Ren Zhengfei dispels doubts for SONY CEO Yoshida Noriichiro: HUAWEIs strong secret

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 Ren Zhengfei dispels doubts for SONY CEO Yoshida Noriichiro: HUAWEIs strong secret

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Recently, a summary of Ren Zhengfeis meeting with Sony CEO Ichiro Yoshida came out. From the perspective of Ichiro Yoshidas questioning about Ren Zhengfei, this summary revealed many little-known stories about Huawei, including the story of Huaweis management, the beginning of its business, and Ren Zhengfeis attitude towards Apple.

The text reads as follows:

I. internal management of HUAWEI:

1. President Yoshida: Sony Corporation has 72 years of history since its founding. I am the 11th president of the company. I started to work in April this year. I learned three main things from Mr. Morita, the founder of Sony: first, we need to have a sense of crisis; second, we need to be modest; and third, we need to have a long-term perspective. Is Rens philosophy similar to yours?

Ren: basically similar. But I think the first point should be a sense of direction, including customer demand, the sense of direction of future technological innovation. Of course, technological innovation is actually customer demand and future customer demand. Constantly adjust the direction, the direction should be roughly correct. Direction does not always require absolute accuracy. The absolute right direction does not exist, too mechanical dogma.

Second, the organization should be full of vitality, which is basically the same as the three points you mentioned. Therefore, we should dare to update the internal organization and personnel in an iterative way. For example, our combat organization must ensure that a certain proportion of grass-roots personnel participate in the decision-making level. The strategic decision-making of the top command allows a small number of new employees to participate; the next level is called campaign decision-making, such as regional decision-making, product decision-making, etc. It is not only new employees, but also low-level employees. We have implemented the principle of three-three systems at all levels, so that some excellent second-class soldiers can participate in the highest decision-making as soon as possible. Before we excluded them, some people asked, what do new recruits do in the highest decision-making level? He attended the meeting, even though he didnt understand many of the contents, but his head was open, he knew about the future war ahead of time, and they were still young. The new force is like the catfish, which activates the whole fish. Therefore, it is easy to update iteratively. Instead of worrying about the lack of cadres, we are worried that there are too many reserve cadres to arrange his work. If there are too many reserve cadres, the in-service cadres will not be lazy or lazy, otherwise they will easily be replaced by others.

2, the president of Yoshida: HUAWEIs internal shareholding system and rotation mechanism are quite unique. Sony Corp and HUAWEI business contacts, I find HUAWEIs decision is very fast. Is HUAWEIs decision making fast related to personnel system?

Mr. Ren: first of all, explain our rotation system. If one person in the company has absolute authority and appoints cadres at will, others have to admit it, then the companys employment mechanism will be confused. There are three top leaders in our company. One person cant say anything. We have to ask for the opinions and support of the other two. After the three of them have reached an agreement on their way of thinking, they will also be discussed by the executive board and vote by show of hands. After the adoption of the executive board, the minority will submit to the board of directors for a vote, and the minority will submit to the majority. This restricts the Supreme power, safeguards the unity of the cadre system of the company, and avoids the exclusion of cadres disliked by individual leaders in the company.

This decision process is slow, four slow and fast.

The chairman of the board of directors manages the operating rules of the executive board on behalf of the shareholderscongress, and the board of supervisors manages its behavior. In this way, we form a mechanism - king under the law, and the supreme leader must abide by the rules and regulations. Law is the rule of management. Second, in collective leadership, Wang cant speak a word. He can put forward opinions and vote through the collective voting, so as to control the top leadership without impulse.

Our actions from top to bottom are very consistent. There is a system of legislative power higher than executive power. There is a traditional saying in society that county officials are not as good as the present management. Legislative power has been overridden. We emphasize that legislative power is greater than administrative power. When we set up rules, we widely solicited opinions from grassroots cadres. It can be criticized or objected. After the formation of the system, it must be carried out. If it is not implemented, it will be removed.

President Yoshida: Now Huawei has improved its decision-making system. In fact, our decision-making is fast, not the decision-making itself, but the action after the decision-making is very fast.

Ren Zong: Yes, the decision is slow. Four slow down.

3. President Yoshida: I once read in a book that Huaweis top managers had resigned and resigned. What was the purpose of doing that?

