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Huawei’s employee stock ownership system, which is close to 90,000, will still be called illegal fundraising if it is outside Shenzhen and outside Guangdong. Thirty years ago, it was Shenzhen, the earliest special economic zone in China, which gave Huawei an important institutional test space, namely, an innovative experiment of talent employment capital.

The “Huawei Basic Law” condenses the summary of the gains and losses of the entrepreneurial practice for the entire 10 years, as well as many idealistic colors on how to run a business, how to manage knowledge workers, how to unite employees for value creation, and how to distribute value. Thinking with the spirit of pragmatism, several teachers at Renmin University of China have logicalized and systemized it.

The “Huawei Basic Law” has established a brand new system design for Huawei. This system design is the amphibious system of laborers and capitalists. But in the relationship between capitalists and workers, Huawei’sThe core values ​​emphasize “Struggle-based”, which defines that Huawei is not a company with maximum shareholder interests, but an institutional innovation company that is superior to and prior to shareholders.

In the past 30 years, the average annual income of Huawei employees (including wages, bonuses and benefits) and shareholder dividends was roughly 3:1. This is an amazing enterprise system test, but only if the law allows it and the government approves it. What is the premise of the premise? Reform and opening up and the pilot system test of the Shenzhen Special Economic Zone.

So, the early Huawei could be said to be “out of nothing” in the context of resource scarcity. The power of non-material resources and institutional innovation played a huge role in the development history of Huawei.

The third point is that the founders are ambitious, the top leaders are not hot, reject opportunism, and refuse to diversify. In the process of Huawei’s development from small to large, Ren led more than 100,000 people to always focus on the Lord. channel.

The last point is also the fundamental corporate culture element, that is, Huawei has always adhered to the “customer-centric”.

Why do Western companies compete with Huawei for 30 years, from early arrogance and disdain, to the decline of most of them? This has a great relationship with most Western companies that are listed companies. They all take the road of maximizing capital. It is the will of capital rather than the will of entrepreneurs. The long-term strategy of the company is about greed, and it is seeking short-term returns. .

Second, in the early days of Huawei’s entrepreneurship, Western companies in the communications industry were 99 years old. They have huge capital advantages, talent advantages, technology and product advantages, and good management, but these resources are both advantages and advantages. Disadvantages – the disadvantages of eutrophication: arrogance, high profits and low service.

I have interviewed some domestic operator executives. They all talked about a major difference between Huawei and Western companies more than 20 years ago. Western companies are top-notch, first-class, and top-notch, but they have problems in the most critical places. Is the arrogance of the customer. The old director of a post and telecommunications bureau told me: At that time, it was not Huawei at all, but the prices of foreign companies were too high, and the second was that the services could not keep up.

Huawei is particularly good for its customers. In the case of poor products and weak technical capabilities, Huawei has done its best. There was a problem 24 hours response, it is common to go to the machine room to repair equipment in the middle of the night. A customer who truly regards the customer as God, the customer can forgive him, accept him, and be willing to give Huawei more opportunities. Huawei also strives for success. At the same time of market success, the money that can be earned is invested in research and development, so technology And the products are getting better and better.

Winning a battle depends on military power. What is needed to win a war is spiritual power. The space environment is the touchstone of spiritual strength, and the positional battle is the organizational will..

Today, Huawei has market distribution in more than 170 countries around the world. I have walked through some backward countries and regions in Africa and the Middle East. I found that these markets are all squandered with blood and tears, with huge sacrifices. Spirit and dedication are spelled out step by step. For more than 20 years, Western companies have lost ground. Huawei has step by step to put the market of Western companies’ traditional markets and even today’s Europe, including some developed countries in North America, down and down. The competition behind is culture and system.

Weird Circle: Variety of eutrophication

From an absolute asymmetric competitive situation, after 20 years and 30 years of spiritual strength, cultural strength, and institutional strength, Huawei finally entered the era of symmetrical competition with Western companies in the global landscape. What is the advantage of Huawei in the era of symmetric competition? What are the possible disadvantages?

From a resource perspective, Huawei can be called strong technology and strong products, strong talents and strong management today. It also has strong capital compared with its own past. (Compared with global high-tech companies, it is still a family. “Poor company”) Of course, this strong management is mainly to learn from Western companies and competitors.

But we look at this kind of strength, it seems to be a bit familiar, because Western companies have also been strong capital, strong technology, strong talents, strong management, then they have suffered from some diseases, whether today’s Huawei will also suffer , even already suffering? For example, eutrophication, dependence on the technical pathway, and excessive control? The excellent surface of management does not represent the strong competitiveness of enterprises. Many Western companies used to be well-managed companies, but why did they decline? Does Huawei have excessive “rationalization” symptoms of the bureaucratic system?

