 "<b>Book Extract:</b> No trace of history at Huawei")
THE HUAWEI STORY
AUTHORS: Tian Tao & Wu Chunbo
PUBLISHER: SAGE Response
PRICE: Rs 795
ISBN: 9789351500681
Every organization has a life, but unfortunately, all living beings will eventually die, including animals, plants, human beings, nations, armies, companies, mountains, seas, and even the whole world and the universe. The prelude to the disappearance of life is fatigue and aging. One may remain healthy for all his life, but as time passes, his genes will decay, his metabolism will slow down, and his vitality will decrease. A flower is brilliant in spring when it is blooming, but it will wither away in autumn.
This is the same with social organizations. A dynasty may appear robust and full of life in the early period, as the young power still retains the 'vigor on horseback.' Before long, laziness, hedonism, and corruption will arise and spread. As time passes by, fatigue will prevail throughout the dynasty, although it suffers from no illness (which is hardly possible). The cells would no longer be young, and they would always be sleepy.
Business organizations would decay at a faster speed. Within years, perhaps no more than a decade, a robust organization may suffer from laziness and various negative powers that grab at the company like the arms of an octopus. Why? It is because of their myopic utilitarianism.
Organizational fatigue has not only occurred due to the irreversible passage of time but also because organizations tend to depend on their past factors of success. Adam Smith's invisible hand seemed to play a part after the fall of the Berlin Wall in 1989 and the breakup of the former Soviet Union in 1991. Capitalism was announcing its victory all over the world, and some free-market fundamentalists in the United States declared: "The world's economy has now entered a stable period." Unfortunately, several years later, the global economy was caught by a whirlwind. As Japanese sociologist Katsuhito Iwai said, "The enemy of capitalism, or the enemy of freedom, is laissez-faireism rather than socialism."
Companies have essentially suffered in the same way. Some of these companies were glorious big names: Bell Labs, Motorola, Nortel, NEC, Sony, Nokia, and Alcatel. However, they have lost their glory and suffered from various ills. The key reason, in addition to some apparent internal and external causes, is that they are too old, and they depended too much on their past experience in coping with modern challenges. In fact, it takes great pains to keep perfectly fit in this changing world.
Organizational fatigue has dozens of causes, of which "history" is the most fatal. Ren Zhengfei is afraid of death, fatigue, and decadence. This is why no "trace of history" can be found at Huawei. Its history of 25 years is full of ups and downs, and [much of the company's history] includes even narrow escapes as well as grand accomplishments. Huawei has created one record after another, and reached top positions in the world. A number of Chinese and foreign politicians and business leaders have visited Huawei. The company deserves a history museum.
In April 2001, at the museum of Panasonic Corporation in Japan, I proposed to Ren Zhengfei that Huawei should have its own museum. He answered, "Huawei does not need a museum. Huawei should forget its history."
In Huawei, the most impressive place is probably the product showroom where there are only new products and a wall of patents; there is not a hint of history.
History is likely to create laziness, depression, fatigue, and boredom. German philosopher Arthur Schopenhauer said, "The two foes of human happiness are pain and boredom." In this age of information and globalization, idols, stars, and leaders can stay fresh only for a short period of time. Alienation from organisation is normal, and loyalty is a luxury.
Huawei is a company with no historical heroes. Ren Zhengfei does not want the company to take on too much pressure from any legacy. As one Huawei executive put it, "The company would not worship anyone in a shrine, not even the boss." Ren Zhengfei pays more attention to the present and the future, and everyone is measured by their present competence and contribution. At Huawei, "the past is a blank sheet."
MEET THE AUTHORS
TIAN TAO
Member, Huawei International Advisory Council
> Tian Tao is a member of the Huawei International Advisory Council and co-director of Ruihua Innovative Research Institute at Zhejiang University, Hangzhou, China. In 1991, Tao founded Top Capital, the first Chinese magazine on private equity investment, and has served as its editor-in-chief since then. He worked as a publisher of Popular Science (Chinese edition) from 1995 to 1997. He also co-founded two IT companies, Beijing Umessage and Hillstone Network Co.
WU CHUNBO
Professor, Renmin University of China, Beijing
> Wu Chunbo is a professor and PhD supervisor of Renmin University of China, Beijing. He earned his PhD in economics from the same university in 1998 and has served as a dean of the Institute of Organisation and Human Resources, School of Public Administration, Renmin University of China. He has been serving as a senior corporate management advisor for Huawei since 1995.
