Free Essay

Family Culture and Strongman Control in Huawei

In: Business and Management

Submitted By fxxuzhu
Words 1693
Pages 7
Family culture and strongman Control in Huawei
Being ranked No. 1 of “most influential Chinese business leaders” by Fortune China in three consecutive years from 2011 to 2013, Zhengfei Ren, the founder, controlling shareholder and CEO of Huawei is almost regarded as hero of the company.1 He has been the man who is influencing and inspiring the whole company since it was founded in 1987. Now, Huawei is a global leading company in ICT (information and communication technology) solution with revenue in 2012 more than 35 billion dollars.2 The magic rise of Huawei is largely attributed to the family based strongman culture with strong executive force from the top and ability to make long-term planning, but, as far as I can see, will hardly ensure future success.

The inner network of relations called “organizational enthusiasm” plays an important role in Huawei’s internal management. Ren, is the one who “set fire” in the company. After serving in the PLA (Chinese Liberation Army) for several years, Ren created the Huawei Empire almost from nothing in his forties. He is described as extremely optimistic and strong. 3 As a small team with few resources, Ren’s enthusiasm and strong entrepreneurship is what kept people around him, working with him to their best. Rather than relationship between boss and staff, this, original from Chinese guanxi culture, this organizational enthusiasm is more like personal loyalty, trust and affection. Stronger than pure staff loyalty, this relationship like brotherhood and sisterhood pushed Huawei harder during its early days. As Huawei expanded rapidly, the enthusiasm was spread in a larger scale to different levels of the employees by passionate speech and slogan delivered by Ren, and also by the top to bottom passing. Ren is conveying his personal philosophy to everyone and make is become the philosophy of Huawei so that after a while, most of the employees just believe and trust whatever Ren said, willing to follow him from inside. In this way, in addition to the CEO, Ren is almost the “Godfather” of Huawei. Other than doing what they are paid, the strong relationship of network among staff and the enthusiasm for the organization and the mission make employees willing to do more.

Huawei implemented the management method of paternalism, which is deeply rooted in Chinese culture. Ren serves as the most respectful seniority in Huawei. As I analyzed above, the organizational enthusiasm contribute to the guanxi like brotherhood and sisterhood in a family. Then in a traditional Chinese family, the hierarchy and respect for seniority is the important thing to manage the big family and keep everyone together. This can also be interpreted as “Yes sir culture” or “Bureaucratic culture”. In big family, the seniority is the absolute the leader and decision maker. Young people are not allowed to say no the show their special ideas. In Huawei, the superior serve as the elder in a family, leading, helping and controlling the subordinates and what the subordinates should do is to finish his part perfectly and make his superior satisfied. The best thing for this family like network is that the organization is very steady and efficient. But, Huawei is also criticized for “no respect for characteristics”4 However, unlike their fathers and mothers, the young generation in China tend to feel depressed in the paternalistic environment so that it’s difficult for Huawei to take advantage of this internal management methods when there are more and more young employees in the company with different characteristics.

With enthusiasm influence on one hand and authority management on the other hand, Ren is building a company like a traditional big family. He tries to convince all the employees that they share the common interests as well as loss. Honesty, hardworking, self-criticism and team work are considered as the core value of Huawei. Teamwork is expressed as “Cheering with wine when succeeding while Helping each other when failing”, which integrates guanxi into teamwork, emphasizing the private relationship between colleagues in addition to purely cooperative relationship in working.5. Every employee is encouraged to work as much as they can and take unlimited responsibility of their job. In a traditional family, people are encouraged to sacrifice themselves to contribute to the common interests of the big family. Ren gives his employees a good reason to work extremely hard and put the company above everything else. Huawei is not only the workplace for the employees, but also the reflection of their philosophy and the realization of their personal value. As a result, there is no doubt that Huawei is famous for its hardworking spirit and developing speed.

