More noticeable is that this change, Huawei continued the past collective management model, but the implementation of the rotating CEO system for many years will no longer operate, to change the chairman of the board mechanism. Huawei Board of Directors identified by the Deputy Chairman Guo Ping, Xu Zhijun , Hu Houkun three people, as the company's rotating chairman.
Turning from the rotating CEO to the rotating chairman should be one of the important layouts of Ren Zhengfei’s Huawei succession plan. It is worth mentioning that another scientific and technological community on both sides of the Taiwan Strait, the founder of TSMC Zhang Zhongmou, will retire in June of this year. Huawei The 'changing chairman' and the TSMC's 'dual head' mechanism are all important institutional arrangements for intergenerational exchanges. What are the similarities between each other and how different are they?
Enabling 'chair chairman', what is Ren Zhengfei thinking about?
Recently, Huawei announced its 2017 financial report, achieved revenue of 603.6 billion yuan, net profit of 47.5 billion yuan. Do not engage in financial non-domestic real estate is not listed Huawei, and more than 60% of business from abroad, its impressive performance is what concept? Equivalent to 3 Evergrande, 4 Alibaba, 5 ZTE, 6 Millet, 6 Changhong, 10 Maotai, 30 Konka.
There is no doubt that Huawei is a great company, and it is one of the successful examples of system innovation and management effectiveness. Huawei re-elected the board of directors and was chaired by Liang Hua, former chairman of the board of supervisors, and its role was focused on the legal level. For example, to fulfill corporate governance responsibilities, including external responsibility for the company's public relations and image maintenance, as well as the company's shareholding employee representative meeting. And Guo Ping, Xu Zhijun, Hu Houkun three rotating chairman, is the core figure of decision-making , that is, the highest leader of the company during the duty period and has the highest authority in handling day-to-day work.
It is worth mentioning that Meng Zhengfan, the daughter of Ren Zhengfei, who was elected as the vice chairman, also serves as an organization that plays an important role in coordination. That is the coordinator of the operation of the Huawei agency platform.
Regarding why he chose the rotation chairman system, Ren Zhengfei expressed three levels of meaning when interviewed:
First, the cyclical rotation of the three chairman of the board of directors is mainly to avoid 'a courtier' and a courtier' and to avoid the loss of outstanding cadres and outstanding talents.
According to Ren Zhengfei, after the change of the new board of directors, the company’s highest power is in the collective leadership, rules, and behavioral constraints in order to form a cycle. The “chairman of the rotation” has the highest authority to handle daily tasks, but is subject to The collective support and control of the board of directors, all documents need to be approved by the vote of the board of directors; In addition, they are also supervised by the board of supervisors.
Second, the new board is only iterative and it will introduce some fresh blood in the future.
Thirdly, Ren Zhengfei is the actual leader of Huawei? Ren Zhengfei has no direct response to this question. Instead, he says that Huawei is a collective management decision-making mechanism. All decisions are not made by me; I just have the right to speak.
In the history of Huawei's development, Ren Zhengfei has created the most peculiar phenomenon in business history: Huawei is the most dispersed company among global unlisted companies, with the largest number of employees, and the most unique ownership structure. As the largest shareholder of Huawei, it is mainly The founder, Ren Zhengfei owns only 1.4% of the equity, and the remaining 98.6% of the shares are held by employees. At present, the number of Huawei employees is 180,000.
Compared with Huawei's old board of directors in 2012, the collective management and control model of Huawei's corporate governance has not undergone any fundamental change. It has only changed from the 'representative CEO' to the 'chairman's chairman' and its responsibilities have not changed.
Since its establishment in 1988, Huawei has only one president. That is, Ren Zhengfei himself. In the eyes of the outside world, he has always been the speaker of Huawei. In other words, on which day a non-impersonal president is appointed, it means that Huawei's 'behind the post' is new. The opening of the era.
The 'Carry CEO' system was Huawei's initiative. It started in 2011. Around 2004, when the US consultants helped Huawei design the company's organizational structure, they thought that Huawei did not have a central organization. It was simply 'unbelievable'!
In the past, the "representative CEO" was Huawei's top executive head, and the term "CEO" came from the western modern corporate governance model. The Chinese translation version was more concise, that is, 'CEO'. From the power structure, Ren Zhengfei's presidential position was inferior to ' The CEO CEO' is the 'second migrant worker' of Huawei, and is mainly responsible for assisting the CEO in managing the company's specific business. Since it is the CEO, literally it means there is only one 'chief' person. How come from there? It always feels weird, and it's a bit of a misunderstanding. Today, on the new board of directors, it has been changed to the 'chairman' mechanism. It may be because of this consideration.