Re-printed with permission from the publisher. Extracted from 'The Huawei Story'. Copyright Tian Tao, 2015. All rights reserved
AUTHORS: Tian Tao & Wu Chunbo
PUBLISHER: SAGE Response
PRICE: Rs 795
ISBN: 9789351500681
Every organization has a life, but unfortunately, all living beings will eventually die, including animals, plants, human beings, nations, armies, companies, mountains, seas, and even the whole world and the universe. The prelude to the disappearance of life is fatigue and aging. One may remain healthy for all his life, but as time passes, his genes will decay, his metabolism will slow down, and his vitality will decrease. A flower is brilliant in spring when it is blooming, but it will wither away in autumn.
This is the same with social organizations. A dynasty may appear robust and full of life in the early period, as the young power still retains the 'vigor on horseback.' Before long, laziness, hedonism, and corruption will arise and spread. As time passes by, fatigue will prevail throughout the dynasty, although it suffers from no illness (which is hardly possible). The cells would no longer be young, and they would always be sleepy.
Business organizations would decay at a faster speed. Within years, perhaps no more than a decade, a robust organization may suffer from laziness and various negative powers that grab at the company like the arms of an octopus. Why? It is because of their myopic utilitarianism.
Organizational fatigue has not only occurred due to the irreversible passage of time but also because organizations tend to depend on their past factors of success. Adam Smith's invisible hand seemed to play a part after the fall of the Berlin Wall in 1989 and the breakup of the former Soviet Union in 1991. Capitalism was announcing its victory all over the world, and some free-market fundamentalists in the United States declared: "The world's economy has now entered a stable period." Unfortunately, several years later, the global economy was caught by a whirlwind. As Japanese sociologist Katsuhito Iwai said, "The enemy of capitalism, or the enemy of freedom, is laissez-faireism rather than socialism."
Companies have essentially suffered in the same way. Some of these companies were glorious big names: Bell Labs, Motorola, Nortel, NEC, Sony, Nokia, and Alcatel. However, they have lost their glory and suffered from various ills. The key reason, in addition to some apparent internal and external causes, is that they are too old, and they depended too much on their past experience in coping with modern challenges. In fact, it takes great pains to keep perfectly fit in this changing world.
Organizational fatigue has dozens of causes, of which "history" is the most fatal. Ren Zhengfei is afraid of death, fatigue, and decadence. This is why no "trace of history" can be found at Huawei. Its history of 25 years is full of ups and downs, and [much of the company's history] includes even narrow escapes as well as grand accomplishments. Huawei has created one record after another, and reached top positions in the world. A number of Chinese and foreign politicians and business leaders have visited Huawei. The company deserves a history museum.
In April 2001, at the museum of Panasonic Corporation in Japan, I proposed to Ren Zhengfei that Huawei should have its own museum. He answered, "Huawei does not need a museum. Huawei should forget its history."
In Huawei, the most impressive place is probably the product showroom where there are only new products and a wall of patents; there is not a hint of history.
History is likely to create laziness, depression, fatigue, and boredom. German philosopher Arthur Schopenhauer said, "The two foes of human happiness are pain and boredom." In this age of information and globalization, idols, stars, and leaders can stay fresh only for a short period of time. Alienation from organisation is normal, and loyalty is a luxury.
Huawei is a company with no historical heroes. Ren Zhengfei does not want the company to take on too much pressure from any legacy. As one Huawei executive put it, "The company would not worship anyone in a shrine, not even the boss." Ren Zhengfei pays more attention to the present and the future, and everyone is measured by their present competence and contribution. At Huawei, "the past is a blank sheet."
MEET THE AUTHORS
TIAN TAO
Member, Huawei International Advisory Council
> Tian Tao is a member of the Huawei International Advisory Council and co-director of Ruihua Innovative Research Institute at Zhejiang University, Hangzhou, China. In 1991, Tao founded Top Capital, the first Chinese magazine on private equity investment, and has served as its editor-in-chief since then. He worked as a publisher of Popular Science (Chinese edition) from 1995 to 1997. He also co-founded two IT companies, Beijing Umessage and Hillstone Network Co.
WU CHUNBO
Professor, Renmin University of China, Beijing
> Wu Chunbo is a professor and PhD supervisor of Renmin University of China, Beijing. He earned his PhD in economics from the same university in 1998 and has served as a dean of the Institute of Organisation and Human Resources, School of Public Administration, Renmin University of China. He has been serving as a senior corporate management advisor for Huawei since 1995.
Re-printed with permission from the publisher. Extracted from 'The Huawei Story'. Copyright Tian Tao, 2015. All rights reserved