In response to the “family” perspective, Ren designed a very special shareholders system, which enables everyone to get bonus but make the controlling even centralized. Up to now, Huawei is a private owned company. The only phantom stockholders are union and Ren. The union hold the more than 98% of all shares on behalf the employees, entitling rights only to get bonus but no rights of trading and the employees have to returned back all shares they own when retirement. The rest of the shares, less than 2% are owned by Ren himself. This results in more than 600,000 shareholders of Huawei, 6 which also means that there is no big shareholder in addition to Ren, the management team has no need to be responsible for share holders other than Ren. However For the staff, they are not only the employees but also the “owners” of the company. They know that their performance and the profitability of the company are directly related to their pocket. Now it’s more like a really family, people share similar value, strong relationship with each other, hierarchy among different levels and even common interests linked by the phantom stockholder system.

In the past, this extremely centralized rights of decision making, enables Huawei to make long-term and strategic plan. With its stockholder system, Ren is the controlling shareholder and the CEO ever since it was founded. So basically, Ren can put whatever he wants into force. Huawei’s success is largely because of this determined “strongman”. There is advantage of this strongman control compared to diverse shareholders with CEO satisfying their interests. Ren just focuses on what is beneficial for the company in long-term. Thanks to the centralization and simplification of decision making process, Huawei is much faster in responding to the market and taking new strategy than its competitors. We must admit Ren is more than a superman, taking so much responsibility and regarding the company as his life. He always expressed crisis awareness in which he shows his worry about Huawei and uncertainty of business environment. 7As the overwhelming controller of the company, nobody understand the company more than him. His crisis awareness is becoming the worry of all employees in Huawei and the only way to get rid of this, according to his suggestion, is to improve personal work as much as possible.

Because of the hero leader and devoted employees, Huawei is able to take advantage of IT booming and political policy to expand overseas rapidly. In recent years, there is increasing investment overseas by Chinese companies, at first mainly in Africa, now also in Europe and North American. 8 Huawei plays a leading role in overseas development by keeping close with Chinese diplomatic policies, the strategy made by Ren in 1990s. The large share of market overseas turns to be an important reason why Huawei expands so fast. But nowadays, as a leading power in ITC worldwide, following politicians will not ensure future revenue. Huawei is challenged with establishing an open and transparent managerial system to survive in foreign markets.

Like every other company with relatively short history and spirits of entrepreneurship, Huawei is faced up with changing managerial structure to have sustainable development depend from Ren in the future. But this is extremely hard for Huawei given its shareholder structure explained above. Recently the “rotating CEO” system is launched by Ren, aiming to deconcentrating the controlling rights, which I highly doubt.9 With Ren being the forever CEO above the CEO team, the CEO team is nothing other than his followers and executors of his will. What’s more, the fact that CEO team members are determined by Ren revealed the lack of non-transparency of promotion.

Though guanxi network pushed it to perform unbelievable well, the complication and non-transparency raised by this sophisticated guanxi is also a big obstacle for future development. In 2011, the rumor about president Yafang Sun’s leaving, denied by Huawei later, gave us a glimpse of the non-transparent conflicts of interests in the top level.10 Ren is nearly 70 years old in a bad health condition. It ‘s forecast that he will retire soon and leave the CEO position to his daughter Wanqiu Meng, current CFO of Huawei. 11 The risk to lose trust and devotion due to non-transparent system and no specific shareholders, along with family culture difficult to be passed over in young generation, makes Huawei’s future even more unpredictable.

Reference: 1 The ranking of “most influential Chinese business leaders”, Fortune China, March 29, 2013
2 Huawei Annual Report 2012, Huawei investment holding Co. Lt d. , 2012 3 Tao Tian, “Ren Zhengfei: an irredeemable optimist” , Entrepreneur, Phrase three of 2013
4 Shuang Zheng, “Simple analysis of top ten inner consuming factors in Huawei: Lockout Looming and bureaucracy”, China Business News, March 22, 2011
5 Huawei Annual Report 2011, Huawei investment holding Co. Lt d. , 2011
6 Yongqing Pei, “Reviewing Huawei in both internal and external difficulties: dancing on 11 knives”, Tai Media, April 2013
7 Zhengfei Ren, “The winter of Huawei”, Zhengfei Ren’s speech inside the Huawei Company, 2000 8 Toh Han Shih, “Challenges as China's firms eye investments offshore; Chinese companies are cashed up and looking for prospects overseas but cultures can pose a problem”, South China Morning Post, June 26, 2012 9 Zhengfei Ren, “The River Flows Eastwards”, Forbes China, December 27, 2011 10 Page of Wanzhou Meng, Baidu Pedia (Baidu Baike), 2013 11 “Investigation of Sun Yafang’s leaving: rumors from two employees from Huawei”, Jinghua Times, August 1 2011…...