Ren: iteration update. For example, we are now going to attack a mountain head (referring to products). The main attack force concentrates on the mountain head. His energy is focused on the attack of realism. When the mountain head is captured, he has exhausted it.

We also have the second echelon, not only to consider the mountain top, but also to consider the artillery extension, such as how to attack the mountain top next step, how to manage the future, what shortcomings of weapons need to be improved... He wants to improve operational methods in a wider range. After the first echelon has fought the war, it may be diverted: some people go to the market, service, management... Some of them continue to make new teams and merge with the second echelons, thus broadening the campaign area. He is the most knowledgeable product person, the prophet in the market, the most knowledgeable and competent person in the service, the experience and lessons learned in the management, and the growth of this person is also full of opportunities according to his personal characteristics. When the second echelon rushed up, it was no longer using rifles or machine guns, but with tanks or artillery... All kinds of new weapons attack, so the offensive ability is stronger.

The third echelon, studying the multi scene, attacking the big mountain top and small hill head are different ways of fighting. For example, the market demand is in Tokyo, Hokkaido and Hokkaido, which is called multi scenario. It is too wasteful to put Tokyos equipment in the countryside of Hokkaido. When the same product corresponds to different customer needs, it appears in different forms, at least reducing the cost and energy consumption.

The fourth echelon, starting from the network minimalism, product architecture minimalism, network security, privacy protection, further optimizes the products, studies how to simplify the weapons in front of attack, and makes the best equipment with the cheapest parts. According to the operational characteristics of the first, second and third echelons, the fourth echelon simplifies its structure, greatly improves its quality and reduces its cost, and strengthens the protection of network security and privacy. In recognition, we often attach great importance to the first echelon, and attack the glory of mountain top and wear him a big red flower immediately. In fact, the fourth echelon is the most difficult to achieve results, he has to use the worst parts to make the best products, but also faces a series of problems such as research and development of spare parts. If we dont affirm that the fourth echelon cant do it for a while, no one will do it.

To sum up, our R&D is just a few words: multi-path, multi-echelon combat queues, multi-scene according to different customer needs.

4. Takahashi Ocean (President of Sony China): As you mentioned earlier, customer needs will be developed in different scenarios. What is the specific order? For example, with customer needs, open technology according to demand; or with technology, choose according to customer needs?

Ren: Customer demand is a philosophical issue, not a problem of communication with customers, either what the customers mentioned or what they needed. First of all, we should aim at the comprehensive understanding of customer needs and make a scientific prototype. The scientific prototype may be idealized. The parts it uses may be very expensive. Its design may be very sophisticated, but it can achieve functional objectives.

The second echelon is to turn scientific prototype into commercial prototype. Commercial prototype should consider practicability, productivity, deliverability and maintainability comprehensively. This product should be more practical and can basically meet the needs of customers. The price of new products is often higher when they are put into production.

The fourth tier team began to study tolerance design and cheaper parts to make the best products. For example, the design of TV is tolerance design.

In this way, we can not satisfy customers needs, but let customers lead their noses. Otherwise, just to meet the customers needs, new opportunities appear again, too fragmented, we are totally helpless.

5. Yoshida President: is HUAWEI open to discuss and allow the existence of objections? What form is adopted to ensure the safety of the spokesperson? For example, is the anonymous community you mentioned just now anonymous?

Ren: You Chinese-speaking people can visit Xinsheng Community as tourists to see that our internal objections are well-established and protected. Our human resources have a mechanism, in anonymous posting and anonymous criticism, first look at the accuracy and relevance of his criticism, to determine whether this person would like to communicate with us later. Although anonymous, we still know who he is, but the network does not know who he is, but we will never attack him. If he is willing to talk, some people may be selected to work in the secretarial organs of the company for about 3-6 months, charge by the organs and go back to the front line to see if one or two problems can be solved by this method. Of course, if the comments are simple and empty, we will tolerate them, but not necessarily.

President of Yoshida: for objection, is it also used in talent recruitment?

Ren Zong: Yes. How do I know that two soldiers can be promoted to generals? If the second-class soldier is selected layer by layer by layer with bayonets, he may not be able to take the general position, even if he reaches the general position, he may be 80 years old. Some of them are not opposed to each other. They may be more aware of things than we are. Those who oppose may have gifted and talented talents who tolerate resistance and will be able to produce talents.

