Everything Korea September 11 Episode. A Revisit- Working with Korean Teams

Korean Business with Don Southerton

For most of my career I have worked with Korean teams—many based in Korea, many in local overseas operations. I find both exchanges rewarding, but very different and require a varying set of skills. I’d like to offer some best practices.

To begin

We find with Korea facing international operations the primary communication channel between the Korean HQ and local subsidiary is through expatriates—although in some cases this is shifting.

In key positions, Korean expats serve in roles including the CEO who is responsible for managing the local company or region. The CFO and technical support can be expats, too. Most often these Korean expats along with local leadership executive form the core for business operations in the host country.

By the way, the expats below senior management are often referred to as “Executive Coordinators” or “Executive Advisors” in the West. As a caveat, this model does vary some and in some organization we see a mix of “Coordinators” and Korean assigned as line managers. However, the Korean term for these expatiates is ju jae won.

In the larger overseas subsidiaries, the Korean expats are assigned to the major departments.

In many instances, as I mentioned, the expat Coordinators are not assigned a direct managerial role but still hold considerable oversight over the local operations.

Roles vary with each company, but frequently a Coordinator’s primary role is to be a departmental liaison and communication channel between Korea and the local subsidiary.

That said, for westerners unfamiliar with the Korean model, this “oversight” usually translates into the Korean expats requiring sign off on all decisions—trivial to substantial.

This can be a huge challenge when newly assigned expats have little specific background in or knowledge of the host country’s operations and market. More so, when their decisions are motivated by what they feel would please the HQ in Korea.

Cognitively, they do recognize local management skills and expertise, but especially if under pressure to perform and meet expectations may defer to engaging in decision-making.

Of course, this can be a challenge.

New ju jae won are skilled and accomplished in Korean style business operations, norms and practices.

However, they are now assigned to an overseas subsidiary where norms, practices, expectations, and laws differ. Adding to this “Managing westerners” is very different than overseeing a Korean team…

Next, I’ll cover several scenarios with best practices for supporting overseas team. All take finesse and collaboration, plus recognize norms and practices differ… as well as require working “within the Culture.”

To again clarify, my perspective is based on years working with Korea and especially in daily mentoring and providing strategy for their overseas operations—Koreans and Westerners.

Scenario One

It’s common for a Korea expatriate, frequently called a Coordinator, to directly request members of the team to gather information or data on the local operation. Usually, Korea has asked for this information and the Coordinator is executing the request. These always have a sense of urgency.

The Challenge is the local departmental head may be circumvented (often unintentionally)…. and requests disrupt operations and designated priorities. More so, the line of management for the department is blurred—i.e. staff confused on “who is in charge.”

The Workaround centers on an effective working relationship between the Coordinator and the department head. An understanding must be reached that when requests from Korea (or from the senior Korean leadership at the subsidiary), it is first brought to the department head… and they handle who will execute.

In particular, the local western manager is more familiar with their team, individual workloads, any special situations and skill sets. In fact, with a clear communication channel the work will be performed with better results by the individuals tasked with the assignment, and less stress on the Coordinator asked to acquire the data.

As a caveat, one burden on a department can be when a high percentage of work and tasks teams are engaged are to support Korea and not the local operations.

Scenario Two

As noted, a Coordinator’s role is to support the local operation. Local teams and specialists are hired with a high degree of knowledge and experience. A clash occurs when decisions best left to those in the know are deflected.

The Challenge occurs when Coordinators override a decision or unilaterally make the call. This can range from the hiring of new employees to pushing off a much-needed program.

Again, the Workaround is a clear Company-wide defined role for the Coordinator. They are advisors who can provide much-needed input and an HQ / mother company perspective… but not assume line manager responsibilities.

In other words, clarity must be established in regard to as long as they are acting on behalf of the mother company considerable weight must be given to their input. That said, even when they have the company’s best interest in mind, their own personal views must be gauged and moderated.

