The test of Huawei's successor: from Entrepreneurial enterprise to development type

Editor's note: In China's private enterprises, Huawei is a "hundred billion" level of benchmarking enterprises, globally, Huawei is the world's second largest telecommunications equipment manufacturer after Ericsson (simply according to income calculation).

However, it is such a large volume, low-key well-known enterprises but also has its difficulties, this year, 66-Year-old Ren, is facing the question of how to select the successor of the company. Although I have been in response to the media "succession door" incident, only to "a joke" to avoid the word. However, we have to admit that the first generation of entrepreneurial entrepreneurs who have been represented in China have had to face the problem of how to arrange the successor of the company reasonably, how to make the management smooth transition and how to make the company grow up after nearly 30 years ' pioneering and development. In succession and successor, bigger or shrinking? Huawei is just acting as a representative of this typical group.

November 8, Huawei announced the latest trend of Chairman Yafang. During President Hu Jintao's visit to France, Yafang signed a cooperation agreement on behalf of Huawei and the President of the Paris Chamber of Commerce and Industry (CCIP) Pierre Simon.

The revelations were seen as a response to Huawei's rumours of Yafang's imminent departure. October 27, 2010, a media explosion said that Huawei President Ren in order to let his son Ren smooth succession, "or to 1 billion yuan to send away chairman Yafang." Huawei issued a statement that afternoon, saying that "the current media in the news of the senior changes in Huawei, pure false rumors, and the facts are completely inconsistent", and asked employees to the media ban.

Huawei, which has always been low-key and secretive, has been exposed to public spotlight because of the news of the personnel quake. Huawei insiders told the China Business News Reporter: "The total departure of sun is a rumor, Huawei has no such motive inside." ”

Although the company's personnel crisis is not as dramatic as it seems, it is undeniable that the various personnel adjustments that Huawei has undergone since 2009 prove that Huawei is experiencing a shift from entrepreneurship to development. Indeed, since 2009, the members of Huawei's top-duty agency EMT (Executive Management team, executive management) have been replaced.

The bon of many family businesses have proved that a visionary helm often plays a decisive role. And now people are more concerned about the person who controls Huawei.

Successor problem

Liu Ping, the former vice president of Huawei, wrote in the book "The Past of Huawei": "No matter how great it is, it will not escape the traditional idea of ' father's inheritance '." In his mind, the ideal heir to the Huawei Empire he created was his son Ren. ”

In his description, Ren inherited Ren's domineering, "once, he recommended a friend to our project team work, was Li refused, he patted the table lambaste li." In the view of Liu Ping, Li's departure has a direct relationship with Ren. However, when this reporter to the top of Huawei to verify the history of this period, the person said "these are non-existent." ”

Li, a legendary figure, entered Huawei in June 1993 and, in 1996, 27 years old, sat on the post of Vice president of Huawei and was once considered a successor to Mr Ren. He left Huawei in 2000 and founded the Harbor network. The dramatic thing is that 6 years later, the Harbour network was acquired by Huawei, who himself returned to Huawei as "Vice president and chief telecommunications scientist" of Huawei EMT. October 6, 2008, Li two degrees away, as the chief technology officer of Baidu Company, is now 12580 operating company CEO.

The reporter learned that, after graduating from China University of Science and Technology, Ren has worked in several departments of Huawei, including marketing department, purchasing department, pilot department and so on. During his work in the pilot department, the President of the pilot department was Li Xiaotao. When Ren left the pilot department, Li Xiaotao wrote a summary report on Ren's work in the pilot department. Ren forwarded the report to all the vice presidents and, at the same time, wrote a thank-you note to the effect that Ren was helping and supporting the company during his work, and I thanked you on behalf of Ren.

"Ren has made all the preparations for Ren's succession, including the management platform, the Assistant minister, now waiting for Ren to grow up." Liu Ping says in the book.

Not only that, in the previous media reports, also once revealed "in 2007, Ren had proposed to let Ren into the top decision-making level of Huawei, EMT 4 people in the company's decision to boycott, Ren gave up, and the 2010 National Day before the EMT meeting of Huawei Routine, Ren proposed to introduce ren into EMT as a director, but was opposed by executives such as Chairman Yafang. ”

"In the EMT, there are several factions, supported, opposed and neutral." "A Huawei insider told our correspondent, those who follow the company for so many years, in order to play the contribution of the Senate, the face of Ren is understandable."

According to the reporter understands, ren current position is Hui Tong Company chairman, lead Huawei's administrative service management team.

