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Overview of Huawei's 30-year organizational structure evolution (10000 words long text, recommended for collection)
Release time: October 10, 2019 14:02:40
Under the Sino US trade war, Huawei was particularly "taken care of" by the United States, and even became stronger and stronger, which angered the Yankees - only Huawei could do it!
Not only that, Trump's "divine assistance" has made Huawei famous all over the world, become our idol and "true god", and pushed all enterprises to learn from Huawei's benchmarking effect to a new climax. Huawei's organizational structure is an important part. There have been reports or summaries in various media in the past, but they are not complete. This article will focus on the theme of "keeping pace with the times and business orientation" throughout Huawei's organizational reform, and spend a lot of time to introduce the evolution of Huawei's organizational structure.
Value orientation of Huawei's organizational management Huawei is a hard entrepreneurial history of the development of Chinese private enterprises. It not only condenses too many hardships and heartaches, but also covers all the "necessary stages" of the development of domestic private enterprises. It can be described as a "living fossil" of the development of private enterprises. Many enterprises have flocked to learn from Huawei, not only because Huawei has made such development achievements today, but also because of the "essentials" for the development of Chinese private enterprises. Huawei has many things. From a small private trading company, it has grown step by step into an "aircraft carrier" in the field of information technology; From a linear management enterprise to a multi matrix organization oriented to regions, customers and products; From a product determined organization to a "customer and strategy determined organization" to a "business determined organization". Among them, the summary and analysis of Huawei's problems, accumulated experience and current challenges in the construction of high-performance teams are conducive to providing practical experience and guidance for further improving the effectiveness of high-performance teams. When it comes to the value orientation of Huawei's organizational management, Huawei consists of five distinct propositions, namely, open organizational philosophy, mission driven, system integration, learning culture, and self-criticism. The advocacy and implementation of these organizations constitute the driving force for Huawei's continuous development (see the figure below).
Huawei's organizational structure has evolved over the past 30 years Huawei has gone through more than 30 years since its establishment. Over the years, its strategy has been constantly adjusted according to changes in the environment, and its organizational structure has also been optimized following the strategy, so that Huawei can always be in the process of development, Huawei has always been a banner in the history of Chinese enterprises. Huawei's 30-year development can also be roughly divided into four stages: The first stage is from 1987 to 1995; The second stage is from 1996 to 2003; The third stage is from 2004 to 2012; The fourth stage is from 2013 to the present and the next few years. The first stage (1987-1994) theme: live key word: From linear system to functional system, barbaric growth to standardization In 1987, Ren Zhengfei and five partners jointly contributed 20000 yuan to establish Huawei. At the beginning of the business, Huawei just resold other people's equipment, with a small number of personnel, only 6 people, a single department function, and straight line management (as shown in Figure 1). By 1991, the number of employees in the company had increased to more than 20. At that time, the organizational structure was still a very simple linear organizational structure commonly used by SMEs. All employees reported directly to Ren Zhengfei (as shown in Figure 2). Until 1992, the sales scale exceeded 100 million yuan and the number of employees reached about 200. The organizational structure began to change from a linear organizational structure to a linear functional organizational structure. In addition to business process departments, such as R&D, marketing and manufacturing, there are also support process departments, such as finance and administration (Figure 3). During this period, Huawei adhered to the centralized development strategy, resisted the temptation of high profits from external stock markets and real estate, and continued to focus on the strategic objectives of the communication equipment manufacturing industry. As a result, Huawei further expanded its market share and broke through the situation that foreign communication equipment dominated the world at that time. Business development background: During this period, there were many international established communication manufacturers in the market. The communication standard was "seven countries and eight systems". The equipment price was high, and the major international equipment manufacturers responded slowly to the demands of operators. Huawei's product development strategy mainly adopts the following strategy. First, it represents the products of Hong Kong companies, and then gradually evolves into a centralized strategy of self-developed products. Huawei is trying to catch up with the last bus of 2G communication technology development. Its R&D ability is lacking, its technical support ability is just starting, and its product categories are incomplete and its functions are limited. In terms of market competition strategy, it adopts