Depth | Ren Zhengfei told 18 stories to his employees

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Depth | Ren Zhengfei told 18 stories to his employees 2016-12-04 China Certification and Accreditation Last year, Huawei’s total revenue exceeded 60 billion dollars. Its founder, Ren Zhengfei, is considered a kind of patriarch figure among Chinese companies. Over the past 20 years, he has often used metaphors and analogies to explain Huawei’s strategies, development plans, human resources policies, management philosophy, and the challenges it faces from various perspectives. Today, 18 words are recommended; the stories behind them are not only business management concepts but also philosophical reflections. It is very beneficial for today’s young people in developing a holistic perspective. 1. The Red Shoes is a widely known fairy tale by Andersen: There were a pair of extremely beautiful and attractive red dancing shoes; when a girl wore them, she would feel light and full of energy whenever she danced. Therefore, when the girls saw those red dancing shoes, their eyes lit up; they were so excited that they could hardly breathe, as everyone wanted to put on those red dancing shoes and dance. But the girls only thought about it; none of them dared to actually put it on and dance in it. This is because the red dancing shoes are said to be magical shoes; once worn, they cause the wearer to dance endlessly until all of their energy is exhausted. Yet there was still a young and lovely girl who was skilled in dancing, and she couldn’t resist the charm of those red dance shoes. Ignoring her family’s advice, she secretly put them on and began to dance. Indeed, her dancing became even more graceful, and her passion grew even more intense; the girl felt an endless enthusiasm and energy for dancing. Wearing red dancing shoes, she danced through streets and alleys, across fields and villages. Her dance was full of youthfulness and beauty; she was adored and envied by everyone who saw her. The girl herself felt immense satisfaction and happiness; she danced tirelessly again and again. Night fell unnoticed, and the crowd that had watched the girl dance went home to rest. The girl too began to feel tired; she wanted to stop dancing, but she couldn’t, as the red dancing shoes demanded that she keep dancing. The girl had no choice but to keep jumping. A storm broke out. The girl wanted to stop and take shelter from the wind and rain, but the red dancing shoes on her feet continued to spin her around at great speed. Reluctantly, she had no choice but to keep dancing in the midst of the storm. The girl jumped into the strange forest; she became afraid and wanted to return to her warm home. Yet the red dancing shoes kept carrying her forward tirelessly, forcing her to keep dancing in the darkness, crying as she did so. Finally, when the sun rose, people found the girl lying quietly on a patch of green grass; her feet were red and swollen. She was utterly exhausted, and beside her lay those tireless red dancing shoes. The story of the Red Shoes is deeply moving. Rationally speaking, people would never risk their lives in pursuit of short-term success in their personal careers. Yet people still have too many emotional factors that are not subject to rational control. On the path of life, temptations like the red dancing shoe can be found everywhere at all times. Running a business is like living one’s life. The performance of a company ultimately depends on that of its managers, who also face temptations similar to those of the Red Shoe every day. Clearly, it is not the responsibility of corporate managers to find a pair of red dancing shoes for the company so that it can only survive for a short time; “the primary responsibility of a company is to survive.” ”(Peter Drucker, a master of management revolution theory) Ren Zhengfei often emphasizes repeatedly on various occasions: “What I’m thinking about now is not how to maximize profits for the company, but rather how to ensure its survival and how to enhance its core competitiveness.” ” 2. Saline-alkali soil: Ren Zhengfei mentioned the concept of \"saline-alkali soil\" during a presentation on Huawei’s financial reform plans. Saline-alkali soil is a type of soil where salts have accumulated to such an extent that the salts present in the soil interfere with the normal growth of crops; in areas with severely saline-alkali soil, plants can hardly survive. Similarly, in many markets, due to various factors such as the international environment, all the hard work may yield no results at all. These regions are vividly referred to by management as Huawei’s “saline-alkali lands”. Huawei’s success lies in its persistent pursuit of a \"strategic approach that seems impractical\" – gradually improving and developing those areas that Western corporations considered unviable. Moreover, the low profits forced the company to hone its skills and improve its management capabilities within very tight constraints. 