The collective leadership mechanism of the cyclical rotation is quite similar to the folk saying 'Jiangshan takes turns.' It has also increasingly attracted the attention of many companies. Vanke, which shares the same shares as Huawei, has also emulated the establishment of a 'round-robin general manager' system. Companies such as Haier, Lenovo and other large industrial groups also set up rotating presidents. They all have a common phenomenon. The management level of the company is high, and it also dares to make full use of the collective wisdom of management.
Among the Chinese family companies, there are many cases of 'Jiangshan Sit and Change'. For example, Thailand thanked the National Family, and the four-person collective leader of the Xie-style Brothers. After the retirement of Big Brother Xie Zhengmin, the fourth brother Xie Guomin took over the chairman of Zhengda.
In addition, the Fu Chai Clan family in Taiwan is also a classic case. In October 2016, Fubon's two brothers Cai Mingzhong, Cai Mingxing, not only 'Jiangshan took turns sitting', but also brothers exchanged division of labor, exchanged Shuai India, and Huawei's rotation The system has the same purpose. The brother, Cai Mingzhong, retired from the position of chairman of Fubon Financial Holdings and was re-appointed to the vice chairman. The chairman was replaced by his younger brother, Cai Mingxing. Similarly, Cai Mingxing’s previous position as chairman of Fubon Group. , replaced by a big brother to serve, he retired to vice chairman, this is the famous Fubon Brothers' rotation country'.
In terms of human resources management, the 'representative leadership system', just like the horse racing mechanism, can enable companies to continue to innovate in entrepreneurial innovation and remain vibrant. This is also a major factor in Huawei's success. In addition, through 'running in turns' ', can also train and experience succession candidates, enhance corporate executives' sense of ownership '.
Observers believe that the decision-making efficiency and continuity of decision-making is a major flaw of Huawei's 'rotation system'. In addition, whether or not it can become a normalized institutional arrangement for corporate organizational structures remains to be further observed. Ren Zhengfei himself also said: ' Huawei really can not find any good way. CEO rotation system is not a good way, it takes time to test. '
For a family business, the rotation system is also a balancing act of 'home and everything', which reduces internal disputes and enriches the actual experience of family members in the business field.
'Double Directors' and Taiwan’s TSMC without Zhang Zhongmou
TSMC chairman Zhang Zhongmou, who is expected to retire in June this year, will no longer serve as any director; TSMC will be renamed as the founder of TSMC in order to thank him for his contributions and efforts.
Zhang Zhongmou, known as Taiwan's 'semiconductor godfather', 'Chip King', the founder of TSMC, and a pioneer in the global foundry industry. TSMC was founded in 1987, when the revenue was only 3 million US dollars, and by 2016, It is already worth 30 billion US dollars, and it has grown 1000 times. TSMC's 31 years are also the result of 31 years of management of Zhang Zhongmou. In the 31 years, Zhang Zhongmou made investors earn 200 times and provided 190,000 jobs.
Xie Jinhe, chairman of Caixin Media, praised Zhang Zhongmou and said that 'Taiwan could not find a second person!' In 2017, Xie Jinhe stated in his article “Pay to Chairman Zhang Zhongmou”: 'Zhang Zhongmou used TSMC for 30 years to become a semiconductor company in the world. The giant of the industry, his contribution to Taiwan, I am afraid that no one in the business world can make a difference.
'I don't believe that only working life will be a happy life!' Last year, we published "Taiwan Semiconductor's Overtime Culture", which has attracted many people's attention. Zhang Zhongmou, born in 1931, was 'happy to work' for all his life. Since the beginning of work in 1955, it has been working for 63 years so far, and since 1964 when he was a manager, he has also been 54 years. As a founder of TSMC, he has passed through 31 years. He only chooses to like his life. The work, go all out to do it.
Last year, Zhang Zhongmou won the Taiwan Enterprise's Perpetual Lifetime Achievement Award, sharing on the spot the four core values of TSMC and ten business concepts. Among them, the 'four core values' are integrity and integrity, and two-way commitment (including the company’s commitment to its employees, employees’ The company has promises that can also be applied to customers and suppliers.) Innovation, customer trust. When it comes to the secret of success, Zhang Zhongmou said: With Google’s 'do no evil (not a bad thing)' slogan, as a minimum for TSMC standard.
Today, the outside world is more concerned about the fact that there will be no TSMC's TSMC in the future. “The Economist” article predicts that in the month of Zhang Zhongmou’s retirement in June, TSMC will “kill” Intel and ship the most advanced process semiconductors, grabbing the world's strongest The throne of chipmaking.
According to foreign media reports, Apple Mac computers intend to use their own ARM architecture chips, abandoned Intel processors, the news came out, Intel shares tragically fell 6%; Many people think that Apple Macs 'slam' Intel, will be 'fat' TSMC! Because Apple’s ARM chips are all manufactured by TSMC. In fact, TSMC has left competitors Intel far behind and also from technical advantages. At present, Intel's chip technology is mainly 10nm, and TSMC is advanced to 7 Nano. Intel's strengths are computer chips. Compared with Samsung's smart phone chips, TSMC is a 'two-headed all' and has a 90% market share on the chip.
