1, advantages
Avoid excessive concentration of power: Huawei is a family business, and its founder Ren has always served as the chairman. For a long time, Huawei's decisions and strategies have been decided by him alone. This centralized power management mode has certain risks. The rotating chairman system can avoid excessive concentration of power and let different people serve as the chairman, thus realizing the diversification of corporate governance.
Cultivate a new generation of leaders: the rotating chairman system can let different people serve as the chairman, let more people get in touch with the top management of the company, cultivate a new generation of leaders, and lay a solid foundation for the long-term development of the company.
Improve the transparency of the company: the rotating chairman system can make the management of the company more transparent, let employees and shareholders know more about the company's decisions and strategies, and thus improve the transparency and credibility of the company.
2. Deficiencies
Difficult to implement: the implementation of Huawei's rotating chairman system needs a gradual process, which may not be suitable for all companies, let alone ordinary small and medium-sized enterprises.
Significance of Huawei's rotating chairman system
1, this system is to some extent a check and balance of the company's power, and the rotating chairman will not have much power on the cadre issue, thus reducing personnel corruption.
2. This system reduces the risk that the enterprise will suffer heavy losses because of the problems of someone (mainly senior leaders), and the fate of the company will not depend on someone.
3. The following employees will have a sense of security, and they will not feel that their fate is in the hands of someone, and there will be no very important employees who will cause great losses to the enterprise because of the departure of an executive.
4. It will not take away a group of backbones because of the resignation of the chairman, thus damaging the enterprise.
During the rotation, every chairman will try his best to pull the company forward. If he deviates from the direction, the next chairman will correct it in time.
The rotating chairman of Huawei is composed of a small team. Because of "harmony but difference", enterprises can be manipulated to constantly adapt to environmental changes, and decisions are made collectively, which also avoids the rigidity of the company caused by personal paranoia.
7. They left their posts after six months of rotation and did not leave the core layer. They are still at the core of decision-making, and they have not discharged their responsibilities and missions, so they are fully prepared for the next rotation.