1. The macro business model of the company's development has been established.

The company's macro business model is: the road sign of product development is customer demand orientation, and the goal of enterprise management is process organization construction.

Why can't it be technology-oriented? Today, everyone has been scarred by technological innovation. Why? Due to the invention of the Internet and chips, the equivalent brain capacity of human beings has increased by thousands. The United States has only 200 million people, but it has 400 billion brains. This kind of brain cooperation will produce new technologies, new knowledge and new culture, which will greatly exceed the real needs of human beings. The country's demand for people is progressing with the physical and psychological progress, while the physical and psychological progress of people is slow. So in the past, blind worship of technology led to the complete bankruptcy of many companies. At which stage is technology most effective and useful? We just want to see clearly the needs of our customers, and we will do whatever they need. Products that can be sold, or a little market-leading, are the real technical needs of customers. Too advanced technology is of course the wealth of mankind, but it must be at the expense of itself. Japan was very successful in the 1970s and 1980s. Japan's electronics industry revolution almost bought the United States, and the United States almost lost to Japan on this issue. However, due to the strong burden of its success, this country is a capitalist country. Capitalists have invested hundreds of billions of technical facilities all over the country, and analog electronics have gained such a market scale. Why should we abandon analog electronics and go digital? Therefore, Japan has made slow progress in digitalization. After the slowdown, the United States quickly surpassed Japan in the field of digital electronics. After Japan made its own mistakes in development, it made bigger mistakes. It wants to cross the times and make more advanced products, such as the fifth generation computer. In the 1990s, it made a 400G ATM switch. When Japan's 400G ATM switch was opened in Hong Kong, our company's ATM project had not started in essence, and our understanding of this asynchronous transfer mode was not very clear. But what's the use of 400G ATM in Hong Kong? It is three steps ahead of customer demand, so it has become a martyr. Advanced products are dead. It has no filter period products. The products in the filtering period are products that meet the needs of customers. Not really. We filled their gap, so they gave the whole China market to Huawei. We grew up under their wrong care and upbringing. Similarly, some world-renowned companies have also gone this way. For example, many optical fiber communication technologies are world-leading and have not won the market for them. Therefore, not all leaders are winners in the end, especially technical leaders. Technology leads demand faster, not slower. Therefore, it is proved more and more quickly that future knowledge is less and less "valuable" and technology is not "valuable". When knowledge and technology have no value, I think our society will be better. People's demand for knowledge, culture and technology will be greater, and there will be fewer ignorant people. Because technical barriers are difficult to establish, there can be no era of profiteering. After expecting to get rich overnight, people will return to rationality and honesty, and society will become more lovely. In the past, the company was technology-oriented for a long time. When we make a product, we tell our customers to use it as much as possible, but how many times have we failed? Now we must make it clear that customer demand is the development direction of our products, and what is the purpose of our enterprise development, that is, to serve customers. Why is customer service the best only when customers give us money? Therefore, the technical orientation of the product is to fully meet the needs of customers.

Why enterprise management goal is the process of organizational construction. Today, everyone's management skills training, such as IPD, ISC, CMM, ... and qualification and performance evaluation system are methodologies. These methodologies seem to be inanimate things. His lifeless body manager will leave and die, and the management system will be passed down from generation to generation; Its existence lies in that with the end of the life of our generation of strugglers, the management system will become more and more mature from generation to generation, because each generation of managers has contributed to our system. So what is the wealth we will leave to mankind in the future? As we said before, Huawei will have nothing but management. Why, all products will be out of date and will be eliminated; Managers themselves will be updated, and corporate culture and management system will be passed down from generation to generation. Therefore, we should attach importance to the construction of enterprises in this respect and make our company stronger and stronger in the struggle. Just now, someone asked, what's the use of not knowing IPD and ISC? This is a question of understanding. What's the use of this thing Why should I seriously promote IPD and ISC? It is to get rid of the dependence of enterprises on individuals, let the things to be done, from input to output, be directly connected end-to-end, control concisely and effectively, reduce levels as much as possible, and achieve the lowest cost and the highest efficiency. It's that simple. It is necessary to turn standardized management into railway turnouts and standardize and institutionalize post operations. Just like a dragon, no matter how it dances, the relationship between all joints in its body drive will not change. Faucet, like marketing, constantly pursues the needs of customers, and its body swings with the faucet, because all the relationships in its body remain unchanged, making management simple and low-cost.