Similar Documents

Premium Essay

Huawei

...Introduction Huawei, an enterprise which works on providing communication network equipment and service, has only taken 14 years to establish its leading position in the international communication industry. By 2010, its worldwide sales reach 34 billion dollars. Over 70% of the sales, which is about 24 billion dollars has been gained from the international market. It hopes to gets its way up to the top 300. Huawei's mainstream product: broadband and optical-fiber network product cover the biggest share in the world-wide market, the sale of mobile product list on the No 2 and data communication also intrudes into the top 3. This overseas sales growth not only appears in the developing countries, but more in developed countries in Europe and America. The sales volume in European market was up to 3.4 billion dollars in 2010, which was 17% higher than that of 2009. The high-tech product, such as mobile 3G has made its way into France, Germany, Span, Italy and Norway etc. It holds over 30% of the newly increased market share.4G products has also been developed and introduced to many international operators. Huawei (HW for short) has been intruding into the so-called impenetrable European telecommunication market with unthinkable power. There are lots of top international operators in Europe: German Telecommunication DT (TOP3), Spanish telecommunication Telefonica (TOP5), Vodafone OP6, French Telecommunication (TOP8, Italian ......

Words: 4748 - Pages: 19

Free Essay

Family Culture and Traditions

...FAMILY CULTURE AND TRADITIONS Name: Institutions: Professor: Date of submission: In our family, there are several cultures and traditions that play a very important role in defining our family values and cultures. These traditions and cultures have been passed to our parents from our grandparents. The two most vivid cultural patterns that are present in our family have been inherited by our parents from the blending of the culture from my maternal grandparents and my fraternal grandparents. The cultural patterns Every Sunday, our father always prepares supper for the family and he makes sure that we eat together as one family. This tradition has been there in our family for a long period and helps us to bond together as a family unit. Every night on the eve of my birthday or that of my siblings, our parents usually sneaks into our bed room and fills it with balloons which are stuffed with money and toys. My father usually writes several bunches of poems and leaves the written poems on our table. When we wake up in the morning, our mother usually prepares for us a birthday morning cake which we enjoy together as a family as we read the bunch of poems. Different roles in upholding the traditions During our Sunday’s family dinner/supper, my parents dwells on teaching us on the way forward in regards to behaviour and especially the use of courteous words such as ‘please’ and ‘thank you’. They......

Words: 1031 - Pages: 5

Premium Essay

Strategy Analysis of Huawei Technologies Bangladesh Ltd

...STRATEGY ANALYSIS Of HUAWEI TECHNOLOGIES BANGLADESH LTD. Prepared for Dr. A. K. M. Saiful Majid Professor Institute of Business Administration University of Dhaka Prepared by Md. Ashraful Huq Roll No: ZR1301004, Batch: 15th Executive MBA Program Institute of Business Administration (IBA) University of Dhaka LETTER OF TRANSMITTAL June 14, 2014 Dr. A.K.M Saiful Majid Professor Institute of Business Administration University of Dhaka Subject: Letter of Transmittal Dear Sir, I am glad to submit “Strategy Analysis for Huawei Technologies Bangladesh Ltd.” as a requirement for the completion of “Strategic Management” course. This term paper been prepared on the basis of the theoretical models, approaches and analytical tools taught in the course. The report figures out how Huawei Technologies Bangladesh fits into these various models and approaches and how different factors influence it in particular, internally and externally. Availability and confidentiality of data was a major challenge while preparing the report. My sincere gratitude go to Md. Nafiz Mahmood, RF planning team leader and Shahriar Bin Mohsin, Head of Network Engineering for extending their courtesy and cooperation with appropriate data. I sincerely thank you Sir for allowing me to highlight the key findings in this report and hope that it will fulfill the purpose. It will be extremely kind of yours to accept my analysis. Sincerely yours Md. Ashraful......

