When Huawei executives cut their salaries, Ren was furious, but overseas markets hit a new high of 24 billion pounds.

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The following article is from Masma Island

Author: Lin Hongyu

Zheng Hedao is a high-end online social platform for entrepreneurs. Click the blue text above to subscribe to this account for free! In 2003, Huawei reached a point of life and death. There was a shadow of a bubble economy before it filed a lawsuit with Cisco. 3G investment totaled over 1 billion yuan, but wasted in China. In addition, the sudden outbreak of atypical pneumonia, Huawei executives' salary cuts, the company's suspension of office, several out of control, roaring in the office. That year was also a year when Huawei made a breakthrough. Since SARS, overseas sales have surged. In less than two years, Huawei ’s overseas revenue has exceeded 24 billion yuan, exceeding domestic revenue! What did Huawei do right? We interviewed Dolan, Huawei's former global human resources expert and founder of Besson Consulting, who experienced this change. "When one does not complain and another adjusts, confidence is more important than gold." Narrator: Former Huawei global human resources expert and founder of Baison Consulting said in an interview: 2003 was a year of frequent disasters in Huawei At the time, Ren was snarling in his office. Many of Huawei's leaders were still on the front lines during the SARS period. I also work in Inner Mongolia, which is an important epidemic area, and I travel around. To be honest, SARS has little impact on Huawei. Because when the Internet bubble appeared, Huawei had suffered a lot. It took a series of actions and made a number of initial adjustments. Action 1: Diverting employees At the time, many people at Huawei were doing technical service work. They were understaffed everywhere and they contracted them to the top. The company worked for them and then went out to work. Huawei also encourages employees to go out and start businesses. That year, some people were separated. Action 2: Mobilize many non-sales people to go to the front line to ask for money. Activate all employees. Even newcomers, many of them were sent to ask for money. Action 3: Stop Recruiting Huawei stopped hiring new employees for two years at the time, which is very rare. Senior officials have also voluntarily reduced wages. Everyone tightened their belts. In 2003, it was really difficult to compete with Cisco for intellectual property rights, and the bigger blow of 333,543 g was postponed. At that time, many of his colleagues walked the Phantom Path, but Ren did not. He has invested more than $ 1 billion in 3G R & D. Therefore, the policy has not been activated. We can all hear Ren yelling in the office of the workstation. He was forced to have no choice but to work in overseas markets. In fact, as early as 1996, Huawei won some contracts in Hong Kong and Bangladesh, and slowly withdrew. Starting from SARS, overseas sales suddenly broke through. In less than two years, Huawei's overseas operating income has surpassed domestic. In 2005, annual revenue exceeded 48 billion yuan, and overseas revenue was 24 billion yuan. One did not complain, the other was adjustment, the east was not bright and the west was bright. SARS will definitely increase tax pressure. Huawei used three strategies at the time. 1. Strengthen accounting Huawei was once a comprehensive research and development department of the central government. Now it cannot just invest in research and development. I need to do accounting, save money, and build different product lines. 2. When Li Yinan left the port, the adjustment of employees had a great impact on the entire Huawei system. Later, Ren visited the Huawei India Research Institute and found that the staff was stable and morale was high. He did one thing and transferred the director of the institute Lu Ke back to China. Later, he was in charge of the China Research Institute in 2003, and officially took charge of human resources. At the time, many such things were done. 3. Golden confidence Ren Zhengfei was under great pressure in 2003. Everyone saw the boss made the wrong decision and missed the opportunity for 2.5G and PHS. However, Ren definitely said that there is no problem with 3G and China will not let us go out. We will not sit still, but we must be aggressive. Take advantage of this epidemic opportunity and make persistent efforts. At that time, Huawei went overseas and everyone agreed with 3G. Soon the market feedback was good and Europe began to break through. This time, everyone's confidence naturally began. One is not complaining, the other is adjustment. The east is not bright, the west is bright, there are indeed many opportunities. Everyone believes that it is half done. 5G and PHS opportunities. However, Ren definitely said that there is no problem with 3G and China will not let us go out. We will not sit still, but we must be aggressive. Take advantage of this epidemic opportunity and make persistent efforts. At that time, Huawei went overseas and everyone agreed with 3G. Soon the market feedback was good and Europe began to break through. This time, everyone's confidence naturally began. One is not complaining, the other is adjustment. The east is not bright, the west is bright, there are indeed many opportunities. Everyone believes that it is half done. 5G and PHS opportunities. However, Ren definitely said that there is no problem with 3G and China will not let us go out. We will not sit still, but we must be aggressive. Take advantage of this epidemic opportunity and make persistent efforts. At that time, Huawei went overseas and everyone agreed with 3G. Soon the market feedback was good and Europe began to break through. This time, everyone's confidence naturally began. One is not complaining, the other is adjustment. The east is not bright, the west is bright, there are indeed many opportunities. Everyone believes that it is half done.

