Copyright 2023 Harvard Business School Publishing. Meng is now in a similar situation. At the same time, the company acknowledged the contributions of dedicated employees by remunerating them generously. I would say he is a great president. We will not distribute any extra profit to our employees. Arjun Kharpal: But what was the personal effect of her arrest on you as a father? High-OQ leaders send messages that reinforce the strategy and minimize other messaging. PIC:A portrait of Ren Zhengfei, the founder of Huawei. He is the founder as well as founder of, Huawei Technologies Co.Ltd. (Academic publishing, he believed, was a necessary but not a sufficient condition for RSM to be recognized as a top business school.) None. 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. Use the strengths of your organization to achieve your goals. and pay only $8.75 each, Buy 11 - 49 Mr. Ren: I would like to comment on President Trump without considering his administration's treatment of Huawei. The billionaire founder of Chinese telecoms equipment giant Huawei rarely. It makes that he is characterised by his employees as someone who leads with his heart and moves with his mind. Arjun Kharpal: So that's a metaphor for your daughter? We are actually learning from US companies. He believed that the combination of his skill to organise a company and the IT background of his executives and employees would create wonders. These great people are going to great lengths to find fault with a little rabbit or mouse like us. Mr. Ren: I think my children have grown up without experiencing much hardship. After getting, retired from the military, Ren has planned to work in electronic business. No backdoors. People will be afraid of getting trapped there. Your email address will not be published. These difficulties will make her stronger and prepare her for even greater things ahead. They also need to follow local laws and regulations and pay local taxes. Required fields are marked *. Arjun Kharpal: Would you support similar ideas about no-spy agreements in other countries, including the US? 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. At this time, Ren Zhengfei's family was starving. 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. With higher prices, we have started earning more. 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. Otherwise, they will become overweight and won't be able to move fast. So firstly, we must abide by Chinese laws and regulations. Does China feel under pressure from President Trump's tactics in the negotiations? Arjun Kharpal: Mr. Ren, I want to move onto a bigger picture of the world of technology. Do you still feel Europe is open to Huawei, or could one country blocking Huawei mean that the whole union stops Huawei from participating in 5G? The law governs what's in between the transaction. Since China has become the second largest economy in the world, this relationship has taken new forms in the shape of several business initiatives. Arjun Kharpal: Mr. Ren, we spoke about Apple and Steve Jobs. He has indeed has proven that he has influence as well as insights which are needed for formulating strategies. Media Contact:Clarence ChenCommunications Manager APAC, CNBC InternationalD: +65 6326 1123M: +65 9852 8630clarence.chen@cnbc.com. Ren has been described as more of a spiritual leader than a hands-on executive. Is that something you would welcome? February 9, 2021. Mr. Ren: I think the most essential factors to judge guilt are facts and evidence. Zhengfei was worried that phase 2 created a kind of decision-making that was less than efficient. 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. Ren Zhengfei is known for avoiding quick decisions and forcing himself to take time to reflect. It is a well-known fact that Zhengfei truly lives this purpose and pursues it with unlimited energy, making Huawei his natural born mission. No reviews should be taken at face value, always conduct your research before making financial commitments. 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. Cuts and bruises toughen her up, and even since ancient times, heroes were born of hardship. We have given up on supercomputing and intermediate computing. And you've said that you want to be number one in smartphones. In other words, the emphasis of results is viewed a basic spirit of Huawei. The authors describe seven characteristics of Zhengfei's leadership style, including 'adaptive vision', 'humble dedication' and 'winning by cooperating'. 5. Interestingly, such a strategy suggests that a power of thinking attitude aligns with a shared learning orientation. Mr. Ren: I can't speak for other companies; I have no authority over them, but Huawei will be the first company to comply with this agreement. Many Chinese believe the blueprint for Huawei's success was created by its founder and long-time CEO, Ren Zhengfei. Huawei is now the world's largest telecoms equipment maker. Second, Premier Li Keqiang reiterated this point at a press conference following a recent session of the National People's Congress. Most of us also didn't understand that move. We cannot deny the role that enthusiasm plays in the procedure. If everyone went to invest in the US, the US economy would grow dramatically. It is clear that although very ambitious and action-driven he also cares about the value of being humble. The second is the maturity tonotengage in unimportant issues. The leadership of Ren Zhengfei, however, does differ from this rather controlling only style in important ways. Why do you think that is? Ren Zhengfei's Media Interview After the Opening Ceremony of the Intelligent Mining Innovation Lab in Taiyuan. 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. 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. It will never happen. Therefore, we will count on the law to address these issues. Mr. Ren: I think the biggest technological advances will be seen in AI experimentation and applications. In-person is back! Indeed, EU officials initially wanted to investigate the anti-dumping act in relationship to Huaweis products. I am just taking as a bucket of "glue". And then, once we had established some market presence, we began to build up capital. People don't object to the editing of plant genes. 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. By submitting your email, you agree to our Terms & Conditions and Privacy Policy. Arjun Kharpal: So would you say the US is scared of Huawei? October 01, 2018, Source: Our financial statements are audited by KPMG, which can clearly show whether or not we are supported by the Chinese government. At that time, Zhengfei clearly used a competitive mindset as the driving force to grow as a company. In his view, it was necessary in the second phase to wear the shoes of the Americans, and if your feet would not fit then we have to cut it. Arjun Kharpal: Have you tried to reach out to the president to speak to him about it? The last thing we want is to have bureaucrats or managers lead our way in technology. Ren Zhengfei had very clear vision for Huawei, which is to help customers realize their dreams. Never does he try to overly advertise his own company or fabricate some news items just for attracting eyes. There was nothing much wrong with them just a few scratches and other minor defects. CEO's are the driving force behind any for-profit organisation. Leadership styles. I want to use a case analogy here. If we get caught in the middle, we will be crushed like a watermelon when these two powers clash. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. 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. It allows a leader to impose expectations and define the outcomes. We support transparent regulation over companies with new technologies, and we are willing to be subject to such regulation. I can share some numbers with you. After, completing his school, He attended the university named Chongqing and then Ren Zhengfei, joined Peoples Liberation Army research institute as, he wishes to work as a military technologist, reportedly in the PLA's Information Technology research unit. People back then thought his discovery was useless and ignored it for 100 years. Harshal Pawar So we gritted our teeth and pushed ahead. We have raised our prices and now many people think Huawei is expensive. Many scientists also proposed that genetic technology should be gradually integrated with electronic technology to create "new people". The government would find it hard to address its deficit. At that time, Ren zhengfei often told all kinds of stories to encourage its employees to imagine the splendid future and try to cast them into reality with their own hands. When Huawei was just founded, the world of communications was extremely under-developed. Western companies are no different. As society moved forward, AI was made possible. As he spent decades building one of the biggest tech companies on the planet, Ren Zhengfei kept a low public profile. The secret is to take advantage of opportunities to do something symbolic in a surprising, high-impact way that will capture the attention (and, hopefully, the hearts and minds) of the organizations members. And also, some countries have also said that Huawei could be a risk because it could work for the Chinese government and carry out espionage on behalf of Beijing. We will not distribute the extra profit to shareholders, either. This shows that the little rabbit or mouse must have something great to offer. Microsoft focuses on Windows and its Office Suite. Photos/ Taddeo Bwambale . But the US is in a different situation. Google is now helping blind people see the world with nerve sensors, although they are not as good as human eyes. 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. A great opportunity arose when one senior professor complained that the teaching program staffers acted as if the faculty worked for them, rather than the other way around. If we didn't pay taxes or follow the laws and regulations in the over 170 countries where we operate, we wouldn't have survived in those countries. This is fundamental to solving problems. Now we talk a lot about genetic modification, or gene editing. As a result, I read a lot of books on law and learned that the market was about two things: the product and the customer. Mr. Ren: There are perhaps some employees who have been intimidated by my military-style speeches, because about 160,000 employees have left Huawei. Arjun Kharpal: What guarantees can you give to customers that their data is safe? 2023 CNBC LLC. We can scale down a little bit. There was no chance for us to step back and start another business. 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. I don't know what the government officials have said, what concessions they have made, or what opportunities or benefits they've received. So he emphasized action. Chinas Huawei rapidly became one of the worlds most successful telecommunications equipment companies, with revenue exceeding $122 billion in 2019. Elon Musk, for example, has continuously warned about the impacts on jobs and actually, artificial intelligence getting more intelligent than humans. Arjun Kharpal: Do you have a succession plan in place when you eventually do retire? Second, ultra-broadband connections, and ultra-large storage systems, as well as micro-computing storage and edge computing. What company can outperform Microsoft in Office and Windows? These cookies will be stored in your browser only with your consent. Mr. Ren: The first time I heard warnings about the societal impact of AI was from Bill Gates and Stephen Hawking. As a matter of fact, one of the strengths that people usually refer to when talking about Huaweis founder is that he is always thinking about the kind of company he wants Huawei to be in the next 10 years. So our products needed to be standardized. Everything is limited. However, there was no way back. In a newly published speech originally given in June 2020, Ren called for decentralised . Important in this whole management process is that his use of an adaptive vision never compromises the purpose and values of the company. Living in such extremely harsh conditions and working on such a highly modernized project was really a good experience for me. KPMG wouldn't hide anything for us. That means there is space in there. Firstly, being practical instead of seeking after useless fame. Leadership Style Assignment : Ren Zhengfei. Whether or not we can get back to business in the US depends on whether our customers want to buy from us. AI has emerged because of several key advancements: First, massive computing power. Any one of these things could help them conquer the world. Enterprises can now transfer their funds in other countries back to the US because of a low tax rate of 12%. There's a lot of disagreement, of course, on what the right course of action is in Europe. The cost of using a warship is high. Arjun Kharpal: I want to talk a bit about your management style. 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. Mr. Ren: If they aren't scared of us, why are they advertising for us everywhere they go? Do you think she's a hostage in this broader US-China trade battle? The multinationals that were present in China at that time did not consider this to be their problem, but rather that of the customer. It emphasized clear-cut goals, hard-and-fast rules, employee dedication and absolute obedience. For example, although his inspirational leadership style pushes forward the company and guides it through transformational phases, he is always quick to add that he may not be that good in bringing people together as many would like to believe. 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They replied that they could not make it smaller. As a leader he was used to delivering a vision and as a mentor he was guiding his employees towards their goal. As Ren was dissatisfied with his job, he planned to, Despite of his low profile, Ren has managed to transform small business into a successful. Because they are simple and easy to understand. Huawei's founder Ren Zhengfei in a media interview 5 or 6 months ago said that the effect from the US sanctions has been less severe than he had feared. However, monopolies in these kinds of technologies will benefit the world, rather than harm it. company using his skills and core competencies. However, it kills employees creativity and . Jobs then dropped the device into an aquarium, and bubbles floated up. 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. 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