Page 20 - MS Perspectives 2014 YIR

The Nature of Culture at Huawei

What is it about Huawei's culture that give it is competitive advantage and has
facilitated its growth and competitive success? Huawei's core values are shown
graphically in Exhibit 1. They are explained in Exhibit 2. On their face these values
seem relatively common to many companies; but it is what is below the surface and
not discussed that make them very powerful. These things, by their very nature,
are the product of life experience, especially of the founder. If life has been
positive, there tend to be positive. If life is a struggle, these values reflect that
struggle.

The sub-surface values at Huawei are a classic illustration of this concept.

The words that characterize this level of values at Huawei include:

 Survival
 Fighter
 Hard work
 Overcoming adversity
 Pride in achievement
 Self-reliance

To understand Huawei, it needs to be viewed as a company of "fighters for
survival." This is based on the view that all life is a struggle for survival, and only
those who are totally committed to survival will actually survive. The weak will
perish. Stated differently, the culture is based on a neo-classic view of what was
once termed "Social Darwinism," a social version of "the law of the jungle." In brief,
it is a belief in the survival of the fittest.

Huawei has also been described as a "wolf culture." This is intended as a
compliment. To understand what this means we need to examine the nature of
wolves. Wolves are highly intelligent, surprisingly disciplined, strategic animals,
who work together in a hierarchical social system for the good of the "pack" with
the ultimate goal of survival. As one colleague from Kazakhstan, who has lived
among wolves and hunted them, has described: "A chayote will see a human baby
and being hungry-- grab it as a meal. A wolf will somehow understand that the act
of doing that will result in being hunted by humans with guns. The wolf is able to
restrain its short term urge to satisfy its hunger because of an understanding of
longer term consequences. The chayote is an opportunist who lives in the
moment." This characterization implies considerable respect for the wolf. Similarly,
to characterize Huawei as a "wolf culture" is a term of respect.

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