As a country and an organization, we must give everyone the confidence to get through it. How can customers forget you when you insist on doing it in a catastrophe? Facing world-class disasters, Huawei has also persisted. SARS in 2003; Iraq war in 2003; Japan's nuclear island suffered massive radiation and explosion in 2011. In 2011, Libya evacuated its nationals. In these disasters, Huawei developed its own set of crisis response measures. For example, during the 2008 Wenchuan earthquake, Huawei first sent a team to repair it. No one else could drive into the earthquake zone. Huawei's engineers walked day and night and arrived at the central earthquake zone with emergency equipment. With the continuous aftershocks, a temporary base station was established. By that time, no communication will create more panic in this case. Overseas Chinese withdrew from Libya, but Huawei's team did not leave. Libya's new regime is perplexed, saying everyone else has fled. Why don't you run away and everything becomes like this? Besides, the Gaddafi government bought yours and they fell down. At the time, Huawei's front-line engineers said, "No matter who is the government, we must ensure the smooth communication of the people." In dealing with the plan, Huawei developed a set of measures to deal with the crisis. Because the communications industry is still different, after the earthquake, after the disaster, you have to carry out integrated projects in health, epidemic prevention, communications and physical. Why is Japan's support for Huawei quite high? At that time, everyone was fleeing the nuclear leak. Many Western communicators fled, and Huawei stayed. Huawei employees are also scared. Employees are people too. Nuclear radiation is not a joke. Who dares to go? At the time, Sun Yafang, the company's chairman, was traveling with Xu Chi, who was responsible for the human resource crisis. They asked health experts to provide mental health counselling to their employees and bought them the highest level of radiation protection clothing. How to change shifts, you can't always have people stay there for a month, how to disinfect and recuperate when you return, everything is fine. After the Wenchuan earthquake, Huawei upgraded its employees who have stood up to the three disasters. The same is true of the evacuation of Libyan nationals. There are many bonuses and half-month paid holidays. Huawei has a resort center in Shenzhen. Ren said that the villa is open for you to play and let you rest for half a month. His indifference to heroes shows his love for his employees. Make sure employees stick to the front line and are customer-centric. This is Huawei's overall response to the disaster. Rely on stupid driving force to win common development with customers. How can customers forget you when you insist on doing it in a catastrophe? Huawei's per capita income: 5 million: How far is it from a good company? Huawei's operating income last year was 850 billion yuan. We counted 180,000 people, and the per capita output value was 4.75 million, which was close to 5 million. It's pretty high. Like SMEs, everyone's gross margin is very low, but judging from another indicator, is our human efficiency not high? Ren said last year that in the Sino-US trade war, don't sacrifice national interests. Huawei is still rich. Huawei is not poor and is poorer than us. Because people are very efficient, there is room for adjustment. Behind this efficiency is high per capita output. Boss, usually have to master the per capita output? After SARS in 2003, Huawei began to put forward the concept of per capita efficiency. At that time, Ren asked: What is the gap between our per capita efficiency and other outstanding companies? At first, Huawei competed with its global peers, but only one-eighth of other companies. Huawei's per capita annual income is now 5 million yuan. But behind this number, things are not so simple. Huawei has spent more than 20 years combing and continuously building process management. Does the company have the same long-term per capita income as Huawei? I will talk about 5 million per capita output, how much can we achieve? The per capita return of manufacturing, services, industries and the Internet is a measure of an enterprise. Now, when it comes to SMEs responding to crises, people talk about reducing staff numbers to increase efficiency. Does reducing employee numbers definitely increase efficiency? This is not necessarily the case. Simply put, reducing the number of people working and ultimately reducing it is very common What is the difference between our per capita efficiency and other outstanding companies? At first, Huawei competed with its global peers, but only one-eighth of other companies. Huawei's per capita annual income is now 5 million yuan. But behind this number, things are not so simple. Huawei has spent more than 20 years combing and continuously building process management. Does the company have the same