the continuous development and production of a single product, and the sales strategy of encircling cities from rural areas. It quickly seizes the market through low-cost means, expands the market share, and also expands the size of the company. The second stage (1995-2003) theme: getting out of chaos key word: From functional system to two-dimensional matrix, from chaos to standard establishment The establishment of the new organizational structure has gradually become specialized in the vertical field, and the effect is very prominent. Orders can be pushed to the end; However, its disadvantage is the low efficiency of cross department work. The development of such organizations is natural. Because the number of personnel and business complexity are increasing, the organization will undergo fission. Such organizational development will encounter two problems in business operation: First, collaboration between different departments. In particular, business collaboration with certain time requirements will encounter a "department wall". Because everyone is of the same level, it is difficult to promote work. Many trivial matters need to be reported, and the boss will make decisions. Second, the resource allocation of each functional department is uneven. Some departments are easy to become the bottleneck of the business. Everyone will say that there are not enough people. It is also difficult for us to judge where the problem is. Gradually, there will be buck passing and wrangling. There are a lot of things that need leaders at all levels to promote coordination, and enterprise resources will be consumed internally. Huawei is no exception. This is a necessary stage for the development of enterprises: The business rules are not clear, and a large number of problems need to be solved by "rule of people", which requires communication between the leaders of various systems, or the boss to make decisions. Therefore, the boss acts as an arbiter in the enterprise, and a lot of energy is used to balance various relationships within the organization. It is difficult to be the leader of this stage. Huawei was in this stage before 1998. Due to the rapid development of Huawei's business, its staff has expanded rapidly. A large number of middle and senior management cadres, Mr. Ren, did not know that the growth of management ability lagged behind the development of business. The three-year period from 1995 to 1998 was a stage of independent optimization. At this stage, Huawei has made many changes, including the ISO9000 quality system, the establishment of a QCC team to improve the quality management circle, the confusion of organizational plans, and the collective resignation of the Marketing Department; The most important thing is that Huawei has invited professors from the National People's Congress to prepare Huawei Basic Law This actually systematically defines Huawei's "career theory". In 1995, the Institute was established in Beijing; In 1996, it began to enter the international market extensively. As Huawei's strategy has undergone tremendous changes, its organizational structure has also been adjusted, and department names have become more standardized (see Figure 4). In 1995, Huawei's sales volume reached 1.5 billion yuan, and the number of employees reached 800, making it the 26th private enterprise in the top 100 electronics companies in China. Since 1998, Huawei has hired IBM consultants to carry out process transformation projects (mainly including integrated product development (IPD), integrated supply chain (ISC), and customer relationship management (CRM)). By 2003, the project had achieved great success, and its organizational structure had been adjusted accordingly with these changes. During this period, the advantages of Huawei's original centralized linear organizational structure have become obstacles to its development, and its disadvantages have become increasingly prominent. On the one hand, the lack of a special functional structure, managers become increasingly burdened, and coordination between departments is difficult; On the other hand, the number of employees of Huawei has also increased rapidly. By 1998, the total number of employees was close to 8000, and the sales scale was close to 9 billion. If the original organizational structure is still used for management, it will inevitably restrict the further development of Huawei. Therefore, on this basis, Huawei began to adjust its organizational structure in the process of continuous management reform. Starting from the division of small business units, Huawei established a two-dimensional matrix organizational structure that combines the business division system with regional divisions (see Figure 5). The organization structure is a typical matrix organization structure. Among them, the functions of the Division are mainly reflected in two aspects: First, it is fully authorized under the macro leadership of the enterprise, has completely independent operational autonomy, and implements independent operation and independent accounting; Second, the product responsible unit or the market responsible unit shall exercise unified leadership over the integration of product design, manufacturing and sales activities. In order to implement such a relatively complex organizational structure, Huawei put forward clear requirements on the organizational structure in Articles 44 to 47 of the Basic Law finalized in 1998: ▄ In Article 44, the basic organizational structure of the company will be a two-dimensional structure, with business divisions divided by strategic businesses and regional companies divided by regions. The Division shall undertake the responsibilities