Ren Zhengfei delivered a speech: the only way to survive is not to corrupt

On the evening of January 17, at the symposium of Huawei's supervisory system at the beginning of last month, Ren Zhengfei delivered a speech on "Inside and Outside Compliance and Multi-food, Protecting and Winning the Future", emphasizing the importance of supervision, saying that the only way to survive is not to corrupt. Huawei is developing fast and has little corruption. Thanks to the efforts made in the field of management and control, it is recommended to issue medals to supervisory employees.

Ren Zhengfei said that compared with Huawei's business development and organizational scale, the company's problems have been relatively small, and it is in a declining trend. There are supervisory employees. He suggested that all employees working in supervisory positions such as internal control, internal audit, audit, CEC, legal affairs, information security, and directors of subsidiaries should have a medal for each person who has more than three years of supervisory work experience. "Long live the hero."

In his speech, Ren Zhengfei pointed out that the company does not develop because of corruption, nor does it tolerate corruption because of development; supervise posts to fulfill personal responsibility system, dare to adhere to principles, seek truth from facts; and supervise post work from success to scientific and procedural Improve methods and improve skills; cadres should be audited when they leave office, and they should be audited when they are in office; internal control and supervision are not blocking speed, but making the process smoother and faster.

The following is the full text of Ren Zhengfei's speech:

Internal and external compliance, more food, escort to win the future

——Speaking at the symposium of the supervision system

It is not easy for Huawei to establish this supervision team. An organization must have iron discipline, and without iron discipline there would be no sustainable development. The best thing about Huawei is to unite 170,000 employees and form this kind of power. The company is developing so fast, with so little corruption, thanks to our efforts in management and control. Although, in your eyes, you can still see the problems of the company in one way or another, compared with our business development, these problems have been relatively small compared to the size of our organization, and it is in a trend of significant decline. Have your credit.

I personally recommend that all employees in internal control, internal audit, audit, CEC, legal affairs, information security, directors of supervisors, etc., should have a medal for each of them if they have more than three years of supervisory work experience. The medal is engraved with "Long live the hero." Not only are you here, the employees in the frontline supervision positions are harder than you, and you can't miss them if you have good things.

First, the company does not develop because of corruption, nor does it tolerate corruption because of development.

The faster the company develops, the less management coverage is, and the more temporary vulnerabilities. Therefore, we have set up a three-layer defense line for internal control.

The first layer of defense, business supervisor / process owner, is the first responsible person of internal control, establish internal control awareness and ability in the process, not only to comply with the process, but also to comply with the substantive compliance of the process. The substantive compliance of the process is the quality of exercise. Implement the process responsibility system, the process OWNER / business managers should truly assume the responsibility of internal control and risk supervision, 95% of the risk should be resolved in the process of operation. Business executives must have two capabilities, one to create value and the other to do internal control.

The second layer of defense, internal control and risk supervision of the industry sector, for the cross-process, cross-disciplinary high-risk matters for the management of the pull, not only responsible for the construction and promotion of the methodology, but also the empowerment of all levels. The focus of the audit system is the helper of the business executives. Don't be overwhelmed. The business executives are still responsible for management. The auditing system is to help business executives manage their business maturely, identify problems, promote problem improvement, and effectively close the loop. The role of auditing and internal control is to achieve supervision in the process of helping the business complete the process. The responsibility of internal control is not in the inspection department, nor in the internal control department. This must be clarified.

The third layer of defense, the Internal Audit Department is the judicial force, through the independent assessment and after-the-fact investigation to establish a cold deterrent. The audit seized a seam and did not hesitate to investigate it in the end. If there was a big problem at the side, it would be temporarily ignored. The risk was clarified and checked through this small problem. One is vertical, the other is horizontal, there is no law, not to line up by size, what to check for what to do, so to establish a cold deterrent. Cold deterrence is to let everyone not do bad things, nor dare to do bad things.

Now the major case has established a mechanism to train the team. We must continue to manage the entry management of the documents and not pile up the mud. It is necessary to establish strict and not evil rules, and clearly identify the transactional employees who have received the supplier, the customer, the documents, and the complaints. They must post the message on the bulletin board on the same day or no later than the next day; Organize the upload and give the customer a notice, and check the audit to check if it is not an employee. In the first five years of intentional delay in the delivery of documents, the transactional staff who have received the supplier's travel vacation... have to reflect, the unsuitable employees have to enter the last phase of the resource pool, but they can still work in the province. Light can be reduced or reduced, and the virtual stock ESOP or TUP is discarded. Boldly promote the employees with strong sense of responsibility. We have achieved the greatness of the accounts on the main channel. We can promote some outstanding employees, enter the logistics and some marginal business areas, fully realize the accounting, and effectively solve the problem of the impetuous. Data transparency is the basis of regulation and the basis of anti-corruption. Second, the positive distribution of human resources is doing a lot of money. Now the company's profits are many, they are created. Since everyone can create them, why should they steal chickens and dogs? no need. Therefore, on the one hand, we use positive distribution to guide everyone not to make mistakes; on the other hand, use cold deterrence to control the company without major problems. In this way, as we move forward, we complete the rectification of ourselves. From chaos to order, it takes time and needs a process, so we need such a huge supervision team, standing next to us, always reminding and warning the places we need to work hard to improve.

