Huawei will encounter financial crisis how to do?

Tencent Technology Sun reported on July 14

Recently, Huawei's internal remarks Ren Zhengfei once again exposed. In his speech, Ren Zhengfei stressed the reform that Huawei faces. Ren Zhengfei pointed out that at present, Huawei has an unfair pay system for the distribution of salaries and bonuses. It should emphasize that more work is done and continue to promote the circular movement of cadres so that the team is full of energy.

Following Tencent technology Ren Zhengfei internal key points:

First, how to deal with the financial crisis?

1, each basic unit must be effective, the future reform must be the sales revenue, the quality of the contribution made by the delivery as the basic salary package and bonuses.

2, insist on selecting from the strategic contribution outstanding cadres at all levels. The necessary and sufficient conditions for the promotion and promotion of cadres: First, to make the profits of the departments where they are located; Second, to make strategic contributions.

3, do not care about some non-strategic opportunities, otherwise the partial interests will contain the strategic competitive forces.

Second, how to seize the strategic opportunities in the era of ultra-broadband to seize the strategic high ground?

We can not generally look at the strategic high ground. We should divide these high ground into many positions, analyze them, draw plans and measures to seek truth from facts and achieve success.

Third, to promote the mobility of cadres

In the future, Huawei should strengthen the construction of various strategic reserve teams such as heavy equipment brigade, major project department and project management resource pool, and promote the circulation and flow of cadres so that the entire team is full of energy.

The following is Ren Zhengfei internal speech:

First, thank you all! The world economy has been in recession for two years. Today, we are still able to sit in a meeting to discuss the future framework and are closely linked with the great achievements made by all staff. We must sum up experience not only in the face of past history, but also in the face of today's reality to determine tomorrow's strategic goals.

Huawei's twenty-five years of development, the basic step on the drum. As the global economy climbs sharply, we emphasize the large-scale growth. As long as there is a scale, as long as there is a contract, it is possible to dilute our variable costs and make a profit. At that time if you sell high prices, customers can buy us? Certainly not. Now the inertia of thinking in the company is still very serious, we pay orders, pay the contract, whether or not the quality of the garbage, as long as can be installed in sales, blindly bigger and stronger. In the first two years, if we did not strengthen our contractual quality management and unswervingly shift our strategic goals and insisted on profit-oriented, today we may not be sitting here but rather let everyone go home.

Therefore, we formulate measures in recent years, such as management services, terminal products only talk about profits, not sales. When we control the assessment indicators, we are in the process of transition. Of course, our budget transformation is not enough. In some time, some changes will take place.

First, to deal with the financial crisis, what are we in the end?

In my opinion, the so-called financial crisis has not yet completely erupted. Can the speed of the reform in our society go faster than the crisis? Not sure now. If the pace of reform is not faster than the crisis, when the crisis broke out, so much volatility in society, Huawei how to do? Financial accounts have been posted, Huawei's cash enough to eat for three months, that 91 days, Huawei how to weather the crisis?

First, each basic unit must be effective, otherwise the company will not survive the basic conditions. Some time ago, when the board of directors discussed it, we talked about our future reforms as basic salary packages and bonuses for the contribution of sales revenue and quality delivery. During this period, we must unswervingly implement the system of eliminating cadres at the bottom. Now, we emphasize that representatives of the representative offices and the president of the regional department should implement the elimination of the bottom line, and everyone will be more profitable.

Second, we must persist in selecting outstanding cadres at all levels from the strategic contributions. The necessary and sufficient conditions for the promotion and promotion of cadres: First, to make the profits of the departments where they are located; Second, to make strategic contributions. If you can not make this office profitable, we're going to eliminate you from the bottom; if you make a profit but do not make a strategic contribution, we will not promote you. Both of these are necessary and sufficient conditions. Now when we select cadres, we must gradually adjust the structure so that we can move toward a company that is more conducive to the direction of development.

Third, do not care about some non-strategic opportunities, otherwise the local interests will contain the strategic competitive forces. The time for strategic opportunities to be open to us is 3-5 years. My brothers, speaking from the status quo, are you likely to seize? So do not say cruel examination. Some people say "I can still". We do not just want to be "OK". We have different demands on different cadres. You have to think about how to shoulder this mission. If your sales and profits do not go up, not I want to take away your office, you do not profit, salary package was squeezed small, not enough brothers, under your leadership, brethren make money , That is not strange to overthrow you. You might as well come up with their own fighting ability, strengthen learning, strengthen understanding of things, so as to find a chance point.

We now pay, bonus distribution may also be unfair, because we have just begun to implement sharing system, there may be a lot of points in some places are few, but we will slowly touch a reasonable line where. But because you did not do a good job and less points, I do not sympathize with you.

Second, how to seize the strategic opportunities in the era of ultra-broadband to seize the strategic high ground?