Scenario Three

Perhaps the most challenging situation is moving Coordinators to make a decision.

The Challenge In most Korean companies leadership decide on direction and major issues. In turn, the working team’s role is to implement or gather needed information. This role/ skillset changes when working level Koreans are assigned as an overseas Coordinator.

Workaround When conducting a meeting where a decision must be made recognize that your Coordinator will have considerable say in the outcome. First, since the topic and subject matter may be new to your Coordinator, I recommend you share prior to the meeting any needed background documents (best provided in PPT format).

In addition, have an informal pre-meeting Q&A with the Coordinator to brief and update them on any specifics. Note: they may need a day to review proposals and agreements, so timing is critical.

Even in the best cases, expect that the Coordinator may want to postpone any decision until they can carefully review and perhaps confer with Korea. I suggest all documents and meeting PPTs be immediately forwarded to the Coordinator.

I’d create a sense of urgency with a timeline for execution and implementation. Regardless, expect some delays and be patient.

Over the years, I’ve found that Coordinators appreciate when their overseas co-workers recognize that the internal approval process takes time and be ready to offer, as needed, additional supportive data or documents.

BTW, if you are a vendor and your firm provides services to a Korea-based partner, it’s best to provide both the western and Korean teams with background information prior to any meetings. Moreover, be prepared to share the meeting’s content in digital format afterward with the Korean team, too.

With the shift to ever-increasing daily interactions with Korean HQs via web and phone conferences, western teams need even deeper practical insights into working within the Culture along with new skill sets.

In particular, the Executive Coordinator/ Advisor model has had its limitations…but the Koreans assigned as expatriates do learn local norms and adapt over time. This means the Coordinators mold to local operations with a little need for many of the local teams to become skilled in Korea workplace norms.

In contrast, working with teams based in Korea takes a different approach.
Korea-based teams follow deeply embedded HQ and company norms. They are not likely to model or adapt to their overseas subsidiaries.

This now means 1) becoming acquainted with Korea norms, understanding the Korean workplace “in’s and out’s” and “do’s and don’t.” And, 2) developing strong skills in managing the relationship with effective cross-communication taking on a new heightened significance.

Over the past years, I’ve shared solutions in my books, articles and case studies… that said, I find that each situation requires one having to drill deeper to truly grasp and then provide a solid resolution.

Thoughts?

As always, Stacey stacey@koreabcw.com, my assistant can schedule us a time to meet or chat by phone.

For all urgent matters, text me at 310-866-3777

For more information on my work…. www.learnmore.Koreabcw.com

 

Everything Korea; September 5 Episode, Korean Business Relationships Amid Acceleration

 

Korean Business with Don Southerton

 

Amid disruptive market conditions perhaps the greatest ripple effect challenge to Korean global business is how best to maintain positive and collaborative working relations between Western and Korean teams.

 

From a cross-cultural perspective Korean commerce is dependent upon relationships and interpersonal interactions. Western business, in contrast, leans toward process and procedure.  Therefore when Korea-facing working relations are strained culturally, there is a heightened impact throughout the entire organization.

Without discounting market conditions and intense pressure to meet aggressive sales goals, I see impact of adapting to a rapidly changing and disruptive business landscape at the core of many strained relationships.

As author Thomas L. Friedman points out in Thank You for Being Late:

“As we transition from an industrial-age economy to a computer-Internet-mobile-broadband-driven economy—that is, a supernova-driven economy—we are experiencing the growing pains of adjusting. ”

Drilling deeper, I have found this acceleration has markets and industry sectors ever shifting. For example, the automotive industry is witnessing and adjusting to new consumer preferences, such as collaborative consumption shared ride services of which Uber, Lyft and Maven are examples, self-driving autonomous technology and eco-friendly vehicles.

That said, we as a society are also experiencing the need to adapt more frequently and at a more rapid pace than ever in the past.  The good news is we are perhaps adapting faster than anytime in history.  Still there is a substantial gap in the high rate of change and speed we adapt. This gap is disorienting and business models that worked in the past have become outdated further adding to stress and frustration.