3. Red Army, Blue Army: The “Blue Army” acts as the fictional enemy force; when war breaks out, the Red Army steps in to defend against the Blue Army’s invasion. The fighting style of the Blue Army is to act in unexpected ways, which poses a great threat to the Red Army. Only by constantly dealing with them can the Red Army avoid defeat. The powerful Blue Army forces the Red Army to keep improving through these simulations. Ren Zhengfei once pointed out in a speech: Huawei’s Blue Army exists in all aspects; there is a Blue Army in every internal area. The Blue Army is not an organization that exists only at higher levels while being absent at lower levels. I believe that throughout one’s life, there is always a struggle between red and blue. In my own life, what has contradicted my own wishes more often than what I wanted to do was my own criticism of myself, which was far greater than my own decisions. I believe the Blue Team exists in every field, every process; there is always a red-versus-blue rivalry at any time and place. If an organized opposition force emerges, I am more willing to tolerate it. Therefore, it is necessary to unite everyone who can be united in order to work together to build the world, including those with different opinions. A hundred flowers blooming and a hundred schools of thought competing allow people’s intelligence and talents to truly come into play. Those who work diligently to develop the platform advance quickly through the hierarchy, and they don’t suffer any losses as a result. It’s both serious and lively – what a lovely team. 4. Dig deep to clean the riverbeds, build dams at low levels. The principles behind the construction of the Dujiangyan irrigation system over 2,000 years ago are very similar to the rules that govern survival in the industry in which Huawei operates today. Li Bing left behind the principle of dam construction, \"Dig deep at the beaches and build dams at lower levels,\" which is the main \"secret\" to the enduring longevity of the Dujiangyan Irrigation System. The wisdom and principles contained therein go far beyond water management itself. If Huawei wishes to endure, these principles also apply to us. Deepening the foundation: It involves continuously tapping into internal potential, reducing operational costs, and providing customers with more valuable services. Customers will absolutely not pay an extra penny for your fancy appearance and high benefits. For any of our desires, apart from achieving them through hard work, don’t expect things to fall into our laps. A company’s short-sighted and irrational welfare policies are like drinking poison to quench one’s thirst. Low profit margin: It means restraining one’s greed, keeping a lower profit for oneself, giving more to customers, and treating upstream suppliers well. Future competition will be between one industrial chain and another. The overall strength of the industrial chain, from upstream to downstream, is the foundation for Huawei’s survival. 5. Unity of effort and unity of direction. Ren Zhengfei once said, “Water and air are the gentlest things in the world; that’s why people often praise the qualities of water and a gentle breeze.” But as we all know, even though it’s a gentle force, a rocket is propelled by air; the high-speed gases produced by the combustion within the rocket exit through a small opening called a nozzle, and this flow of gas generates tremendous thrust that enables humans to reach space. Water as beautiful as a beauty, once sprayed out from a small hole under high pressure, can be used to cut steel plates. It can be seen that when power is channeled through a single point, its strength is immense. If the energy of 150,000 people is focused on one single path, everyone’s interests are sought to be achieved through that single path. If Huawei can adhere to the principle of \"uniting efforts through one channel,\" then it won’t be Huawei that collapses next. ” 6. The true skill lies beyond poetry. “The true skill lies beyond poetry” is a line from a poem titled “Instructions to My Son Jue,” written by Lu You, a great poet of the Song Dynasty, in his later years as he passed on his experience in writing poetry to his son. In these words, he conveyed to his son the secrets of poetry creation. With decades of experience, he has come to realize that to write good poetry, it is far from enough to merely study the verses of ancient poets or focus on the form and techniques of poetry; instead, one must invest effort in acquiring extensive knowledge, engaging in social practice, immersing oneself in life, and gaining experience – these are the true guarantees for success in creative work. How can managers improve their management skills? While it is certainly important to read management books thoroughly and master various management skills, this alone is not enough to reach a higher level. A comparative survey shows that domestic managers read mostly management-related books, while foreign managers prefer humanities-related works such as history and philosophy. We often marvel at the top-notch professionalism of those foreign managers and their effortless proficiency in business management; this is probably inseparable from their “extra-professional” pursuits. The same is true for Ren Zhengfei: he never reads books focused solely on management, but rather has a particular preference for books in the fields of history, philosophy, and other humanities. 