The Succession Of HUAWEI And Private Enterprises

Who will succeed? Ren Zhengfei This problem is again brought to the public's attention with a rumor, and then, because of the new lively news, it is gradually forgotten. Although the problem itself will always exist until it is solved.

Like most of the gossip in the Internet age, rumors were first released by bloggers with micro-blog and blog platforms, and then received a lot of forwarding, causing the attention of traditional media, followed by the traditional media coverage. All the rumors and reports are very much the same. It is Ren Zhengfei's intention to keep his children in charge. HUAWEI For this purpose, the company executives who oppose this idea are not to be cleaned.

Bubbling rumors have made this consistently low-key company respond. As one of the three Chinese private enterprises to enter the world top 500 (the other two are Lenovo Group and Shagang Group), HUAWEI is already too big to ignore the outside reaction. Its response is to let Ren Zhengfei's internal speech circulate in the network skillfully. In his speech, Ren Zhengfei refutes rumors that Sun Yafang, chairman of the board of directors of HUAWEI, has left office, and Ren Zhengfei's two children, Ren Ping and Meng Hong boat as the company's core executives. He did not directly answer whether Ren Ping and Meng night boat would take up the post of core executives or take over HUAWEI, nor did he mention whether Sun Yafang would quit. Instead, he replied, "HUAWEI is not North Korea". HUAWEI's culture is "appointing people for merit, not cronyism". "Not a single person decides the fate of a company."

The question Ren Zhengfei did not answer is whether there is any obligation to answer the questions of the outside world whether or not the public is concerned about whether or not the HUAWEI is on the market. No matter whether the public is still concerned, whether or not HUAWEI will succeed Ren Zhengfei or who will succeed Ren Zhengfei, how will Ren Zhengfei, who is the core of HUAWEI, choose this successor? How to choose Successor It is by no means a word "appoint a man of merit, not a cronyism". Of course, Ren Zhengfei may have set the number on this issue, and Ren Zhengfei's wisdom in the status of a godfather in China's private entrepreneurs could not have failed to think about this problem and plan accordingly. But since HUAWEI is the pride of Chinese enterprises, it is inevitable that people who are proud of HUAWEI will talk about business observers.

First of all, what needs to be discussed is whether Ren Zhengfei has any family mentality. If so, what kind of family mentality is it? In fact, even if Ren Zhengfei really wants to, and has the ability to turn HUAWEI into a family business, there is nothing wrong with it. Family business may also become a great company, or its foundation is evergreen. There is no need to exclude family businesses too much. The question is whether it is just to control the desire to be familial, or to take family business as a better way to achieve success or even great companies. If it is the former, it can easily become a precursor to the collapse of the company. If it is the latter, it needs careful planning. {page_break}

Second, Ren Zhengfei's sons, Ren Ping and Meng late boat can work in HUAWEI, and may become the most important leader of the company. This is the result of Ren Zhengfei's intention to plan, or the two-way choice between HUAWEI and Ren Zhengfei's children. If it is the former, what is the purpose of making such a deliberate plan? How big is the factor that leads to family business? If it is the latter, it seems that there is not much to worry about. The only problem is that if Ren Zhengfei really wants HUAWEI to go completely to the family, the importance of children to the company may become an obstacle.

Third, whether HUAWEI has established or formed a system to restrict Ren Zhengfei; if not, is Ren Zhengfei willing to set up a system to restrain and manage himself? Although from the public information, Ren Zhengfei only owns less than 2% of HUAWEI's shares, but the actual controller of the company is Ren Zhengfei, and with the dispersion of HUAWEI's ownership structure, no major shareholders and investors can restrict the actual controller of the company's president. That is to say, there is no capital side to restrict managers. We do not doubt Ren Zhengfei's intelligence and ability, but it is precisely because of the uncertainty of uncertainty that is brought about by the state of no restraint. This is the reason behind the four rumors about the successor of HUAWEI: even if the rumors are not true, we all believe that if Ren Zhengfei is willing, he can make the rumors become facts.

Fourth, how long does HUAWEI refuse to be "public" - not just publicly listed. Ren Zhengfei and HUAWEI certainly have reasons for refusing to be public; but there is absolutely no reason to reject the benefits of publicity. The advantage of the public is that the capital market will require the company's governance structure and transparency, and the capital market will be able to punish those poor managers. In response, Ren Zhengfei said that HUAWEI's audit system is strict, but it can not conceal the flaws in HUAWEI's governance structure. This issue has also been discussed, such as the division of functions of the board of directors and EMT (management team), and the appointment and removal of senior personnel. At present, HUAWEI has achieved internal publicity in the ownership structure, but there is no governance, and there is no mechanism for HUAWEI's internal shareholders to punish managers for making mistakes.

These problems are, of course, not just for HUAWEI. China's long history of private enterprises will soon encounter the same handover problem, but they may not be as HUAWEI's concern. It is only necessary to change the names of the companies and the names of the people in these four questions, and these questions also apply to most of China. private enterprise Now.