In my work, this leads to a Korea driven climate of reactive and hopeful second-guess decision-making, or, in some cases, the opposite in stalled action. In both situations, I feel we need to embrace a middle course— a well thought out and responsive plan.

Again Thomas Freidman, too, recognizes this need to ponder.  He notes, and I paraphrase:

Patience… space for reflection and thought. We are generating more information and knowledge than ever today, but knowledge is only good if you can reflect on it.

In closing I return to my original point of the vital importance of maintaining relationships amid the current market condition.  No matter how challenging the situation we need to take time and work to forge strong collaborative bonds within teams Friedman again remarks:

“And it is not just knowledge that is improved by pausing. So, too, is the ability to build trust, …to form deeper and better connections, not just fast ones, with other human beings, our ability to forge deep relationships—to love, to care, to hope, to trust, and to build voluntary communities based on shared values—is one of the most uniquely human capacities we have.”

 

The Korean Business Toolbox 2017

I’d like to share a new Korean business Toolbox that provides solutions to a recurring and deep concern by western management of South Korea-based companies. I find this issue surfacing often and so draw upon what I have found to work best to overcome and move forward.

Here’s the Link. http://www.bridgingculture.com/assets/toolbox-2017_-intervention.pdf

In crafting the Toolbox over the past month and sharing sections as drafts, it’s received considerable feedback and positive reviews. These are always much appreciated.

As always we look for your comments and thoughts, too. So please share.

DS

Korean Global Dining Leader Looks to the Americas

This week, I’d like to share three popular South Korean chef-inspired restaurant concepts that are moved into the second phase of international expansion. Successful launched in South Korea and Asia, Seoul-based SUN AT FOODS now plans to bring their handcrafted artisanal cuisines to the U.S and the Americas.

One of my longtime personal favorites, which I have talked about often, is Mad for Garlic that first opened in 2001. They are known for their garlic-specialized Italian cuisine served in rather unique restaurant settings.

I feel their secrets are Mad for Garlic’s method of removing the garlic’s pungent smell and unique way of cooking Italian cuisine with a Korean twist. In Korea and Asia they have won the hearts of both garlic and non-garlic lovers.

mad for garlic America

Building on the success of Mad for Garlic are two new concepts Modern Nulung and Bistro Seoul.

Inspired by 1930s Shanghai Renaissance era, Modern Nulang is the combination words of ‘Modern’ and ‘Nulang’ –the latter meaning ‘woman’ in Chinese. They have reinterpreted the era’s ‘modern women’ in their dishes, which guests describe as ‘Sophisticated’ and ‘Romantic’ Chinese Cuisine. Best of all, folks love indulging in an exotic Shanghai dining and cultural experience captured so well in Modern Nulang.

Modern Nulang America

A third concept is Bistro Seoul. Here they offer authentic Korean cuisine made with fresh ingredients and seasoning prepared in a traditional but modern interpretation. Savory dishes include Grilled Short Rib Patties, and their ever popular Korean style pancakes that include Kimchi & Seafood pancakes, Crispy Potato pancakes and Minced Shrimp & Seafood pancakes.

Bistro Seoul America

SUN AT FOODS plans are now underway targeting top regional U.S markets as well as meeting with industry leaders and potential regional developers. In fact, I am their market development consultant and we’re eager to meet with potential partners to share the three concepts—each with their unigue appeal.

For more information on the brands, please contact Stacey my assistant at stacey@koreabcw.com, and she can schedule a time to meet or chat by phone.

 

For all urgent matters, text me at 310-866-3777

 

#everythingkorea

 

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Everything Korea, April 10, Working with Korea 2017, Part 2

In this Part 2 of my “Working with Korea 2017” series, I cover several scenarios with best practices for supporting overseas team.