7. Entrepreneurship by “rich second generation”: The phenomenon of inefficiency and unrealistic ambitions among colleagues within a company is jokingly referred to as the “rich second generation phenomenon”. Its main manifestations are as follows: Currently, many business managers lack a cost-conscious mindset; they immediately aim for top positions in the industry, striving for grand visions and lofty goals. They are willing to make substantial investments. Conversely, those who seek to achieve profitability in the short term are labeled as having a “petty, narrow-minded mentality without any grand aspirations,” and such efforts are considered embarrassing to admit. “They even want to lay railway tracks just for taking a walk.” The root causes of this “second-generation rich” phenomenon are as follows: 1. Companies indeed have a solid foundation and abundant resources, which leads some people to disinterest themselves in running small businesses. 2. The existing distribution and incentive mechanisms give supervisors no motivation to improve per capita efficiency. Therefore, managers should first avoid adopting an attitude typical of those from wealthy families in their work; they should not expand their operations recklessly, and must impose constraints on efficiency and costs ； At the same time, when addressing such issues, the top leader of an enterprise should focus not only on providing temporary solutions but also on addressing the root causes, identifying the underlying problems, and establishing appropriate mechanisms to resolve them at their source. 8. Bian Que’s elder brother. Once, Wei Wenhou sought out Bian Que and asked him: “I heard that all three brothers in your family have studied medicine. So, who among you has the best medical skills?” Bian Que blurted out, \"My eldest brother has the best medical skills, my second brother is next, and I’m the worst.\" Duke Wen of Wei asked in surprise, \"Then why are you famous throughout the world, while those two have no reputation at all?\" Bian Que said: “My eldest brother’s medical skills are so superb that he can prevent diseases before they occur.” When a person is not yet sick, one can tell by looking at their complexion; then medicine is used to restore them to health. That’s why everyone thinks he cannot treat diseases. My second elder brother is capable of treating illnesses at their early stages, preventing them from developing into serious diseases. When the patient first started to have a cold and cough, he used medicine to cure them. Therefore, my second brother’s reputation was limited to his hometown; he was regarded as a doctor who treated minor ailments. As for me, being the worst doctor around, I have to wait until the patient is in a critical condition, on the verge of death, before administering those potent medicines to bring them back to life. So, people thought of me as a miracle doctor. Just think about it: when treating illnesses like my elder brother does, a person’s vital energy isn’t harmed in the slightest ； My second brother was undergoing treatment, and whenever his vital energy was slightly weakened, it would be restored ； For someone like me who has been treated for an illness, I’ve managed to save my life, but my vital energy has been severely weakened. You say, who in our family has the best medical skills? Thinking of our corporate managers, those who are constantly responding quickly and busy everywhere – it may seem bustling, but it’s likely that there are problems in the way their work environment is organized or in the methods used, or perhaps previous managers left behind many issues, resulting in a poor foundation. As a result, a great deal of time and effort is spent on “interruption → securing the scene → emergency handling → restoring the environment”; sometimes there are multiple levels of recursion in the “interruption handling”. In this way, a considerable portion of the employees’ resources is spent on scheduling, which inevitably reduces their work performance. In companies and departments managed by excellent managers (and management teams), everything operates in an orderly manner; employees hardly even notice any form of management, yet team performance is outstanding. 9. Girls who dance ballet have thick legs. In most people’s minds, ballet dancers have excellent figures with very thin and long legs. That’s not the case; most ballet dancers have thick legs, great strength, and large feet. This actually reflects the logic of architecture: strength is fundamental; only things that are based on mechanical principles can possess beauty of harmony and balance. Ren Zhengfei used the analogy that \"even ballet dancers have thick legs\" to illustrate the idea of not striving for perfection. He said, “The world is constantly changing; there is never perfection. Perfection simply does not exist. Striving for perfection leads one to focus on trivial matters, which only makes things more complicated and rigid. Attempting to achieve perfection results in being like women with bound feet – unable to fight effectively. The reason Huawei was able to surpass Western companies is that it did not pursue perfection or excellence.” ” In addition, this metaphor also reflects another philosophical idea—balance. One needs a pair of strong, thick legs and large feet to provide the strength and flexibility needed for stunning motion and balance. “The pursuit of unidimensional growth can bring rapid development to a company; especially during its initial stages of accumulation, it helps the company survive and establish a solid foundation of strength. But attacking, attacking without cease, will bring more and more opposition and friction from outside the company ； Within enterprises as well, too many contradictions and conflicts accumulate over time; therefore, balance becomes a key topic in organizational management during such periods. 