Two, about HUAWEIs development process:

1. President of Yoshida: Thank you for your introduction. It is said that Huawei is a kind of development: China begins from the countryside, and gradually moves to the county, city and provincial levels... Developing markets; Overseas global markets, from backward countries to developing countries, and finally to developed countries? Is this a development model?

Ren Zong: No, from the countryside to the city is not our strategy. This is the medias own propaganda package. At first, our products failed to reach high standards and could not be sold in developed areas. In fact, we wanted to attack Tokyo from the beginning, but not to go in, does not mean that we regard the countryside as a strategic goal. If we take the countryside as a strategic goal, even if we do well in the countryside, we will still not be able to enter Tokyo. So, in the process of moving towards Tokyo, we cant do it in some places, but we can lay eggs along the way first. If we only focus on the backward market and then on the developed market after success, when you finish the countryside, it will be abandoned by the times, because the times are developing too fast. If the product is ready, it will be sold to whoever buys it.

2. President Yoshida: I heard that you are a 44-year-old entrepreneur. Did you set your goal at the beginning? Huawei must be the first manufacturer in the world?

Ren Zong: No. In our 40s, we started our business because of a change of track in our life. Chinas great disarmament and restructuring have laid off our troops. Then we have to go to the market economy. I am not familiar with the market economy and can not live without the army. After disarmament, the fate is very difficult. I personally realized it. How did it survive at that time?

From the high position of life to the bottom, I want to survive, but also to support parents, wives, children, can not find a place to use me, I am not willing, only to start a business. When I started my business, I had no money. My husband and wife received a total of 3,000 RMB transfer fee. But it takes 20,000 RMB to register a company, so we need to raise funds. So, when I set up the company, I had no money at all. When I started the company, my salary was 500 yuan per month. I needed to support my family. My early goal was to survive. At that time, we did not understand the world, nor did we know the industry of communication. Therefore, from childhood, I want to be a great leader. I want to be the first in the world when I start a business. This is not practical. Once a man is successful, he can easily be packaged by the media. He does not see how we look like a rat.

When starting a business, the pressure is tremendous, the living conditions are very poor, completely do not understand what the market economy is, just came out of the army, think that earning other peoples money is deception. After several years of development, it has begun to enter the fast lane. The faster, the more contradictions, the intercourse of all kinds of problems, the total lack of strength, and the mental collapse.

2000 years ago, I was a depressive patient. I wanted to commit suicide many times. Every time I wanted to commit suicide, I called Chairman Sun. At that time, I knew that it was a disease, knowing that the critical moment was to ask for help. Can not withstand such a great social pressure. There are some young CEOs of big companies abroad who are growing faster than us and cant bear the pressure now. Ask me how I came from. In fact, everyones mental state is different at different times. We had no idea that we would be the first problem in the world in the past. Sometimes I say to survive does not refer to the economy, but also to ideas. Outside myth, we are incompatible with reality.

Until 2006, the waiters invited me to have dinner in Xibei Xianmian Village. We sat in the lobby. There were many peasant girls in Inner Mongolia Village singing. I invited them to sing. A song cost three dollars. I see them so excited, optimistic, so loving life, poor farmers want to survive, why do I not want to survive? That day, I shed a lot of tears, and I never wanted to commit suicide again. Only then did we adjust our strategic objectives. Hundreds of thousands, tens of thousands and 180,000 people of Huawei have been focusing on the same city wall charge. The annual R&D expenditure is between US$15 billion and US$20 billion. No listed company in the world is willing to invest such a large amount of money in R&D. Only then will we serve the whole mankind.

Actually, I am not smart. My mother is a principal of a primary school. Every time after school, she takes my hand home. On the way, she tells me which students are doing well and how. At that time, I did not feel, until today I understand that my mother was steelmaking, hate iron into steel, initially numb to a point do not understand, foolishly spent life. Dont be myths on the Internet. I may be incompetent to be so open.

3. President of Yoshida: Thank you very much for your frank thoughts. You are very modest. Just now, why do you choose to communicate in order to survive?