All take finesse and collaboration, plus recognize norms and practices differ… as well as require working “within the Culture.” To again clarify, my perspective is based on years working with Korea and especially in daily mentoring and providing strategy for their overseas operations—Koreans and Westerners.

Scenario One

It’s common for a Korea expatriate, frequently called a Coordinator, to directly request members of the team to gather information or data on the local operation. Usually, Korea has asked for this information and the Coordinator is executing the request. These always have a sense of urgency.

The Challenge is the local departmental head may be circumvented (often unintentionally)…. and requests disrupt operations and designated priorities. More so, the line of management for the department is blurred—i.e. staff confused on “who is in charge.”

The Workaround centers on an effective working relationship between the Coordinator and the department head. An understanding must be reached that when requests from Korea (or from the senior Korean leadership at the subsidiary), it is first brought to the department head… and they handle who will execute.

In particular, the local western manager is more familiar with their team, individual workloads, any special situations and skill sets. In fact, with a clear communication channel the work will be performed with better results by the individuals tasked with the assignment, and less stress on the Coordinator asked to acquire the data.

As a caveat, one burden on a department can be when a high percentage of work and tasks teams are engaged are to support Korea and not the local operations. Part 3 in the series will provide some thoughts on shifting workload dedicating to Korea requests to actually running the local operation.

Scenario Two

As noted, a Coordinator’s role is to support the local operation. Local teams and specialists are hired with a high degree of knowledge and experience. A clash occurs when decisions best left to those in the know are deflected.

The Challenge occurs when Coordinators override a decision or unilaterally make the call. This can range from the hiring of new employees to pushing off a much-needed program to the next year.

Again, the Workaround is a clear defined role for the Coordinator. They are advisors who can provide much-needed input and an HQ / mother company perspective… but not assume line manager responsibilities.

In other words, clarity must be established in regard to as long as they are acting on behalf of the mother company considerable weight must be given to their input. That said, even when they have the company’s best interest in mind, their own personal views must be gauged and moderated.

Scenario Three

Perhaps the most challenging situation is moving Coordinators to make a decision.

The Challenge- In most Korean companies leadership decide on direction and major issues. In turn, the working team’s role is to implement or gather needed information. This role/ skillset changes when working level Koreans are assigned as an overseas Coordinator.

The Workaround- When conducting a meeting where a decision must be made recognize that your Coordinator will have considerable say in the outcome. First, since the topic and subject matter may be new to your Coordinator, I recommend you share prior to the meeting any needed background documents (best provided in PPT format).

In addition, have an informal pre-meeting Q&A with the Coordinator to brief and update them on any specifics. Note: they may need a day to review proposals and agreements, so timing is critical.

Even in the best cases, expect that the Coordinator may want to postpone any decision until they can carefully review and perhaps confer with Korea. I suggest all documents and meeting PPTs be immediately forwarded to the Coordinator.

I’d create a sense of urgency with a timeline for execution and implementation. Regardless, expect some delays and be patient.

Over the years, I’ve found that Coordinators appreciate when their overseas co-workers recognize that the internal approval process takes time and be ready to offer, as needed, additional supportive data or documents.

BTW, if you are a vendor and your firm provides services to a Korea-based partner, it’s best to provide both the western and Korean teams with background information prior to any meetings. Moreover, be prepared to share the meeting’s content in digital format afterward with the Korean team, too.

Questions, Comments?

Email me at questions@koreabcw.com Your comments, all kept private and confidential.

Other questions? Stacey, stacey@koreabcw.com, my assistant can schedule us a time to meet, or chat by phone. For urgent matters, text me at 310-866-3777.

Everything Korea, April 3 Episode –Working with Korean Teams, Part 1

For most of my career I have worked with Korean teams—many based in Korea, many in local overseas operations. I find both exchanges rewarding, but very different and require a varying set of skills.