10. One cannot step into the same river twice. This is a thought from the ancient Greek philosopher Heraclitus: for when you enter that river a second time, it is no longer the same river as it was when you entered it the first time; the original river has long since changed, and the water is no longer the same either. This is because the river keeps flowing. Everything in the world is in constant motion. Through this philosophical idea, Ren Zhengfei illustrates that nothing should be viewed, analyzed, or handled from a metaphysical, static perspective; objective things are in constant change and development. Therefore, people should approach things from a developmental standpoint, keeping up with the times and constantly adapting. Whether it is a company or an individual, only by constantly adapting to the rapidly changing world can one survive in it. Ren Zhengfei believes that as a company operates for an extended period of time, its employees tend to become lazy. Therefore, it is necessary to keep making improvements and changes. Yet, just like Huawei’s practice of self-criticism, such changes should not be sudden and forceful, but rather gradual, like the gentle rain that nourishes everything silently. 11. “Beautiful flowers planted on cow dung.” In its pursuit of innovation, Huawei blindly imitated and followed Western companies, learning many lessons from those experiences. Therefore, Ren Zhengfei has mentioned on numerous occasions that Huawei’s long-term strategy is based on the concept of \"placing flowers on cow dung\" – it means not pursuing blind innovation by straying from traditions, but rather fostering openness and innovation based on what already exists. Once the flowers grow, they turn into new cow dung. Huawei must innovate always on the basis of what already exists. My consistent belief is that ‘flowers should be placed on cow dung’. I have never advocated for creating something out of thin air or aiming too high by planning for a future that is unseen; I believe we should move forward on the foundation that already exists. There are always people in the world who create physical changes; after those changes are made, we then determine the course of action. We insist on making flowers grow from cow dung, and that is a process of progress step by step. We started with communication power supplies and gradually expanded from there. We don’t expect Lin Daiyu to fall from the sky. 12. Danke: This originates from a legend: a group of people who lived on the grasslands were driven into the forest by another race. In the forest, death looms over them; only by leaving the forest can there be a glimmer of hope. At that moment, the hero Danko appeared, offering to lead everyone out of the forest. The road was difficult, with thunder rumbling in the air. It was unclear how long they had been walking; everyone was exhausted. Some began to complain, while others criticized Danke harshly. In order to stop his people from making useless complaints and to lead them out of the dense forest as soon as possible, Danko resolutely grabbed his own chest, took out his heart, and held it high above his head, illuminating the path ahead. Everyone was astonished, and so they followed him without hesitation. Finally, Danko used his heart to lead everyone out of the forest, out of the darkness, and toward hope for life. Danko is dead; his heart has become a star in the grasslands, shining forever. Ren Zhengfei compared those leaders in the telecommunications industry to Danchen. He said that we have reached the forefront of the communications industry, and it is a very difficult question to decide what to do next. We used to rely on Western companies to lead the way; now we too need to take on that role of leadership. We are grateful for the vision and generosity of those who have led the way. What is the concept of leading the way? It’s “Danko”. We too must, like Danko, lead the way forward for the communications industry. It is a process of exploration, and during this process, due to the lack of clarity and uncertainty about the future, great costs may be incurred. But we can definitely find a direction, a way to illuminate this world, and that path is to be \"customer-centered\" rather than \"technology-centered\". We will also make these explorations more accessible to share with partners. We will not only have more partners, but we will also be less exclusive, willing to strengthen cooperation and understanding with opponents who hold different values. 