Words: 15182 - Pages: 61

Free Essay

Huawei

...华为技术有限公司编辑华为一般指华为技术有限公司 华为技术有限公司是一家生产销售通信设备的民营通信科技公司,总部位于中国广东省深圳市龙岗区坂田华为基地。华为的产品主要涉及通信网络中的交换网络、传输网络、无线及有线固定接入网络和数据通信网络及无线终端产品,为世界各地通信运营商及专业网络拥有者提供硬件设备、软件、服务和解决方案。华为于1987年在中国深圳正式注册成立。 2007年合同销售额160亿美元,其中海外销售额115亿美元,并且是当年中国国内电子行业营利和纳税第一。截至到2008年底,华为在国际市场上覆盖100多个国家和地区,全球排名前50名的电信运营商中,已有45家使用华为的产品和服务。 华为的产品和解决方案已经应用于全球170多个国家,服务全球运营商50强中的45家及全球1/3的人口。 2013年《财富》世界500强中华为排行全球第315位,与上年相比上升三十八位。 2014年《财富》世界500强中华为排行全球第285位,与上年相比上升三十位。 2014年上半年度经营业绩,数据显示,今年上半年,华为实现销售收入1358亿元人民币,同比增长19%;营业利润率18.3%。[1]  以“服务创造价值·合作共赢未来”为主题的2014华为中国企业业务服务合作伙伴大会于10月17日在苏州正式拉开帷幕。[2]  2014年10月9日,Interbrand在纽约发布的“最佳全球品牌”排行榜中,华为以排名94的成绩出现在榜单之中,这也是中国大陆首个进入Interbrand top100榜单的企业公司。[3]  公司名称 华为技术有限公司 外文名称 HUAWEI 总部地点 中国深圳市龙岗区坂田华为基地 成立时间 1987年(丁卯年) 经营范围 无线电,微电子,通讯,路由,交换等 公司性质 民营企业 公司口号 丰富人们的沟通与生活 年营业额 385亿美元(2013年) 员工数 150000人(2013年) 总    裁 任正非 董事长 孙亚芳 宣传语 华为,不仅仅是世界500强 所获荣誉 世界500强(2014年第285位) 网    络 2G、3G、4G、5G 合作运营商 中国移动、中国联通、中国电信等 著名产品 智能手机 终端路由器......

Words: 1528 - Pages: 7

Premium Essay

Family Culture

...Family is the first school where children receive their basic values of life. They learn good behaviors from family. The values which are learnt from family become their guiding force and create their personality. Family tradition differs from culture to culture. For example, family culture contrasts between Vietnam and Russia. Differences between these two cultures include household size, woman’s role and children’s life. Traditionally, the Vietnamese household size follows the extended multi-generational pattern. Grandparents, aunts, uncles, and other relatives usually compose a Vietnamese household. In this structure, communication between family members is maintained, and this constant closeness is emphasized from childhood and continues to be important to Vietnamese throughout their lifetime. Vietnamese women don’t play a primary role in their family. After marriage, the woman becomes a housewife and a mother. She is expected to be dependent upon her husband, take care of children and grandchildren, and perform all household tasks. Divorce is legal but not common in Vietnam. A wife can be unhappy in her marriage; but rather than accept divorce, the family encourages her to sacrifice and endure difficulties of the marriage for the sake of her children. If parents divorce, the children may live with either their mother or father. Vietnamese placed a higher value on education rather than on material success, so parents encouraged their children to focus only on......

