Page 64 - USI Newsletter No.94

Office Chat 職場聊天室
Room
Leadership Principles:
Wisdom and Value Creation
in Times of Change
Author: Taiwan Taipei Office / ADM / Corporate Service / Anita Huang
Lecturer: The Founder of Acer Group / Stan Shih
n the management forum of the second quarter of 2023, we invited Mr. Stan Shih, a renowned figure in
the management field and the founder of Acer Group, to share his management principles accumulated
I over nearly 50 years. At the beginning of the forum, Mr. Shih humbly requested to be addressed as
�Stan,� aiming to bridge the gap between himself and the audience.
Fundamental Beliefs of Leadership
Mr. Shih proposes the concept of "Wangdao" as his management philosophy, encompassing leadership
principles for organizations of all sizes. The core spirit of this concept is that "an organization should create
value for society, consider the balanced interests of stakeholders, and ensure the sustainable and continuous
operation of the organization."
Creating value is of utmost importance, and Mr. Shih emphasizes the "Six-aspect Values" with six dimensions.
When facing the future, it is crucial to place more importance on the "indirect," "intangible," and "future" value.
As a leader, one should consider the indirect, intangible, and future value, understanding the investment of
resources to create hidden value, such as investing in talent, research and development, and brand image.
Value is co-created and needed to be exchanged between the supplier and the demander, further generating
value through mutual collaboration. If value cannot be exchanged effectively, it cannot be truly realized. Over
time, the power of co-creation is fostered through dynamic balance of interests. Balancing interests is based on
the overall value and sustainability of the organization. If one only considers self-interest, it is impossible to
achieve relative balance. When distributing explicit value, the focus should not be on scarcity but on fairness. As
for hidden value, such as a sense of accomplishment, it can be distributed more to employees.
Key Elements for Building Organizational Cohesion
A strong corporate culture has a profoundly positive impact on both company performance and employee
engagement. Corporate culture needs to have a fundamental belief system, obtain consensus from participants,
and make necessary adjustments from top to bottom.
62
NO.94
Visionary leadership is crucial, and Acer started with the vision of being the "gardener of microprocessors,"
actively introducing and developing American microprocessing technology. The concept of vision was originally
proposed by Jim Collins, representing the ideal state to be pursued in the future and providing a long-term
outlook for the organization's mission and values. A powerful vision can inspire the motivation of organizational
members, generating resonance and cohesion in the pursuit of common goals.
Mindset and Communication Approach in the Face of Change
Change is an evolutionary process. It is important to "start early" to accumulate capabilities and experience.
"Start with small adjustments" that are manageable in terms of risk. If there are setbacks, consider them as
tuition fees and transform the experience into opportunities. Only through change and paradigm shifts can
there be a chance for success.
Old methods are insufficient to face the future, so entrepreneurial spirit is crucial. Entrepreneurial spirit means
having a general direction and crossing the river by feeling the stones. In this process, effective communication
and mutual agreement are essential. In terms of communicating change, Mr. Shih proposes the leadership
principles of "3C before action, 5C for decision-making." The 3Cs represent Communication, Communication,
and Communication, emphasizing the importance of constant communication. The 5Cs add Consensus and
Commitment. It is essential to engage in discussions with a group of people, clarify the overall direction, and
determine what needs to be done and how to do it effectively. This requires obtaining commitment through
communication. Communication should maximize the expression of hidden value and create a sense of impact.
For example, embedding the company's philosophy through slogans can deeply resonate with people.
How to Break Through Bottlenecks and Create Value?
During the process of change, bottlenecks are inevitable and can hinder the effective realization of value.
Breaking through bottlenecks requires three core capabilities: "innovation with a systems perspective,"
"integration across fields," and "exploration of root causes." These capabilities can be enhanced through
experiential and mindset changes, as well as cross-domain collaboration. Management innovation serves as an
example where companies can approach management from a human perspective, such as through employee
stock ownership plan or promoting a shared mission.
Furthermore, it is essential to understand and challenge the blind spots of conventional human thinking.
Adopting a "Me too is not my style" mindset encourages reverse thinking. Many issues cannot be innovated
without reverse thinking. If everyone follows the same path, it naturally limits the potential for value creation.
To benefit oneself, one must start with benefiting others. Mr. Shih has advocated the belief that corporate culture
is rooted in the inherent goodness of human nature since the early days of entrepreneurship. He encourages
everyone to share all experiences with others. Implementing decentralized management allows employees the
opportunity to make decisions. Although employees may make mistakes, it is a reflection of an organizational
culture that embraces and allows for mistakes.
Acer has undergone three transformations in its pursuit of continuous success. Mr. Shih has consistently
challenged and negated past successful models, recognizing that embracing defeat is essential to creating new
winning situations.
Facing a myriad of questions from colleagues, Mr. Shih fearlessly confronts each one head-on. We can feel him
always focuses on global trends, as we stands on the shoulders of giants.
63