Ren zhengfei, huawei against crisis implement three austerity

the author: JiYongQing

on April 28, in the afternoon, just after 6 PM, a huawei internal email suddenly appeared prominently in several professional web site, content is CEO ren zhengfei, huawei in shareholding employees congress speech in this paper, mainly expressed the three layers of meaning: huawei is not listed, family succession, media interview.

this is ren through his unique way of communication with outside again. LaoJi after carefully study the head of the speech, suddenly thought of Confucius for thousands of years ago, said a words: “I fear JiSun sorrow, not ZhuanYu, but also within more.” In LaoJi point of view, these words is not so much to vindicate the response and some outside questioned, as toward huawei internal propaganda.

so, ren: why do you want to do that? LaoJi believes that he is ready for huawei the next crisis.

recently LaoJi some older employees some communication with huawei, they generally feel worried, the reason is very simple, is a problem recently often niandao sentence “what we don’t have the invincible”, this sentence is written by huawei in 2012 annual report (in Chinese) page 2.

these old employees know that tended to talk just like the federal reserve, is often a reverse operation: good times chanting “huawei’s red flag exactly how long can play”, “huawei is about to collapse,” the situation is bad to say “north” in the spring will come, “ever across the Pacific Ocean. The suddenly to a “we don’t have any invincible”, is all old employees to listen to the in the mind a surprised!

for huawei this to communicate with the outside world is not full of giant enterprises, it would be easy to form the “inside and outside should state: external a lot of people have recently been huawei high-profile publicity and looks very beautiful performance get dizzy, and neglected the huawei some action in response to the crisis.

according to LaoJi observation, huawei’s crunch is orderly progress:

one of tightening: on April 26 set for internal notice: some countries, including China, southeast Asia, set up a separate enterprise being in the office of the business and consumer business office, but is incorporated into the operator business platform of unified management and examination. It is understood that the next step the merger plan will also introduce to Japan, Western Europe, Indonesia, Singapore and other regions and countries.

# 2:

squeeze intern hiring, such as huawei basic canceled this year, and 5% of the take out plan, plans to lay off employees about 10000 people. In 2012, huawei has just added 15000 employees.

tightening # 3: huawei for r&d staff meals and compensating overtime subsidies, subsidies overseas staff welfare projects, such as adjusted, huawei executives also wrote a “chichikov” and called for the employees not to do get the recognition ren. Although these money for huawei are small, but expressed the huawei executives hope better cost savings.

wise as ren zhengfei, is keenly observed some unfavorable to huawei’s crisis is happening, so decisively the brakes.

so, huawei’s crisis from where? Actually the main or internal. Before that, too LaoJi also once to write articles, and talked about huawei’s so-called “company system” as doesn’t really get through, and the external market just rely on the company’s internal from circulation, actually it is very difficult to maintain for a long time. By this system to feed the employees, once encounter declines will choose to abandon ship, ren is the most concerned things. History has proved that any one company may not be high growth forever, will always be generous dividends, and it doesn’t matter if other company can not do, through the external stock market on the past is over, and China is not…

the next few years, has been the rapid growth of huawei must solve this problem. To stabilise the morale, 15 wanhua is head of the first two “huawei is not listed, family succession” actually is to say to you: “huawei is not listed” means everyone still tied to the arduous struggle, don’t thinking about short-term fortune; “Family succession” is lets everybody especially officials to dispel misgivings, their status will not change, huawei must be almighty and sage in charge, the company will not deviate from the course. As for the “media interview” not necessarily, as far as I know, ren has supper with more than one media editor, just have a meal Just don’t writing.

of course, huawei internal crisis occurs only in the case of growth disadvantage. And LaoJi understand, had appeared in 2012 as the growth of some problems:

say first operator business: huawei still unable to reach the fastest growing mainstream American and Japanese markets, Europe’s debt crisis also let European operators demand a substantial decline, in 2012 China’s three big operators have been busy with the terminal and no significant investment in equipment… All in all, 2012 operators is very shortage, huawei is very panic, where is also not good this year.

say consumer business: in 2012, has been spent in sharp adjustments, cut off almost all the function of the mobile phone business, huawei smartphone the D1 without open the situation, however, P1 several products positioning is also changing let us bewilder, until finally succeeded in the end of the year depends on four nuclear glory… Over the past year end really is not easy, set in early 50 million smartphones, by the end of finished 32 million units, but somehow turned the corner.

in fact, the most serious problem in the enterprise business. Set at the start of the year is the goal of $3.5 billion in sales revenue and personnel suddenly enlarged to the size of the nearly 30000 people. By the end of inventory, everyone know that the finished? LaoJi tell everyone a surprising number: 11.882 billion yuan. Everybody can figure out how much, the dollar is probably higher than in 2012 for less than 30%! Throughout 2012, the enterprise business is still losing money.

LaoJi why think business is huawei’s sting? Because we all know, huawei’s core business is the business operators, unless the NSN/man/zte was dead, otherwise huawei’s market share has been fixed, basically impossible to achieve rapid growth. Consumer business and too too far away from the core and gene of huawei, even if yu warrior, its in huawei big plate also just provide the ZhuGongXing effects of cash flow and profit.

huawei to high-speed growth and future will depend on the enterprise business. However, in 2012 for enterprise business development is not ideal. Investigate its reason, is still some inherent experience at work in the past. According to LaoJi observation, the problem of enterprise business have so few (of course is actually more than that) :

1. From a carrier BG past a big help, regardless of the business of the actual situation to make the process, make business more complex than operators;

2. Business development is still in accordance with the operator business experience, will lead the customer rather than meet customer demand, customer some legitimate requirements will not be able to meet;

3. With advanced financial, government, information industry clients a up or talk to sell the equipment, and vendors such as IBM, first talk about customer needs and business model;

4. From the multinational companies such as cisco, IBM, dug a bunch of technocrat cattle, but due to the “culture” exploits inherent within the company, cause people didn’t stay very long left.

the final result, called came up, the business did not do. A top in his speech, huawei recently admitted that “we are now the enterprise market, at best, is equivalent to our operator of the market in 2003, the equivalent of 10 years ago, the operator of the market.”

huawei setback in the enterprise business, fully shows a truth: obsession with success in the past, often means that the failure of the future. Huawei’s book out of the many, over the years are summarized from different angles of huawei success experience, LaoJi wonders, really able to replicate the success of the past? You’re successful in your operators can be successful in business and consumers? Non-standard company’s past can you motivate employees will still be able to motivate now? You to the 60 s and 70 s after the successful management experience is really suitable for 80 and 90?

in LaoJi view, some problems of huawei has been realized and is improving, there are some problem is getting worse, do not believe, you can ask huawei grass-roots staff, ask how they know “canteen theory”, “chichikov theory”, “three years theory”, “ecological home”, “department of wall” and “international practice”. When a company morale is gradually “dissipation” when the crisis is not far away.

ren has seen the crisis, he is go to great lengths to avoid a crisis, most the purpose of this speech is here. LaoJi is expected in the future there will be more measures to cope with the situation, huawei LaoJi sincerely hope that huawei is able to overcome difficulties, to a higher peak.

these are LaoJi huawei’s personal observation, if everybody has their own opinion, can add LaoJi WeChat (search number 2813937660), will be able to further communication with LaoJi!