[Editor's note] 2013 has been dusty, and the beginning of the new year in 2014. Ren Zhengfei, the world's largest equipment supplier and the helm of Huawei, China's largest private company, recently deployed Huawei's next game play and tactics in the internal annual cadre work meeting.
In 2014, Huawei will continue to make efforts in the strategy and tactics of big data, Internet, company value building, and company mobility. Huawei, regarded as a benchmark, must do this next. The essence of this article is worth learning by all companies.
In ancient times, there was a fable that rabbits and turtles raced. Because of their inherent advantages, rabbits ran fast. From time to time, they had afternoon tea in the middle and took a nap on the grass! As a result, the turtle passed. Huawei is a big tortoise. In the past 25 years, I have climbed and climbed, and I have not seen the flowers on both sides of the road. Continue to struggle hard. Climb and climb ... As soon as I look up, I see a dragon-shaped spaceship standing in front, running a god-like turtle like "Tesla".
1. Large companies do not necessarily die, they do not necessarily become lazy and conservative. Otherwise, no effort is needed to become a big company.
BMW can't catch up with Tesla, it has been a problem within our company for some time. Most people think that Tesla's disruptive innovation will surpass BMW. I support BMW's continuous improvement and opening up. BMW can also learn from Tesla. There are several elements of a car: driving, intelligent driving (such as electronic maps, automatic gear shifting, automatic collision avoidance, until unmanned driving ...), mechanical wear, safety and comfort. The last two BMWs have an advantage, and the first two can catch up as long as BMW is not closed and conservative. Of course, Tesla can also buy the last two items from the market. I did not say that BMW must create the first two items. BMW needs success, not narrow pride in independent innovation.
Huawei is also a "BMW" (synonymous with big companies). In an information society that is constantly changing and disruptive innovations are emerging, can Huawei continue to survive? No matter what you think, this is a question before you. It took us twenty-five years to build a high-quality platform with certain resources. How many high-level cadres and experts have wasted these high-quality resources before they are accumulated and are valuable wealth. In the past, all the failed projects and eliminated products are actually wasted (of course, the wasted money is also earned by everyone), but if there is no waste, no one will be here today. We cherish the accumulated success of these failures. If we do n’t stand still, dare to break our own altars and jars, and dare to embrace new things, Huawei will not necessarily fall behind. When we find a strategic opportunity point, we can press it up with thousands of troops and catch up with it later. You must dare to use investment instead of manpower to pile up resources. This is not innovation with small companies. The same place. Human beings are the most precious factor. Huawei people who are not conservative and have the courage to break the current established advantages and openly follow the trend of the times are our most precious foundation. We are likely to catch up with "Tesla".
** 1. Focus. ** We are a company with limited capabilities and can only overtake US companies with limited width. Without narrowing the surface of action, the pressure will not be large and no breakthrough will be possible. I estimate that the Strategic Development Committee is confident in the profitability of the next few years, and if it wants to invest more in strategy, it puts forward the idea of going smart and going beyond the United States. But we can only lead American companies in the field of large needlepoints. If it is extended to the size of a match head or a small wooden stick, it is impossible to achieve this kind of surpassing.
We only allow employees to exert subjective initiative and creativity on the main channel, not blindly innovate, and diversify the company's investment and strength. For non-main channel business, we must seriously learn from successful companies, insist on stable and reliable operation, and maintain a reasonable and effective management system that is as simple as possible. To prevent blind innovation, innovation in all directions is our funeral song.
The era of big data traffic should be terrifying, because we do n’t even know what big data is. The amount of traffic is also unimaginable. The big data I am talking about is different from what the industry is saying. The big data that the industry is talking about is not big, but search. As academician Wu Hequan said, data mining, analysis, induction, and use make data create value. By big data, I mean the choppy data flow, and I do n’t know how much data to transmit and store. Of course, we want to transmit clean water, but we ca n’t stop the back and forth of spam being transmitted and stored, making big data bigger. Do n’t be impulsive about the success of the Internet. We are also Internet companies, and we are the iron pipes for the Internet ’s pipeline of data traffic. In the future, there will be fewer and fewer companies that can make such a thick pipeline sheet metal in the Pacific; there will be thousands of companies that make information transmission pipelines; there may be ten million companies that do information management. Don't just envy other people's scenery, don't be so impulsive on the Internet. Employees with Internet impulses should use the Internet in a down-to-earth manner to optimize the electronicization of internal supply transactions, improve efficiency, and operate in a timely and accurate manner. Our current annual settlement document flow has exceeded 250 billion (RMB), and the supply point has exceeded 5,000. The annual settlement documents will soon develop at a rate of more than five trillion yuan. Deeply analyze contract scenarios, improve contract accuracy, and reduce losses. This is also a contribution. Why not do a good job on the internal "Internet". For decades, we must focus on improving the capacity of the information pipeline, and do not drag our giant ship out of the main channel.