of development, production, sales and user services within the business scope specified by the Company; The regional companies effectively use the company's resources to operate in the regional markets specified by the company. Both the Business Division and regional companies are profit centers and bear the responsibility for actual profits. ▌ In Article 45, the construction principle of the management department is proposed, that is, functional specialization is the basic principle for the establishment of the management department. The company's management resources, research resources, pilot test resources, certification resources, production management resources, market resources, financial resources, human resources and information resources are the company's public resources. ▌ In Article 46, the principle of establishing a business division is proposed, that is, the principle of object specialization is the basic principle of establishing a new business division. The division principle of business units can be to establish an expansion business unit according to the product field, implement the centralized policy and decentralized management, which is the profit center; Establish a service-oriented business unit according to the process. ▌ In Article 47, the division principle of regional companies is proposed. A regional company is a subsidiary with legal personality divided by region, wholly owned or controlled by the head office. Regional companies should make full use of the resources allocated by the company and try to mobilize the company's public resources to seek development within the specified regional markets and business fields, and assume full responsibility for profits. In the regional market that the regional company is responsible for, the head office and all business divisions will not compete with it in the same business. If there is a need to expand business, each business unit can adopt the method of working with or supporting regional companies. It can be seen from this that the business division and regional corporate system implemented by Huawei can be seen as the main source of Huawei's economic benefits. The company headquarters, mainly the functional departments of the company, manage the company's public resources on behalf of the president of the company, and guide and supervise the business divisions, subsidiaries, and business departments. The headquarters mainly makes major decision control and services to focus on superior resources and energy to break through market difficulties. When the departments divided according to the principle of functional specialization cross operate with the departments divided according to the principle of specialization of a certain object, a matrix structure is formed in the organization. This matrix structure is mainly reflected in the business transactions between different business units in the region. In order to achieve market goals, the regional divisions and business units adopt the mode of joint operation. The management structure used in this joint operation is the matrix management structure 。 Of course, Huawei has changed from a single product provider to a comprehensive solution provider at this time, and the market demand is diversified. Most of the time, in order to meet the diversified needs of customers, Huawei's business units are in many cases engaged in joint operations to jointly expand customer needs. At this time, the management of such joint operations is carried out using a matrix management organizational structure. Huawei's two-dimensional matrix organizational structure has greatly promoted Huawei's strategic transformation and successful implementation. As the business division system implements unified management of production and sales of products, independent operation and independent accounting, it has greatly mobilized the enthusiasm and initiative of Huawei's internal staff, and has enabled the senior leaders in subsidiaries to get rid of daily affairs and concentrate on macro strategies. At the same time, it also trained and trained the comprehensive management talents of the Division. The establishment of Huawei regional companies has opened a new sales channel for Huawei, greatly saved Huawei's comprehensive costs, and also made Huawei's organizational structure move towards a matrix multinational group. By the year 2000, the sales volume had exceeded 20 billion yuan. Over the past few years, it has been growing at a rate of almost 100%. During this period, Huawei has gradually shifted from a centralized strategy to a horizontal integration strategy, from a single research, development, production and sales of program-controlled switch products to multiple product areas such as mobile communication, transmission, etc. Its strategy has also begun to develop towards diversification, thus becoming a company that can provide comprehensive communication solutions. In this way, after the stagnation from 2000 to 2002, Huawei achieved another explosive growth in 2003. After the external environment began to recover, thanks to Huawei's continuous organizational and management reforms, its sales soon exceeded 30 billion yuan, reaching 31.7 billion yuan, maintaining a growth of more than 50%. This has also laid a very good foundation for Huawei's global development. Business development background: During this period, due to the slowdown of the overall development of the domestic telecommunications equipment market, Huawei's profits in the field of traditional program-controlled switches were eroded, resulting in unprecedented competitive pressure. At this time, the market demand began to diversify. In the