Mrs. Vivian Wu Yen controls the Republic of China's third largest business conglomerate, including the Yue Loong Motor Co., which employs 13,000 people and boasts a business volume of NT$26.7 billion (about US$667.5 million), or 1.6 percent of the country's GNP.
The chief officer of a competitor-firm once warned his associates: "Never belittle her. Never judge her indiscreetly. She often plays her cards in contradiction to established rule."
After interviewing her four times, a writer for Reader's Digest magazine complained that he had never met a person more difficult to write about. He said that she was never as simple as she might seem at first glance - that she was, rather, a complex and unsolvable enigma.
Her subordinates respect her as they would a schoolmarm. "She is strict. She can be dreadful. She can see through every trick."
In the eyes of ranking associates, she is decisive, demanding, impetuous. "She makes a decision Monday and asks you for complete results next week," says Chang Shao-chung, assistant financial manager of Yue Loong.
Tseng Tan, a U.S.-trained management specialist, recalls with appreciation: "Despite the government's decision to establish a new, gigantic auto factory and the growing economic recession, Vivian Wu decided on major, new investment in a factory to produce car bodies. She has great foresight and will take prompt action when she believes something needs to be done."
Enigmatically, Vivian Wu says that she has harbored no hard ambitions since her childhood and that "I am just forced to take action by opportunities."
"She is strict. She can be dreadful." (File photo)
Born to a textile family in Kiangsu Province, she ranks fifth among nine daughters. She was a naughty student at a highly-disciplined Christian school. She liked to talk and snack in the classroom. She married after graduation from high school, like other girls of conservative families. Her husband was a German-trained mechanical engineer, Dr. Yen Tjing-ling, chosen by her parents in a traditional marriage arrangement.
Dr. Yen constantly encouraged her. She often describes her 47 years of married life in these words: "He loved me like a father as well as a husband," and "I served him like a daughter as well as his wife."
Supported by her husband and fired by her "invisible" ambition, she entered St. John's University in Shanghai four years after marriage to study politics. On the eve of the government's evacuation of the Chinese mainland, in the face of spreading Communist disorders, the Yens moved 20,000 spindles from Shanghai to Taiwan and established the Tai Yuan Textile Co. on the island. Dr. Yen, however, was interested more in motors than in textiles, and in 1950, when she was 38, she accompanied him on a visit to Detroit. She stayed on in the United States to study international relations at Columbia University, where she obtained her master's degree in one and a half years. Upon her return to Taiwan, Dr. Yen passed to her the management of Tai Yuan Textile, so he could address himself to the development of the Yue Loong Motor Co. They shared an office and became business partners.
The husband-wife business relationship prospered until six years ago, when Yen suffered a brain injury in a fall. He began gradually to transfer to her the reins of Yue Loong. When Dr. Yen passed away in the spring of last year, Vivian Wu became the boss of the Yue Loong conglomerate: Yue Loong Motor Co., Tai Yuan Textile Co., Diamond Hosiery & Thread Co., China Motor Co., Yue Sheng Industrial Co., Yue Ki Industrial Co., and Union and NHK Auto Parts Corporation.
Under her leadership, Yue Loong Motor Co. and its companion businesses have seen rapid growth. Production increased from 16,000 cars in 1976 to 57,400 in 1981; business volume jumped from NT$300 million to NT$16 billion.
At first, Vivian Wu saw her new role as a heavy burden but, gradually, it became a challenge. She recently described her business activities as her source of "happiness."
Her friends and associates have noticed the psychological change. She has become more a creator than a caretaker - more positive, confident and optimistic.
"She began to laugh more frequently," said Chen Lien-hua, public relations manager of the competitive Ford-Lio Ho Motor Co., who was a student of Vivian Wu when she was teaching at Taipei's Soochow University. "Despite the heavy workload, I never see her looking tense."
Under Vivian Wu's leadership, Yue Loong has much improved the quality of its cars which, in turn, are better favored by taxi drivers, most of whom drive Yue Loong cabs.
