Ren Zhengfei: Creative Leader
Essay by Kerri Viragh • November 25, 2017 • Presentation or Speech • 724 Words (3 Pages) • 894 Views
Ren Zhengfei
Milestones & Intersections
- Grows up in rural China.
- His parents are school teachers
- After finishing school Ren leaves home and studies architecture ‘but I never became involved in architecture’1 Cultural Revolution underway:
- Graduated and unemployed, Ren embarks on self‐study to combat boredom
- Study includes electronics from books borrowed from the Workers University of
Shanghai
- Visits Xi’an Jiaotong University and attends a lecture by one of the developers of China’s first computer. Says Ren: ‘I didn't understand a word he said during the two‐hour lecture; however, he greatly
inspired us and set us on the right path in
life.’
1979 To 1986 ‐ China begins reform
- Ren joins Chinese military ‘quite by chance’ and works building textile factories.
- After his unit is disbanded, Ren leaves the army and works as a Manger or a small State‐owned company. Says Ren: ‘I had yet to learn anything about a manager's responsibilities. I wasn't a good manager.’ Failure forced him to leave this company.
- Chinese people encouraged to start their own businesses as a way to combat unemployment.
- Document 18 released allowing Chinese to start private companies – but only in high‐tech industries.
Ren: On the value of employees:
‘People are the most valuable. Employees who are open‐minded, progressive, brave to break established advantages and keep up with the times are our most solid cornerstone. [pic 1]
With such people in the company, we can possibly catch up with the Teslas of the world. Value creation is the yardstick for everything we do.’ 7
1987 – Huawei founded
- “We started the company because we were naïve” 5
- The technical requirements were very stringent and beyond his expectations. Ren acknowledges he paid a high personal cost but ‘there was no going back …we had started on a journey of no return’ 6
1988 to 2000
- Works to establish and grow Huawei
- Focuses on domestic market. Notices that the Communists targeted the country areas first and adopts that strategy.
- Aware that he must compete with Stateowned companies so focuses on customers and recruiting the right people.
- Grows from 3 employees to more than 299 by 1992
- Begins to enter small metropolitan markets in China
- Introduces shares for employees – a first for a private company in China
[pic 2]
Ren: On his experience in the State‐owned company: ‘ It was impossible for us to create customers. Therefore, we needed to find and control the familiar with the law and rules regarding transactions. We didn't have goods so we went to find them and began to act as an agent. Later, we launched our own R&D efforts so we could have sufficient "goods". We had tough time source of goods. We needed to be throughout this process but gradually learned what the market economy really meant.’ 4 |
- http://pr.huawei.com/en/executives/board‐of‐directors/ren‐zhengfei/article/hw‐412440.htm#.WdV2RluPKUk
- Ibid
- Dyer, J., Gregerson, H., & Christenson, C.M. (2011).The Innovator’s DNA: Mastering the five skills of disruptive innovators. Boston, MA: Harvard Business Press.
- http://pr.huawei.com/en/executives/board‐of‐directors/ren‐zhengfei/article/hw‐412440.htm#.WdV2RluPKUk
- Ibid
- Ibid
- http://pr.huawei.com/en/ucmf/groups/public/documents/top_mgmt/hw_334185.pdf
1987 – 1992:
At this stage Huawei is a trading company
- Huawei's venture capital is 21,000 yuan and it has 3 employees
- By 1992 it has more than 299 employees
- Mainly engaged in the communications switch products trade as an agent.
1990
- Huawei has its own switch products but the technology and product quality are relatively low‐end.
- China's telecom market is mainly occupied by Western companies
- Huawei has monopoly in small and medium‐sized enterprise internal communication market
Business and executive skill life cycle 8[pic 3]
1987‐1990‐2002 1997‐2004/1996‐2004 2004 to present [pic 4]
1997 to 2000
- Huawei entered the market of small and medium‐sized cities
1996
- Began to open up outside the market in China, but repeatedly defeated for many years.
2000 – 2004
- A major breakthrough: Huawei established in the global emerging markets such as Russia, Southeast Asia, African
Today
- Huawei has entered the world's major markets, including the Western developed countries market.
- Over the past seven years, more than 65% of Huawei's sales revenue from overseas markets outside China, the business in more than 170 countries and regions.
- Huawei is managed by a rotating CEO which is shared by 3 directors.
- Ren is also a director but does not operate as the CEO
- Ren maintains a controlling interest in Huawei with 1.4% of the total share
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