The analysis of HUAWEI has been described as a highly centralized management and control model, but the centralized management and control model will not bring organizational flexibility. In fact, HUAWEI is not the case
With Ren Zhengfei’s low-key, HUAWEI may not be associated with the “cloud” such buzzwords, as the face of “Internet thinking” surge, Ren Zhengfei just reminded HUAWEI people do their own thing
However, at the HUAWEI in a way can be found, if not the customer demands (HUAWEI has not provided the user concept) accurate grasp, if you are not able to quickly mobilize human resources to match these demands, how to a later attitude on the contrarian?
From this point of view, the organization of HUAWEI must be “cloud”. Let’s analyze how it makes the cloud
All processes point to customer needs
In fact, HUAWEI’s action is far ahead of the public imagination
In 1997, Ren Zhengfei visited the United States Hughes Co, IBM, Baer laboratories and 4 multinational companies, HP, HUAWEI obviously felt the limitations and change the urgency of.1998 years, HUAWEI’s sales reached 8 billion 900 million yuan, in order to transition from the “guerrillas” to “regular army”, and has IBM, hay Gallup, DDT, and other companies started to introduce the western management achievements. This round of reform, the main purpose is to rely on the customer pull, carried out through the whole process, provide the real “end to end” service (input market, output and market). Figuratively speaking, to the end the end should be very fast, effective, it can reduce the cost, because the equivalent of various resources no inventory, labor costs, financial costs, management costs, operating costs will decline.
This year, HUAWEI began to introduce the integrated product development system of IBM (IPD). This is based on a set of refined management framework of global product development management of many of the best practices, emphasizing customer demand as the starting point of product development, organization of cross functional team to undertake the task, through market planning, product development and technology development processes to meet three the needs of customers.
Specifically, cross functional teams including IPMT (integrated portfolio management team) and PDT (product development team) the two level management system. In addition, also includes IRB (Investment Review Board) and SPT (Strategic Planning Committee), the former is the highest decision-making body of company level, which is responsible for market planning, project and.PDT is the main resource management, including the development of product development, market, finance, sales, service, quality, manufacturing, procurement, logistics and other members of roles are also to customer demand as the center of the operation. As a result, to a customer demand as the center, with four virtual organization framework, HUAWEI you can quickly organize personnel for product development.
In every stage of product development, IPD has a clear DCP (decision check point), both from a business perspective, and evaluated from a technical point of view, in order to ensure that the products of the return on investment. Then, there are TR to review the technical indexes of the product. That is to say, IPD for the product the design began construction cost, product quality, product development process of manufacturing and service and other aspects of the advantages of.IPD construction for all aspects of customer demand oriented, and let each role not only regard themselves as technical personnel, but also to identify themselves as operators (fixed investment returns).
Let the front line call the artillery directly”
HUAWEI is a research driven enterprise, but marketing is still the most direct guarantee of corporate profits. Because of the development dividend brought by IPD, a long time, HUAWEI’s sales model is unified by the sales department to complete. But this model will clearly be flexible enough problems.
Thus, organizational change starts again, HUAWEI will be the original cross business department sales department under the scattered in all business sectors, according to business unit product department, sales department, service department into a business unit of.2009, Ren Zhengfei in the HUAWEI sales service system awards published < > allow direct line call in fire his speech, the adjustment of organizational structure with military terminology used in HUAWEI is made, explained: “we are in a situation, in front of the combat troops, only less than 1/3 time is used to find the target, and will find machine will be able to convert the results, while the amount of time is frequently used in from the communication and coordination with the rear platform. But behind the problem to be solved to make the front coordination, drag the troops back”
Ren Zhengfei military origin by us special forces great inspiration: Special Forces front group by an intelligence expert, a fire bomb expert, a military expert group, although only a team configuration, but can always call back fire support. According to this model, HUAWEI will be the original front of a customer managers face pattern adjustment to the customer customer manager, solution expert, three person team delivered experts. This advantage obviously, the original customer manager of customer contact, and then call the process of expert solutions and rear delivery specialists, internal friction a lot, and now, three people can work together to resolve customer issues.
In project management, according to the support provided by IBM, HUAWEI group of three terms, contract, price three authorization documents, with gross profit and cash flow authorization, direct fire within the scope of authorization, but beyond the authorization according to the procedures for examination and approval. This will greatly shorten the decision-making process and communication costs.
HUAWEI’s sales process called MM (Marketing Management, marketing management), responsible for the translation of customer demand, product demand and output, according to this demand, starting at all levels of R & D team (PDT). This adjustment, let the front end of the marketing has become flexible enough, R & D, connect back to the production of all. The link to “customer demand”, and create value for the customer demand.
Process runway, encourage fuel
Interestingly, the outside world for HUAWEI’s analysis, it has been said to be a highly centralized control mode, but the centralized control mode will obviously not bring the flexibility of the organization. In fact, HUAWEI is really the sanctity of their processes, the process is absolutely solid.
For learning IBM, HUAWEI began to have many differences, some people think that “HUAWEI foot” is not suitable to wear “shoes”. Ren Zhengfei Lipaizhongyi, even the IPD rise to HUAWEI’s survival level: IPD is related to the survival and development of the company, the future at all levels of the organization, the department should be fully aware of it the importance of the results, according to legend, IBM the “mentor” to see the HUAWEI executive IPD laments: “HUAWEI IPD than we perform more completely!” for small combat unit sales model, HUAWEI executive is in place. Ren Zhengfei believed that the process of the power of HUAWEI because of the needs of the market and its iterative process. The process once identified, who do not have much of a problem.
In other words, HUAWEI is the process of curing, the cloud of personnel, the outside world to see their discipline, but did not see them without boundaries based on collaborative processes (only limited or no border cooperation, cross sectoral collaboration). For a wrong understanding of organizational boundaries or organization of cloud, this kind of organization is not the curing process. This is a typical misunderstanding, the process is the optimal design on the efficiency, as is the most streamlined fast way to meet the needs of the user (customer requirements), all cloud organizations should take off, the premise is paved runway. This process
The staff is willing to track, crazy investment? Outside HUAWEI research, people tend to love to promote its culture, but it has been entered into a misunderstanding. Culture is only the result, not the method, if HUAWEI has advanced culture, it is because the management system has formed the mechanism design.
In fact, IPD is not only the product development process management, and management system of the business operation. The former is the cross functional team, decision check point, structured processes, is a kind of process clearly. But let the process where people are motivated to do these things, the other part of this is needed IPD – enabling and supporting system, through project management, measure, human resource and performance management system, a common peripheral, clear staff what needs to be done to drive the process, but also online records of the employee actually do what, so you can easily achieve the individual incentive. Because employees only according to the requirements in this process, its performance will precipitate online.
When there is efficient processes, and individual incentives, employees will naturally want to follow the process, and the process is the point of customer demand, so the organization became due to customer demand and self adjustment of the “cloud”. Of course, this cloud can operate lighter, other departments HUAWEI management system also plays an important role for example, ISC system use IFS system of financial procurement, use, customer management system management system using CRM.
In short, HUAWEI’s management system seems rigorous, but it seems to be erected in the cloud
The writer is a business consultant of Chinese and foreign management magazines, and a postdoctoral fellow of business administration at Peking University, Guanghua School of Management