face of this competitive environment, Huawei can only pursue transformation and development. In product development strategy, from single centralization to horizontal integration. In terms of geography, it has changed from focusing on the domestic market to facing the domestic and international markets at the same time, while the international market takes priority. In terms of market expansion, the development strategy of "encircling cities from rural areas" is still followed, starting from developing countries, and gradually entering the market of developed countries with low-cost strategy. Overseas market expansion cases: Since 1997, Huawei has established a joint venture in the Commonwealth of Independent States (CIS) to explore the market in a localized manner. Although this process was extremely difficult and did not pay off for several years, Huawei remained firm in its belief. Finally, in 2001, the sales of CIS exceeded 100 million dollars, which was regarded as a preliminary success in the overseas market. Subsequently, the expansion of other countries also achieved good results. In 1999, its overseas business income accounted for less than 4% of its vertical turnover, and by 2008, its overseas income had accounted for 75% of its total turnover, thus becoming a truly international company. The third stage (2003-2011): towards globalization key word: From two-dimensional matrix system to matrix multinational group: Build the chimney first and then pull it through After 2004, Huawei adjusted its organizational structure again, but it basically optimized it on the basis of 2003. However, its main structure is still the organizational structure model of product line system oriented by market and customer demand. It adopts the model of small profit center to speed up decision-making and adapt to the rapidly changing market. This organizational reform has made the processes with IPD, ISC and CRM as the backbone more mature; At the same time, the company, supported by financial, human resources and other reform projects, comprehensively launched the company's business process reform, introduced practical best practices in the industry, and built a complete IT framework to support this operation (as shown in Figure 6). It can be said that this change and adjustment of the organizational structure has made full contributions to the redistribution of power and the improvement of the operational efficiency of the organization, making Huawei establish an organizational operation system that is in line with international standards. At the same time, the adoption of the product line form can more effectively carry out extensive communication with customers on products, and timely identify and meet customer needs, thus effectively enhancing Huawei's competitiveness in the international market. At this time, Huawei has become a diversified enterprise, forming three business systems: operator business, enterprise business and consumer business. The organizational structure will still maintain such a matrix organizational structure in the future. This huge matrix organizational structure is also dynamic and will be adjusted with the adjustment of strategy at any time. When enterprises encounter external environmental challenges, the network will shrink and overlap, that is, the posts and personnel will be streamlined; When the environment needs to expand, the network will open and expand positions and personnel. However, its basic business processes will remain relatively stable (as shown in Figure 7). At this stage, taking IBM's IPD and ISC reform consulting as the main axis, Huawei cooperated with more than 10 consulting companies in the United States, Europe and Japan in many aspects, such as employee equity planning, human resource management, financial management and quality control, and began to comprehensively learn from western management experience. Through multiple cooperation with consulting companies such as IBM, Huawei has introduced the best management practice experience in the industry, solidified various business processes, and strengthened various functional departments. Through the System Department and the Sub regional Department, we will build regional business organizations that are close to and around customers, and focus on order acquisition, delivery project implementation, equipment maintenance and problem handling. With the rapid development of business and the rapid expansion of personnel and organization scale, in order to ensure the flexibility of organization operation, Huawei has divided small business units in the product line, set up several SPDTs (Super Product Development Teams) as independent business units, and through weak matrix project management, it breaks down the departmental walls and connects the resources of various functional departments, Establish a heavyweight team (including planning, research and development, marketing, procurement, manufacturing, service and other roles) to improve the efficiency of product development. When the capabilities of functional departments are raised and built like chimneys, the higher the chimneys are built, the thicker the chimney walls will become, and inevitably the "departmental walls" between functional departments will become thicker. Specifically, in combination with the adjustment of the company's strategy, Huawei's organizational structure every year: In 2009, Huawei established a clear and comprehensive corporate governance structure, laying the foundation for maintaining good corporate performance and long-term sustainable growth (see the figure below). Driven by customer demand, Huawei has gradually established end-to-end