long-term per capita income as Huawei? I will talk about 5 million per capita output, how much can we achieve? The per capita return of manufacturing, services, industries and the Internet is a measure of an enterprise. Now, when it comes to SMEs responding to crises, people talk about reducing staff numbers to increase efficiency. Does reducing employee numbers definitely increase efficiency? This is not necessarily the case. Simply put, reducing the number of people working and ultimately reducing it is very common What is the difference between our per capita efficiency and other outstanding companies? At first, Huawei competed with its global peers, but only one-eighth of other companies. Huawei's per capita annual income is now 5 million yuan. But behind this number, things are not so simple. Huawei has spent more than 20 years combing and continuously building process management. Does the company have the same long-term per capita income as Huawei? I will talk about 5 million per capita output, how much can we achieve? The per capita return of manufacturing, services, industries and the Internet is a measure of an enterprise. Now, when it comes to SMEs responding to crises, people talk about reducing staff numbers to increase efficiency. Does reducing employee numbers definitely increase efficiency? This is not necessarily the case. Simply put, reducing the number of people working and ultimately reducing it is very common

Senior leaders should focus on four key points: 1. At what level have we been in the past few years? At what level are our peers? 2. What is the ratio of labor costs to sales in the past few years, and what is the level of the listed peers? 3. Look at the gap and ask yourself more about what caused the huge gap at this point, find out the reasons, touch the road, and fill the gap. 4. Stare at inventory, check inventory, and master the process backwards. How is inventory formed? Who ordered it? Who makes the predictions? How to make predictions? Has the market and customers changed? They are linked and always lasting. Can you put on an extra quilt before the disaster? We should really increase human efficiency to deal with uncertainties. If we always work hard, when facing disasters and difficulties, we will have a strong ability to resist risks. This year we are facing an epidemic situation. Of course, if something important happens next year, I can't blame this crow's mouth, because this situation is also sudden. According to Ren's theory, can we cover more quilts? A little cash, that's right. During the Internet bubble in 2001, Huawei sold Huawei Electric to Emerson and received more than $ 6 billion in cash, which is crucial for Huawei to survive the crisis. In this case, the per capita income is also a multilayer quilt throughout the management. You must ask yourself three questions: 1. Are collaboration tools powerful? During this time, Huawei's Welink software was made public. Huawei people know that this is the result of years of preparation, with special emphasis on the coordination of tools. 2. Is your organizational process effective? The backlog is deadly. In business management, it is necessary to dig profits and improve people's efficiency. How can there be fewer people? It must be the optimization of the process, and the efficiency has reached the responsibility of people. Huawei has also done a good job in this regard. Experts hired from Japan have been doing production site management, which is called "kanban management". Optimization of a series of production processes. Only when things are clear can we have fewer people and more efficiency. At the same time, Huawei does not allow managers to sit in the office and must walk around to manage. Management must be solid in peacetime. However, during the epidemic, many SMEs can look in the mirror. Taking this opportunity, senior leaders can stop and learn passively, check if there is room for improvement in efficiency, and see how much surplus labor is available. 3. Are the strategic goals ready? If Huawei does not develop internationalization, the domestic market will be impacted by SARS, and the impact will be really great. Not that we have to be international, but to judge what opportunities the industry has and how to plan ahead. During the financial crisis of 2008, everyone was desperate. Huawei dares to place large orders with Foxconn. When consumption rebounds, Huawei can maintain its capacity. This was also a very important point at that time, strategic judgment. The economy is undoubtedly an integral part of this crisis. There is a need to continuously improve labor quality, corporate strategy, organization and process efficiency. For small and medium-sized enterprises, seizing the opportunity of learning and continuous improvement for several years can not only reduce staff and improve efficiency, but also truly improve human efficiency. We will have a thick quilt. If you want to manage your work normally, you