13. The Death of the Frog and Rat: There is a fable about a rat who was playing by the river when it met a handsome frog. The frog talked at length to the rat about the joys of swimming, the fun of drifting, and the strange adventures that took place in the swamps. In turn, the rat told the frog about the scenery along the shore and the abundant resources in the fields. They were deeply attracted to one another. At first, the mouse traveled on the ground with the frog; they were very happy together. But when they reached the pond, the mouse became worried because it couldn’t swim. The frog, being understanding, said, \"Don’t be afraid; I’ll help you.\" It made the rats place their paws on their back legs, which were then tied tightly together with reeds; and in this way, they set off on their joyful water journey. At that moment, an eagle saw them; it dove down to catch the mouse. The frog quickly dived into the water, but since the mouse was holding onto its back legs, the frog’s speed was greatly reduced. In the end, the eagle caught the nearly dead mouse, and because the reeds held them tightly together, the frog also became the eagle’s prey. Both rats on land and frogs in ponds have enough ability to escape from eagle attacks, but the combined life of frogs and eagles in water precisely limits their survival advantages. At that time, a wave of corporate acquisitions and mergers was sweeping the world. Ren Zhengfei hoped to use this fable as a reminder to the company’s management to stay clear-headed during such a period of consolidation. Especially when Huawei formed partnerships with companies like the United States, Siemens in Germany, Infineon in Germany, and even Nortel in Canada, it was important to ensure that the strengths of each party were maintained. There was a need to be cautious about whether such collaborations might cause either party to lose its advantages at certain points in time, so as to prevent the tragic story of \"The Death of the Frog and the Rat\" from repeating itself time and again in business dealings. Ren Zhengfei was able to see the huge risks underlying acquisitions and mergers, as well as the crises behind rapid corporate expansion, demonstrating the strategic vision and determination that a company founder and top executive should possess. 14. **&Mainstream Convergence** is a concept introduced by Ren Zhengfei in his speech at the PSST system cadre conference in 2010. **It is a spider found in Latin America; after mating, the female will bite and eat her mate to use its body as nutrition for raising her young spiders, which is why it is nicknamed \"**\" in local folklore. Ren Zhengfei said: In the past, when Huawei collaborated with other companies, after one or two years, it would either absorb those companies or get rid of them. When cooperating with others, Huawei can no longer act in an ** manner; it must be open, cooperative, and strive for mutual benefit, taking on more difficulties itself while giving more benefits to others. We can see that in recent years Huawei has been advocating the approach of \"strengthening relationships with suppliers,\" which is essentially a practical implementation of the principle of \"not doing certain things.\" It aims to enhance cooperation with outstanding suppliers in order to achieve mutual benefit. At the same time, Huawei also advocates convergence with industry leaders, that is, aligning itself with the main suppliers in the sector, strengthening supplier management, eliminating those with low qualifications, and establishing long-term, mutually beneficial organizational partnerships based on trust with these leading suppliers. In this way, by forming strong partnerships with these high-quality suppliers, Huawei can achieve complementary advantages, which also helps to enhance its capabilities and reduce end-to-end costs. Creating a favorable business ecosystem, maintaining good contractual relationships with suppliers, and achieving what is known as a win-win situation are all manifestations of avoiding **. 15. The frog in boiling water: If a frog is suddenly thrown into boiling water, the heat strongly stimulates its nervous system, allowing it to jump out quickly as a result of conditioned reflexes. But if a frog is placed in cold water with the temperature gradually rising, it is unaware of any danger and swims around happily. By the time it feels hot, it is too weak to move and can only wait to die. The story of boiling a frog in warm water illustrates the principle of change from quantitative to qualitative changes, showing how lack of vigilance due to adaptability and *inertia to gradual changes leads to disaster. The sudden appearance of a formidable enemy often leads to unexpected defensive responses. However, in an environment of comfort and satisfaction, people tend to become lax – and that laxity is the most deadly of all, with one remaining unaware of why until it’s too late. History has given Huawei opportunities; we must take precautions and be prepared for potential threats in order to ensure long-term stability. If we are blinded by the current prosperity and development and fail to see the various lurking crises, we will be like frogs in cold water unaware of an impending disaster, eventually perishing in great suffering. 