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From Ren Zhengfei’s latest interview, I have summarized three secrets of Huawei’s management!

2019-08-25

  Recently, Huawei's "Xinsheng Community" released a minutes of an interview with Huawei Ren Zhengfei for the British Sky News e-commerce station. Huawei said: "First, we are not worried about the lack of sales in the market; second, the supply of parts is no longer under the control of the United States; next, we must try to replace lazy employees and replace fresh blood in."

  A company is like a big ship. It may carry everyone in a calm and peaceful way, but once it encounters wind and waves, those who are lazy and unable to do their best will definitely be thrown off the ship. From this interview, we seem to be able to gain a slight glimpse of Ren Zhengfei's management wisdom and see clearly how this strong old man drove the big ship of Huawei.

  01 Charge against a "city wall"

  If a company does not have a common goal, it will definitely not go far. Only by focusing on the strength of everyone and charging towards a single goal can we achieve final success. Ren Zhengfei said that Huawei has no other desires, only one desire is to do the product well and do what it should be done well. Therefore, the goal of Huawei people is single and their strength is focused. This pressure principle will always lead for decades. Hundreds of people charge at a "city wall" and thousands of people still charge at the same "city wall". Now tens of thousands and hundreds of thousands of people still charge at the same "city wall". Moreover, the "bombardment volume" of the R&D fund for the charge has reached an intensity of US$15-20 billion per year.

  Ren Zhengfei realized ten years ago that Huawei may lead the world in this "small gap" and would have conflicts with world-leading companies and countries. Ren Zhengfei said: "For this little thing, we must be prepared because sooner or later there will be conflict. "

  Ren Zhengfei admitted that his personality is a person who is good at compromise and surrender, not a person who is good at fighting. More than a decade ago, Huawei was planning to sell the company to Motorola for $10 billion, and all contracts were signed, but Motorola's board of directors did not approve it in the end. At that time, Huawei was discussing internally, whether to continue working or selling? Huawei's young school is an electronics student and wants to continue working. Ren Zhengfei said that it would be fine to sell something else. However, the young and strong people have always insisted on continuing in the electronics field, reached an agreement and voted to pass, and then Ren Zhengfei told them: "In ten years, we may encounter who can do better in the competition with the United States, and we must be prepared." Therefore, today, when we encounter such great difficulties, Huawei has not split and is highly unified within.

  Huawei is famous for its wolf culture, and the reason why wolves can scare all animals on the grassland is because they are very united. A united company will face it no matter what difficulties it encounters.

  02 You can't let employees rush to change the company

  Ren Zhengfei said: "The company's internal evaluation of me over the past few decades may be considered a compromise party because I am generally weak and compromised in the company and actually play a puppet role in the company. I am not a strong leader, but a strong leader is the executive board of directors."

  However, Ren Zhengfei has not small power, and he has veto power. Huawei's system was learned from the UK, "The king is under the law and the power is in parliament", "the constitutional monarchy, the imperial power is false, and the government is not in power." Originally, Ren Zhengfei's veto power was terminated in 2018, and Ren Zhengfei no longer exercised his veto power after the new leader completed the transition. But by 2018, it was discovered that the British referendum had been withdrawn as soon as they voted, which was so simple. Because Huawei's entire governance layer (shareholding employee representative meeting, board of directors, board of supervisors, etc.) was selected through democratic elections of employees withholding shareholding, Huawei's managers were also afraid that employees would have sloppy votes in the future to cause major twists and turns in the company's fate, so they retained Ren Zhengfei's veto power.

  Ren Zhengfei said that this veto power can be inherited in the future, not inherited by his relatives, but will select seven elites from the company's highest level in the future and inherit collectively. At that time, they were already in a resignation state and semi-retired state, which would be fair. They have a tenure system, and some may serve four years, some may serve eight years, and have an iterative term. They collectively inherited Ren Zhengfei's veto power on major matters. These people are the highest-level leaders who withdrew from the board of directors and the board of supervisors. They exercise their veto power as representatives of major shareholders to prevent the company from being completely swept by public opinion in major decisions and doing wrong things.

  Ren Zhengfei said: "If a democratic vote is like Brexit, it may ruin the fate of a company. We cannot let employees rush forward and change the company. " Employees' opinions are indeed important, and the company's democratic atmosphere is also important. However, where a company is going in the future, the helm must be a few people, because most people's opinions are blind and will be trapped.

  03 Change the lazy employee and replace the fresh blood in

  Strongness is Huawei's most commendable trait. Ren Zhengfei laughed and said, "Before Trump hit us, Huawei should be a mess, because many employees are very rich, don't want to leave their jobs, don't want to work in difficult areas, and the scale is also very large. We are almost unable to manage it, and the company is shaky. As soon as the United States hits us, it activates it. If you do it well, you will get up. If you don't work well, you will leave. Thanks to Trump for activateing our organization. "

  Huawei can see that it is full of vitality everywhere, and employees in Xinsheng Community can also scold Ren Zhengfei and the company. Ren Zhengfei believes that the person who scolds is not necessarily a bad person. The Human Resources Department should see if he scolds him well or not. If he scolds him well, he will investigate whether he performs well in the past three years. If his business performance is also good, he will be transferred to the agency for half a year and then put it down. This constitutes a very flexible cultural foundation within Huawei. Outside, it seems that Huawei is in chaos, but there is no chaos at all. Everyone is working diligently. In this broad environment, everyone can release their resentment even if they have resentment.

  Ren Zhengfei admitted: "Huawei is so powerful that it scares the United States. Some countries say, 'Huawei is the most advanced, and even the United States is afraid of the best product, isn't it the best?', I bought it without testing, which led to the rapid growth of contracts, which was beyond my expectations." The outside world said that Ren Zhengfei's estimate was wrong, because Ren Zhengfei said before that "it cannot grow, and he will reduce production by 30 billion US dollars", but Huawei's actual financial statements grew very fast. Ren Zhengfei said: "So I don't want the state to help sell our equipment. If some customers don't want to buy my equipment, I won't sell it for the time being."

  Ren Zhengfei said: "First, we are not worried about the lack of sales in the market; second, the supply of parts is no longer controlled by the United States; next, we must try our best to replace lazy employees and replace fresh blood in. " The confidence of a company is its own products and employees. In terms of products, Huawei has enough confidence. The hull of this big ship has been built to be strong enough, and what Huawei has to do now is kick off the sailors who are unwilling to work hard and cheat, and replace them with a group of combat-capable and willing to fight.

  When the environment is good, the company may not need management and can live well because everyone makes money. However, once a crisis and dilemma is encountered, companies with good management can eventually survive. Those companies that do not value management will definitely be smashed like small boats covered with holes under huge waves.


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