Scientific management has brought the western business organization from chaos and disorder to order and rationalization, and has taken it to a highly scientific management track. However, after all, management is about people, people are complicated, especially the complexity of people’s collections. Obviously, relying on simple quantification and dataization, there is a huge limitation by simple scientificization.

We talked about energy in the front is the soul of organization, but today many of the so-called scientific management, rational management, the extreme result is too many rules, a large number of rules, especially the cumbersome rules, killing individuals in the organization Vitality, the vitality of the group.

There are three types of “organic black holes” that are worthy of vigilance among business leaders. This is also a three-negative phenomenon that no organization can avoid. The first black hole is corruption, and corruption is not just behavioral corruption, but also thought. itsIn fact, the entire history of mankind is also a dynamic cycle of continuous corruption and constant anti-corruption. Corruption will always be like a leek, and it will be cut one after another. This is true of both Eastern and Western history.

The second black hole is a mountain phenomenon. The insecurities in the human nature make people instinctively hold the group. This kind of group is properly used in the organization. It may be cohesive, but there are subcultures outside the mainstream, and the vigilance and prevention are weak, let it develop. In the organization, there will be large and small hills, large and small interest groups.

Greedy is based on human nature. Insecurity is based on human nature. Laziness is also based on human nature. It is because of the defects of human nature that it brings about the innate defects of any system, so we must carry out institutional reform.

The third black hole in the tissue is tissue fatigue. A group of energetic and passionate people gathered together to start a business, such as the founding of Huawei, with a good incentive system, such as the general shareholding system of workers, good salary system, good short-term incentives, etc., but these Can incentives make this group or more people enduring passion? Of course not. The pursuit of comfort is the nature of most people. Only a few people are those who are born with a sense of mission, always self-awake, self-motivated and struggling.

A good organization, what is the foundation of the long-term foundation? It is to continue to struggle with the laziness in the organization.

In short, we say corruption, hills and laziness. It stems from human greed, human insecurity, the instinct to pursue comfort and the pursuit of comfort in human nature. So for any organization leader, he may be at the helm. Every day, we must go to the self-revolution like a perpetual motion machine, and then lead the whole organization to carry out the transformation, toss the self, and toss the organization at the same time.

We also note that the three major black holes are not independent, they are related, and even there is a chain reaction. The shortage of resources, the founder through the power of the spirit to stimulate each individual in the organization, motivate the entire organization to struggle, the purpose is to form a better technology accumulation, product accumulation, more capital accumulation, but incentives can be quantified Material incentives, explicit power incentives, and non-quantitative non-material incentives, such as glory incentives. How to combine these incentive resources is actually a topic of no solution.

Forget perfect, achieve tissue entropy reduction with the most open measures

Any organization has an innate shade and a positive side, just like a human body, with oncogenes and genes that inhibit cancer. Why are there more and more people getting cancer today? Mainly because people’s life expectancy has been greatly extended. The same is true for organizations. When an organization develops to a certain stage, it will breed a variety of problems. Organizations are always faced with the contest and race of positive and negative energy.

Similarly, organizational decay is just as eternal as human aging and death. Humans have a strong sense of self-challenge and self-correction, and have the inheritance of fighting against fateAccumulation and the amount of power, this is the greatest achievement in the history of human evolution. The self-criticism mechanism, innovation mechanism, and transformation mechanism invented by human beings for thousands of years are unique living secrets possessed by all outstanding human organizations, including outstanding individuals.

So, although we recognize that the decay of the organization is an eternal theme, it is also necessary to be full of confidence, through criticism and change, to bring the organization out of the path of rapid aging, to make the organization live longer and healthier. Therefore, from this perspective, we must forget perfectionism and continuously and continuously carry out organizational self-transformation and self-criticism.

Self-criticism can only be an effective tool to reduce entropy, but not to eliminate entropy. Huawei’s democratic life meeting and self-discipline swearing activities are not very common in Huawei, but some scholars outside do not agree.

My point is: Some effective measures of all human organizations on organizational construction and organizational criticism, why can’t I use it for my use? And is it effective or invalid? For example, the democratic life meeting, I think that Huawei can be healthy, or relatively healthy to today, and at the beginning of the company’s birth, Ren will have a lot to do with the democratic life that the company insists on.

Why? The more accumulated an organization problem, the hello everyone, I am quite dangerous. When the problem breaks out completely, it can be dealt with very aggressively, and the organization may collapse. Therefore, regular democratic life of middle and high-level cadres will be an important mechanism for self-cleaning, just as we often have to clean.

If an organization ignores public opinion, if the company’s senior leadership group ignores the voice of its employees, it may become closed and self-imposed. This is the power of the broad participation of the people. The voice community is an owl hovering over the top of Huawei’s 180,000 people, especially the top of the managers at all levels. It is a universal platform for public participation and public supervision.