The life of enterprises is not the life of entrepreneurs. The replacement of entrepreneurs has been realized in the west and does not affect the development of enterprises. China once the entrepreneur left, with the end of his life, the life of the enterprise will be over. In other words, the life of an enterprise in China is the life of an entrepreneur. After the death of the entrepreneur, the enterprise will not exist, because he is the soul of the enterprise. If the soul of an enterprise is an entrepreneur, it is the most miserable, hopeless and unreliable enterprise. If I were a bank, I would never give him a loan. Why? Maybe he will fall down when he comes back by plane tomorrow. How do you know he won't fall? So it must be clear that the life of an enterprise is not the life of an entrepreneur. Why is the life of an enterprise not the life of an entrepreneur? That is to establish a series of customer-centered and survival-oriented management systems, rather than relying on the individual decision-making system of entrepreneurs. When this management system is standardized, the soul of an enterprise is no longer an entrepreneur, but a customer demand. The customer is always there, and so is this soul. Ten years ago, I wrote an article, "How long can Huawei's red flag last? I quoted a poem from Confucius, "The son said Sichuan, and the deceased was like a husband." I'll talk about management, just like the Yangtze River. We build a dam to let water flow freely in it, whether it is at night or during the day. When you sleep at night, the water still flows automatically. Water flows into the sea and evaporates into the air. Snow falls in the Himalayas and turns into water flowing to the Yangtze River, which flows to the sea and the seawater evaporates. After this cycle is repeated too much, it forgets a person who is also called "the deceased Rufu" on the shore, a "saint", and it forgets this "saint" and just flows by itself. Who is this "saint"? Is an entrepreneur. When entrepreneurs can't play much role in this enterprise, it is the time when this enterprise has the most vitality. Therefore, entrepreneurs still have high prestige. When everyone respects them, it is the most hopeless and dangerous time for enterprises. So I think Huawei's macro business model is that the signpost of product development is customer demand, and the goal of enterprise management is process organization construction. At the same time, keep in mind that customers are always the home of enterprises.

Second, the Wechat business model of company development is an effective and harmonious methodology, which is used to complete the end-to-end, high-quality, fast and effective management of all elements of enterprise management.

Why is it just a part of methodology, not the more the better? Too many methods will cancel each other out and reduce efficiency. Therefore, the more books you read, the more stupid you become. If you don't study and use, reading more books is not necessarily a good thing.

IPD and ISC are the main lines of enterprise management we have established. At the same time, other methodologies help it exist. Why do we always attach importance to management? Because the wealth left to us is management! Without management, what this enterprise can leave us is a lot of debts. We spent a lot of money on management, and no one can take this management away. The outside world thinks that the cadres and individuals who go out of our company are not very distinctive. In fact, their role in the company depends on our platform. He used to do well in a big company. If a small company can't do well, he has left this big platform and there is no such condition. Therefore, we believe that in the process of enterprise reform, at least in the era of bubble economy, the management reform we have improved, perfected and created with accumulated funds is close to success, and we have got rid of this dilemma and this bottleneck, which makes it possible for us to succeed rather than fail. So I think we should not only learn this lifeless management system by ourselves, but also integrate it, popularize it and change our work style. An inanimate management system needs living employees to implement and improve it. Many people here used to be heroes, so it may be wrong to sing exciting "True Heroes" as soon as they sing. You should see that the great leaders in the world are all ordinary people, all ordinary people. Teacher Chen told the story of Marshall and Barton when she gave you training. I told Mr. Chen at that time, don't compare Barton with Huawei. Huawei's task is to build, Barton's task is to destroy. It is not suitable to combine tactics and military strategists in enterprise management. Later, Mr. Chen learned that Marshall was a great general, a great general during World War II. Marshall Plan balanced the pattern, controlled the world, and disintegrated the Soviet Union 50 years later. Of course, I don't look at this problem from the viewpoint of class, but from the viewpoint of methodology. In other words, we are concerned about the reality, the future and the environment, not our own strength. This is the leadership method I pursue. In Huawei, I am the most idle one, regardless of specific matters, the least interference, the least power grab. In fact, I am creating an environment for everyone's development. Every leader should also learn how to lead, create an environment for others to struggle, and be sure to see that success from subordinates to subordinates is your greatest success.