Vivian Wu unexpectedly launched, at the end of last year, a price-reduction drive, though wages, commodity prices and costs had all gone up. The prices of Yue Loong cars were cut by NT$10,000 to NT$20,000 (US$250-500) apiece. This effort reversed the declining market-penetration rate for Yue Loong cars, which once reached 43 percent. Other car makers suffered stagnant or declining sales, but Yue Loong registered a 29 percent increase in the first quarter of this year. It sold 18,500 autos in the three months.
The most impressive demonstration of Vivian Wu's decisiveness was her secret establishment of an engineering research center last August, calling for an annual investment of NT$200 million (about US$5 million). Despite many difficulties, she intends to produce a car model entirely designed in Taiwan.
The new research center, the largest such institute ever sponsored by a local business enterprise, is located in an obscure corner of the Kuishan Industrial Zone in Taoyuan County. There is no signboard at the entrance.
The more than 70 technicians are led by three young engineers who were trained in the United States. They bend over their drawing boards in a mission the industry previously had considered impractical.
Unlike other top entrepreneurs, she listens to the reports of subordinates. (File photo)
The bantering ridicule and criticism they sometimes receive is actually a stimulating force for the young engineers. Vivian Wu admits only to the possibility of success, and this spirit is reflected throughout the research center. On the wall of a long corridor, there is a scroll bearing this message: "Compared with Westerners, we Easterners have started too late. Also, our manpower and financial power are not comparable with theirs. If we do not work harder and more efficiently, we will never reverse our fortune."
In the conference room, two framed posters hang side by side on the wall. One features colorful pictures of foreign cars, under the headline: "These are theirs." The other is a blank white sheet on which are imposed the Chinese characters: "Where are ours?"
Chu Hsin, chief of the engineering section, projected the design of a new car on a computer screen. When a foreign magazine introduced the American innovation of CAD (computer-aided design) as utilized in the development of aircraft, Yue Loong, without fanfare, procured a CAD system. Chu Hsin said: "We have no draftsmen; all the designs are one hundred percent computer products."
Despite his visible confidence, Chu Hsin admitted to the possibility of failure in the research. Maybe, we can design our own car within four or five years, and maybe we can't and will see the "money go down the drain."
Vivian Wu explained: "In doing anything, one must have confidence and go for his goal. Do your best - succeed or fail. Doing is always better than not doing."
Her forceful approach toward her goals was influenced by the education she received in Christian schools. But the greatest innuence, she said, came from her college education - the spirit to make every effort to achieve an ideal. She also acquired a discreet, strict attitude toward teaching (and managing) and an inquisitive spirit in questioning her students.
She has applied this attitude and spirit in her 25-year teaching career and her subsequent career in business management.
Unlike many other top entrepreneurs, who like to talk at a meeting, she listens intently to the reports of her subordinates. At their conclusion, she will ask one question after another.
"She substitutes questions for orders. This is certainly a better approach," says Tseng Tan, adding: "Anyone who fails to cover every aspect of a problem, and is cornered in the questioning, will be in trouble."
Besides her rapid-fire questions at meetings, she sometimes quizzes her subordinates individually. Those who fail to respond properly are embarrassed and apply themselves more forcefully.
At her office, Vivian Wu may be more a strict teacher than a traditional entrepreneur. She is as punctual as in a classroom. She not only gets to her office on time, but pulls out her belongings to leave as soon as the workday's final bell has rung. After work, she becomes another type of person - amiable, amicable, humorous.
Though many laud her, a few criticize her as both "fierce" and "stingy." Her defenders say, "Tai Yuan and Yue Loong companies have better fringe benefits than most other enterprises and, therefore, their worker stability is comparatively higher. She may only be considered stingy because she treats herself too frugally."
Vivian Wu does not agree with this comment: "I have never treated myself frugally, but I was born not to like wearing earrings and other jewelry because they are cumbersome."