Words: 530 - Pages: 3

Premium Essay

Huawei Inc

...Enriching Life Through Communication Huawei Investment & Holding Co., Ltd. Corporate Sustainability Report 2011 Report Profile Reporting Period: January 1 to December 31, 2011 Date of Most Recent Previous Report: June 2011 Reporting Cycle: Annual Defining Report Content Global Reporting Initiative (GRI) principles such as materiality, stakeholder inclusiveness, sustainability context, and completeness, were used in this report to analyze key sustainability-related issues in business operations and identify major stakeholders. Huawei Investment & Holding Co., Ltd. (hereinafter referred to as “the company” or “Huawei”) hired a third-party organization to survey stakeholders and collect information on stakeholder expectations and requirements. Huawei’s CSR Committee studied, assessed, and selected the key items and indicators disclosed in this report. The performance indicators and management approaches discussed in this report cover all entities that Huawei either has control of or a significant influence over in terms of financial and operational policies and measures. These same performance indicators and management approaches are also consistent with the scope of Huawei’s annual financial report. Report Assurance Method Core indicators and additional indicators from the GRI G3.0 Guidelines were applied to compile the report and the application level is B+. To ensure the reliability, fairness, and transparency of this report, Huawei engaged TÜV Rheinland to......

Words: 29212 - Pages: 117

Premium Essay

Assess the Views That the Family Allows Men to Control and Oppress Women?(20 Marks)

...Assess the views that the family allows men to control and oppress women?(20 marks) Feminism is what culture is like for women just because they are women compared to what life is like for men. In society women get treated differently to men as men are seen as more superior, however this only happens in some cultures and these cultures are prejudice towards women. There are 4 key theories that I will talk about in this essay, they all argue different beliefs about feminism and how the family allows men to control and oppress women. Firstly, Radical feminism, they believe that a patriarchal society is the cause of conflict. They also promote lesbianism and separatism. Theorists like Rich, Brownmiller and Firestone all believe differently about Radical feminism. Rich believes in heterosexual relationships however he also thinks that they don’t satisfy the women. Brownmiller believes that women are secluded by society as they fear violence and rape. Lastly Firestone believes that women are unequal due to the factor of child birth. This shows that men are the decision makers and are the ones who have the power within the family. Patriarchy seems to divide rights, privileges and power by gender. Resulting in oppressing women and privileging men. The limitations of this theory are that it assumes all women are the same and men are evil, however this may not be the case as some women may have a more dominant role. Lesbianism is not a good family type to raise children, nuclear......

Words: 1139 - Pages: 5

Premium Essay

Family Culture Essay

...Family Culture Essay Shannon Marcus GCU- Transcultural Healthcare July 21, 2013 There are numerous factors that either that shape a person as they mature and move through life. Culture, in addition to family traditions, is one of the factors that affect the self-identity of an individual. When growing up, the environment around affect the personality, values, as well as, beliefs of an individual. The environment includes friends, family members, and the people that affect the life of an individual. Each and every family unit is unique in the way they operate and definitive roles that are assigned to each member of the family. This can include extended families with grandparents, and even great grandparents in some case living under the same roof. In this paper I will describe my families cultural values and roles and how that has shaped me in my life today. I actually am a product of a divorce at a very young age. My Mother and Father divorced when I was 5 and we moved to another state. Until then, we lived in a town where I was raised with Catholic believes, mainly because that was my fathers upbringing. It was very traditional if the fact that my mother was a homemaker who primarily raised and cared for my needs. My father went to work, made all the money, paid the bills and therefore made all the decisions regarding how the money would be managed and spent. My mother received an allowance for material goods she may need throughout the......

