Ren Zhengfei'S Pformation Of HUAWEI Trilogy

In 1998, HUAWEI became China's largest telecommunications equipment manufacturer. Ren Zhengfei realized that the rapid expansion and development of the company faced unprecedented crises and pressures.

Ren Zhengfei always kept in mind the development goals of HUAWEI. He believed that when HUAWEI achieved the technological breakthrough, it could not only beat the whole world, but also had no advantages at home.

Ren Zhengfei said, "at present, the most important thing is to win a small victory in China's non mainstream market."

Ren Zhengfei has always wanted to know how big world companies are.

These changes have laid the foundation for HUAWEI's global operation.

Ren Zhengfei's pformation is not based on "independence" or "Chinese style", but a future development strategy based on the global vision, which is "integrating global resources for our own use".

Transformation of internal management

One of Ren Zhengfei's priorities is to pform HUAWEI's internal management, covering all aspects.

He even stressed that "(cadres) should understand life as a soul and spirit, and should inject this spirit and spirit into management.

Cadres without such spirit must be laid off. "

The basic law of the HUAWEI, which was drafted for 3 years, was formally implemented in 1998. This is China's first "enterprise constitution" and system system to summarize the principles of enterprise strategy, values and management.

Ren Zhengfei began to look for institutional guarantees to establish world-class enterprises. He hoped that by learning the basic law of HUAWEI, he could effectively pplant the values in his own brain to the new management brain.

Ren Zhengfei once said: "how can an enterprise achieve long-term stability? This is the biggest problem of all ages.

In the article "how long can the red flag fight in HUAWEI", he further pointed out that we should gradually get rid of dependence on technology, rely on talents and rely on capital, so that enterprises will move from the realm of necessity to the realm of freedom and establish a more reasonable management mechanism.

The key to getting rid of the three dependence and moving towards the realm of freedom is management.

Our drafting of the basic law is to build a platform and a framework to maximize the role of technology, talent and capital.

Unlike many Chinese manufacturing enterprises concerned about the economies of scale, Ren Zhengfei firmly believes that "large-scale can not automatically bring low cost, low cost is generated by management".

In the article "what we learn from the American people", Ren Zhengfei pointed out that the small scale is faced with external factors, which are objective laws and are difficult to pfer with people's will.

Therefore, only by strengthening management and service can we survive on this road of no return.

Ren Zhengfei hopes that the future development of HUAWEI can surpass the reliance on single competitive factors - technology, talent and capital, and will not be built on the basis of blindly low cost.

He hoped that HUAWEI could become a fighting business and become a world-class enterprise.

In the process of working towards the goal, the basic law of HUAWEI established the framework of macro management. Ren Zhengfei described it through a series of sub laws, and introduced a lot of management methods and management tools to achieve the goal of management.

However, Ren Zhengfei objected to the complacency of management. He praised highly the management methods and management methods of pnational corporations. He pointed out very clearly that I am firmly opposed to the management of the Chinese version and the management of HUAWEI.

At present, the so-called management innovation is to digest the mature management in the West.

Ren Zhengfei appreciates IBM more often. He often refers to Gerstner's pformation of IBM in 1990s and appreciates the management ability of IBM: IBM is a company with a long history of over 80 years, and HUAWEI is just a student girl in the textbook based childish management stage.

We have been walking across the river by feeling the stones, but we don't want to fall into the river.

We should see that IBM has stood at a very high altitude, and its coordinates are world-class. So IBM points out our problems and we must understand them.

In 1998, HUAWEI locked IBM as a learning example and strategic partner on its road to world-class enterprises.

HUAWEI first decided that the business mode was pformed from telecom equipment manufacturers to telecom solutions providers and service providers, so as to give full play to the overall advantages of HUAWEI's product line.

It can also learn from IBM's knowledge and experience in the pformation of business mode since 1993.

Next, about 50 IBM management consultants are stationed in HUAWEI.

In 5 years, HUAWEI invested about $50 million to pform its internal management and business processes.

HUAWEI also formed a 300 person management engineering department to cooperate with IBM consultant.

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Business process pformation

HUAWEI's cooperation with IBM, IT strategy and planning, was officially launched in August 1998.

The main content and core purpose of the project is to plan and design the business process and the necessary IT support system that HUAWEI needs to carry out in the next 3-5 years, including 8 projects, including integrated product development, integrated supply chain, IT system reorganization, and financial four unification (financial system and account unification, unified coding, unified flow and unified monitoring).

The IBM consultant team pointed out in 1999's research report that there is a big gap between HUAWEI's supply chain management level and the leading multinational companies: 1., the order delivery rate of HUAWEI is only 50%, the average level of the leading multinational companies is 94%, 2. HUAWEI's stock turnover rate is only 3.6 times / year, the average of multinational companies is 9.4 times / year, 3. HUAWEI's order fulfillment period is 20-25 days, and the average level of multinational companies is about 10 days.

IBM consultant pointed out that HUAWEI's supply chain management has only played 20% efficiency, and there is much room for improvement.

The low efficiency of HUAWEI's supply chain management reflects the "common failing" of Chinese manufacturing enterprises.

Although Chinese enterprises attach great importance to reducing manufacturing costs, their attention is focused on the manufacturing link itself, and little attention is paid to the cost and efficiency outside the manufacturing link, resulting in the general operation cost often out of control.

In fact, we emphasize the importance of "chain to chain competition" theory, not only to prompt Chinese enterprises to pay attention to how to enhance the control power of the industrial chain, but more importantly, "end to end integration", that is, how to rely on their unique competitive advantages to integrate raw materials, manufacturing, channels, brands and other resources in various industrial value chain links from raw material procurement to customer management.

