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Combing the “three stages” and “four characteristics” of Ren Zhengfei’s philosophy of Enterprise

Huawei, a Chinese communications equipment manufacturer founded less than 30 years ago, is now the world’s biggest Fortune 500 legend, growing from a small workshop to a Fortune 500. “what makes Huawei grow fast? In Ren Zhengfei’s words, “it is a philosophical thought rooted in the hearts of the broad backbone.” Sourcing quick turn machining Manufacturer from China

Ren Zhengfei is a personal independence of conduct of entrepreneurs, is a contradiction of the complex, it is difficult for you to truly understand his inner world. He is a loner who suffered from depression, the president is also a resolute business. He often reprimanded HUAWEI executives loud, also warned employees well intentioned bitter “don’t be a perfect because, finish people very painful. He has not only a simple action, one more look at the sky; he is never God, he is just himself. In his eyes, HUAWEI is not a successful enterprise, just outside in the smoke and mirrors, HUAWEI made over interpretation. He is not only an ideal work home, and is based on a practical thinker.

As the first generation of entrepreneurs who grew up after China’s reform and opening up, Ren Zhengfei, a soldier born, led the rapid development of HUAWEI. Meanwhile, he paid more attention to the development of his philosophy of business. This development can be roughly divided into three different stages, with four distinct characteristics.

Three stages of the Development of Ren Zhengfei’s Enterprise philosophy:

The first stage is the early stage of Huawei’s development under the influence of Mao Zedong.

During this period, Huawei is still in the difficult stage of survival and development. Ren Zhengfei creatively integrated the idea of the Communist Party of China leading to success into the management of Huawei. So much so that “IT managers World” magazine once published that Ren Zhengfei is “Pan-#china_person1# Doctrine”. Huawei grew up in the early years facing a very severe living environment, in order to survive in the gap between multinational giants. Ren Zhengfei took advantage of the military philosophy of “Countryside encircling the City”, began with the third tier city which the foreign communication giant had no time to take into account at that time, gradually seized the market share, expanded the enterprise survival space.

In this period, his philosophy of enterprise is implied in his series of speeches, such as “against pride”. “how long will Huawei’s Red Flag be played?” “to move from the Kingdom of necessity to the Free Kingdom” “Progress in Self-criticism” and “current situation and our tasks”, etc.

The second stage is to learn from the West advanced management ideas and tools, “cutting foot fit” period. Sourcing quick turn machining Manufacturer from China

At this stage, Huawei has solved the initial survival dilemma and entered the period of rapid development of enterprises. Ren Zhengfei has constantly gone abroad to study and study the advanced culture and thought of the West.

He not only wrote: we learn from what the American people “” northland “” Iceland “” on the market economy is the best way of competition, economic globalization is an irresistible trend “and a series of articles, and constantly with the western management consulting company to cooperate in the management of change, the introduction of human resources management system with Hay and CRG company cooperation, cooperation with the IBM company introduced IPD (integrated product development) and ISC (integrated supply chain management system), in cooperation with PwC the introduction of the financial management system, and FhG (Applied Research Association Fraunhof) cooperation introduced the production process management system.

In order to get rid of learning and resistance to change, Ren Zhengfei will use “literally” to describe the management of change, HUAWEI’s strong advance, regardless of the cost, to ensure that the advanced management thought and method in HUAWEI landing.

The third stage is a period of integration and the formation of HUAWEI’s unique corporate philosophy.

HUAWEI in 2005 after eight years of fighting the road of internationalization, overseas income exceeds domestic income for the first time, marking HUAWEI has become a truly international company.2003 Ren Zhengfei in training cadres HUAWEI internal speech “in rational and plain survival >, that the life of the enterprise not the entrepreneur’s life, to build a series of customer as the center, in order to survive as the bottom line management system, rather than relying on the entrepreneur individual decision-making system.” as management as the Yangtze River, we repair the dam, the water that flows freely inside. The micro model of company development is part of a harmonious and effective methodology, complete elements of enterprise management from end to end. High quality, efficient, and effective management.

Write compositions of these thoughts and Ren Zhengfei in 2000 to “Inaction” requirements of HUAWEI executives logic is the same, but apparently has been out of the idea of chaos at the beginning, with a clear goal. In the HUAWEI “2012 laboratory speech”, marking the depth and breadth of Ren Zhengfei’s thinking has reached a a new stage, start thinking about the destiny of the enterprise and the fate of the country, the fate of the contact, clearly put forward the idea of philosophy changed the subject, this also means that the formation of the business philosophy.

