Ren Zhengfei: transformation Huawei &quot;Trilogy&quot;
In 1998, Huawei became China&#39;s largest telecommunications equipment
manufacturer, Ren Zhengfei realized size of the company&#39;s rapid expansion
and development, facing an unprecedented crisis and stress. Huawei Ren Zhengfei
always keep in mind development goals, he argued that Huawei &quot;has made
a breakthrough product technology, not only can not the hot topic around the world,
but also at the door may not have the advantage.&quot; Ren Zhengfei said,
&quot;It is up to the mainstream market in China and Africa to play a small
Zhengfei always wanted to understand how the world is managed. Since 1992, he has
to the United States, Europe and Japan, visited the French Alcatel, Siemens and other
industry-leading multinational companies. Ren Zhengfei is a good observation and
learning management, these overseas visits, and giving him a lot of touch and
inspiration. Before and after Christmas in 1997, visited the United States Hughes,
IBM, Bell Laboratories and Hewlett-Packard and other 4 company, Huawei Ren
Zhengfei thoughtfully on a series of reform plans.
The reform has laid a foundation of Huawei&#39;s global operations. And Ren
Zhengfei not based on these modified &quot;independent&quot; or
&quot;Chinese style&quot;, but on the basis of a global vision outlined by
the &quot;integration of global resources for our use,&quot; the future
Internal management reform
Ren Zhengfei key issue to consider is the transformation of the internal management
of Huawei, which covers all aspects. He even stressed that &quot;(cadres) should
be understood as a kind of life the soul and spirit, to the soul and spirit go into the
management. Cadres not to be laid off this spirit.&quot;
A draft three-year &quot;Huawei Basic Law&quot; was formally
implemented in 1998, this is the first summary business strategy, values and
management principles of &quot;corporate constitution&quot; and the
institutional system. Zhengfei began looking to establish a world-class enterprise
system to ensure that he hoped to learn &quot;Huawei Basic Law&quot; in
this way, able to exist in their values among brain 有 效
&quot;transplanted&quot; to the brains of the new management.
Ren Zhengfei said: How can a company long-term stability, this is the biggest
problem since time immemorial.
In the &quot;red flag in the end Huawei can play long,&quot; the article, he
further pointed out: We need to gradually get rid of dependence on technology,
dependence on qualified personnel, dependence on capital, so that enterprises from
the realm of necessity to the realm of freedom, and establish a more reasonable
management mechanism. Out of three dependence to the realm of freedom is the key
management. We drafted the Basic Law is to build from a platform and a framework
for technology, talent and capital to maximize the effect.
Many Chinese manufacturers with the economies of scale of different concerns, Ren
Zhengfei believe &quot;can not automatically bring about large-scale low-cost,
low cost of management produced.&quot; In &quot;What we learn from the
American people,&quot; the article, Ren Zhengfei said: small scale, in the face
of all external factors, is an objective law, it is difficult to man&#39;s will, and it
must carry not live storm. Therefore, we only strengthen the management and service,
no return in this, the only existence.
Huawei Ren Zhengfei hope to exceed the future development of competition on a
single factor - technology, talent and capital, dependence, and not to blindly for the
steadfastness of the low-cost manufacturing. He hoped that Huawei will become a
rich commercial organizations fighting, and thus become a world-class enterprise.
Efforts to target the process, &quot;Huawei Basic Law&quot; to establish a
framework for macroeconomic management, Ren Zhengfei &quot;through a
series of 子 method was used to describe and bring point a lot of management
methods and management method, made truly achieve management
However, Ren Zhengfei opposed to management issues conservative, and his
management of transnational corporations and management tools doubly respected,
have been very clear: I am firmly opposed to the Chinese version of the management,
Huawei management features. The so-called management innovation, at this stage is
going to digest the mature Western management.
Zhengfei more appreciation IBM, he often referred to Gerstner led IBM in the 20th
century the transformation of 90, and IBM&#39;s management praised Canada:
IBM is a long history of the company 80 years, but just a student baby Huawei , in a
textbook-style naive management phase. We have been cautious, but do not want to
fall into the river to go. We should see, IBM has a very high standing height, which
coordinates the world-class, so IBM that our problem, we must understand.