Today, Huawei has become one of the global industry leaders. It is precisely in this context that it is not alarmist to go down and even to the downfall, because Huawei’s former competitors have gone downhill during their heyday. Therefore, Huawei must have a more open attitude. Under the open system, it is possible to effectively reduce the entropy increase. In the community of voices, you will find that there are both huge positive energy and many sharp criticisms and critical voices. These criticisms and criticisms reflect that most of the 180,000 people have a sense of mission to the survival of the company. Responsible.

So, the only thing that can beat Huawei isHuawei itself can only save Huawei’s future and only Huawei itself. It is Huawei’s 180,000 employees. If you don’t talk about the problem, you should also see the upward side of the sun; expose and eliminate the problem, and at the same time, the tree is upright and positive, both must be strong.

“Transformation of blood” and “transfusion”: the only choice for organizing youth

Change is the only option for organizations to delay aging and stay young. The decay, fatigue, and ultimate demise of the organization are the same as human beings, and they are irreversible in the long run. The sun of time will bring everything to disorder and chaos, including the ultimate demise.

Huawei will also die, but all the efforts of Huawei today, all the people of insight in any organization, including all the efforts made in the national organization, are to enable the organization to live longer and be able to Healthy, less morbid. A very important measure is to keep the whole organization open and continue to make organizational changes. To put it bluntly, it is to perpetuate to delay the organization of aging, which is essentially the “transformation” and “transfusion” of the organization.

There is no fresh blood and fresh power input, and it will move toward hardening of the blood vessels and become rigid. Especially in an era of change and brutal competition, the organization’s “transformation” and “blood transfusion” are inevitable choices.

We look at some of Huawei’s past practices. The resignation of the marketing department, including the “resignation gate” of 7,000 people, is largely a revolution in blood transfusion and blood transfusion within the organization. Every year, there are always people who retire or leave because of various factors, but at the same time the company is constantly recruiting people, any company is like this, and any organization must do the same.

We talked about the relationship between resources and vitality. When resources are scarce, individuals and groups in the organization have a strong sense of hunger. It is the spirit of hunger that brings the individual’s continuous struggle. But when can it last? In fact, this is a challenge for anyone, any organization, and there are always people who even suffer from eutrophication.

Small companies are difficult, and big companies are not easy. Poor and difficult, poor is thinking; rich is also difficult, rich and slack. I fully understand Ren Zeng’s view that Huawei should vigorously advocate spiritual civilization in the new stage. Material motivation is the foundation and the driving force of motivation. However, it cannot be effective in the incentives of individuals and groups. It will be generated by people. The saturation effect, while the spiritual “hunger” has unlimited extensibility, and also has a broader imagination in terms of incentives and methods. Therefore, the two must be used in parallel and implemented again.

Vitality Index and Vitality: The Organization of the Rise and Fall of the Organization

The core ideas we have outlined above are: vitality is the soul of the organization, idleness is the cancer of the organization; resources drive the vitality, but with the evolution of time and space conditions, the two are not always positively correlated, even showing negative Related, that is, the organization of individuals or the whole suffer from “eutrophic diseases”, bringing the weak and ineffective phenomenon of resources to stimulate vitality. The level of the organization’s vitality index, strength and weakness are related to the rise and fall of the organization.

But we must also pay special attention to oneThe root: vitality points. In the dynamic process of resource and vitality, where does the accumulation of resources continue? Undoubtedly the customer. Then, the vitality of individuals and groups in the organization—the only vitality point, can only be customers.

Ten’s 20 years ago, “Customers are the only reason for Huawei’s existence”, and the first article of Huawei’s core values ​​is “customer-centric”. I personally understand that the essential connotation is to define the struggling behavior in the organization. A firm direction, that is, “vigorous orientation” – managers use a variety of ways and means to motivate employees to continue to be energetic, but vitality must be directly or indirectly released to customers; and the value to employees and departments Evaluation and value distribution can of course only be based on value creation. Where does the source of value creation come from?

Customers can only be customers. I interviewed some former Huawei employees. Many people told me that when I was in Huawei, I felt that the interpersonal relationship was complicated. After leaving, I felt that Huawei was much simpler than the outside. The key point is that the salary and promotion in Huawei are mainly direct or indirect. The contribution of the customer does not require too much thought to ponder anything else. Huawei’s “Shangganling General” is really what it says.

Huawei’s “struggle” is clearly defined. The three sentences of core values ​​have strict internal relations and internal logic. Any sentence that is left is incomplete and incomplete: hard work is about vitality. Focusing on the struggler is the vitality, and the customer-centered is the vitality.