Ren Zhengfei’s enterprise philosophy thought has the following four remarkable characteristics:

One, a rich military style.

Ren Zhengfei, as a technical soldier of the construction engineering unit, has spent nearly a decade in the military, going south and north, running from east to west. The military experience has made Ren Zhengfei’s enterprise management thought have a rich military style. But this kind of military style thought also coincides with the “shopping mall such as battlefield” enterprise survival environment. Huawei’s business strategy of “rural encirclement of the city” “pressure principle.” Organization in the “film union”, “regional department”, “reload brigade”, corporate culture of “meet the brave”, “victory is a toast.” In Ren Zhengfei’s speech, military words such as “commander-in-chief”, “general”, “regular army”, “Tuba Road”, “recruits’ eggs,” “artillery fire” are often seen.

The use of military vocabulary is only superficial. Judging from the development of Huawei, Ren Zhengfei did treat the management enterprises as a unified army war. He applied the knowledge and theory of war to Huawei, and he was using tactics. Layout, team, morale, all aspects of the play to the extreme. He not only live to learn to use Mao Zedong’s military thinking. He also studied Clausewitz’s “War Theory” and Qiao Liang’s “beyond Warfare” theory. He incorporated the military style he had developed over the years into Huawei’s corporate culture. Huawei has become an army of unity of purpose, discipline, fighting fierce and efficient enterprise organization.

Two, a strong sense of crisis

Was founded in 1987 from a small workshop to the leader of the 2014 World Telecommunication manufacturing industry, 27 years of HUAWEI development history is like a picture of the picture. But the surge high and sweep forward along with the growth of HUAWEI is not only cheer and joy, even death threats such as a shadow. The death threat is not from competitors, but from HUAWEI founder Ren Zhengfei deep inside.

Because of the special life experience, after the reform and opening up the first batch of China entrepreneurs more or less have some sense of crisis, the crisis consciousness from uncertainty and insecurity. Ren Zhengfei and they are also different, his sense of crisis has been well ingrained, into the body and mind, even paranoid. In “HUAWEI winter”, Ren Zhengfei expressed his understanding to the crisis:

“Our company Pacific time is too long, in times of peace rise too many officials, perhaps this is our disaster. The Titanic is in cheers from the sea. And I believe that this day will come. In the face of such a future, how do we deal with, we are not thinking too. Many of our employees blindly proud, blindly optimistic, if too few people thought, maybe soon arrived. The danger, not alarmist”

“For ten years I think every day is a failure, the success of the blind, also do not have what sense of honor and pride, but a sense of crisis. Maybe this is just survived for ten years. We want everyone to work together, how to live, perhaps to live longer. The failure of this day will come and we have to prepare for, this is my opinion never wavered, this is the law of history”

In Ren Zhengfei, HUAWEI in the development of faster, larger, but his sense of crisis more strongly. He also told the staff described the bright future, HUAWEI will be the beginning of the creation of rhetoric of “three world”; he also issued a “dare to overtake the United States, is the largest lose” but HUAWEI 27 roar. He said most of the year is the “winter” and “shrink” “failed” and “bankruptcy” and “death” and other cold words. Then, a very strange phenomenon, every day the cries of “death” and “bankruptcy” HUAWEI not only live very moist, and climbed to the top of the world communication industry; every day shouting “Centennial” and “world class” many enterprises have already disappeared. With broken halberds defeat. Sourcing quick turn machining Manufacturer from China

Three, profound integration

Ren Zhengfei is a love of learning, will bring the goods during travel books. He is a technical background, extensive knowledge, lofty, vision, rich thought. In his ideological system, you can not only see the wisdom of ancient traditional philosophy China, such as “inaction and rule” the action of profiting from one “deep clean beach, low weir, can also see the modern Mao Zedong’s thought of” criticism and self-criticism “encircling the city”; not only can see the ancient Greek myth of the United States and Danko, can be seen during the second world war hero blue blood Shijie. Not only can see the “phoenix” and “turtle” awkward, can also see the “black widow” Owl “or even” Cobra “; as for the” qingshazhang “” eight way “” towers and even meet the eye everywhere.