We must adhere to the process organization construction of IPD and ISC, make good use of it, determine responsibilities, rights and role design according to the process, and gradually dilute the authority of functional organizations. This is what we call the Wechat business model.

Third, since the business model has been determined and the process construction has been basically completed, we must make great efforts to improve management efficiency.

Now, every management line is beginning to become clear. In the past, when our management line was unclear, we did not ask the management to grasp it too tightly. If we grasp it too tightly, there may be bottlenecks that should not appear, and then the whole company will shrink, which will cause chaos. Now our management line has begun to be clear, and we should pursue the efficiency of the management line. Pursuing the efficiency of management lines may be to unswervingly implement the quota, establish an effective assessment model, and strengthen budget management and performance assessment management. In the next 2-3 years, the main departments will change from the current cost center to the profit center. It is necessary to adhere to the responsibility-result-oriented assessment mechanism, and cadres at all levels should implement a tenure system and a target responsibility system. For those who are not in place, some cadres should be dismissed and demoted, and the accountability system for responsible cadres at all levels should be implemented. Hong Kong is a democratic government with an accountability system. Our company should also be accountable to the cadres who can't finish the task. Excellent employees can't pass the exam. Excellent employees will be temporarily frustrated by subjective and objective factors, but they will get up again after hard work. At the same time, we must adhere to the employment contract system. Some employees are no longer suitable for these positions, so we should have a metabolism. We should also find outstanding cadres from the behavior assessment of some key events of employees who have successfully completed their tasks and give them opportunities for training. Our evaluation culture should move towards a high performance culture.

We must reasonably reduce the management level, expand the management control of grass-roots teams and reduce the number of teams. Minimize the number of administrative cadres and reduce the proportion of unproductive labor. Our way out is to increase sales and reduce costs. For indirect sales departments, their administrative cadres should shoulder the task of improving work efficiency and reducing management costs. Some employees who can't contribute should be properly fired. To implement structural adjustment, structural layoffs are inevitable, and we should care about the psychological feelings of laid-off workers. I think we must maintain internal and external metabolism, continue to implement the principle of survival of the fittest, and must lay off those employees who are not suitable for the company. This is the responsibility of our manager. Therefore, in the process of selecting middle-and high-level cadres, we should put the personal morality of cadres above everything else: observing discipline, having noble moral sentiments, being loyal to the company and being loyal to the collective interests are the important basis for our selection, and we should not be meritocratic. In the future, in the qualification examination, it is necessary to add a self-evaluation of cadres' ideological and moral quality and organize comments. Ladies and gentlemen, don't promote a cadre by written examination. I think it is also very important to evaluate the process of key event behavior, but it is not a key event behavior that determines a person's life. A person's assessment should be multiple and multi-ring. Don't put the critical event behavior process evaluation and responsibility result orientation in opposition. People with bad results have no key events. We should attract new employees from outside to maintain our metabolism, and we should accept gamma globulin to join our company, so that our bodies will be full of vitality again.

We require cadres to take work as the center, and hope that employees can combine work and rest, work effectively and regularly, and distinguish certain freedoms under the framework of law and discipline. Our strict requirements for cadres should not be imposed on employees. And don't go easy on cadres. "If you want to be sent to Sri Lanka, you must first try your best to work hard, hungry and empty ..." Without these efforts, we can't survive this winter. The real winter has not yet arrived, and the information industry will one day become a traditional industry. We are in a period of change. In the process of information industry gradually moving towards traditional industries, we should constantly look for new cheese. Any change will touch everyone, and cadres at all levels should understand and support the company's changes. "Complaining is too strong to prevent heartburn, so pay attention to the scenery." Our middle and senior cadres should suffer hardships and be wronged. The company is big and the distance is far. Due to poor communication, information asymmetry or distortion will occur. Our supervisors at all levels are impatient because of the pressure of work, and will have conflicts with neighbors or subordinates. Problems will inevitably arise in the transformation and development of the company's business. It is the responsibility of our cadres to face and solve problems together with a peaceful mind. At work, we should not only pay attention to efficiency and adhere to principles, but also appreciate and support each other and learn to be considerate and grateful. Together to create a harmonious and effective management team, we can overcome all difficulties.

On the side of the sunken ship, Qian Fan passed by, in front of the sick tree, Wan Muchun. In the tide of the world, as long as we pass the crisis and pressure to everyone, every process and every corner, improve efficiency and reduce costs, we will have the hope of survival.