In this Part 1, I offer some insights into the overseas teams assigned to local subsidiaries.
Part 2 will cover my recommendations and best practices for supporting overseas teams, including work-arounds to common issues that surface—for example when department-level expats assigned to “support” local executives begin to assume more direct control over day to day operations.
Part 3 will look at working with Korean teams based in Korea.
To begin

We find with Korea facing international operations the communication channel between the Korean HQ and local subsidiary is through expatriates– although it is shifting some and I’ll cover more in Part 3.

In key positions, Korean expats serve in roles including the CEO who is responsible for managing the local company or region. The CFO and technical support can be expats, too. Most often these Korean expats along with local leadership executive form the core for business operations in the host country.

By the way, the expats below senior management are often referred to as “Executive Coordinators” or “Executive Advisors” in the West. As a caveat, this model does vary some and in some organization we see a mix of “Coordinators” and Korean assigned as line managers. However, the Korean term for these expatiates is ju jae won.

In the larger overseas subsidiaries, the Korean expats are assigned to the major departments.

In many instances, as I mentioned, the expats Coordinators are not assigned a direct managerial role but still hold considerable oversight over the local operations.

Roles vary with each company, but frequently a Coordinator’s primary role is to be a departmental liaison between Korea and the local subsidiary.

That said, for westerners unfamiliar with the Korean model, this “oversight” usually translates into the Korean expats requiring sign off on all decisions—trivial to substantial.

This can be a huge challenge when newly assigned expats have little specific background in or knowledge of the host country’s operations and market.

Cognitively, they recognize local management skills and expertise, but especially if under pressure to perform and meet expectations may defer to engaging in decision-making.

Of course this can be challenge.

New ju jae won are skilled and accomplished in Korean style business operations, norms and practices.

However, they are now assigned to an overseas subsidiary where norms, practices, expectations, and laws differ. Adding to this “Managing westerners” is very different than overseeing a Korean team…

All said, I do have proven recommendations and workarounds, so look for Part 2 in the series.

In the meantime, I’d like to ask if you could share your experiences working with expat teams. Email me @ questions@koreabcw.com Your comments, all kept private and confidential.

Other questions? Stacey, stacey@koreabcw.com, my assistant can schedule us a time to meet, or chat by phone. For urgent matters, text me at 310-866-3777.

Everything Korea March 27 Episode Chaebol Restructuring and Reform 2017

Reform in South Korean reaches back to the Asian Financial (IMF) Crisis of 1997.
A bailout package from the International Monetary Fund (IMF) shut down insolvent banks and pushed debt-ridden industrial companies into receiverships. The remaining Groups still standing had little choice but to follow government mandates including restructuring and greater transparency.

In some ways little has changed 20 years later… regulators continue to pressure the leading Korean groups to take on a more transparent corporate governance structure– now in the form of a Holding Company model.

So, what is a holding company?

A holding company is a legal entity that owns other companies’ stock. Holding companies typically do not run these businesses, but they do wield control over their affiliates or subsidiaries. In turn, a holding entity collects fees from operating units for the use of the corporate brand, which is considered an asset.

The Korean government has gone back and forth between tightening and loosening regulations on chaebols over the years, and the trend now is toward tightening.

More so, following the Impeachment and graft scandal involving Former President Park Geun-hye, which pulled in Samsung, Lotte and SK, politicians are calling for even greater reform.

Complicated Steps

In most cases, the Model is for a Group to split itself, often the flagship company, into an ownership company and an operating company as part of a complicated set of steps.

This said, South Korean laws mandate a holding company must own at least 30 percent of its publicly traded affiliates. This poses the challenge.

For example, the Samsung Group were to move towards a holding company model with flagship Samsung Electronics as the entity, it would require the flagship to buy additional shares in some of its affiliate companies at a cost of millions.

All said, Korea’s conglomerates are increasingly being reined in with new laws and taxes that seek to hold family members accountable and to increase the transparency of their organizations.

More significant perhaps is a disruptive public mood and presidential contenders who “pledge to shake up corporate governance as they lay out reform agendas.”

Everything Korea, March 20 Episode Move Forward Within the Culture.