Third, strengthen the implementation of the accountability system. In the transition period, you will be given a chance to rehabilitate by setting up a clean account. Without a clean account, everyone must be stricter. Closing a clean account is not a reduction in anti-corruption, but a further strengthening of the constraints on the team. Local justice is a form. Through the construction of the accountability system, everyone is willing to do things along the right rules, and is willing to do things with due diligence.

Second, the supervision posts are more fulfilling the individual responsibility system, and they must dare to adhere to the principle and seek truth from facts.

The supervisory position can implement a personal responsibility system. In the face of the facts, we must dare to adhere to the principle. Do not always look at the face of the AT team. Excellent employees who are responsible and responsible for their outstanding performance, although they may not like it, should be upgraded, hacked, and promoted as soon as possible. We must strengthen the organization of this team and enrich the backbone. Human resources are already doing this, and you can also appeal. We believe that the promotion and lifting of the supervisory staff is not necessarily the local AT's decision, and it should not be the same level of AT, and may be from the upper AT or the higher level of the AT.

Human resources should take audit, internal control, and auditing as the main strategies, and supervision is also the production of food. The company is developing fast, and there may be more problems. Therefore, it is necessary to strengthen the construction of the supervision team, and the ranks of the well-made personnel will be promoted faster. The employees of the lower ranks will not be able to manage the high-ranking cadres.

We have consistently maintained that at the same rank, supervisory positions should be higher than the other positions by one or two levels of salary, but do not agree to give project awards to avoid many false and wrong cases. Adhere to the principle of seeking truth from facts, if there is no problem in the investigation, the method is very good, the management is very good, and it should be rewarded.

Third, the work of supervising the post must move from success to scientific, procedural, improved methods, and improved skills.

Last year, the company's water flow was 1 trillion US dollars. This year should be about 1.5 trillion US dollars. The flow of each document may be tricky, but there is not much imagination. This is mainly your contribution. When our sales revenue reaches 200 billion US dollars, the flow of water may reach 5,6 trillion US dollars. If such a large amount of water has not yet had a big problem, from the positive point of view, internal control has made a great contribution. Although you have a lot of problems with the company, we think that the overall situation should be good, absolute purity does not exist, and we pursue relative purity. Development will never end, internal control will never end. Medals are only a staged commemoration, not an end. If there are still some shortcomings, then you must first improve the method and further improve your skills, because at present everyone is only focusing on specific things, and they can't find problems from the flow data. You are helping others, helping others, and becoming a great person. From success to scientific and procedural, it is our goal.

First, internal control to implement these SACA systems, slowly let us "farmers" a little international, but still have to learn. In the internal control of finance, we introduced British experts and later established financial risk control centers in the United States and Japan, which made our company's risk in the big wave of the economy smaller. The US presidential campaign gave me a great inspiration. "Through a new law, two old laws must be turned off." He caught the crux of the complexity of the US government. Our company also plans to adopt the “Interim Provisions on the “11.30 Sunset Law”: in the mature process areas such as IPD, SUP, MFIN, LTC, DSTE, SD, etc., each additional process node, reduce two process nodes; or increase each For a review point, two review points should be reduced. In this way, it takes three to five years to gradually reduce our internal management. We can't make management more complicated. If we don't increase the approval point, we will have good results. Increasing the number of approval points may become more complicated. The final result is that the more holes, the easier it is to drill. We mainly focus on producing food. Whether the change is successful or not depends on whether it is prolific grain. If it is unsuccessful, it depends on whether it is more productive.

Second, when we find problems, we must analyze the causes and consequences, and we must be accountable to the executives. They must take responsibility. How to be accountable? For example, if there is a quality of life accident at the representative office, and the analysis of the causes and effects is clear, they must have internal meetings, reflect, and be accountable, and dispose of them. If we always feel bad about some cadres, that won't work. Some people make mistakes, as long as they are no longer committed within a certain period of time, they can be erased from the file. The processing person is measured and level, but the "decapitation" has to be "decapitated". You can cut his "head" first, and then put the "head" on him after half a year. Such things can't be understated, otherwise we will never be able to build a good combat team. You can build some reasonable notification systems (such as in the community of the heart), but the content of the notification must be accurate, must be based on evidence, and it is best to pass with me. I call on internal control, auditing, and auditing. We must find ways to sublimate and understand ourselves, and standardize our behaviors and actions. We must firmly believe that we can make a good system.