She dresses comfortably, pleasantly and simply. Maybe, this is because she does not like to exhibit herself. On any occasion, Vivian Wu likes to be a member of the group, never the cynosure of all eyes.
Recently, the Tai Yuan Women's Basketball Team defeated the national team of Japan. Vivian Wu invited the Tai Yuan players to a feast at the Grand Hotel. She had a sport suit tailor-made for the occasion in order to fit in with the others.
Her conservative character is reflected in the financial management of her business. The ratio between the liabilities and self-provided capital of the Yue Loong conglomerate is lower than for most other private enterprises.
Some have been critical of Yue Loong for being too conservative, because it placed so much emphasis on production as compared to marketing and publicity.
Wu Hsi-liu, a noted columnist, is among the critics. He said openly that, "in the last 30 years, Yue Loong has never paid enough attention to the establishment of a good image for its products and has never produced convincing advertising." He warned that if this is not immediately corrected, he cannot see any chance for Yue Loong to turn the corner to the future.
Is Vivian Wu willing to correct this image? Every sign in the year since her formal takeover points in that direction. She has employed management specialists from abroad to share the responsibilities with her; she was the first among Taiwan's car makers to launch a recessionary marketing offensive.
"She is a very formidable but very respectable opponent," said Chen Chi-fan, manager of Ford-Lio Ho. "She is the most outstanding woman entrepreneur in the country and has confidence that she is fully comparable to any entrepreneur of the opposite sex."
Vivian Wu, a former university professor, is president of Yue Loong Motor Co., the Republic of China's largest automobile manufacturer. In the interview that follows, she discusses her uniquely effective management style and the philosophy which guides it:
On selection of personnel:
A factory needs both managers and technicians. When I choose a person for my factory, I must see whether he has a good moral sense, whether he can get along with others and whether he can absorb knowledge.
Character is most important. If the man I choose cannot cooperate with others, he will be a liability, not an asset. I do not want a man with mediocre ability. Besides, he must be modest and never overlook others simply because of his talent. I think I can respect a man's specialty and can tell whether a man is actually a specialist, and where he specializes.
A business leader must first recognize talented people and then he can use their talents.
I like to ask my subordinates to handle their jobs in their own rights, and let the different departments communicate directly among themselves.
A new organization is like new clothes, because it is easier to make new clothes than to redo old ones, consequently a business leader should not allow his subordinates to form bad habits and then try to correct them. This is very difficult.
On meeting with section chiefs:
Section chiefs directly supervise the operations of workers and mechanics. Sometimes, they have to use their own hands. They are much like classroom teachers in a school, who know the aptitude of each student as well as the characteristics of the group. I call section chiefs to meetings because I want to know the real situation in the factory. I know that we Chinese often report the good things but seldom report the bad things. We conceal the bad things from superiors but never from subordinates. When I ask a factory superintendent for something, he may not know and he may not always tell me the truth if he does know. If I get in touch directly with the section chiefs, there will be no barriers between us, and no one will conceal anything from me.
At a managerial meeting, I often discuss with the managers and factory superintendents such goals as reductions of production costs and increases in production efficiency. I ask them to study the problems involved with their subordinates. But I wonder whether they pass my views down the line all the time. When I tell the same things to the section chiefs, I am sure they transmit my message to the ranks.
When I pass a message through a manager, it is just like sounding a fire alarm. The manager sounds the alarm as I have, downward. When the alarm reaches the basic echelon, I am sure there is big confusion. Managers must be strict in carrying out the orders issued by their superiors, but they must take practical action and not just limit themselves to transmitting messages.
Design work is done entirely on the computer. (File photo)
On reducing the worker's turnover rate:
The best way to retain staff members and workers is to raise their pay and make their living and working environments comfortable. Ten years ago, the practice of enticing personnel from other factories was in vogue. I was afraid this situation would affect production, so I was the first to build air-conditioned dormitories and apartments for my staff members and workers. Also, I started a three-shift work system to increase the fringe attractions.