The network may loose all the spirit of restraint. If there is no spirit of restraint, will we still be a main torrent rolling forward? Everyone sings "Chinese Boy", others are shocked, there are so many people in this era to sing such songs? In our company, there are still thousands of core backbone unity, thus uniting and leading 150,000 employees. So we must win.
[ H: The path of personal struggle, why not focus? Many times, there are always too many temptations next to me. I set off for a long time and walked in N directions. I finally forgot the original intention when I set off. Concentrate a little hard to overcome, at any time is the way to learn and advance by yourself】
** 2. We must continue to work hard. ** The spirit of the turtle is endowed by the fable with the spirit of continuous efforts. This kind of spirit of Huawei cannot be changed. I also borrow this spirit to illustrate the rationality of Huawei's struggle. We don't need blood boiling because it can't ignite to power the base station. What we need is warm and calm emotions, intense and orderly work, and everything should be based on creating value.
We must face up to the power of the United States. Its advanced system, flexible mechanism, clear and clear property rights, and respect and protection of individual rights. This good business ecological environment has attracted excellent talents from all over the world, thereby promoting hundreds of millions of talents. Innovate, squeeze, and blowout on American soil. The indelible lamp in Silicon Valley is still shining, and the United States is not behind. It is still an example for us to learn from. Isn't Tesla an example? The difficulty of chasing us is not as easy as shouting slogans. A series of slogans is a waste of management. Xu Zhijun said that walking astutely means not afraid of failure, not afraid of sacrifice, and working hard for development. In any job, we must evaluate and evaluate from creating value.
Will the era of ultra-wideband be the last war in the electronic equipment manufacturing industry? I do n’t know what others think, it should be for me. If we fail in the ultra-broadband era, there will be no chance. This time I told my brothers in Moscow that the city of Moscow is composed of rings and rings. The most core and richest part is the big ring. We have n’t entered the big ring of Moscow for more than ten years. Can Siberia be revitalized? If we cannot seize the opportunity for big data streams in high-value areas, perhaps this representative office will eventually shrink and be marginalized. In this era, the principle of distribution is being reconstructed. Only by striving to occupy the high-value area of the data stream can there be a point of survival. We have already scored in Tokyo, London ... and I believe we will eventually score in the Moscow ring ...
** 3. Self-criticism is the most important act to save the company. ** From "The unburnt bird is a phoenix", "The saint crawling out of the mud pit", we started self-criticism. It is this self-correcting action that has enabled the company to grow healthily over the years.
Technological innovations that meet customer needs and unremitting explorations that actively respond to scientific progress in the world are driving the company's progress with these two wheels. Huawei must bravely embrace disruptive innovation through self-denial and self-criticism tools. On the basis of giving full play to the role of stock assets, we must not be afraid that disruptive innovation will hit the golden rice bowl.
Our 2012 laboratory is to use critical weapons to criticize ourselves, today, tomorrow, and criticism. They are not only studying the path of adapting to disruptive technological innovation, but also studying the form of realization that continually innovates today's technology to meet tomorrow. In terms of large data traffic, we must dare to seize the commanding heights. We need to create high-end products that meet the needs of customers; in the mid-range and low-end products, the hardware must reach the level of never-maintained products such as German and Japanese consumer products, and the software version must be upgraded through the network. High-end products, we have not yet reached absolute stability, we must strengthen the service to make up.
This era is moving too fast. If we are complacent and self-sufficient, as long as we stay for three months, we will be destined to be erased from history. It is precisely because we have long insisted on self-criticism unshakable that we have lived to this day. This year, the members of the board of directors are all carrying a cannon "Hummering Huawei"; middle and high-level cadres are publishing "Management Issues in Our Eyes". There is a lot of experience. Every publication is modified by me personally. Criticisms can be made in the Xinsheng community. There will always be departments that will solve existing problems and the company will continue to optimize its own.
2. Values are the core and soul of the organization. In the future, the structure of the organization must be adapted to the development of the information society. The purpose of the organization is to achieve flexible and flexible strategies and tactics.