Third, after three years of operation, the supervisory board of the subsidiary has gradually matured, so let you slowly practice and learn to turn around. The board of directors of the subsidiary company should truly play the responsibility of internal and external compliance supervision. The external compliance is based on grain production and cannot be left to the left and kept within a reasonable range. The board of directors of the subsidiary has laid the foundation for the future contract to be concluded at the representative office. I want to thank you. Our aim is to produce food, and to produce food without taking on many external risks. This is policy and strategy.

Small countries have high costs, and they must pursue the authenticity of fees without fully emphasizing rationality. The actual cost is compared to the profit. The quality of the current small country network is not very good, why? Can't call for artillery. There are so few base stations in a country that there is not much money and there is no fire. As long as you pay more for shells, no shell is unwilling to go. Therefore, small countries should be based on reasonable profits and reasonable market share. The question of the cost of a small country depends on whether it actually happens and can be understood without corruption. Big countries and small countries cannot be false.

4. The cadres should be audited when they leave office, and they should also be audited during their duties. This is the greatest concern for cadres.

It is not easy for a company to train a cadre. The standing board of directors studies and handles cadres. Every time I report to me, I am very sad. In fact, the benefits obtained by making efforts to contribute to the company are greater, Huawei's overall treatment is not low, and the income of senior cadres is higher. It is not worthwhile to do something wrong for a small interest! The departure of the cadres and the incumbent audit are actually caring for the cadres and letting the cadres at least not to make the bad things bigger. It’s a big deal, it’s uncomfortable to go to jail, and it’s even more painful after the reform of the local judicial system. It’s more uncomfortable to sit abroad.

First, the issue of audit investigations is first and foremost an innocent argument. There must be evidence, no evidence can not hurt a cadre casually; at the same time, there must be a scientific method, a method of seeking truth from facts, and respect for human rights. Cadres must strictly demand themselves and try not to ask such questions. When there is a problem, we think that sympathy is useless. If we are very affectionate, the only thing that can be destroyed is the good person. More than 90% of the company is now a good person, and can't let a few bad guys ruin the company. If there is evidence, the struggle is rational, powerful, and knotty, and there must be temperance. It is not that the struggle is a ruthless blow, and that does not solve the problem.

Second, it is not the responsibility of the auditors to evaluate the merits. This is the responsibility of the top leadership. "Work" and "over" are two different things.

The audit is based on the principle of seeking truth from facts. The investigation of the problem is clear, and the problem is handed over to the Disciplinary and Monitoring Subcommittee of HRC. We must separate the merits and demerits. If this person is successful, he will be tolerant of his passing, so that the organizational discipline of iron cannot be established. Auditors must have independent capabilities, both in adhering to principles and at the same time having methods. I hope that the auditors will learn from the censorship, they must dare to fight, and they must be good at fighting. It is important for the company to cultivate a group of people who can adhere to the principle and adhere to the principle.

5. Internal control and supervision are not blocking speed, but making the process smoother and faster.

Many people in the company still do not pay attention to the construction of internal control. It may be that we have problems in the past human resources evaluation system, only to see how many contracts are obtained; many people do not do bad things themselves, they think that others do not do bad things. Why do you want to supervise the reloading brigade? It is to let the business executives train and empower, know what is supervision. We must work hard, we can't be lazy, internal control, supervision is not blocking speed, the process is smooth, and the speed is faster! You see, the high-speed rail runs very fast, but can you do it without internal control? The high-speed rail is a good internal control of the process. The train from Beijing to Shenzhen does not stop at one stop. How many monitoring points pass through it all night, but it does not obstruct its speed. Second, a large departmental system is implemented at the conclusion point, and there is only one point of conclusion for one department. This conclusion is time-limited. It is automatically passed after the time limit has elapsed. It is the responsibility of the review point to be investigated, so that we can run like a high-speed rail.

In 2017, we will implement a full authorization management pilot for several representative offices, implement business authorization pilots, internal and external compliance pilots, audit pilots, monitoring pilots, and so on. For example, the pilot contract was concluded at the representative office. Now the company has more than 11,000 contracts per year, with 4.3 million sites worldwide, and 960,000 new sites or machines are expanded each year. The current model is that all the contract information of each site is sent back to the company, including each screw and each line; then the company has a group of people who read these thick information and upload it after reading it; then many people have to go Read... This is our low level of management and wasted a lot of management effort. Therefore, in the future, the authorization will move forward, and the auditing and internal control supervision role of the representative office will be strengthened. After the smoothing, the company will gradually reduce its preparation. Otherwise, the company will not be able to meet the sales growth of 200 billion US dollars.

The supervision system itself is one of the important pillars of the company. Without this pillar, how can Huawei have tomorrow? And tomorrow is more complicated and more difficult, and it is not easy to do supervision in this case. You have to spread the band and let more new people invade from generation to generation. The company can't end in our hands. Huawei's most valuable and greatest asset is our management platform. If the company's life is over, this platform will be worthless. Therefore, we must maintain survival, and the only way to survive is to not be corrupt!

Thank you again, I wish you a happy new year in advance and ask your family to be good!

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