Loyalty and Competitive Management in Huawei

Huawei has 29 years history, Ren Zhengfei has insisted on building on process based management system since beginning, such as LTC, IPC, ISC, etc. Ren Zhengfei clearly understand that if Huawei becomes the most successful company around the world, and lives a long time after he gone, the company should rely on process, not hero. Now, Huawei have different process to support sales, R&D, customers relationship, and interworking with each other smoothly, which enables around 180K employee work hard for company vision, and 520 billion RMB revenue in 2016. Another impressive part is most high level managers in Huawei is around 40-50 years old, and worked more that 20 years in Huawei. They have witness and dedicated to Huawei successfully in last 20 years, and also is cornerstone to Huawei success in next 20 years at least with unwavering dedication.

The following is Huawei organization structure from Huawei 2015 annul report.

The Shareholders’ Meeting is the highest authority within the Company, and comprises two shareholders: the Union and Mr. Ren Zhengfei. Although Ren Zhengfei only have 1.41% shares, but he process 50% right for key decision.

The Board of Directors (BOD) is the decision-making body for corporate strategy and management. The BOD guides and oversees the overall business operations and makes decisions on significant issues regarding strategy and operations. The BOD has established the Human Resources Committee, the Finance Committee, the Strategy & Development Committee, and the Audit Committee to assist and support BOD operations.

To make sure every employee obey company policy, especially Board of directors, Huawei has established a Supervisory Board. The key responsibilities of the Supervisory Board include overseeing internal and external compliance, examining the company’s financial and operational status, monitoring the responsibility fulfillment of BOD members and senior management, as well as the standardization of BOD operations.

In Huawei, the most innovative position is relative to CEO, which is the rotating CEO system.

Huawei implements the rotating CEO system under the BOD’s leadership. As the primary owner of the company’s operations and crisis management during the tenure, the Rotating and Acting CEO is responsible for the company’s survival and development.

The Rotating and Acting CEO convenes and chairs the company’s EMT meetings. During routine management decision making, the Rotating and Acting CEO promptly notifies BOD and Supervisory Board members of responsibility fulfillment. Currently Three Deputy Chairmen take turns to act as the Rotating and Acting CEO for a tenure of six months.

The following pic shows members of the Board of Directors

From the left in the first row: Mr. Li Jin’ge, Mr. Guo Ping, Ms. Meng Wanzhou, Mr. Xu Zhijun, Mr. Ren Zhengfei, Mr. Hu Houkun, Ms. He Tingbo, and Mr. Li Jie
From the left in the second row: Ms. Chen Lifang, Mr. Wan Biao, Mr. Zhang Ping’an, Ms. Sun Yafang, Mr. Xu Wenwei, Mr. Yu Chengdong, Mr. Ding Yun, Mr. Li Yingtao, and Mr. Wang Shengli

The following pic shows members of Supervisory Board

From the left in the first row: Mr. Ren Shulu, Mr. Zhou Daiqi, and Mr. Liang Hua
From the left in the second row: Mr. Yi Xiang, Mr. Yin Xuquan, Mr. Tian Feng, Mr. Deng Biao, and Mr. Song Liuping

There are also many other committee members, most of them have worked in Huawei over 20 years, and they share the same Huawei core values. The stable and loyalty management system will lead Huawei into success for next decades.

2 Comments

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