Chinese telecoms company Huawei has successfully implemented steps to forge joint value into a competitive advantage, according to an article in European Business Review co-authored by David De Cremer, KPMG Professor in Management Studies at Cambridge Judge.
“All too often performance systems are focused on achieving results with not enough attention to the human aspects of the work that influence the effectiveness of the system itself,” the article says. As an employee-owned company that has invested in innovation and created the “freedom to excel,” Huawei has been able to address these issues effectively.
“Relying on the best insights on what motivates people and what the irrational biases may be underlying their pursuit of those desires will allow organisations to design systems that are not only more effective in getting the best out of people but also reduce costs on the long term significantly,” says the article, co-authored by David and Tian Tao, co-director of Ruihua Innovative Management Research Institute at Zehjiang University.
The European Business Review article follows the launch in London on 13 October of a new book about Huawei co-authored by David De Cremer and Tian Tao, entitled Huawei: Leadership, culture, and connectivity. Published by SAGE Publishing. 100,000 copies of the book were pre-sold.
Speaking at the book launch at the Royal Society, the co-authors spoke about how Huawei has experimented in order to motivate its 170,000 employees, and they outlined possible lessons for other companies around the world. The book is based on interviews with hundreds of Huawei executives.