comprehensive advantages in four major business areas, including telecommunications infrastructure, business and software, professional services, and terminals. Huawei is committed to providing customers with competitive communication solutions and services, helping operators improve revenue (ARPU), enhance bandwidth competitiveness, and reduce total cost of ownership, Achieve commercial success. In 2010, adhere to the customer centered and striver oriented line, gradually reform the company's organizational structure, processes and assessment, and continue to drive the company's organizational structure to change to customer centered. Reorganize the business departments, which were originally divided into equipment, terminal, software services, etc. according to the business type, and now are divided into enterprise oriented, operator oriented, consumer oriented and other businesses according to the customer type (see the figure below). Based on customer needs, gradually establish comprehensive advantages in the three business areas of telecom network, global services and terminals, provide customers with cloud, management, and end products and solutions, help operators improve revenue (ARPU), enhance bandwidth competitiveness, and reduce total cost of ownership to achieve commercial success. In 2011, the company continued to improve the organization, process and assessment of the company by adhering to the customer centered and striver oriented approach, so that the company could achieve effective growth. In that year, it was divided into operator network BG, enterprise business BG and consumer business BG. Three major operation centers (BG) operated, in addition to other businesses. Each BG is a customer oriented end-to-end operation responsibility center, responsible for the effective growth and efficiency improvement of the company, and responsible for the achievement of business objectives and customer satisfaction of the BG. Each BG of Huawei sets up an EMT to manage its own BG business. The BG CEO serves as the BG EMT director (as shown in the figure below). In order to adapt to the revolutionary changes taking place in the information industry, Huawei has made customer oriented strategic adjustments. Huawei's innovation will extend from the telecom operator network to the enterprise business and consumer field, develop the "cloud management end" business in a coordinated manner, and actively provide high-capacity and intelligent information pipelines, colorful intelligent terminals, and a new generation of business platforms and applications, Bring efficient, green and innovative information application and experience to the world. Huawei will continue to innovate around the needs of customers, open up cooperation with partners, and devote itself to providing ICT solutions, products and services for telecom operators, enterprises and consumers, continuously improving customer experience, creating maximum value for customers, enriching people's communication and life, and improving work efficiency. Business development background: By 2004, Huawei was still growing at a rate of more than 40% every year. In 2010, the sales volume reached 185.3 billion yuan, ranking 397 among the top 500 in the world for the first time, and then the world ranking steadily advanced. At this stage, Huawei has adopted the strategy of vertical integration, diversification and internationalization in product development strategy; In terms of market competition strategy, we should adopt a win-win strategy with "partners". Through these years of reform and adjustment, Huawei has gradually transformed from a telecom equipment provider with comprehensive communication solutions to an end-to-end communication solution provider and a customer or market driven telecom equipment service provider. Compared with the organizational structure in the growth period, Huawei's organizational structure in this period has evolved gradually, from the original organizational structure of combining business divisions and regional divisions to an organizational structure dominated by product lines. Theme words of the fourth stage (2012 present): Ecological layout, full flowering key word: From weak matrix to strong matrix: Project centered operation In order to not only play the role of large platform capabilities, but also enhance the flexibility of the organization and maintain the ability to respond quickly to customer needs, Huawei further proposes "project centric", hoping to use a strong matrix to manage projects. The problems existing before the management reform at this stage are that the division of labor of functional departments is too detailed, and the number of overlapping institutions is large, resulting in a lot of waste of resources; The barriers between functional departments are heavy, the information flow is not smooth, and the communication cost is high; The organization is bureaucratic, some employees lose their initiative and only know how to do routine work step by step; Under the matrix organization, the business line responsible for business management and the resource line responsible for functional management are separated, and their responsibilities and rights are not equal. The resource line is responsible for providing shells, and is responsible for quality; The business line has the right to expand its territory and call for fire, but it is not responsible for resources, which leads to a large number of demands from the business line to the resource line, dragging down the resource line and damaging the achievement of the project objectives. In 2012, Huawei acquired all the shares of its joint-venture subsidiary with Symantec