However, “customer-centric” is the foundation of values, and how can it be overemphasized? I read the three books of Mr. Huang Weiwei’s “Customer-centered”, “Struggle-oriented” and “Value for the Outline”. The deepest experience is that Ren Zong is really a “master of the paste”! In the past 30 years, I have spoken hundreds of thousands of times, and I have changed my words and words, but I have never left these three sentences and “persistent self-criticism”. Especially the phrase “customer-centered” is probably the frequency of speaking. The most, the highest frequency. Looking back today, Huawei’s 30-year success has undoubtedly had a great relationship with this.

Because of this, self-criticism and organizational change must also have a clear direction: to carry out the maintenance and adherence to the core values, otherwise, self-criticism will be alienated, and change will also take shape. Of course, what we have to see is that the organization must continue to expand and develop and cannot be defensive.

Transformation weakness, why is it a common phenomenon in ancient and modern Chinese and foreign organizations?

Most of the changes in human history have ended in failure, and the important reason is the lack of change.. Will Huawei have a phenomenon of change in powerlessness? I am relatively optimistic about Huawei’s transformation. I interviewed dozens of people who participated in and led the change in the company. Of course, there is a lot of communication with the company. The overall feeling is that Huawei has always started to change when the company develops well. This is the first feature and extremely important. Features.

Second feature, Huawei has always found problems in the bud, and began to change. Therefore, some of the early changes in the company are often not understood by many people, because everyone feels that they have not reached that level. For example, in 2009, he began to talk about letting people who could hear the guns command the gunfire. You have to stare at the customer and your butt against the boss. What was the state of Huawei at that time? The wheels are rolling, and the situation on the surface is very good. However, the general statement is that if we do not simplify management and make organizational changes from 2009, Huawei has already had problems.

The third characteristic is that Huawei’s reforms are mostly characterized by trials and general pushes, and they insist on gradual changes. In the book “Will the next fallen will be Huawei”, there are two chapters devoted to Huawei’s transformation. You will find that several major changes in Huawei’s history have at least failed and are relatively successful, which has enabled the company to take steps at every stage.

Huawei has become the foundation of a global company. It is a comprehensive study of IBM and other Western companies. This is a major difference between Huawei and other Chinese companies. It is also the essence of Huawei’s internationalization and globalization success. However, it is based on the cleaning of the saline-alkali land such as the “Basic Law of Huawei.” At the same time, the resignation of the marketing department was to change the action of cleaning the saline-alkali land from the organizational level.

Reviewing Huawei’s 30-year history of change, it undoubtedly has a relatively mature top-level design in the macro framework. The change leader group is very clear what we lack as a Chinese company. Who do we need to learn from the world? What, what to add, what to construct, including the grasp of the rhythm, what to change first, and what to change, all reflect the wisdom and ideological art of the revolutionary leaders.

Someone asked me why Huawei’s change can always succeed? IBM also did a lot of consulting in China, and almost none of them really succeeded. Why? I say that it is quite important that Huawei effectively combines Chinese-style reforms with Western-style changes. Another factor is that when the founder started his business, he was too old. When he was 44 years old, he realized that the world, including the understanding of human beings and human nature, has entered a mature stage, so he is taking control of the changes and mastering the fire. Looks old and calm.

The two most important aspects of organizational change are: making suboptimal choices, problems everywhere, but making relatively optimal choices in solutions to many problems. The second is compromise, a compromise between progress and retreat. Any change in four sides and enemies on all sides is ultimately catastrophic. Therefore, I am optimistic about Huawei’s reforms centered on simplified management. Because in the past, Huawei has gone through many times.Chinese-style reforms and Western-style changes have accumulated a whole set of methodologies.

Finally, let me talk about a thought-provoking detail: a former Huawei executive who presided over the IPD revolution said that when a senior executive of a Western company visited Huawei’s R&D office, he pointed to the colorful mats under the staff table. Several executives said in a very cold tone: One day, we will lose Huawei’s IPD and “mat culture”… Its connotation is straightforward: the combination of process, regular order and strong organizational vitality, It is Huawei’s fear of competitors.

Is Huawei the same as Huawei?

This article is based on the author’s lectures at the Huawei University High School class, and is included in the book Entropy Reduction: The Source of Huawei’s Vitality. Copyright is owned by the author and the book, please be sure to indicate the author and the source of the work.

Author introduction

Huawei University, Huawei University reported to the Huawei University Steering Committee to provide Huawei-based education empowerment consulting and services based on independent budget and balance of payments. Huawei University is the cradle of Huawei’s “general”. It is committed to fostering “the talents” for Huawei’s future, enabling Huawei’s key organizational capabilities in its strategic direction to be rapidly improved; and providing the company with a digital-based “educational empowerment” core capability; At the same time, Huawei University is also an important position for the spiritual inheritance and ideological education of Huawei companies that keep pace with the times.