According to the public information, Shenzhen Hui Tong Business Co., Ltd. was founded in June 2004, headquartered in Shenzhen Sakamoto Tian Hua as the base. In the tension of the "Chief of Staff Ren" book, introduced in detail the background of Hui Tong: "From 2002 onwards, Huawei began to strengthen internal cost control, from travel, conference reception, communication costs and other aspects of the overall control of cost expenditure." Although Huawei is still hiring on a large scale, most of the graduates ' recruiting jobs have been outsourced to Huawei's newly established company. These graduates do not directly enter Huawei, but with Hui Tong Company signed a contract to work in Hui Tong. The aim is to create a buffer zone for human resources, and once the situation is bad, Huawei will be able to cut out redundant employees by reducing its outsourcing contract with Hui. ”

Before Hui Tong by Ren's brother Ningshure, the business involved catering supply, public relations etiquette, software outsourcing and so on, almost in addition to research and development in all areas. Hui Tong Company's establishment is intended to improve Huawei's per capita efficiency and output value, but the outside is quite controversial, "Hui Tong staff and Huawei employees work together, the treatment is entirely separate."

Who is actually in charge?

Huawei is a unlisted company, and its shareholder structure, published on its website, shows that its wholly-owned shareholder is Shenzhen Huawei Investment Holdings Limited, which owns 100% per cent of the private sector owned by its employees and that no third party (including the government) holds a stake in Huawei Holdings.

As of December 31, 2009, Huawei's shareholders included the Huawei holding committee and Ren, who had a stake of 98.58% and Ren's 1.42% per cent.

But how much decision-making power is there for the 1.42% shares that Ren is holding? is always a mystery. So far, the company's "succession gate" incident, as the largest shareholder of the trade union committee, did not declare to the public. Huawei PR Brand Manager Liu Yinghe also rejected the reporter's interview request.

November 2 ren in the inspection of the Huawei Shanghai Research Institute, on the basis of the ownership structure to refute the outside rumors of the "succession door", "Huawei has nearly 70,000 of employees who hold virtual restricted shares, they will collectively determine the fate of the company, how can a person decide how to do this?" "And according to the reporter from the company's internal understanding, the so-called assigned to employees of the virtual restricted shares, in fact, can not trade and trading, only enjoy the right to share dividends." And EMT is Huawei's most important authority.

In 2005, Huawei set up the daily top decision-making EMT, composed of Chairman Yafang, President Ren, and 6 vice presidents in charge of various fields, constituting group decision-making bodies, and implemented the "rotating president" system, which is controlled by different vice presidents and periodically negotiates the strategic decisions of the company. The EMT team has the highest decision-making power, and Ren, the CEO, is only implementing his resolution.

Huawei in the corporate governance structure in this way: the Board of directors to appoint a company management team (ie EMT) to carry out day-to-day management of the company, is the company's day-to-day operation of the highest responsibility agencies. In addition to Ren, Chairman Yafang and 6 in charge of different areas of vice president of the respective shareholding is not known.

At the end of September 2010, Huawei Management Official publicity, by Ding successor Zhijun in charge of products and solutions system President, Yu successor Mr Kun, as president of the strategy and market system. Zhijun once and Yafang like, are the successor of the popular candidate, Mr Kun for Huawei to open up the international market has made a contribution.

and EMT initial members, the original director of the financial Jiping also withdrew from the EMT, transferred to the health officer, from the actual management of the company. The successor to the Liang, she also served as CFO. According to the reporter understands, Liang is now preparing to leave, his position will be replaced by Ren's daughter Meng Jianzhou. Another EMT member, Fermin, has taken the lead in completing the exit procedure. Since then, Huawei Human Resources, the original President of the vice President Luc, Li formally successor to the human Resources President, may also enter the EMT.

At this point, the new EMT team members will be expected to include Ren, Yafang, Xu, Ding, Yu, Peng Zhiping, Meng Zhou, and may also enter the Li and Ren and so on.

Huawei insiders have proved to this newspaper the authenticity of the changes. However, the news has not been officially confirmed by Huawei. Huawei insiders told our correspondent: "At present, because of the outside rumors too much, Huawei internal requirements of the company staff to cold treatment of the matter." "In the eyes of the outside world, such personnel adjustment means that Ren is more and more powerful in EMT and more powerful in power and control."

The 66-Year-old Ren, who was born in 1944, "never heard of his retirement." "Within Huawei, there has been a consensus that, as long as there is always something to do, nothing can be done," says one Huawei Insider. He is the absolute spiritual leader of the company, and we all believe that as long as he is here, the company will develop as usual. ”

But the question now is, what happens if Huawei leaves him?