhere near reality. In 1963, he studied at the Chongqing Institute of Civil Engineering and Architecture. The US is a strong economy and offers many high-quality products. Ren zhengfei himself attributes his success to several characteristics. So he and his managers smashed the defective appliances. At Huawei, we have two major areas that we are focusing on for the future. She's, of course, facing extradition to the U.S. How did you feel after her arrest in December? It is great in that it has always pushed to make the market bigger, not smaller. The US and Canadian legal systems are open, transparent, just, and fair. Our network equipment sales dropped 1.5% last year, but enjoyed a 15% increase in Q1 of this year. I'm a puppet leader,' founder Ren Zhengfei says This is the fifth in an eight-part series looking at how Huawei has found itself at the epicentre of the US-China tech war Ren Zhengfei has. 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