The 'tiger mother' behind Ren Zhengfei left office.
On March 23, Huawei issued a shareholding employee’s paper. The Group completed the reelection of the board of directors and was elected by the representative office of the shareholders. The former Chairman of the Supervisory Board of Huawei Liang Hua succeeded Sun Yafang and became the new chairman of Huawei. The daughter of Ren Zhengfei, Huawei The group's managing director Meng Wanzhou was promoted to vice chairman, and the remaining vice chairmen were Guo Ping, Xu Zhijun, and Hu Houkun.
Sun Yafang's departure was surprising. She became Chairman of the Board of Directors of Huawei in 1999 and has been working in this position for 19 consecutive years. There have been several previous reports that Sun Yafang will leave from Huawei. Huawei’s announcement stated that the company’s Ms. Sun Yafang expressed her sincere gratitude to the company for her significant historical contribution during her tenure as Chairman of the company. Ms. Sun Yafang will continue to play an important role in the further construction and improvement of Huawei's governance system.
In the past 20 years, Sun Yafang has always been the representative of Huawei's external image. Every time she appeared, she attracted a crowd of foreign media.
For most of Huawei employees, Sun Yafang is very low-key. 'You can often see the speech of President Ren Zhengfei's speech, such as when visiting local offices, and speaking to various business lines. However, Sun Yafang’s speech information can hardly be seen.' 3 On the 23rd of the month, a Huawei insider told AI Finance.
However, this did not affect Sun Yafang’s popularity. As early as 2010, when Sun Yafang was listed on Forbes’s “Most Powerful Women” annual list, it attracted foreign media onlookers. Sun Yafang, a market killer, took Huawei. Leading the internationalization company for the communications manufacturing industry. At the time the list was first named the American 'first lady' by Michelle Obama, and Sun Yafang was the only Chinese female. Next, at the annual 'Forbes' 2014, 2015, 2018 release. In the Chinese business women's rankings, Sun Yafang has pressed Dong Mingzhu to top the list.
Sun Ya-fang, 63, who is behind this year's mysterious Huawei empire, silently listened to various conjectures from the outside world.
The mysterious Huawei has been adhering to the wolf culture. Ren Zhengfei’s wolf management has made Huawei stand. Sun Yafang has been appraised as the woman behind Ren Zhengfei with the appearance of intellectual beauty, and added flexibility and empire to Huawei.
Huawei’s former Vice President Li Yuxi’s “Going All the Way: My Business Ideals” has repeatedly referred to Ren Zhengfei’s scolding the company’s high-ranking cadres for not giving face and disregarding their personalities.
But Sun Yafang is also not moderate.
A senior management who worked for Huawei for 6 years, Tang Shengping, wrote in 2003, “Getting out of Huawei” and said, 'Sun Yafang is too forthright, strong in control, and has poor affinity. In Huawei, only Sun’s reprimand and Ren Zhengfei’s remonstrations with direct subordinates Yibi, even for many people, Sun Yafang is more severe than Ren Zhengfei. 'At the same time, all those who said that Huawei's 'military management' and 'coyotes' did not have a thorough understanding of Huawei's culture.
Tiger Mom is not groundless. The book mentions that some personnel appointments and important documents can be passed as long as Sun Yafang sees the agreement. Only the president of the company and Sun Zong are called 'total', and other vice presidents are required to appear. Even Ren Zhengfei politely called her 'Sun Zong'.
The book also mentioned that in a high-level meeting, Sun Yafang directly attacked Ren Zhengfei, making Ren Zhengfei once ridiculed in front of everyone.
As a woman, in the Huawei empire, besides being strong, there should be wisdom, knowledge, and vision.
Sun Yafang was born in 1955. He graduated from the University of Electronic Science and Technology in 1982 and has worked in radio plants and research institutes. He joined Huawei in 1989 and has served as marketing engineer, president of marketing department, and director of human resources committee.
In 1992, Sun Yafang demonstrated her wisdom in front of all the senior managers. At that time, Huawei cash flow problems, did not pay wages for several months, and morale was low. At this time, Huawei suddenly received a payment. Ren Zhengfei and Huawei executives are not sure how to use This money, Sun Yafang stood up and made a decision to Ren Zhengfei - first to pay employees. In that year, Huawei's sales revenue exceeded 100 million yuan, and the number of employees exceeded 200.
In 1995, Huawei's sales reached 1.5 billion yuan, but mainly from the rural market.
In 1996, Huawei entered the urban market. This is a new stage of development. The capacity of many cadres has exposed its limitations.