We spent 25 years, with the help of Western consultants, and through the efforts of thousands of human resource professional managers and cadres and experts at all levels, we basically established a pyramidal human resource model as described by Hu Houkun, and Promote the company's successful reach of 40 billion US dollars in sales. Thousands of outstanding cadres and experts who have built pyramid models are great, and they should be honored as "human resource heroes". Without their hard work and success, it is impossible to carry out today's pyramid transformation. Pyramid management was adapted to the mechanized wars of the past. At that time, the firepower configuration had a relatively short range and the information communication was backward. Therefore, thousands of troops must be on the battlefield immediately to fight against each other. The general at the top of the tower waved his hand, the tanker at the bottom of the tower drove thousands of tanks into the battlefield, and tens of thousands of soldiers charged to fight in close combat to form enough firepower. In modern warfare, the long-range firepower configuration is powerful, achieved through satellites, broadband, big data, missile groups, aircraft groups, aircraft carrier clusters ... The war happened in electromagnetic waves, and it was not necessarily the generals on the top of the tower that called for these artillery fires, but the iron triangle near the front. The artillery support thousands of miles away is better than the close combat of thousands of troops. Our company's current Iron Triangle is to complete a series of adjustments in a timely, accurate and effective manner through the company's platform and mobilize its strength. Today, aren't our sales, delivery, service, and finance all supported this way remotely? The front-line Audio-Technica, from budget estimates, bidding, delivery, and finance ..., is not alone in fighting, but hundreds of people in the rear are supporting on the network platform. This is what Hu Houkun called "the war of the squad leader". The leadership of the Iron Triangle is not only about the courage to attack the mountain, but about the overall situation and the strategy. Therefore, only the formulation of the commander-in-chief is possible. Why not call a major? This is just an adjective, deliberately exaggerated to make everyone pay more attention to this issue, not really a major general. Who can give you the rank of Major General, unless you buy a button and sew it to the collar, and one sewing is the major general, and two sewing is the lieutenant general.
** 1. Contribute according to value, increase the gap between talents, fill the locomotive with fuel, and make the train run faster and do more work. ** Practice values must have a group of leaders. Talents do not evaluate the treatment system according to jurisdiction, but must make contributions and responsibility results, as well as their fighting spirit on this basis. At present, the general direction of human resources policy has been determined. The next step is to allow different human resources policies to be appropriately differentiated for different scenarios, different environments, and different regions.
I introduced the "Second Theorem of Thermodynamics" from the natural sciences to the social sciences, which meant to widen the gap and drive the team of 150,000 people by thousands of backbone forces. We must constantly activate our team to prevent "entropy death". We will never allow the organization to appear as a "black hole". This black hole is lazy, and it cannot be swallowed up by our light and heat, or its vitality.
** 2. We will pilot the "Major General Commander", according to the value and difficulty of the project faced by the employees, as well as the value and contribution that have been generated, the management team and the expert team will be reasonably configured. ** The bottom of the traditional pyramid, the lowest level in the past, they are precisely the focus of our face of the CEO team, complex projects, and extremely difficult breakthroughs ... The past configuration is precisely the softest point.
We want to let those who have the ability of major general to be the company commander. The basis for supporting the existence of the major general commander is that you must be profitable there. I do n’t know if anyone here is willing to be Major General Lei Feng. I do n’t support it. Lei Feng is a spirit, but it cannot be used as a mechanism. We need to start reforms from the representative office that is effective and able to raise high-level experts and cadres, "high-quality resources are inclined to high-quality customers." Only by making more money from high-quality customers, can we improve the level configuration of high-quality teams, otherwise where will the money come from?
** 3. The construction of internal talent market and strategic reserve team is an important way for the company to transform its ability. ** The reserve team is established in a real and practical way.
The internal talent market is a place to find Garcia and the strugglers, not the cradle of the backward. The mobility promoted by the internal talent market not only allows employees to find their most suitable positions for exerting energy, but also promotes the management of various departments to improve management, and the mobility is rejuvenated.
The company should gradually promote the circulation of organization, talents, technology, management methods and experience in the operation of the project through the strategic reserve team of reloading brigade, major project department and project management resource pool. Find more outstanding cadres and experts from the realization of the project to lead the company's cyclical progress.
Let everyone understand that hope is in their own hands, and efforts will eventually bear fruit, and gold will eventually shine. Do n’t complain, do n’t miss, and move forward. Those who "win toasts to celebrate, and lose to desperately save", although the memorial tablet can't write anything about him, it is the general who can write the results, the future commander may not write the results, the commander is well organized Thousands of troops. Whoever can figure out how the world inside the commander's heart grows is selfless and broad.
3. Flexible and flexible strategies and tactics come from strict, orderly and simple careful management.
The data traffic is getting bigger and bigger, and the company may be bigger and bigger. Companies can grow larger and larger, and management must never allow them to become more complex.