Mr. Ren: we choose communication. It is by chance, not necessarily. At that time, we thought that the communication industry was very large, so long as we did a little bit, we could survive. But we dont know that the communication industry is so standardized and the technical standards are so high. Maybe our life will be easier if we go to other industries. However, we have already embarked on this road. If we returned at that time, we would not have any money, and we would still have to pay our debts, so we had to walk down hard.

Just in the 1990s, the worlds electronics industry is transforming from analog circuit to digital circuit. Digital circuit is much simpler than analog circuit. Our small company can do something. Japan is very successful in analog circuits. If we were to do operational amplifiers at that time, it would be impossible. The pulse circuit is also a possibility for small companies. At that time, the whole world communications industry, including the electronic industry, was in a backward state, and there was still a little market for backward products. So, in the process of following the development of the world, we gradually earned a little bit of money and grew up.

Choosing communication is not wise, but we really dont know how difficult this road is. If we had known that communication was so difficult, we might have to pay for our lives, then we would not have taken this road. Because China has many opportunities when opening up reforms, it can also choose other paths. Therefore, the choice of communication is accidental, and on this road, there is no way to retreat.

Last time I communicated with Zhang Zhongmou of TSMC, he asked, why do we have different roads? First, Taiwan opened up early. He has more than 20 years of studying and working experience in the United States, and has seen how the big electronics industry in the United States grew. Taiwan has developed more than 20 years earlier than the mainland and accumulated capital, so the Taiwan government can provide him with 200 million dollars to start a business. Before Chinas reform and opening up, there was basically no big industry, no talent and experience, and no capital. When we start a business, the government not only has no money to support us, but also needs to pay 20,000 yuan to register a company. Secondly, in the mid-1980s, when the world entered the computer age, it developed very fast. We dont understand computers. Young children dont understand computers. But they are young. If they dont embrace them, they cant complete the metabolic iteration. When they come in, if they pay 1 yuan for building a brick like migrant workers, they will surely leave, and our technology will not accumulate. We have invented a way to share the stock with you. Every brick of the Great Wall has its share. If it goes away, there will be no more. So everyone stays. At the same time, the company has accumulated some capital through stock subscription. At that time, it was an expedient measure and did not expect to become a mechanism later. In the early days of the company, we had some employees who couldnt do it, but why were there so many stocks? Because I didnt have enough money to pay him, I gave him stocks. Of course, we now have a standard share allocation mechanism, but there was no mechanism in the early days, and workers also have a lot of stocks. Internal shareholding system was also a mechanism without environment and conditions at that time. After more than 20 years of perfection, it has now become a mechanism with combat effectiveness.

Therefore, unlike Taiwan and Japan, we are a typical entrepreneurial model of poor people without knowledge and technology. At that time, we were poor. Faced with the new information society, I was also a person without knowledge. I had to embrace knowledge and capital. I could only adopt this method.

4. Yoshida President: the communications industry is changing very fast and very fast. Around 2000, the IT bubble collapsed, and some big companies in the communications industry also changed a lot. For example, Motorola was gone, alon had many integration, NOKIA was weaker than before. What do you think and comment on overseas communications enterprises?

Ren: IT bubble burst, we are also in a very serious crisis, not only external crisis, but also internal crisis. At that time, our ideological system, management system and administrative system were still scattered sand. Many people took the companys resources to start their own business outside without assuming the companys risks and responsibilities. This situation also existed. Outside risks, like all western companies, have encountered Waterloo in the market.

We held a meeting of 400 senior cadres in an intolerable situation and studied the German book On War by Crossewitz. What is a leader? In the boundless darkness, there is a glimmer of light, illuminating the way forward and guiding everyone out of the darkness. At that time, we were on the verge of collapse. More than 400 people united and got out of this dilemma at the most difficult time of the company. We have only been in the past fifteen or six years of this tragic situation.

We dispatched a large number of people to overseas markets, and the slogan to welcome them to overseas is very tragic. The slogan Bury loyal bones everywhere in the green hills, why do we need to return the horses leather shroud. The heroes may not return once they have gone. At that time, the whole of Africa was in turmoil and war environment. In Russia, we have changed four presidents, and the fourth president has made the worlds first foreign trade contract - $36. Thats where we started. Today we can achieve 110 billion dollars in sales revenue, and dont forget that there is a 36 dollar Splendor.

