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Acer Founder Stan Shih

A Considerate Understanding of Life

http://www.cw.com.tw/article/article.action?id=5002616

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A Considerate Understanding of Life

By Yu-chi Su
From CommonWealth Magazine (vol. 400 )

Through the many tempests retired Acer CEO Stan Shih encountered in his more than 30-year career, his perpetual optimism and his belief in the goodness of human nature never faltered. When dealing with difficult people or facing serious problems, he always found a bright side, demonstrating not only an understanding consideration for others, but also a considerate understanding of life.

Because of these sensibilities, Shih has demonstrated unconventional ideas and methods that have stood out in a capitalist society where competition is king and everybody vies for personal fame and fortune.

There are even times, however, when Shih's ideas seem hard to comprehend.

"Why do you advocate that mentors hold nothing back from their proteges?" we ask.

"Holding back knowledge restricts the creation of value," he replies.

"But by not holding in reserve some of your privileged knowledge, aren't you afraid of losing your competitive advantage?"

"Students become better than their teachers; that's the way it should be. I affirm their abilities and take pride in their achievements."

"You've nurtured so many talented people. Doesn't it make you angry when after leaving Acer, they become your competitors?"

"We didn't train people only for me to manage. (We also trained them) to contribute to society."

"Acer paid a very high learning price for the experience it has developed. Why were you so willing to share that experience with everybody?"

"Sharing is one form of happiness. When you obtain interesting information, you naturally share it with others. This kind of thinking has brought me certain advantages. It's a little like religion – like believing that Jesus gives you eternal life. I for one believe that helping others is the best way to help yourself. Although the connection is indirect, it's sustainable. That's my winning strategy," explains Shih.

"Aren't you afraid that once your competitors have learned from you, they will turn around and destroy you?"

"I have so many skills that if in fact somebody learns them all and leaves, and then does very well and attacks me, I simply accept it. For society to progress at a faster pace, experience needs to be shared."

"How do you see people who return kindness with ingratitude or those who cause harm to you?"

"Why would they want to do harm to me? It's never happened. When I put myself in other people's positions, it makes their behavior reasonable. If the other side can't fulfill its contractual obligations, for example, it's because of problems they have. If I can help, I'll help to whatever extent possible."

'A Useful Person'

Speaking with Shih reminds one of a conservation between a Zen master and his apprentice. The apprentice asks questions focused on "I," and follows up with the question, "In that case, what should I do?" The master's response is always, "If you can put the ‘I' aside, why bother worrying over what to do?"

Of course, it is difficult to set aside the "I." But for Shih, all he needed was to heed his mother's advice: "Be a useful person." The Acer founder, whose father died when he was three years old, says his mother is the person who influenced him the most. Making his mother happy, Shih says, is his greatest achievement.

In 1991, Acer reported negative income for the first time since it was founded in 1976, posting a loss of NT$600 million. One of the causes was that the company had expanded abroad too rapidly, and its American subsidiary was bleeding money.

"The other subsidiaries' earnings could not make up for the loss," Shih says of the biggest setback he ever faced.

At the time, criticism of Shih from among his colleagues was on the ascendance. But at one internal training session, the company's executive vice president Tung Hu, who had just returned from abroad, said he had heard considerable praise of Acer overseas. Sitting on stage listening, Shih found himself in tears.

"I really felt heartbroken over how there could be such a big disparity in perceptions, working so hard but not receiving the affirmation of my colleagues. Of course, I had failed, and failure means introspection," an embarrassed Shih says as his face turns red, recalling his feelings at the time. 

"You can't make excuses when there's a problem. You have to start with yourself," thought Shih, who decided to tender his resignation as chairman, willing to admit failure and not worried about "saving face." The board, however, asked him to stay on, and Shih agreed, figuring, "I knew about the mess I had made better than anyone."

He restructured the organization and led Acer to a new highpoint in the company's history.

After undergoing a number of convulsions and reorganizations, Acer is now the world's third largest PC vendor, and was praised in April 2007 by the Wall Street Journal as emerging as "one of the biggest turnaround stories in the history of the PC industry."

"The real failure is quitting. As long as you don't quit, however many failures you rack up, they can all be viewed as gaining experience," Shih says.

The Acer founder's biggest setback, and his biggest source of personal growth, helped him realize that "you have to assume that the result of all of your actions may be different what from you anticipated." Once he came to this realization, Shih would not admit to failure or lose confidence in the future and quit, whenever results did not meet expectations.

Living to Realize the Value of Life

Using his trademark thoughtfulness, Shih turned his setbacks into strength and developed a system of "forecast management." Under the system, when results at a certain stage are not as anticipated, the first thing to check is the direction of the strategy. As long as you're going in the right direction, then you change progress expectations and methods to cater to the existing environment.

"Forecast management is like pacing yourself in a marathon," Shih says. As long as the direction is accurate, it doesn't matter if you fall behind a little. By holding something in reserve, you can sustain your operations, the Acer founder suggests.

"Forecast management allows you to confront the future. Adjusting the forecast at any time can help you be more focused, have more staying power, and be more patient."

"How do you divide the stages in your life? What have been the important milestones?" Shih is asked as he looks back over his own marathon, his more than 30-year career.

"The only thing I can think of is who I lived for at certain ages," he replies. "Before the age of 40, I lived for my mother. After 40, I lived for the betterment of society, to contribute whatever I could. After retiring, I've lived to realize the value of life."

"Where does the value of your life come from?"

"The value of life comes from helping others."

"You often emphasize the ‘greater self' or ‘spiritual self.' What about the ‘material self?'"

"The ‘material self' is subservient to the ‘greater self.' If the ‘greater self' is good, then naturally the ‘material self' will follow. The greatest pursuit of oneself is the pursuit of ‘greater self.'"

"How would you define growth?"

"Studying diligently to give yourself the capability to contribute to society."

"What is your most important personal quality?"

"I'm very accommodating, but I have my own principles."

"What is your biggest virtue?"

"I wouldn't say I have any virtues. People shouldn't talk about their own virtues," Shih says after a long pause to ponder his answer.

"Please try to come up with at least one."

"Thinking of the interests of others," Shih says as he blushes.

"What is the one thing you dislike the most?"

"Holding a position of influence but not fulfilling one's social responsibility in a positive manner."

"What are you most afraid of?"

"That I don't have any reason to exist, that one day nobody will want to come and interview me," Shih laughs. "I'm just kidding."

"Are you happy?"

"I'm very fortunate. Overall, everything is going well. Although there have been a few bumps, it's because of those setbacks that I have grown more fulfilled. It's all been worthwhile."

Translated from the Chinese by Luke Sabatier


Chinese Version: 施振榮:挫折是必然的,沒有挫折就不是人生

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