Now I am planning a profit-sharing system for the workers, as a so-called "group incentive."
At present, common factory practice is to encourage workers by issuing annual bonuses. Under a system of collective incentive, the annual bonus is scrapped. The factory calculates its profits several times a year and counts the total at year's end. Workers' representatives are invited to join in the counting so they will see for themselves how much profit the factory has earned and how the determination is made on the share for the workers.
On problems of women workers:
Although I am a female business leader, I still think most female managers are inferior in performance to male managers. Many female managers cannot concentrate their energies and their minds on their careers. They consider their home affairs as more important to them. Young managers often discuss their household affairs among themselves.
Besides, female managers are easily contented, impeding their progress. They are also more jealous and are often antagonized by others' promotions. Male managers also phone their friends, but more often than not, they are inquiring about information related to their jobs. In comparison, they are more responsible.
As a department chief, one must be responsible for one's work. A female department chief should never be perfunctory in her performance simply on grounds that she belongs to the fair and weak sex. She should know that others will not be less demanding of her simply because she is a woman. In communicating with such women department chiefs, many men will show outward respect for the woman, but inwardly will hold her in contempt. On the social circuit, women in management cannot totally mix with their male counterparts.
Nevertheless, there is little difference in real ability between the two sexes. But because women managers usually have less contact with the outside world, they are not as informed as their male counterparts.
The number of women managers is smaller, and it is easier for them to rise from the ranks if they are really excellent. I do not like to be referred to as the "only woman entrepreneur." I like to be introduced as "president of the Yue Loong Motor Co." People should recognize that I attained my present position in my own right, not because I am a woman.
When I became board chairperson of Tai Yuan, most people thought it was a result of my relationship with my husband, Dr. Yen Tjing-ling. Actually, I got the position in my own right. Under other conditions, I would have preferred teaching. I would rather be called Professor Wu. Fortunately, most people now recognize the criterion was ability.
On qualifications for a business president or board chairperson:
As a business leader, the most important qualification is a sense of responsibility. No matter how able he or she is, the result of a decision cannot always be good. He or she should not claim credit for good results and blame others for bad ones. A man's performance is good under one condition but bad under another. A business leader should be considerate toward his subordinates. Besides, he should know the order of priority. He must be aware of what should be done first in the company, which part of a business or factory should be first expanded.
On her personal work style:
I have few recreational activities. After lunch, I like to read the newspapers. When I return home in the evenings, I often review newspaper clippings. On Saturdays, I join a religious congregation. Sometimes, I play mahjong, just for relaxation. I do not have the habit of visiting others' homes or window shopping.
I can always control my time and finish my daily work before going home. I can finish my job because I rarely attend social events.
I have tried my best to coordinate my activities with those of others. Some people think that as president of a big business, I just need to tend to the broad outlines and should leave the details to subordinates. They also think I should not get to the office early in the morning. I do go to work on time, just like every other member of the company. Because I do, other people also go to work on time. Many people even like to go to work earlier than others, because this will save them from the morning crowd on the elevators.
On the newly-established engineering research center:
The engineering research center was established in hope that we could design our own cars and help our industry take root. The center is developing rapidly because I have delegated all responsibility to its director, so he has a free hand.
I spend NT$200 million a year on the center in keeping with my husband's desire to "contribute to the nation through the development of industry." I like talented people who have innovative ideas and can make big money with limited capital. Chu Hsin, director of the center, is one of them. With talented people and a free hand, it is easier for him to carry out his ideals. I would consider his success as mine; and my success would also be the nation's.
A business venture is more or less a gamble. It is much like the development of the Columbia space shuttle, which called for vast spending, when, at first, people were not sure it would be a success. In doing anything, we have to hope and set our goals. To take action is always better than to sit idly by. I want to look forward, never backward.
I have passed the management of the engineering center to Chu Hsin, and I think he has felt it. The way it is operated, it is unfair for people to criticize this firm as a family business. No matter what is said, I will always stick by this belief: "God knows the truth, but waits."