Recently affected by the chip crisis, Huawei was forced to sell its low-end and mid-end mobile phone brand Honor. At the cutting ceremony, Ren Zhengfei delivered a short speech, which is the best speech I have seen from Chinese entrepreneurs in recent years. one.
At the Glory farewell party, Ren Zhengfei said, you are leaving, there is nothing to send you, except for the yellow leaves that fall from the autumn wind.
This speech has two main meanings:
First, why strip glory, and how to do it well.
Second, this speech is also a “divorce” ceremony. Both Huawei and Honor are adults, and they must be rational when facing their separation. Once “divorced”, they should not be connected.
This kind of decisiveness is not cruel. Ren Zhengfei even has high hopes for Glory, hoping that it will become Huawei’s strongest competitor in the world in the future, and he can even release the slogan “Down with Huawei”.
He said that in future tit-for-tat duels, if you hear people in Glory scolding “Down with Huawei”, don’t embarrass him, because people with such courage are heroes. But at the same time, this does not mean that Huawei is weak, and it is also not polite to Honor.
Reading his speech, combined with Huawei’s current situation, you may think of the “Yi Shui farewell” in history, and the “Boundless Falling Trees”, but you will not feel pessimistic, feel gray, but instead It was a sense of heroism in the boundless cold wind and the yellow leaves on the ground.
It may be Ren Zhengfei’s style of igniting pride in a sad atmosphere. Unlike many entrepreneurs, he is like a “pessimist” when managing Huawei. Even when the company is developing well, he always feels that disaster is imminent.
But looking back on Ren Zhengfei’s key speeches over the years, we can smell the vitality of development in his sense of crisis.
At the end of 2000, Ren Zhengfei published an article that caused a sensation in the Chinese business community at the time, called “Huawei’s Winter”. This year, China is about to join the WTO, and the United States has experienced the bursting of the Nasdaq bubble and is recovering from the aftershocks of the stock market crash.
Huawei’s sales reached 22 billion yuan, and with a profit of 2.9 billion yuan, it was praised as the first place in China’s top 100 electronics companies. At this exciting time, Ren Zhengfei sent a signal of crisis to cool everyone’s enthusiasm.
In the article, Ren Zhengfei said that maybe today is Huawei’s spring, but winter is coming soon, and companies will die just like people, but we must “live to death” and prepare for death. This is not a process of waiting, but a process of self-challenge and resistance.
Based on this understanding, Ren Zhengfei proposed several aspects that Huawei needs to improve, such as making up for the shortest board; changing from “responsible for people” to “responsible for things”, simplifying the tedious process of asking people for instructions; don’t blindly Innovation, we must adhere to “small improvements, big rewards”.
In addition, it is necessary to establish an atmosphere of self-criticism within the company. There must be a fault-tolerant mechanism to allow cadres to make mistakes, but a resolute “horse racing mechanism” must be implemented to ensure that employees can Display their abilities on a standardized, fair and transparent track. .
In 2002, basic investment in the domestic telecommunications industry fell sharply, and Huawei began to attack overseas markets.
In 2005, Huawei signed a cooperation agreement with British Telecom and entered the procurement list of the world’s top operators for the first time, and its overseas contracted sales exceeded domestic sales for the first time.
During this period of rapid development, Ren Zhengfei delivered a speech on “Learning Refinement Management from the UK”.
In the article, he said that when the global communication industry is facing a severe situation, Huawei should expand its survival path from three aspects: good quality, good service, and low-cost internal operations.
“Operation management of costs is the key to Huawei’s lasting survival.”
For example, in the company’s internal contract management, when faced with a pile of thick contracts sent by the operator, if the person in charge of the negotiation in the company does not summarize the key information, but continues to pass the contract to the person who executes it, this will cause It causes a lot of reading costs, and the establishment of a contract index system can solve this problem very well.
He believes that the UK is the birthplace of the industrial revolution and modern management, and should learn from the UK’s meticulous management, rational planning, and not blindness. How can Huawei compare with major international companies? The important thing is to see who can survive more than efficiency and cost.
Under the leadership of Ren Zhengfei, Huawei has grown into a butterfly step by step.