The company's control objectives should be gradually shifted from centralized to centralized, allowing people who can hear the gunfire to call for gunfire, so that the organizations in the front have responsibilities and rights; the organizations in the rear are empowered and supervised. This organizational model must be built on an effective management platform, including processes, data, information, power ... After more than two decades of hard work, with the help of Western consultants, Huawei has built a relatively unified platform to provide guidance and help for forward operations. On this basis, it will take another five to ten years to gradually realize the advancement of decision-making and exercise support.
Guo Ping said: Our growth mode should shift from preferential pursuit of scale growth to efficiency and efficiency. Project management is our important means and the basic skill of managers at all levels. Performance management is the realization form and support guarantee of the company's cadre management optimization and business reform. The understanding of responsibility results and performance should be viewed in a broader and longer-term perspective. Now that our assessment indicators have been reformed, we will continue to reduce the indicators of process assessment in the future, and the results are more important than the process. We must firmly grasp the correct direction of financial management reform. Financial management focuses on value creation, not value distribution. We must continue to insist on making thick customer and supplier interfaces and simplify internal accounting and assessment.
Huawei's management progress, as Guo Ping said, should be based on the progress of project management, we must train and select the eight members of project management, and establish mature procedures and a large quality management team. We must establish a resource pool of cadres and experts for project management in the form of a strategic reserve team, and pass advanced methods and high-efficiency capabilities to the representative office through the circulation and appointment of personnel. Be good at discovering golden seeds and let them go to flower everywhere. These changes are opportunities for organizations at all levels to exert value creation, and they are also a practical base for training and identifying cadres.
In recent years, a large number of outstanding talents have emerged in the management reform. We started by selecting the "blue blood ten heroes", and commended them to encourage those who made unknown contributions. Guo Ping said that he was looking for "Ten Heroes with Blue Blood". I think we must find and honor them, and the selection by level encourages those who contribute. We must not only select outstanding talents in the future, but also do not forget the heroes of history in order to make the pace of future progress more firm. It is the law of history for new forces to replace us, but those who have sacrificed their youth, health and life for the company's development in the past must always remember that they have laid the foundation for Huawei's sustainable development.
We must look at the progress of the overall management framework from a global perspective, systematically, constructively, and simply, build an organically connected management system, and open up processes end-to-end to avoid the barriers of isolated reforms. We must persist in seeking truth from facts, insist on keeping accounts in line with facts, and refrain from telling lies. We must strive to make the internal operation data under the necessary separation of duties and constraints, reduce the hop as much as possible, and improve operational efficiency.
It's not just about technology and market ... To make progress, we need to make management strict, orderly, and simple. The internal transactions will gradually be electronic and informatized, and work together based on transparent data. We need to achieve closed-loop management of planned and budgeted accounting to ensure the sustainable development of the business, avoid risks and dare to invest to balance development.
Cadres at all levels should know each other, financial cadres should understand some business, and business cadres should know financial management. In order to carry out the exchange and accommodation of cadres in finance and business in an orderly manner, finance must understand the business, and the business must also understand the finance, and the combat organization of the concrete structure can effectively, timely, and steadily seize the opportunity points to achieve a stable operation in an active attack The goal is to make the LTC and IFS implemented by the company play a real role. Improve the assessment and selection of cadres through closed-loop management.
The 2002 executive meeting was held when the IT bubble burst, Huawei was on the verge of bankruptcy, and confidence was low. The board of directors emphasized changing the pattern in the winter, and chose a tasteless strategy to increase investment in areas where others reduced investment. A dozen or so caught up. At that time, the world was in a difficult period, and Huawei was in a difficult and difficult period. Without the courage to change at that time, there would be no today. Today's transformation of Huawei is produced under good conditions. What we call for is development, with effective development as the goal. We should have more confidence to surpass, surpass all difficulties and obstacles, and more importantly, surpass ourselves.
From the east of the Pacific Ocean to the west of the Atlantic Ocean, from the north of the Arctic Ocean to the south of South America, from the Bolivian Plateau to the valleys of the Dead Sea, from the endless tropical rainforest to the sun-red desert ... The network covers the whole world. Tens of thousands of Chinese and foreign employees are struggling in every corner of the world. As long as there are people, there will be hard work for Huawei people. We shoulder the communication service for nearly 3 billion people. Our responsibilities inspire and inspire us. With us.
How broad our roads are, our future is extremely glorious, we are dedicated to this magnificent cause, extremely happy and extremely glorious.
(From a speech by Ren Zhengfei at the company's 2013 cadre work meeting on December 30, 2013)