Huawei IBM in 1998 for his lock on the road leading to world-class learning model
and strategic partners. Huawei first determine the business model from telecom
equipment manufacturers a total solution to telecom providers and service providers
transition to full and complete product lines of Huawei&#39;s overall superiority.
This can also learn from IBM since 1993 and the transition process in the business
model of knowledge and experience. Next, about 50 stationed Huawei IBM
management consultant. 5 years, Huawei has invested about 50 million U.S. dollars
for this transformation of the internal management and business processes. Huawei
has also formed a management engineering department of 300 people to work with
Business Process Transformation
The cooperation between Huawei and IBM project - &quot;IT Strategy and
Planning&quot; in August 1998 officially started. The main core of the project
content and purpose of planning and Sheji Huawei Wei Lai 3-5 years needed to
Yewuliucheng and Suoxu of IT support Xitong, You 集成 product development,
Integrated Supply Chain, IT systems re-engineering, finance four uniform (financial
Zhiduo and accounts uniform, code unification process unified unified and
monitoring), etc. 8 items.
IBM consulting team in the 1999 research report, Huawei&#39;s supply chain
management, compared with leading multinational companies, there is a big
difference: 1. Huawei order delivery rate of only 50% of the time, industry-leading
multinational companies average of 94%; 2. Huawei&#39;s inventory turns of
3.6 times / year, multinational companies an average of 9.4 times / year; 3.
Huawei&#39;s order fulfillment cycle up to 20-25 days, average about 10 days
multinationals . IBM consultants pointed out that Huawei&#39;s supply chain
management play only 20% efficiency, there is much room for improvement. Huawei
supply chain management efficiency is low, which reflects the Chinese manufacturing
enterprises &quot;common problem.&quot; Although the Chinese
enterprises are focusing on lowering manufacturing costs, but the attention mainly
focused on manufacturing sector itself, but little attention outside the manufacturing
sector the cost and efficiency issues, leading to an integrated operating costs, often in
out of control.
In fact, we stressed that &quot;the chain of the chain&#39;s
competition&quot; the importance of theory, not only prompted concern about
how Chinese enterprises to upgrade industrial chain of control is more important is
the &quot;end to end integration capacity&quot;, that is, from raw material
procurement to customer management and other value chain links, the Chinese
companies how to rely on their own unique competitive advantage to integrate
materials, manufacturing, channel, brand and other resources.
Huawei IBM in 2000 introduced an integrated supply chain management, the
company&#39;s organizational structure have been adjusted, the establishment
of a unified Department of Supply Chain Management, Ta Baokuoshengchan Zhi Zao,
purchasing, customer service and global logistics.
Huawei Integrated Supply Chain Management implementation in a dispute over soon.
Ren Zhengfei requirements, &quot;first rigid, after optimization, and then cured,
to promote the implementation of integrated product development.&quot; In the
end, Ren Zhengfei strong drive and personal charm, to the arduous process of change
continued to promote the implementation of the project, he always believed that with
the dogma Marxist approach to promote the change, perhaps not perfect, but he is
most effective. Ren Zhengfei believe: Only first IBM system to absorb things come to
genuinely understand what for Huawei, Huawei also can see clearly what are the
problems need to be improved.
When business processes change Huawei finally be implemented, the company has
undergone many significant changes. If this change initially as Huawei internal unrest,
then after 2000 Huawei actively expanding global business, Huawei to upgrade its
industrial value chain (suppliers) and downstream (customer) management capability
demonstrated the docking of the world, is relatively hidden a lot. Perhaps, this process
of change is like an industry &quot;world language&quot;, when you
master it does not feel the time how important, and if you do not have it, you can only
communicate in a primitive way.
Transform the corporate culture
Changes in the process the most difficult years between 1999-2000, IBM management
consultant on the Huawei has made problems in the management phase summary:
Huawei did not have time to do things one time, there is enough time to do things that
a do. Huawei hierarchy, lack of communication and culture, leading to attempts by
various organizations and conferences to adjust to solve the problem. Quickly realized
that Ren Zhengfei, Huawei&#39;s success in the past certain elements of
corporate culture change management has now become an obstacle.