Words: 720 - Pages: 3

Premium Essay

Family Diversity and Culture

...Family Diversity and Culture Catina Pierre Alexander, Ed.D. Walden University My childhood family adapted to the “The Standard North American Family” (SNAF). My family was a traditional African American family whereas they sought each other for the union of marriage. In Louisiana, most families did not practice arranged marriages and kinship marriages. In other words, boy meet girl and vice versa, fall in love and get married. Both parents were present in my childhood home along with my three siblings. My father was not the ultimate “breadwinner” of the family. My mother worked and contributed to the economic resources of our family too. Neither of my parents’ attended a four-year college. My father served four years in the Army and served two of those years in the Vietnam War. My mother earned an Associate’s Degree in Business from Delgado University. My parents held respectable and descent paying jobs. My father is a retired welder of 30 years from the Local Union 60. My mom is a retired customer service representative of 33 years of service from AT&T. They are now retired and enjoying life even more. Christianity is a very important characteristic of my family. We attended church almost every Sunday. I attended Sunday school, participated in the youth choir, and attended vacation bible school (VBS). Family bonds and values are important characteristics of my family too. My cousins and I grew up close as if we were siblings. We attended......

Words: 1744 - Pages: 7

Free Essay

Huawei Case

...Huawei is a global leader in information and communications technology. They were established 23 years ago, in 1988, by Ren Zhengfei. Their headquarters are currently located in Shenzhen, China. They are surprisingly a privately owned Chinese company. They began as a small distributor of imported PBX products without any telecommunication knowledge. They later made a huge breakthrough by effectively taking advantage of the technology diffusions from Shanghai Bell. This enabled them to enter the technological world. After that, Huawei began supplying gear to China’s three largest operators: China Mobile, China Telecom, and China Unicom. Huawei is currently ranked 285th on the Global Fortune 500 based on its revenue of 2013. Since then they reached a revenue of approximately 46.5 billion dollars. Their equipment is used in over 170 different countries and regions. They are well known for investing approximately 10% of their annual sales revenue into research and development and about 45% of their employees are engaged in such a sector. In order to analyse Huawei’s institutional environment we must first understand what it is. An institutional environment consists of a country’s rules, policies and enforcement processes. This in turn influences the behaviour of the individuals and organisations that operate within the country. The institutional environment can be split up into four major categories which are the economic development, the political......

Words: 942 - Pages: 4

Premium Essay

Huawei

..._______________________________________________________________ _______________________________________________________________ Report Information from ProQuest October 07 2015 14:24 _______________________________________________________________ 07 October 2015 ProQuest Table des matières 1. The Huawei Report 2013-2023 - The Major New IT & Mobile Player in the 4G LTE Era............................ 07 October 2015 ii 1 ProQuest Document 1 sur 1 The Huawei Report 2013-2023 - The Major New IT &Mobile Player in the 4G LTE Era Lien de document ProQuest Résumé: The report provides an analytical overview with detailed market projections and analysis of the market share, the competitors, and the commercial drivers and restraints.- Global Huawei revenue forecasts 20132023- Global Huawei 4G revenue forecasts 2013-2023- Global Huawei Infrastructure spending forecasts 20132023- Global Huawei mobile device shipment forecasts 2013-2023- Stay ahead with the prospects for each of the global Huawei sectors with revenue share forecasts from 2013-2023- Telecoms sector- Device businessEnterprise business- Cloud services- Keep informed about the potential for each of the global Huawei submarkets with shipments forecasts from 2013-2023- Feature Phones- Smartphones- Tablets- View a detailed breakdown and analysis of Huawei's regional revenue forecasts from 2013-2023- North America- Asia PacificEurope- Latin America- Middle East &Africa- Examine detailed......

Words: 5291 - Pages: 22

Free Essay

The Differences of Family Values in Chinese and American Cultures

...Differences of Family Values in Chinese and American Cultures ABSTRACT This paper aims to make a contrastive study on family values in Chinese and American cultures from the three parts: the attitude to the family members and their relationships, marriage and family education. As the pace of the global economy integration accelerates, cross-cultural communication between China and America is becoming more and more frequent and important,and the research can undoubtedly help Chinese people and American people to further understand with each other and their family values and to avoid the unnecessary conflict caused by the misunderstanding and mistakes in cross-cultural communication. Key words: the differences of family values, filial piety, marriage, family education Table of Contents 1 Introduction 1 2 Literature Review 2 3 The Definitions of Family, Values and Family Values 3 3.1 The Definition of Family 3 3.2 The Definition of Values 3 3.2.1 The Decisive Values in Chinese Culture: Collectivism 3 3.2.2 The Decisive Values in American Culture: Individualism 4 3.3 The Definition of Family Values 4 3.4 The Meaning of Family to Chinese and Americans 5 4 Differences Between Chinese and Americans Family Values 5 4.1 The Attitude to the Family Members and Their Relationships 6 4.1.1 The Attitude to the Family Members and......