In 2003, Professor Zhang Shiying HUAWEI has invited the Philosophy Department of Peking University, Professor Han Shuifa, Professor Li Zhonghua and Professor Wang Bo and China Academy of Social Sciences Professor Pang Pu, Professor Wu Qiong, Professor Yu Dunkang and former Naval Institute of political philosophy training director for HUAWEI cadres above, the teaching of “modern western philosophy of” harmonious coexistence “Protestant Ethic and capitalism the spirit of” Zhouyi and the thinking mode of “useless — Zhuangzi’s wisdom” and “no talk” back to the mysterious “Axial Age” and “laws for directing war and grand strategy” and so on. Ren Zhengfei himself has lectures and teachers teaching more lively interaction. After HUAWEI is made into CD issued training videos learning in the company, and presented to HUAWEI customers. In the lecture, the Professor Pang Pu over seventy years of age had asked Ren Zhengfei why they invited lectures and business management There is not much relationship between philosophy and philosophy. Ren Zhengfei’s answer is to give HUAWEI cadres’ brains Matsumatsu To water and water. In other words, it is to improve the philosophical accomplishment of management cadres, broaden their horizons and reshape their thinking modes to adapt to new challenges.

In 2013 Ren Zhengfei told French media put HUAWEI in the future to establish three research institutes, the first is the Aesthetic Research Institute. In fact, aesthetics originated from philosophy, leading many philosophers, we also for having heard it many times aesthetics such as Platon, Kant, Nietzsche et al.2015 in January 18th, WenShiZhe lecture after the meeting HUAWEI on the market, Professor of Philosophy Department of Peking University, Dean of China culture academy, Dean of Business School of three SmartClub Mr. Wang Shouchang for the cadres to “China wisdom > lectures, fully embodies the good intentions of the Ren Zhengfei in the enterprise philosophy realm and cadre training.

Fourth, the concept of righteousness and benefit beyond

Since ancient times, there has been a debate about righteousness and profit in China, which has formed a variety of views on justice and profit. Meaning refers to specific ethical norms and moral constraints. Profit refers to the material interests. Different views on the relationship between the two formed a different view of righteousness and profit. Confucianism emphasized “to see what is right”. Confucius thought that “the gentleman is a good man.” Mencius thought that “benevolence should be given priority over self-interest”. Mohism emphasized “mutual benefit”. On the contrary, Shang Yang proposed that “benefit is the root of justice”. Han Fei believes that there should be a “heart of calculation”. In general, in the debate of justice and interest, three kinds of statements have been formed: emphasizing justice over profit, emphasizing profit over righteousness, and paying equal attention to justice and profit. Enterprise is a kind of utilitarian economic organization. Therefore, the general business owners take profit as the first important point of running an enterprise.

Ren Zhengfei, the founder of Huawei, transcends the concept of righteousness and profit. He emphasizes that enterprises are utilitarian organizations, and that the mission of enterprises is to live first and foremost if there is no profit. An enterprise is also a social organization that must abide by the law, pay taxes and create jobs. He asked Huawei employees to love their motherland, people and Huawei. Care about the future and fate of the country and nation. In the distribution of benefits, unlike the ordinary business owners, he takes his personal interests less seriously and is willing to share the wealth created by the company’s development with his employees.

Whether from the ownership structure of Huawei or the compensation system of Huawei, Ren Zhengfei has been able to maximize the sharing. “We want to live together” concept, Ren Zhengfei believes that companies make money first of all to share. Everyone is willing to follow him. Before the legal system is regulated, Huawei’s full shareholding system has set the stage for Chinese companies. Ren Zhengfei now owns less than 2% of the company’s shares. The remaining shares are shared by most employees.

It is precisely because Ren Zhengfei has such a mind and courage that Huawei has gathered a large number of outstanding talents and developed the spirit of hard struggle, which has made Huawei brilliant today. This is a great wisdom beyond the reach of ordinary entrepreneurs. It is this great wisdom that Huawei has been taking advantage of the waves, brave forward.

The 27 years of development not only made Huawei, but also formed Ren Zhengfei’s unique enterprise philosophy. When Ren Zhengfei said that “philosophy changes China”, it also means that he has not only focused on the current Huawei. Instead, they start thinking about the future of Huawei and the future of Chinese companies. At the same time, Chinese companies can also gain inspiration and wisdom in learning and criticizing Huawei’s corporate philosophy.

For this reason, we can say that Ren Zhengfei not only created Huawei legend, but also made outstanding contributions to Chinese corporate philosophy.

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