can still survive a major crisis. When the real bonus comes, you have a chance. If we don't implement digital intelligence, the next epidemic will be a dead end. The economy will be cold and hot. At this point, for example, e-commerce has undergone a stimulus development. We are in Shenzhen. How busy is the horse's box? We don't let you rob them before 12pm every night because there is not enough money. If you go to bed early, you will not be able to buy any food. It was ordered to be delivered the next morning. Supermarkets that have been able to deliver have seen their sales soar. However, some markets that cannot be delivered can only be closed, and in fact no one dares to go. They did the most profound work and had the courage to deliver the goods. They have the best chance to seize it. Some demands are suppressed, while others are blown away. Still others have not been prepared before. Now they will ask, can they save themselves again? timely. For such unpredictable things, don't forget the scars and pain, do it after the epidemic, don't wait until next time another thing happens, you are not ready. Don't regret, chance At one point, e-commerce has experienced stimulus development. We are in Shenzhen. How busy is the horse's box? We don't let you rob them before 12pm every night because there is not enough money. If you go to bed early, you will not be able to buy any food. It was ordered to be delivered the next morning. Supermarkets that have been able to deliver have seen their sales soar. However, some markets that cannot be delivered can only be closed, and in fact no one dares to go. They did the most profound work and had the courage to deliver the goods. They have the best chance to seize it. Some demands are suppressed, while others are blown away. Still others have not been prepared before. Now they will ask, can they save themselves again? timely. For such unpredictable things, don't forget the scars and pain, do it after the epidemic, don't wait until the next time another thing happens, you are not ready. Don't regret, chance At one point, e-commerce has experienced stimulus development. We are in Shenzhen. How busy is the horse's box? We don't let you rob them before 12pm every night because there is not enough money. If you go to bed early, you will not be able to buy any food. It was ordered to be delivered the next morning. Supermarkets that have been able to deliver have seen their sales soar. However, some markets that cannot be delivered can only be closed, and in fact no one dares to go. They did the most profound work and had the courage to deliver the goods. They have the best chance to seize it. Some demands are suppressed, while others are blown away. Still others have not been prepared before. Now they will ask, can they save themselves again? timely. For such unpredictable things, don't forget the scars and pain, do it after the epidemic, don't wait until next time another thing happens, you are not ready. Don't regret, chance

1. Do a good job of specialization. Through this epidemic, we will consider consumers and observe new consumption habits. Use this time to really reflect on our strategy, advance our processes, look at our productivity, and look at our employees. In order to focus on the latter job, many people actually do it. SMEs interact with your customers. I have a very good customer. Their boss gave the mask he bought to customers with tight supplies. This is Wei Qing, 20 or 30, not much, but it is a kind of care. Usually, these customers and bosses have no time. Now they can talk about everything and do some market research. This is also great. 2. Do digital work, such as these commercial centers and offline retail. What if you can't start working now? You have to digitize right away. You can't wait any longer. If you don't do this, the next time you encounter this situation, there is still a dead end. I have a client who can basically eat 70% of the market in this industry by making dust caps. What he excels at is fully automatic production. In the same industry, hiring 100 workers is 10,000 outputs. After fully automatic production, they produce 10 million units a day. Not many workers needed. In this case, he squeezed a lot of space for others. Specialization, digitization and intelligence are inevitable trends. Then we will move forward step by step in a planned way. Only in this way can we solve this series of problems. For businesses, the disaster situation is uncertain. We don't know if there will be huge difficulties and wars in the future, but we must be good at our certainty. We chose the right path and went right step by step. There is no Red Sea or Blue Sea in any industry. You don't think disaster is coming. This is affected. That is affected. This disaster happened across the industry, not just a business. In the face of this situation, no luck, no bonus bonus, you just need to do things to the extreme, no chance of success, no place to be lazy.