16. Excessive complaints can break one’s heart; one should always take a broader perspective. The phrase “Excessive complaints can break one’s heart; one should always take a broader perspective” comes from *’s poem “To Mr. Liu Yazi.” Its original meaning is that in life one often faces many troubles and difficulties, and it is necessary to analyze problems with a broad mind and a long-term outlook in order to get rid of such complaints as well as the negative aspects of society. Nine out of ten things in life go against one's wishes. To face setbacks and hardships with an open-minded attitude and a positive outlook on life requires a broad heart and extraordinary magnanimity. Temper your will in adversity; don’t worry about short-term successes or failures. Ren Zhengfei said that managers at all levels within the company should maintain a calm attitude in the face of interests, not becoming pleased by material gains nor saddened by personal losses. Mid-to-senior level managers must be able to withstand hardships and grievances. As the company grows larger and distances increase, poor communication can lead to information asymmetry or distortion. It is our responsibility as managers to face challenges with a calm mindset and work together to solve problems. In our work, we must focus on efficiency and adhere to principles, while also learning to appreciate and support one another, to be understanding and grateful. By working together to create a harmonious and cohesive management team, we can overcome any difficulties. 17. Calm and steady progress: Ren Zhengfei has always emphasized that Huawei’s management style should be one of calm and steady progress, with leadership that is quiet and unassuming; people should work diligently in a low-key manner, without being showy or emotional. The path of static subsurface flow appears calm on the surface, but in reality it is not. Water represents the weakest thing in the world, yet it is also the most powerful force for overcoming all other things. The Tao Te Ching states: Nothing in the world is softer or weaker than water, yet nothing that is hard or strong can overcome it, for there is nothing that can replace it. The highest good is like water. Water benefits all things without competing; it stays in the places that others despise, and thus it is close to the Way. Water overcomes hardness with softness; the weak is in fact the strong, and no one in the world can compete with it. Quietness is a form of expression that does not involve waving flags or shouting; it is a restraint that avoids drawing attention to oneself and making unnecessary showmanship. It is like Jiang Gan stealing books – seemingly casual, but in fact with a clear goal and careful planning. The intentions remain hidden, and everything is done silently to achieve the desired outcome. Quietness does not mean true stillness, or the complete absence of any activity; rather, it appears calm on the surface, but in reality it is like the spring rain that nourishes everything, or water droplets that gradually wear away stone – it harbors tremendous energy, representing the idea of hearing thunder in silence. If you don’t know how deep the water is, throw a stone into it; if splashes are produced and the sound is loud, the water is shallow. But if there are no significant splashes and little sound, then the water must be extremely deep, with immense power hidden within it. This is called “static seepage”. 18. Gray: Gray is pure white, pure black, and a series of colors in between that transition from black to white. The average gray level of most objects in nature is 18%. The term \"grayity\" holds significant importance in Huawei’s context; it is a word used by Ren Zhengfei in many of his important speeches. In his speech at the mid-year meeting of the marketing department in 2008, Ren Zhengfei said, “Openness, compromise, and pragmatism are the essence of Huawei’s culture, as well as the qualities of a leader.” ”Materialist dialectics tells us that the view of contradiction, the view of unity of opposites, is the most fundamental approach to understanding things. Contradictions are extremely complex and diverse; their mode of movement is by no means limited to struggle alone – the identity or unity of contradictions represents a more universal form. Therefore, we cannot think metaphysically that things in the world exist as separate from one another – as something that exists with or without you, as life versus death, as black versus white. A more universal pattern is that there is me within you and you within me; when you live, I live too, and within darkness there is light, and within light there is darkness ； Under certain conditions, black and white can transform into each other; black can turn white, and white can turn black as well. Therefore, in understanding things, extreme views, absolutist views, and fixed views are all incorrect. Ren Zhengfei is an expert in materialist dialectics; he used the term \"gray area\" to teach managers and employees to avoid extremes, and this has become one of the core elements of Huawei’s management philosophy. Source: Internet