Ren Zhengfei that the real difficulties of managing change appear in the
&quot;battle of body&quot; level. Huawei to introduce IBM&#39;s
management was seen as a purely Western concept of modern management, but the
way of thinking within the company remains &quot;Chinese style&quot;, or
&quot;past Huawei style&quot;. This &quot;as the body,
occidental&quot; way of thinking, the staff level, the formation of a
&quot;separate body with a&quot; pattern of behavior, which seems
incompatible with the norms of behavior is very difficult to solve.
However, Ren Zhengfei equally opposed to &quot;total
Westernization&quot;, he thought it was from one extreme to another, and
&quot;secondary school, Western Learning to use&quot; the same can not
be the right choice for international. In 2000, Ren Zhengfei proposed the famous
&quot;Grey&quot;, that is a manifestation of his philosophical thinking, but
also the direction of cultural change on the Huawei Overview: gray is black and white,
is among the areas of non-; gray is not the meaning of extremes, based on the change
in succession, on the basis of stability and innovation in upholding the principles and
appropriate flexibility in the various contradictions and corporate paradox.
Huawei director in early 2002 on the senior management level and above were closed
several days training in the Philosophy Department of Peking University and Chinese
Academy of Social Sciences invited the eight scholars taught the Oriental culture,
philosophy and the Protestant Ethic and the Spirit of Capitalism and other Western
Philosophy thinking. Ren Zhengfei hope to develop high-level vision, reshape their
thinking, for the management of change lay the ideological foundation for further
Ren Zhengfei believe that Asian companies to the world-class process, have
experienced the pain of corporate culture change process, transcend cultural barriers
has also been handed over to the high tuition fees. Therefore, only the establishment
of world-class companies need to comply with the corporate culture,
Huawei&#39;s business process transformation in order to achieve success.
In the choice of issues on their own corporate culture, Ren Zhengfei stress Eastern
wisdom is important, but to achieve Huawei&#39;s internationalization, the need
to achieve &quot;unity of Taoism&quot;; Huawei to move beyond the
&quot;body used war&quot;, the corporate culture into the system before is
the best way to corporate cultural heritage.
2000. Ren Zhengfei conscious fade into the wilderness, as in the past that he no
longer pays attention to &quot;engage in sport&quot; approach to mobilize
staff enthusiasm, more often, he would talk to integrated product development,
integrated supply chain management focus on the management of change significance
and specific content.
Ren Zhengfei said: Huawei huge gap with their foreign counterparts, if not the first to
establish the process of integration with the international organizations and
professional workforce, then not in the high-end products and markets and
competitors compete, let alone the implementation of the acquisition acquisition
strategy as a group to walk out from the Qing Shazhang the
&quot;farmers&quot; They may not operate a modern international
enterprise, there is no way to digest bought the &quot;Western-style
&quot;What we want is success, not a slogan, it is said Huawei runs very calm,
no news, is not gone. We say that is called&quot; hydrostatic undercurrents.
&quot;Surface of calm water, the water may be deep below hurry . Huawei is
now very calm, shows the company has been gradually regularized. &quot;Ren
Zhengfei think so.
Huawei with a range of instruments, such as the qualifications system, five pairs of
channel career development routes, to promote the professional staff level. In the end,
Huawei professional staff and management changes in a direction of the two lines.
Professional people and between management innovation
&quot;rejection&quot; drastically reduced.
In order to achieve world-class business development goals, Huawei, the company
&quot;foreign&quot; culture has made a correction. Zhengfei that
&quot;you have me, I have you,&quot; the strategic concept: peace and
development are the countries the main theme of openness and cooperation is a major
trend among enterprises, we have taken into account in future no one can dominate
the world side, only to strengthen cooperation, you have me, I have you to be a
greater common interest. This broad right Dengdihezuo, Shi Women strengths quickly
upgrade to quickly introduces new products, in the very short Ti Gong and Wai Guo
Gongsiyiyang of service.