Yoshida President: the IT bubble is definitely a crisis for HUAWEI, but after the IT bubble, HUAWEI and other Western companies have drawn a gap. Do you agree with me?

Mr. Ren: I think the IT bubble is a crisis for us. Of course, it is also a crisis for the West. At that time, we decided to step back to the lowest position and move forward. There was a strategy called Chicken Rib Strategy. Chicken Rib was the most meatless. At that time, Nortel made the biggest mistake on the issue of optics. Because of the surplus, optical transmission was so cheap that many companies gave up. Comparatively speaking, low-end optical transmission technology is relatively simple, so we will concentrate our efforts here to find opportunities. We have reached the lowest point, no retreat, in the field that others do not do, we choose to seize the chicken ribs and strive to develop. This product, at that time we should rank in the world dozens of places, with the low-end optical transmission bit by bit success, bit by bit up, today we can lead in optical communications.

5. President Yoshida: I am deeply impressed by your speech today. I would like to bring some ideas back to our company. For example, as you mentioned just now, although customer centered, it is not entirely 100% listening to customers voices. As you just said, choosing the telecommunications industry is not inevitable, but accidental, which is quite surprising to us.

Ren: Im not a communications major. I majored in architecture in university. I taught all electronic technology by myself. After graduating from university, my first occupation was pig-raising. At that time, college students had to receive re-education from workers, peasants and soldiers. I was assigned to a cooking class to raise pigs, which was to use the electronic technology I taught myself during that period. Therefore, the choice of the communications industry is accidental, too do not understand the industry, think it is easy to do, and crowded in. Chinas real estate is booming. I should choose to be a contractor and make money faster.

Yoshida President: from the contribution to the world, fortunately, your choice of communication is the right choice.

6. Takahashi Ocean (President of Sony China): I heard that you seldom receive media interviews. There is a general view that media interviews by company leaders will benefit the companys brand. What do you think of the relationship between media interview and brand?

General manager: brand is the most honest, not propaganda. I am mainly shy, dare not attend the conference, not good at accepting media interviews, maybe the camera is aimed at me, I am silly. I am not good at systematic expression, and the point to point questions may be better. When I interviewed Davos, I was actually deceived. At that time, they just said closed-door meetings. I thought it was like meeting with you face to face. I didnt know it was broadcast live the night before the interview.

Three, on open cooperation:

President of Yoshida: let me introduce my personal situation. Six years ago, I also came to HUAWEI. At that time, I was in So-net company, mainly responsible for fixed network. At that time, we planned to start doing this service in 2013 and choose the terminal to use Huawei. Although there were voices against Huawei and it was only a small contract of $10 million, we came to Huawei in 2012 and found that Huawei welcomed us all. We heard the introduction of vision and heard the idea of customer centered.

First, in lens research, we have a lot of advanced technology. We can consider authorizing you to tell Apple our advanced technology and let Apple use it, but we do not ask Apple to tell us their secret. I hope that in this world, we will serve the human society together. Secondly, in terms of power technology, we should be in the lead of Apple at present. Can we consider supplying power modules to Apple to improve the power endurance of Apple mobile phones? Or we can authorize the production of Apple for patent fees only? My mind is very open, but I also need the companys board of directors to approve my decision. President Yoshida: It seems that from a certain period of time, Huawei has clearly defined the opening strategy. Does the opening strategy mean coexistence with partners? Ren Zong: Yes. Source: Global Times - World Wide Web. More brilliant, please log on to World Wide Web responsible editor: Yao Liwei _NT6056

First, in lens research, we have a lot of advanced technology. We can consider authorizing you to tell Apple our advanced technology and let Apple use it, but we do not ask Apple to tell us their secret. I hope that in this world, we will serve the human society together.

Secondly, in terms of power technology, we should be in the lead of Apple at present. Can we consider supplying power modules to Apple to improve the power endurance of Apple mobile phones? Or we can authorize the production of Apple for patent fees only?

My mind is very open, but I also need the companys board of directors to approve my decision.

President Yoshida: It seems that from a certain period of time, Huawei has clearly defined the opening strategy. Does the opening strategy mean coexistence with partners?

Ren Zong: Yes.