2009 was the year of Huawei’s expansion, although the 2008 financial tsunami threatened the global economy. But a year later, Huawei’s contracted sales topped $30 billion and revenue was approaching $21.5 billion.
This year, Huawei released the world’s first commercial version of LTE eNodeB at the Global Mobile User Conference held in Munich, Germany. LTE is a technical standard. When LTE was originally formulated, it was originally positioned as an upgraded version of 3G technology. As a result, the development of LTE technology far exceeded expectations, and the subsequent evolution version was determined as the 4G standard.
At the end of the year, Ren Zhengfei delivered the speech “Nothing Can Stop Us Going Forward”, showing great courage and confidence.
In his speech, he said that “the peerless beauty always thrives in troubled times.” This year, investment in most regions of the world has declined, and the economies of all regions have shown negative growth. And Huawei can make such a good result, it can be said that the heroes have come out in large numbers, and their elegance is peerless.
In the past year, Huawei has carried out reforms in its organizational structure and human resources mechanism, transitioning from centralized management to decentralized checks and balances management, so that front-line employees have more decision-making power. call for artillery fire.”
At the end of 2009, Ren Zhengfei was optimistic about Huawei’s development. He believes that the market changes in the next two years will help Huawei become the most mainstream telecom solution provider in the world, and will also enhance Huawei’s competitiveness.
At this time, Huawei wants to achieve a leap in sales of 36 billion US dollars in the coming year. In this process, Huawei should reform its R&D institutions; to select leaders from successful practices, “the prime minister must start at the state department, and the fierce general must be sent to the army.”
Everything went smoothly as scheduled. In 2009, Huawei’s patent applications ranked second in the world. In 2010, Huawei won the Annual Corporate Innovation Award from The Economist.
Prepare for war
After a glorious period of growth, Huawei’s 5G technology has continuously made new breakthroughs, but in recent years, it has been repeatedly blocked by overseas markets.
At the beginning of January 2018, the U.S. government firmly opposed the cooperation between Huawei and AT&T (American Telephone and Telegraph Company) and banned Huawei mobile phones from entering the U.S. market; in December 2018, under the strong pressure of the United States, Huawei Vice Chairman Meng Wanzhou was in Vancouver, Canada arrested.
To this day, Huawei has not made a breakthrough in the chip crisis. The achievements of the past are vivid, but the current crisis is difficult to overcome.
In 2019, Ren Zhengfei delivered a speech “Huawei has entered a wartime state”.
In the article, Ren Zhengfei was full of emotion. He described the quiet environment in China as the gentle Qinhuai River and Dongting water, but the rolling Yangtze River was destined not to stay in the corner of Dongting Lake, and mistakenly thought that the Pacific Ocean was really peaceful. The international market has been boiling, and Huawei has already adjusted its appearance and entered a wartime state.
In this environment, he said that Huawei’s R&D cannot stay in the concept of storytelling, and it must plan its budget. Product lines that can no longer dominate should be closed in time, and product lines cannot be equal, but better. If you do not do well yourself, you must introduce excellent products.
“It is necessary to focus on the points of success, rather than spreading the business. Spreading it will spread the power, and the scattered power is destined to blow up the enemy’s ‘city wall’.”
Today, Huawei can be said to be in the “tsunami of the Pacific Ocean”. But looking back on the development history of human civilization, almost no iteration of civilization was completed under the sunny weather, but often in extremely difficult environments. The bigger the stimulus, the faster the evolution.
Ren Zhengfei “lives towards death” in his view of crisis. Just like the real brave, he often knows the happiness and disasters of life best, and then moves forward bravely and is mentally prepared to endure hardships.
Ren Zhengfei’s speech to Glory and his articles on Huawei’s key milestones over the years will give us a deeper understanding of the profession of an entrepreneur, which will also provide us with a lot of inspiration for our own lives.
As Ren Zhengfei said, no matter where we are, we have to watch the tsunami in the Pacific Ocean, watch the storm in the Atlantic Ocean, and understand the difficulties of Shangganling.
“We must follow the galloping waters of the Yangtze River, go to distant places, go to the battlefield, and seek victory.”