But compared with some other companies, we are doing better in management.
However, we still have 20,000 more management personnel than Ericsson and $4 billion more annual management fees. Thus, we will keep optimizing the corporate structure and improving efficiency.
Every year Huawei spends more than $100 million inviting IBM's consultant team to help manage the company, why such a big investment?
You know what? A retired director of Toyota Motor Corp has worked at our company for 10 years, in charge of a senior management team.
A group of German engineers also spent more than a decade in Huawei to standardize and improve our production procedures.
Starting from producing products worth about 10,000 yuan, we moved up the value chain to make products worth tens of billions of dollars to hundreds of billions of dollars. With their help, Huawei is making steady progress, so every year we are spending more than $100 million on consulting fees.
When we started venturing into overseas markets, we knew nothing and had no idea of what project delivery was. We asked engineering consultants all around the world to help us. The first step was to study conscientiously so as to graduate toward a standardized management structure. Now we are making one step further, aiming to make things simpler and better by ourselves.
Does Huawei have any weak points?
Yes, we do. We almost collapsed 3 years ago. Because employees were rich and averse to take hardships. We were unable to send employees overseas. Everybody wanted to purchase a house in Beijing, and to be with their family.
Everyone wanted to stay in a good place. We asked ourselves: "Why not enhance front line employees' welfare?" We made sure that standards for our "generals" in Africa were more favorable than for employees in Beijing and Shanghai. In Africa, young employees could soon become "generals". When they were qualified, they could take salaries commensurate with a "general". Now our African employees do not even want to come back.
Huawei's growth coincides with a boom in China's real estate market. Have you ever considered branching into that sector?
Never. We did not buy any stocks or engage in any real estate business.
Have you ever been tempted?
No. Once there was a stock trading place downstairs. Huge crowds of people bought stocks there. But upstairs, our employees were as calm as water, working on our products. We focused on doing one thing, leading the team in a charge up into the telecom sector.
Why does Huawei not consider a listing on the stock market?
We do not care for earnings and profits that much. We fight for our ideas and goals. Sticking to our dream is very difficult, and there are a lot of sacrifices.
If Huawei is listed, shareholders may pressure us to branch into more sectors so they can put into their pockets several more billion yuan.
Then we would be unable to blaze a new trail into 'No Man's Land'.
You are optimistic about Huawei's future. But you also worry that Huawei may be the next one to collapse. Why?
Two reasons. Firstly, our employees can become slack. Currently we are expanding very fast but will we become lazy after such a rapid growth? We need to pay close attention to our weakness.
Secondly, China needs to beef up efforts to protect intellectual property. Physical properties are already protected by laws. Intellectual properties deserve at least equal protection. Only when a country protects intellectual property, can we have innovation.
What do you think about innovation in China?
The most important point in the high-tech sector is to settle down to our work. It is impossible to build an industry if there is no innovation in theoretical research. When it comes to R&D, talent is more important than equipment.
