Optimizing the Management Control System for Responsibility Centers

Abstract

Projects are the basic units and cells of business management at Huawei. There are different types of projects, including R&D, sales, delivery, and management transformation projects. If projects are not effectively managed, it will be impossible for a company to achieve robust operations. Huawei is working hard to shift its operating model from being function-centered to being project-centered. This is going to be a huge change. It means thousands of field teams will be mobilized. It also means that functional departments will no longer be centers of authority, but centers of expertise and resources. Huawei believes that a project-centered model will help reduce redundancy and avoid the pitfalls experienced by large companies that operate with a function-centered organizational structure. The project-centered model will also make the company more competitive and enable managers to develop rapidly.