Sun Yafang's move at this time, to save Huawei in the new phase, led Huawei to enter the second venture, and also established Huawei human resources system.
Sun Yafang passed Ren Zhengfei's instructions and took the resignation of all senior executives of the marketing department, and then accepted the professional evaluation of the organization to ensure the survival of the fittest. This action resulted in a huge wash-up of Huawei personnel, and some vice presidents were even sent to the grassroots. This is the measure that enables Huawei to start early. Optimize the team, improve the professional management capabilities of the headquarters.
From that year onwards, Sun Yafang began to focus on the construction of Huawei's human resources system, and then established, educated, used, and retained the human resources system. After the system was perfected, it became the birth basket for 180,000 employees.
In 2000, Ren Zhengfei recalled this incident and said, 'If there is no impact on Huawei’s corporate culture brought about by the resignation, any advanced management system cannot take root in Huawei.'
Also in 1996, Huawei began drafting the "Huawei Basic Law," which extends to areas such as human resources, production operations management, and corporate culture, and defines Huawei's concept, strategy, policies, and basic policies for its second venture.
In 1997, Sun Yafang presided over the introduction of IBM's IPD (Integrated Product Development) and ISC (Integrated Supply Chain Management) to initiate a major transformation of Huawei's business processes, allowing Huawei's 'growth genes' to develop and supply back-end products from the front-end market sales. The chain has been successfully extended. Huawei has invested 120 billion yuan in R&D, and invested Rmb29.9 billion in R&D in 2012, accounting for more than 13% of its sales revenue.
In 1998, the “Huawei Basic Law” drafted for three years was formally implemented. At that time, it was the first case in China. Huawei became the first company to have its own corporate constitution.
In the same year, Sun Yafang proposed three viewpoints for Ren Zhengfei’s strategic layout: First, in the era of knowledge economy, the way to create social wealth changes, mainly created by knowledge and management, so it is necessary to institutional innovation; Second, it is necessary to have personal desire for success. A person becomes a hero, and a person with social responsibility becomes a manager. Thirdly, the basis for long-term security of a company is the successor's recognition of the company’s core values and self-criticism. This viewpoint becomes an important policy for Huawei to cultivate managers and employees. .
In 1999, when Ren Zhengfei promoted and promoted Sun Yafang as chairman, he said that Sun Yafang has a young talent, excellent eloquence and demeanor, good academic qualifications and good English, suitable for external coordination, and he is fit for strategy and safety.
In this way, 44-year-old Sun Yafang became the head of Huawei. At that time, Huawei also had many veteran figures. As a woman, she was not able to be very convinced.
In 1999, the marketing department meeting reminded the staff once again of Sun Yafang’s courage and wisdom. At that time, the Standing Committee (actually the rank of vice president of the company) was convened. The Standing Committee of the meeting unanimously agreed that a similar middle-level cadre competition activity in 1996 should be used to deal with middle-level leadership security. Due to the current situation of insufficient pressure on the status quo, Sun vetoed immediately after listening to the audience, saying that the times were different and special measures were adopted during special periods. Now that Huawei's human resources system construction and evaluation system is relatively complete, the pressure is insufficient because we have not implemented the evaluation system and not because there is no Initiate competition. It turns out to be true.
'So many years of rich and powerful vice presidents make concerted efforts, not as good as Sun Yafang thinking for a moment.' Tang Shengping commented on the matter in the book.
At this point, Huawei has launched a strict implementation of the evaluation system. 'Evaluation is always present, evaluation is everywhere', this is the most powerful part of human resources management. From the small details of the bathroom and the timing of the driver's access, they have done a precise statistical research. .
Battle overseas
In 1999, Sun Yafang took on the new chairmanship and began to lead Huawei in overseas operations. From 2000 to 2005, it was a glorious period for Huawei to drive overseas.
In 2000, Huawei set up an R&D center in Stockholm, Sweden. Overseas sales exceeded US$100 million. In 2001, Huawei set up four R&D centers in the United States and joined the International Telecommunication Union (ITU). In 2002, Huawei’s sales in overseas markets reached US$552 million. In 2004, it established a joint venture with Siemens to develop a TD-SCDMA solution; it received a contract worth more than US$25 million from Telfort, a Dutch operator, for the first time to achieve a major breakthrough in Europe. In 2005, overseas contract sales for the first time Exceeded domestic contract sales; became the preferred 21st century network provider for British Telecom (BT).
2018 CES show, Huawei took Mate 10Pro to Las Vegas. @ Vision China
In Huawei News, Sun Yafang often sees news of senior executives from various countries, including the President of Singapore, the King of Belgium, the President of Egypt, etc.