If in the long run, we did not seize the strategic opportunities, did not seize the strategic high ground. After the era of ultra-broadband, what band? we do not know. Board of Democracy in Beijing will be discussed in the future. If we fail in the era of ultra-broadband, will we not launch a more chance opportunity in the future? We think it is gone. So we not only commercial, but also technically, a careful analysis of objective needs in the end is what. For the time being, I have seen some hope of improvement in some developments, but hope is not realistic after all. We do not know whether these hopes can become a reality.

Of the 68 strategic opportunities in the company's strategy sand table, I do not know how many points of opportunity we have. (Ding Yun: Now the rest are very difficult. I just look at the film, such as the Middle East Saudi Riad, LTE battle finished, and then want to get new entry, the difficulty is higher than the original one level.Middle East, Asia Pacific , The pattern of Africa is OK.) If we do not do this strategic sand table, but also complacent, think Huawei is not bad. Did you know how clever people are when you made a strategic sand table, how stupid we are. Just now Ding Yun also mentioned that value areas, value resources and value cities have long been occupied by others. You do not always say that the subversion of the Internet, to see if we can subvert, not so simple.

100 years ago, digging the Panama Canal and the Suez Canal is a great strategic decision, today, it is a great contribution to the history of transportation. How many Panama and Suez are there today in big data traffic? We do not know.

We can not generally look at the strategic high ground, but also divide these high ground into many positions, analyze them, draw plans and measures to seek truth from facts and achieve success. Even if the wireless does not account for the advantages of the place, the support system can hold it? All levels of the company should focus on the opportunity window. In the future, we will not only target 68 strategic highs on sales, but also allow our offices to strategize for strategic opportunities.

Two or three hundred strategic opportunities point can not be just the result of strategic benchmarking, R & D team weapons have to adapt to our battle to the future big data traffic opportunity fighting structure, our entire team should be focused. In this historical period, we have to have such capabilities. Our company emphasizes the "tip-and-tip" strategy in technology strategy. Just because we have strengthened the principle of stress in the past two decades and insisted on merely doing one thing and insisting on crawling slowly like a "turtle," will it be possible in several fields Where in the world to become the leader, but now the leading technology, not the site.

Why can not the water of the Himalayas flow into the Amazon?

We should strengthen the exchange of experiences and ideas. Such exchanges should be extensive. Latin America is in a remote area, but in the era of the Internet is a zero distance, Latin America is emerging growth, which presents a window of opportunity. Why can not we cultivate cadres in Saudi Arabia oil, and then draw cadres go to Latin America to fight the oil sector? Success in one region, the establishment of teaching teams and the cultivation of cadres on a large scale have led to the question of the inability of cadres to flow? This point we have to think. In the Internet age, Himalayan water can flow into the Amazon.

We will step up the construction of various strategic reserve teams such as heavy equipment brigade, major project department and project management resource pool so as to promote the circular mobility of cadres so that the entire team is full of energy. Half of the cost of the strategic reserve is borne by the company for its spare costs and the other half by their joining the various projects. If the war fails, the money for the project will not be included, and the dry food will be brought in. After the food has gone, the cadres will be able to strengthen their circulation. Otherwise, the cadres in Afghanistan will stay for so long and suffer so much for us that they can only be heroes. Even though he is using him now, he can not stand a general because there is no ability to be re-energized by the general. If we circulate it, we give him power, why can not he stand up? Therefore, we must make full use of these three years to promote the circular movement of our teams and further enable all kinds of excellent personnel at the grass-roots level in the circular process to flow smoothly and to form a goal of victory for all levels of the entire company. We will strive to make progress and struggle.

Therefore, Huawei value evaluation criteria should not be ambiguous, adhere to the struggle-oriented, more work and more. You have done well, more money, we do not let Lei Feng suffer, Lei Feng also be rich, so that everyone would like to think of Lei Feng. In these 3-5 years, the reform task of the company is heavy, and it may prompt us to make progress in the strategic opportunities. We should encourage this team to move forward. In all these years, the human resources system has done a good job in general. The pyramid model has been stable. They have to be improved in the hope of erupting their potential strength. We guide the charge, from grass-roots workers to the middle and high-level cadre-oriented success, we happily assault. Some employees are tired, you can rest and rest, do not take a few months salary, and then re-charge. I saw someone wearing a vest and posting that I understand it is understandable with the responsibility and obligation to waive retired staff of up to 400,000 shares. But with more than 40 million shares of staff, if you feel tired of war, we must really take a good rest. Huawei can not enjoy the dividends, go outside the second venture, it is not enough.

In the past we always called the president of the regional division, some people say "do not give me a label, I was less than 40 years old, do not call CEOs later, called Xiaozong." Therefore, all levels of cadres can not be lazy, but also evokes youth, endless, charge more than that, we must fight until we seize the strategic opportunity!