for 3.3 billion yuan in cash, making it a wholly-owned subsidiary of Huawei. Launched the closed-loop management system of "DSTE (Develop Strategy to Execute)", and carried out the reform of project management and knowledge management. In 2012, Huawei's annual revenue reached 220.2 billion yuan, up 24.5% year on year. Faced with the double crises of the global financial crisis and the European debt crisis, Huawei still maintained a steady growth trend, overtaking Sweden Ericsson, its largest competitor, and becoming the leader of the global communications industry. Since 2012, Huawei has initiated a step-by-step organizational reform, with a new structure every year. In 2012, Huawei was divided into three operation centers (BG) for operation, including operator network BG, enterprise business BG and consumer BG. Each BG is the end-to-end operation responsibility center for customers, the main combat force of the company, responsible for the effective growth and efficiency improvement of the company, and responsible for the achievement of business objectives and customer satisfaction of the BG. Each BG sets up EMT to be responsible for the management of its own BG business, and BG CEO serves as the director of BG EMT. Service oriented BG (SBG) is an end-to-end responsibility center that provides support and services for BG. It is necessary to continuously improve efficiency and reduce operating costs (as shown in the figure below). In order to adapt to the revolutionary changes taking place in the information industry, Huawei continues to innovate around customer needs and technology leadership, cooperates openly with industry partners, focuses on building an "intelligent information pipeline" for the future, and continues to create value for customers and the whole society. Based on these value propositions, Huawei is committed to enriching people's communication and life and improving work efficiency. At the same time, Huawei strives to become the first choice and best partner of telecom operators and enterprise customers, and become a brand loved by consumers. Its organizational development model has also become a benchmark in the industry and has been learned by more and more enterprises. In 2013, it was divided into three operation centers (BG) for operation Each BG is the end-to-end operation responsibility center for customers, the main combat force of the company, responsible for the effective growth and efficiency improvement of the company, and responsible for the achievement of business objectives and customer satisfaction of the BG. Service oriented BG (SBG) is an end-to-end responsibility center that provides support and services for BG. It is necessary to continuously improve efficiency and reduce operating costs. The Group's functional platform is a platform focusing on BG's support, service and supervision, providing timely, accurate and effective services to the front, and strengthening supervision while fully authorizing the front (see the figure below). In order to adapt to the revolutionary changes taking place in the information industry, Huawei continues to innovate around customer needs and technology leadership, cooperates with industry partners, focuses on building a future oriented information pipeline, and continues to create value for customers and the whole society. Based on these value propositions, Huawei is committed to enriching people's communication and life and improving work efficiency. At the same time, Huawei strives to become the first choice and best partner of telecom operators and enterprise customers, and become a brand loved by consumers. In 2014, the company's business organizational structure was gradually adjusted to an organizational structure based on three dimensions of customers, products and regions. Set up BG organizations for three customer groups to adapt to the business laws and operating characteristics of different customer groups and further provide customers with innovative, differentiated and leading solutions. A new ICT integrated product and solution organization was established to adapt to the ICT industry technology integration trend, build the competitiveness of products and solutions, give full play to the company's competitive advantages in multiple product portfolios, and create a better user experience. We have optimized regional organizations, increased and accelerated authorization to front-line organizations, and further realized the healthy, sustainable and effective growth of Huawei itself while establishing closer ties and partnerships with customers and helping customers achieve commercial success. The Group's functional platform is a platform focusing on business support, service and supervision, providing timely, accurate and effective services to the front, and strengthening supervision while fully authorizing the front (see the figure below). In 2014, Interbrand released the list of "2014 Top 100 Most Valuable Brands in the World". Huawei ranked 94, the first and only Chinese company to be selected. Huawei completed the construction of a comprehensive budget management system, and the seven-year integrated financial services (IFS) reform project was closed. In 2015, we set up an organizational structure based on three dimensions of customers, products and regions. Each corresponding organization jointly creates value for customers and is responsible for the effective growth of the company's financial performance, improvement of market competitiveness and customer satisfaction. Operator BG and enterprise BG are the management and support organizations of the company's solution marketing, sales and services for operators, customers, enterprises