Words: 6021 - Pages: 25

Free Essay

Huawei vs Apple

...MINISTRY OF EDUCATION & TRAINING HOA SEN UNIVERSITY FACULTY OF ECONOMICS AND COMMERCE INDIVIDUAL FINAL REPORT HUAWEI CO. LTD AND SOME COMPARISONS TO APPLE INC. INSTRUCTORS: PHAM THI BICH NGOC Ho Chi Minh city, June 2016 MINISTRY OF EDUCATION & TRAINING HOA SEN UNIVERSITY FACULTY OF ECONOMICS AND COMMERCE HUAWEI CO.LTD AND SOME COMPARISONS TO APPLE INC. Student: Student ID | Full Name | 2131344 | Nguyễn Thị Hồng Yến | INSTRUCTOR’S COMMANDS ……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………...

Words: 3834 - Pages: 16

Premium Essay

Taking Control of Organisation Risk Culture

...Taking Control of Organisation Risk Culture Cindy Levy McKinsey & Company Cambridge Centre for Risk Studies g December 2010 CONFIDENTIAL AND PROPRIETARY These dimensions and our diagnostic approach are rooted in a detailed analysis of failure across industries that has been refined over time Our approach 1 Reviewed all academic / regulatory literature Example of approach: ~20 case studies of Risk Culture failure Case summary* • A culture of no challenge which feared bad news making it to the market, helped contain withdrawn, overconfident behaviour that led to a misrepresentation of Shell’s reserves by 20% Primary factor Secondary factor 2 Completed detailed case C l t d d t il d analysis of examples of failure across industries Developed and refined D l d d fi d framework / diagnostic tool with LSE professor and industry risk experts Refined diagnostic tool through client pilots, including World Health Organisation Isolated 2004, g management, a ‘fear of bad news’ culture, and prioritisation of launch objectives over ensuring , , p j g • Command and control ▪ • In January 2004 Shell Case summary No Challenge Not observed Slow Response ▪ ▪ 3 culture where “the boss 100% confidence shuttle disclosed that it had in safety, led to Fear of bad disintegration from a previously-flagged O-ring failure was always right” news miscategorised 3.9 billion • Reliance of CFO on barrels of oil equivalent of Primary factor estimates provided by......

Words: 3055 - Pages: 13

Free Essay

Border Control Culture

...In 1915, Congress passed a proposition for mounted guards at the boarders. However, these mounted guards were not actually put in place as border patrol until 1924. Then in 1927 to 1928 the man power behind border patrol expanded to 450 officers and supplied hay and oats for horses and an annual salary. Then in 1928 the border patrol finally had matching uniforms. (CBP, 2010) We have border patrol set in place to help eliminate smuggling of drugs, weapons, and even people in and out of the United States. Border patrol is also to help avoid and get rid of all terrorist entry into the United States. The officers also look for illegal weapons, mass shipments of weapons, and weapons off mass destruction. “In an effort to bring a level of control to the border, Operation "Hold the Line" was established in 1993 in El Paso, and proved an immediate success. Agents and technology were concentrated in specific areas, providing a "show of force" to potential illegal border crossers. The drastic reduction in apprehensions prompted the Border Patrol to undertake a full-scale effort in San Diego, California, which accounted for more than half of illegal entries. Operation "Gatekeeper" was implemented in 1994, and reduced illegal entries in San Diego by more than 75% over the next few years. A defined national strategic plan was introduced alongside Operation Gatekeeper and set out a plan of action for the Border Patrol into the future. With illegal entries at a more manageable level,......

Words: 481 - Pages: 2

The grinch (el grinch) (2018) | Ben McKenzie | HDTrailer Sonic the Hedgehog (2019)