Huawei 2012 Annual Report Download - page 2

A Message from the CEO
Might from a Small Hole, Benefits from One Source
on one goal and remained dedicated. We have never
wavered. Now we have 150,000 employees. Just as
water jetting from one hole, our efforts have achieved
something amazing. This is “might from a small hole”.
We focus on our strategy to sharpen our global edge in a
particular field. A sharp competitive edge proves that we
do not need to have background to establish ourselves
among the global leaders.
In addition, we adhere to the principle of “obtaining
benefits from one source”. Our EMT declaration has made
it clear that all income of our most senior executives and
key employees is confined to such items as salaries,
incentives, and bonuses offered by Huawei. No income
from outside Huawei is allowed. We have established
organizations and systems which prevent anyone at
Huawei, from the most senior officers down to the
execution level, from gaining benefits by devouring
collective interests through affiliate transactions. Over
the past 20 years, our benefits have basically been
derived from one source, thus creating a climate of
united dedication among our 150,000 employees. We
are aware that there are still many areas for improvement
in our management; we are endeavoring to improve
them. I believe our human resource policies will become
more and more scientific if we adhere to the principle of
“obtaining benefits from one source”. Consequently, our
employees will be more and more passionate about their
work. Then there will be nothing we cannot conquer.
If we can adhere to the principles of “gaining might from
a small hole and obtaining benefits from one source”,
Huawei will not be the next to fall. However, if we
diverge from these principles, Huawei will probably be
the next to fall. History tells us that if large companies
miss a turning point and start to decline, few of them
can reverse the situation by restructuring themselves.
Naturally, we would hate to fall; so we must restrain
ourselves, observe rules, and stay united and dedicated.
With lofty aspirations and esprit de corps, we are striding
across the Pacific Ocean.
Ren Zhengfei
Chief Executive Officer
The New Year Message, “Focus on Strategy, Simplify
Management, Increase Efficiency”, from our Rotating
and Acting CEO, clearly presents our objectives for the
new year. We must focus on our strengths, fully leverage
the capabilities of our organization, tap into the self-
motivation and creativity of our staff members along the
fairway, and produce greater results.
As we know, water and air are among the most gentle
stuff in the world. That’s why water and breeze often
carry praise. We also know that this same gentle air can
send rockets into space. The high-speed exhaust that
results from the burning of rocket fuel can generate
tremendous thrust through a small hole in a device called
a de Laval nozzle; the air expanding out of the nozzle can
propel mankind into space. Water is as soft as a beauty,
yet it can cut through steel plates once highly pressurized
and forced through a small hole. This is “might from
a small hole”. Huawei is an ordinary company and
our employees are ordinary people. In the past, our
appraisal system focused on commonalities rather than
individualities, and therefore failed to appropriately
widen the gap between employees with respect to
compensation and benefits. This practice frustrated some
employees who had striven to create value. As a result,
many excellent employees left Huawei. We ordinary ones
stayed behind. Over 25 years, we have focused only