The 'Double Chief' mechanism is the core governance mechanism of 'Taiwan Semiconductor' without TSMC', also known as TSMC's 'Dual Core System'. After Zhang Zhongmou retires, he will hand over the stick to Liu Deyin and Wei Zhejia. TSMC will enter the dual head parallel leadership system in the future.
What are the characteristics of TSMC's 'dual head' mechanism compared to Huawei's collective control mode of rotation?
First of all, TSMC's 'dual heads' have been part of TSMC's inheritance plan and they are returning to see Ren Zhengfei. Huawei does not have a clear plan for external successors.
On October 2, 2017, TSMC announced two heavy news: First, after the shareholders meeting in early June 2018, Zhang Zhongmou retires, and will not renew his term of office as the next director or participate in any business management department. 2. Taiwan Semiconductor Manufacturing Co., Ltd. Will take the dual leader parallel leadership system, Liu Deyin will serve as chairman, Wei Zhe will serve as president.
Zhang Zhongmou wrote in the TSMC’s “Press Release”: “The establishment and dedication of TSMC in the past 30 years has been a very exciting and enjoyable period of my life. Now, I want to retain my remaining years for myself and my family. The two philosophers have served as co-chief executives since 2013 and have demonstrated superior performance.
Second, similar to Huawei, Zhang Zhongmou has a step-by-step transition period when setting up an organizational structure.
In November 2013, at the age of 82, Zhang Zhongmou, began to lay the groundwork for the sustainable development and succession of TSMC, formally retired from the post of CEO, and Liu Deyin and Wei Zhejia took over as general manager and co-chief executive and passed the first in the intergenerational transmission. Step. On June 8, 2017, at the regular shareholders meeting of TSMC, Zhang Zhongmou arranged for Liu and Wei to enter the board of directors, and was elected as a director. He stepped into the stage of “passing the band” to study the decision-making process of the board.
Liu and Wei, who have worked in TSMC for 17 years so far, followed Zhang Zhongmou and left and right. In the past, although they were in charge of different businesses, they were promoted to co-chief executives. They were like twins, they sang and worked together. And Zhang Zhongmou led three people to lead Taiwan Semiconductor Manufacturing Co., Ltd. to create a more impressive performance, and the revenue has reached new heights. Similar to Huawei's 'rotation system', tacit understanding is the first, and Liu and Wei must not only be good at hand. Also know each other what the other person is doing.
Many people are worried that Zhang Zhongmou will introduce the 'joint management model' into TSMC. Will there be 'two suns'?
Judging from the company law, the chairman holds real power, and the president is the executor. Of course, the “two suns” will not appear; the dual-track system of the TSMC’s heads will be a dual-leader’s parallel leadership model, while Zhang Zhongmou’s will be completely retired. If there is conflict in the future, who will coordinate?
Zhang Zhongmou once explained that if the two disagree, there will be an excellent coordination of the lineup of the board of directors.
The board of directors is the highest authority for corporate decision making. The board of directors may not be held every day. There are many decisions a company has to make every day. As the chairman, Liu Deyin will be the final gatekeeper for the actual decisions of TSMC in the future; and Wei Zhejia, the president, is assigned to the succession At the same time, it was mainly under the guiding principle of the board of directors that led the operation of TSMC, and the “two suns” would not appear for a moment.
Wei Zhejia was one year older than Liu Deyin and 66 years old this year. Like Zhang Zhongmou, they both took engineers to the top of their managers. For TSMC's management, Zhang Zhongmou, like 'Strict Master', has always been strict. On one occasion, Wei Zhejia was asked to review. He said: "You can question my intelligence and wisdom, but please don't question my loyalty to TSMC!" As a result, a sense of humour calmed the tension.
Zhang Zhongmou created a miracle. When his retirement news came out, the employees were shocked and gave up, 'This time may be really retired'. After the financial crisis of 2008, Cai Lixing had been handed over and Zhang Zhongmou, who had retired behind the scenes, Return to the line again and regain control.
In short, whether it is Huawei's 'chairman in rotation' or TSMC's 'dual head', it is still impossible to judge whether it is a long-term or temporary transitional arrangement. There are also variables. Ren Zhengfei is a strong man in science and technology, and Zhang Zhongmou is also, they are A great company was founded. For TSMC's two successors, Liu Deyin and Wei Zhejia, picking up is just the beginning. There are still challenges in the future.
In the eyes of Zhang Zhongmou, work, life, and commitment are three parts of a happy life. It is necessary to deploy the three well. For Liu and Wei, how to learn the founder Zhang Zhongmou’s decisive force, especially the customer’s Trust, and translate into practical strategies, will be the primary challenge for their joint succession