HUAWEI introduced IBM integrated supply chain management in 2000, adjusted the organizational structure of the company, and set up a unified supply chain management department, which includes manufacturing, purchasing, customer service and global logistics.

The implementation of integrated supply chain management in HUAWEI quickly aroused controversy.

Ren Zhengfei asked, "we must first fossilized, then optimize, and then solidify, promote the implementation of integrated product development."

In the end, Ren Zhengfei's strong driving force and personal charisma make this arduous process change project continue to carry out. He has always believed that the dogmatic approach to advancing this change may not be the most perfect, but it is the most effective.

Ren Zhengfei firmly believes that only by absorbing the IBM stuff systematically can we really understand what is suitable for HUAWEI and see what problems HUAWEI needs to improve.

When HUAWEI's business process pformation was finally implemented, many obvious changes took place in the company.

If this change was initially manifested in the internal turmoil of HUAWEI, then HUAWEI actively expanded its global business after 2000, and it showed more recessive global connections to enhance HUAWEI's ability to manage upstream (suppliers) and downstream (customers) in the industrial value chain.

Perhaps this process pformation is like an industry's "world language". When you master it, it doesn't feel so important, and if you don't grasp it, you can only communicate in a primitive way.

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Transformation of corporate culture

In the most difficult 1999-2000 years of the process of change, IBM management consultants made a periodic summary of the problems in HUAWEI Management: HUAWEI did not have time to do things one time at a time, but had enough time to do things again.

HUAWEI's strict hierarchy and lack of communication culture led to attempts to solve problems through various organizational adjustments and meetings.

Soon, Ren Zhengfei realized that some of the factors in HUAWEI's successful corporate culture have now become obstacles to management change.

Ren Zhengfei believed that the difficulty of management pformation really appeared in the debate on "body use".

HUAWEI's introduction of IBM management is regarded as a pure western modern management concept, but the way of thinking inside the company is still "Chinese" or "HUAWEI style" in the past.

This kind of thinking mode of "middle school as the body and Western learning for use" has formed the behavior of "splitting the body with the body" at the staff level. It seems very difficult to solve this seemingly inconsistent behavior.

However, Ren Zhengfei also objected to the "wholesale westernization". He thought it was moving from one extreme to the other extreme, and it could not be the right choice of internationalization as "learning from middle school and Western learning for use".

In 2000, Ren Zhengfei put forward the famous "Grey Theory", that is, the embodiment of his philosophical thinking and the outline of the direction of HUAWEI's cultural change: grey is the zone between black and white, between right and wrong; the meaning of grey is not to go to extremes, to pform on the basis of inheritance, to innovate on a stable basis, and to adhere to principles and properly and flexibly deal with all kinds of contradictions and paradoxes in enterprises.

At the beginning of 2002, HUAWEI conducted a few days of closed training for senior managers above the director level, and invited 8 scholars from the Philosophy Department of Peking University and the Chinese Academy of social sciences to teach western philosophy such as oriental culture, philosophy, Protestant Ethics and capitalist spirit.

Ren Zhengfei hopes to open up high-level horizons, remodel their thinking patterns, and lay the ideological foundation for the further development of management reform.

Ren Zhengfei believes that Asian enterprises have experienced the painful process of corporate culture pformation and have been paying high tuition fees for crossing cultural barriers.

Therefore, only by establishing a corporate culture that meets the needs of world-class enterprises, can HUAWEI's business process change really succeed.

On the question of choosing her own corporate culture, Ren Zhengfei emphasized that Eastern wisdom is important. But to achieve internationalization of HUAWEI, we must achieve "unity of Taoism". HUAWEI should go beyond the "struggle for substance" and integrate enterprise culture into the system, which is the best way to inherit corporate culture.

From 2000 onwards.

Ren Zhengfei consciously fades out of people's vision. He no longer focuses on mobilizing the enthusiasm of his employees as he did in the past. More often, he will talk about the significance and content of management pformation focusing on integrated product development and integrated supply chain management.

Ren Zhengfei said: there is a huge gap between HUAWEI and its international rivals. If we do not first establish a streamlined organization and professionalized workforce that is in line with the international market, then we can not compete with our competitors in the high-end products and market areas, and we will not be able to implement the takeover and merger strategy, because a group of "farmers" coming out of the green curtain will never be able to operate the modern international enterprises, nor can we digest the "western style meal" bought.

"What we want is success, not a slogan. Some people say that HUAWEI is running quietly, there is nothing news, is it no good?

We call it "still water undercurrent".

The surface is very calm, and the water below may be very deep and urgent.

HUAWEI is very calm now, indicating that the company has been gradually standardized.

Ren Zhengfei thinks so.

With the help of a series of means, such as the qualification system and the 5 level dual career development route, HUAWEI promotes the professionalization of the staff.

In the end, HUAWEI's professionalization and management pformation become the two line in a direction.

The "rejection" between professionalized people and management innovation has been greatly reduced.

In order to achieve the goal of world-class enterprise development, HUAWEI also revised the "diplomacy" culture of the company.

Ren Zhengfei put forward the strategic concept of "you have me and I have you": peace and development are the main theme between nations. Openness and cooperation are the major trends between enterprises. We all take into account that no one in the future world can monopolies one side. Only by strengthening cooperation, having you and me, can I gain greater common interests.

This broad and equal cooperation has improved our advantage quickly, and we can quickly launch many new products and provide the same services as foreign companies in a short time.