That’s my message this year in both commentaries and on-site presentations. It captures my work, which is to provide companies, leadership and teams with how best to work effectively… taking into account Culture plays a huge role in their workplaces.

This week we’d like to share 2 publications, too.

Korea Perspective (2015)

http://unbouncepages.com/korea-perspective-launch/

and Korea Facing: Secrets for Success in Korea Global Business (2012)

http://unbouncepages.com/korea-facing/

They compliment each other. One builds upon the other.

Together both explore issues. Together they provide workarounds for challenges that surface.

Follow the links and we’ll forward PDF copies.

All said – I’m passionate about providing needed strategy, skills and mentoring offered in these books as well as programs like Korea 101℠.

My goal is for Companies, executives and teams to “move forward within the Culture.”

To discuss about more a Korean facing business question, Stacey stacey@koreabcw.com, my assistant can schedule us a time to meet or chat by phone.

For all urgent matters, text me at 310-866-3777

Everything Korea March 13 Episode: Korea 101 Foundation for Understanding Korea Business

When you ask somewhat “what are you most passionate about?” It can be very revealing—family, work, hobbies, sports, and social issues.

For me and my work its sharing Korean business culture and, in particular, strategies to succeed with the Culture.

Since 2004 I have offered programs and mentoring to thousands across America and internationally. A flagship Korea 101 program has served as the core for this Korean business culture mentoring. In turn, this training and coaching builds upon current experiences of the teams, while providing new understandings that lead to solutions.

Both our on-site and web-based programs have been offered to teams not only in America, but also in Canada, UK, Belgium, Germany, Russia, AU, India, South Korea, and the Middle East.

Customized versions have been professionally recorded and distributed worldwide to organizations and incorporated in their in-house programs.

Ideally the program is on-site over 4 to 6 weeks—each class a 1½-hour session. That said, we have a number of options including half and full day immersion programs.

Korea 101 and 201 programs are also an integral part of on-boarding and mentoring for key executives and management.

I like to highlight that we find participants genuinely care about their work and the company, and acquiring the needed skills offered in Korea 101 specifically help them to move forward within the culture.

Finally, the key to the success of our Korea programs has been the strong endorsement of our partner firms’ CEOs, senior American and Korean management, and across their teams. As organizations they realize that their teams need support. Expecting employees to “get it” without training and coaching rarely works. We are proud to work with our partners and their teams.

To chat about Korea 101 or a Korean facing business question, Stacey stacey@koreabcw.com, my assistant can schedule us a time to meet or chat by phone. For all urgent matters, Text me at 310-866-3777

Everything Korea March 6 Episode: Back to The OC

I’m taking a week off from sharing commentary on the Korean car brands, market entry best practices, the Korean presidential impeachment, the indictment of Samsung’s de facto leader, and North Korean sword rattling.

However, beginning next week a Korea 201 program on Korea corporate and business culture will have me back in The OC (Orange County, home to the US HQs for Hyundai Motor, Kia Motors, Genesis, MOBIS Parts, Innocean, GLOVIS, Autoever, the California design centers, and Hyundai Capital. )

Amid meetings, days are filling up, but times are still open on Wednesday and Thursday.

As always, Text, Facebook Message, Linkedin Message or Email, and we can arrange a time. Or, Stacey stacey@koreabcw.com, my assistant can schedule us a time to meet, or chat by phone. For all urgent matters, Text me at 310-866-3777

BTW

If you have not had an opportunity to read my recent articles, here are the links

Globalization Requires a Better Process for Korean Car Makers – Lessons https://brandinginasia.com/attracting-top-talent/
Analysis: South Korea – Four Best Practices for Market Entry https://brandinginasia.com/south-korea-market-entry-2/
Inside Look: South Korea – Market Entry and Barriers https://brandinginasia.com/south-korea-market-entry/
Creative Culture vs. Process in South Korea https://brandinginasia.com/creative-culture-korea/

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