and industry customers, respectively. They provide innovative, differentiated and leading solutions according to the business characteristics and operating rules of different customers, and constantly improve the company's industry competitiveness and customer satisfaction; Consumer BG is the company's end-to-end business organization for end product users, responsible for business results, risks, market competitiveness and customer satisfaction. Products and solutions are the organization that the company provides ICT integration solutions for operators and enterprise/industry customers. It is responsible for product planning, development and delivery, and building product competitiveness, creating a better user experience, and supporting commercial success. Continue to optimize regional organizations, increase and speed up the authorization to front-line organizations, and gradually move the command power and on-site decision-making power forward to the representative office. While establishing closer ties and partnerships with customers and helping customers achieve commercial success, Huawei will further realize its own healthy, sustainable and effective growth. The Group's functional platform is a platform focusing on business support, service and supervision, providing timely, accurate and effective services to the front, and strengthening supervision while fully authorizing the front (see the figure below). In 2015, Interbrand released the ranking of "2015 Top 100 Most Valuable Brands in the World". Huawei ranked 88, the highest ranking Chinese company. In the Fortune Global 500 rankings, Huawei ranked 228th, up significantly from 285 last year. Huawei promotes among global employees TUP (Time based Unit Plan) incentive, promote the bonus mechanism of "obtaining and sharing", and increase the long-term incentive for key talents. In 2016, the "engineering inspection" department in the functional platform was cancelled and mainly merged into the "ethics compliance" department (as shown below). In 2017, Cloud BU, the cloud business department, was upgraded to a tier one department, gaining greater business autonomy. In 2018, as of the first half of 2018, Huawei's cloud revenue has increased by 700% year on year, and its partners have increased by 45%. It has developed 6000 cloud service partners, and 872 new applications have been launched in the cloud market. In 2019, Ren Zhengfei's speech at the Consumer BG "Legion Battle" Pledge Conference on March 29, 2019: This year's reform focuses on operator BG (CNBG) and consumer BG. CNBG reform is a strategic priority that we personally focus on. We focus on making the pipeline connection business a strategic highland in the world, so we authorize CBG to "fight in the army" and let you carry out independent reform. The Consumer Management Committee still has jurisdiction over the business system in terms of organizational structure design and salary system. Within the boundary of organization design and salary distribution, we will let you do experiments and give you five years to see if you can build an iron army. This period has entered the project centered operation phase. Through the above changes in the organizational structure year by year, Huawei focuses on the balance between centralization and decentralization, unifies the pace of company level strategy formulation and information release, and implements small tactics in a decentralized manner, operates independently, and eats separately; Define the budget and assessment mechanism centered on the project, conduct resource purchase and sale and resource evaluation to functional departments through the project, ensure that everyone enters the project, and achieve "marketization of internal resources"; The division of labor between the project and the functional departments should be well positioned. The functional departments should focus on technical planning, capacity building and qualification certification. The project organization should do a good job in operation management, business management and value distribution. The budget scheme is planned by each business unit under the region, customer and product according to the annual income that the market may realize. The Group only controls the annual gross profit rate, per capita gross profit or the level of return on investment, and adjusts it quarterly or semi annually according to the market changes. This kind of budget is granted and executed flexibly, which helps to dynamically match resources with business changes and effectively avoids waste of investment. Business development background: After more than 20 years of development, Huawei has also gradually reached the ceiling of the traditional telecom operator market. In order to maintain a sustained high growth, Huawei needs to explore new business areas, enter the enterprise and consumer markets, and adapt to the more complex and changing market competition environment. Huawei official website: //www.huawei.com/cn/ Evolution of Huawei's Organizational Structure in the Past 30 Years Development History of High Performance Teams under Huawei Matrix Organization Structure Huang Weiwei: Huawei's Understanding and Enlightenment of Organizational Change Evolution of Huawei's Organizational Structure: From "Customers and Strategy Decide the Organization" to "Business Decide the Organization" Why does Huawei use the responsibility center instead of the amoeba model? 》 Hong Tianfeng, former vice chairman of Huawei: How to overcome the "organizational black hole" of hilltops, corruption and laziness Deng Kangming, Former Chief Human Resources Officer of Ali: The core team is left, not selected