At the same time as it went abroad, in 2004, Huawei created the unprecedented collective decision-making mechanism of the EMT (Executive Management Team) and began to take the position of eight EMT chairpersons in turn by the eight management staff. Each year is six months. In 2012, the company developed into the rotating CEO system. .
'The tradition of the past was to delegate to a person, so the fate of the company is tied to this individual. Cheng Xiaoxiao, and Xiao Yu's defeat. A lot of history has proved that this is a greater risk.' Ren Zhengfei said.
This system also attracted many subsequent storms about 'successors'.
Raise your son or raise your daughter
Businesses circulate a claim that after a company is bigger, it is better to think whether you are raising a son or raising a daughter. There are different ways of understanding, and raising sons tends to 'pass on with my surnames, open up and grow bigger and stronger,' The daughter is biased toward 'investment to make money, no surname'.
After Ren Fengfei’s daughter Meng Wanzhou and Ren Ping’s views came to the public’s attention, there was remark that “Huawei’s president Ren Zhengfei forced Sun Yafang to force him off, and the 1 billion high-priced breakup fee was aimed at paving the way for his son Ping Ping to take over smoothly.” The response is purely rumored, but the news is still spreading.
In 2011, Meng Zhaowan, who had worked for Huawei for 18 years, became a new member of the Board of Directors and served as the company's managing director, CFO. Prior to this, Meng Wanzhou had been working hard to establish a global Huawei financial organization for 8 years. After graduation from college, Meng Wanzhou’s first position in Huawei’s entry into the company was miscellaneous.
Meng Wanzhou boat image from Huawei official website
In 2018, 'Ren Zhengfei, 73 years old, will officially retire on December 31st, 2018'. The story of a successor has once again caused a lot of discussion.
Judging from the share of employee stock ownership and Ren Zhengfei’s current 1.01% shareholding, Ren Zhengfei seems to be raising his daughter.
As early as 1990, Huawei proposed the concept of internal financing and employee stock ownership. However, employees holding shares had only the right to share dividends. There was no other right enjoyed by shareholders in the company law. After the employee withdrew from the company, the company adopted the original price at the time of stock purchase. In the repurchase, the employees also do not enjoy the premium of the shareholders for the stock.
In 1997, Huawei restructured the equity institution. Before the restructuring, the registered capital was 70.05 million yuan, of which 688 employees held 65.15% of the stock. After the restructuring, the registered capital increased to 276.06 million yuan. Huawei new technology company, Huawei new technology company labor union And Huawei’s unions hold 5.05%, 33.09% and 61.86% of the shares of Huawei respectively.
In December 2000, Huawei’s Board of Directors decided to incorporate 11.85% of the shares held by the union of Huawei Technologies Co., Ltd. into Huawei’s labor union. Huawei’s separate 35 million-yuan shares held by Ren Zhengfei were divested and registered with the Industry and Commerce Bureau. He alone holds 1.1% of the shares, and the remaining shares are all held by Huawei's trade unions. The assets are 3.165 billion yuan, accounting for 98.9%.
At the end of 2001, Huawei began implementing an option reform called “virtual restricted stocks.” In simple terms, employees are not directly shareholders of the company, but they have the right to dividends and share appreciation rights.
In 2007, Huawei’s operating income exceeded US$16 billion. The employee stock ownership policy has caused many internal employees to “have a lot of money at a young age” and has lost their vitality.
In 2008, Huawei fine-tuned the virtual share system and implemented a full-scale share allocation system, which stipulates the employee’s allotment cap. After each level reaches the upper limit, it will no longer participate in the new allotment. This rule makes it possible to hold large numbers of old Huawei employees. They are restricted in allocating shares, but they are good for inspiring Huawei's new employees.
According to Huawei Financial Report, as of December 31, 2016, there were 81,144 employees participating in the employee share ownership plan. The participants were all employees, which accounted for 45.08% of the total number of 180,000 employees.
Employees’ shareholdings are called Huawei financing and incentives. At the same time, Ren Zhengfei has the right to say that Huawei is not listed. However, due to its complexity, it also becomes an obstacle to listing.
Regardless of whether Ren Zhengfei is raising his son or raising his daughter, Huawei has reached the age of thirty. It used to be from 'Sun Yafang is Ren Zhengfei's successor' to 'Sun Yafang' was forced to take off by Ren Zhengfei's successor, and then to 'Who is Sun Yafang's successor'? 3. The mystery legend in Huawei's Empire State Building is still being deduced.
Today, the new conjecture may be, 'After Sun Yafang', who will represent Huawei.