 |
| Black swans are the ultimate outliers. They have the ability to surprise and disrupt the status quo. |
I was recently in Shenzhen and was permitted access to Huawei’s campus. I know I didn’t see it all, but I saw enough to get me thinking. I had heard lots of stories, but reality was even more interesting. Seeing and talking to the people gave me new insights. I’d heard that in China, tech employees worked 10 hours straight a day. Not really. The offices, campus and the university (yes, a University where all employees study) are perhaps even more modern and inviting than many I’ve seen in the United States.
It was hard to take in everything, but I was fascinated by the fact that Huawei founder Ren Zhengfei’s office overlooks a most exquisite man-made lake. This lake is open for anyone to walk and enjoy. Most interesting was the fact that black swans were imported to live in the lake. It wasn’t until I had returned home that I realized their significance. Black Swans!
Upon reflection, China’s Huawei is the ultimate black swan. Rare and unexpected, its employee owned (privately held) status allows it to disrupt common business models and even technology. There are no outside shareholders to answer to and they foster the philosophy of “we’re all in this together” as well as collectivism. Huawei looks at the world considerably different than the majority of the Interbrand 100 companies. (In 2017, they were number seventy on the list and are the youngest technology manufacturer on the list.)
Founded in 1987, they’ve risen from obscurity to one of the top growing brands in the world. According to the 2018 China RepTrak® study, conducted by the Reputation Institute, Huawei has been ranked as the most reputable Chinese corporate brand in their home country. In the study, “How to Win on Reputation in China: Understanding Chinese vs. Multi National Companies,” they out-performed Apple (a one time a classic black swan) in terms of transparency and open communication “Compared to Apple, Huawei is 2x more genuine”. They are clearly the fastest rising 31 year old startup.
Black swans catch the competition by surprise. Huawei began their journey as a small telecommunications supplier, but quickly grew from home spun to acquiring major contracts. The black swan strategy is clear in their progress. Rather than going after telecoms in economically advanced major cities, Founder Ren chose to go after rural areas where competition was small and need was great. At a time when The Art of War was a popular tactical and strategic philosophy, he chose to "surround the city with the countryside." Huawei would cover the provinces with employees to support and service their equipment, signifying their devotion to a customer-centric philosophy. After being hugely successful in the countryside, they soon conquered the metropolitan cities.
