Archive for Korean Business Culture

Open Communications Korea Facing 2019

November 10, 2019 Korean Business Culture Comments Off on Open Communications Korea Facing 2019

Open Communications…

Checking emails at 2:30 AM.

Trying to not doze off and miss a late evening phone or Facebook Message call.

Responding early morning to a previous evening’s urgent Text.

This week we look at some of the new challenges as we’re finding more open and direct communications between Korean HQ and local teams. This is more and more commonly surfacing for teams.

Waking up to a rather lengthy request for revisions on a multi-page document that the Korean team needs to finalize as is due that day in Korea.

Open communications Korea facing business
Don Southerton

By its very nature, Korean facing business is the interaction of worldwide teams operating in different zones—with Korea and North America—their working days beginning as our ends and visa versa.

Beyond the different cultures globally working together on a daily basis, which I speak of often, we have seen the advancements in telecommunications as well as more open communications between working-level teams in the West and Korea.

(BTW I can recall a time when an international call between the US and Korea was not only costly but few Korean office landlines even had international access.)

That said, it’s now common for Staff in Korea to now pick up their mobile phone and reach out via an app for a one on one with a western team member. This contrasts with the old model where all communication between HQ and local subsidiaries went through and was screened by the local expatriate team.

The new model is not without its challenges.

For one, email requests often need clarification and even a message received in the AM in the West with hopes that by the end of day (morning in Korea) there will be substantial progress—without some clarity—little may have been accomplished.

More so, even if a request is made—local teams are often stretched thin—and any new workload can be seen as overwhelming.

Also common are End of Day requests—again sent at the beginning of the day in Korea—but received as the day is wrapping up in the West. In contrast for an expat team their “second day” often begins around 4-5 PM as the Korean HQ is back on-line and their work often running late into the evening—but for western employees working late is most often not an option.

I do have a number of work-arounds—most the result of nearly 20 years working directly with teams and leadership in Korea.

Here I share two among my long list many proven cross-culture approaches and solutions.

Hint 1

In the case of a last-minute request or a request that may require more clarity and/or substantial research….

As I learned from a senior Korean executive, in many cases Korea often requests local input so teams and leadership can finalize an important decision. They are aware of time restraints and that a comprehensive response could take days. Noting that they are looking for some input, even input limited in scope, that may help sway their decision—pro or con.

Hint 2

In the case of a request and not wishing to seem uncooperative—but unable to respond as requested due to commitments and workload….

Given my experience in dealing with urgent HQ request as noted in Hint 1, I suggest sharing with the Korean team that you’d be happy to assist but you’ll need additional time due to current deadlines, end of day, etc.

As a caveat, I always ask for their timeline and then share some options on when you may be able to assist. I have found what is assumed to be an urgent request often does have flexibility.

In closing, I feel the move to more open and direct communications between HQ and the local team is quite positive. It is not without its challenges as we learn to adapt, build relationships and work within the restraints in time difference, life balance and work hours.

I look forward to your thoughts and comments. Again, if needed I can share more regarding proven cross-culture approaches and solutions.

Don Southerton https://www.bridgingculture.com

Decisions, Timelines and Process

October 6, 2018 Korean Business Culture Comments Off on Decisions, Timelines and Process

As one delves deeper into Korea facing work what stands out is the “innerconnectiveness” of the workplace. This relationship impacts day to day business interactions such as decisions, timelines, and process.

decisions

Don Southerton

To share some background, Author Richard Nisbett describes the concept well in The Geography of Thought:

To the Westerner, it makes sense to speak of a person as having attributes that are independent of circumstances or particular personal relations.

This self— this bounded, impermeable free agent—can move from group to group and setting to setting without significant alteration.

But for the Easterner (and for many other peoples to one degree or another), the person is connected, fluid, and conditional…

The person participates in a set of relationships that make it possible to act and purely independent behavior is usually not possible or really even desirable.

Since all action is in concert with others, or at the very least affects others, harmony in relationships becomes a chief goal of social life.

As an example, in Korea, decisions must consider relationships both internal and external and the impact to the organization.

To share from a global project in which I was engaged, a meeting concluded following a high level presentation to division heads with the Korean leadership pleased, but deferring next steps until they “internally discussed.”

To the dismay of highly engaged Korean project team leads I was working within the days that followed assignments for key portions of the project were distributed to a number of other departments.

In private the project’s lead team was not pleased but accepted the mandate. There was no recourse since the parceling came from leadership. The lead team did not wish to create an issue despite knowing that the other teams with only domestic Korea experience were poorly equipped to handle the high profile global assignment.

Following the cultural norm, the lead team accepted the situation and sought to maintain organizational harmony above all—even knowing their project and even their own careers might suffer.

Again, the takeaway is in Korea facing work, many factors come into play…and one needs to take a cultural approach recognizing what may be a western norm and expectation can differ in other global markets.

As always I look to support you and your teams as issues’ surface. Situations vary and so do what may be the better approach.

Don

www.bridgingculture.com

Korea 2020 The Progressive Workplace

July 16, 2018 Korean Business Culture Comments Off on Korea 2020 The Progressive Workplace

This is the second of many sneak previews of my latest work in progress Korea 2020.  Comments welcome on the progressive workplace.

progressive workplace

Author Don Southerton

Even if a company implements a casual dress policy and does away with honorifics to facilitate communications, managers still won’t listen to us.  They are just old fogies in jeans.  A junior manager, 2017 Survey Korea Chamber of Commerce and Industry and McKinsey Consulting   
Chapter 1 A Progressive Workplace
In November 2015, I was asked by a journalist researching an article for The Economist to comment on the Korean workplace. The journalist’s premise as a foreigner was that significant change had already occurred.  I shared two points—first, office change was underway.  The best example of a progressive workplace was a firm I knew well — Hyundai Capital Services, a financial arm for the Hyundai Motor Group.  And two, due to stiff competition in Korea’s key overseas markets, in lots of cases, I saw the opposite of a liberalization of the workplace. In fact, new stricter policies were in place.
These points shaped the article. Addressing the first point, the progressive Hyundai Capital, the article revealed some of their policies.  I quote….
            MEETINGS to last no more than 30 minutes;
             junior staff allowed to speak freely with superiors; 
            a cut in bonuses for bosses whose teams do not take enough holidays. 
     
 My second point was that even though the new generation of workers sought change and companies’ endorsed change, older generations remain in firm control, especially in their overseas operations. Again I quote The Economist:
            Don Southerton, who advises South Korean businesses on how to manage their foreign operations, says many have been “going back to basics” since the slowdown in China and other big emerging markets. Their Korean staff has reverted to working longer hours and straining to hit short-term targets, under pressure from the bosses back in  Seoul.
 
            More South Korean companies appear to be tightening the screws at home, too: a  portal, found that almost half felt their company was disciplining them more than before: making them stick to a strict lunch hour, for example; or asking them to arrive   at the office an hour earlier; or in stricter dress codes.
 
            Relapsing back into old ways is unlikely to work, however, given the reluctance of younger employees to tolerate the strictures of the typical South   Korean workplace. Their expectations are “totally different” from those of their parents…
Fast-forwarding three years to 2018
Today, I do see a transition underway—a lessening pushback, too.   Companies have become more sensitive to work-life balance and many have broad mandates in place. Samsung and SK Group, as examples, have introduced a more simplified corporate hierarchy. Lotte Group has introduced stricter policies to support work-life balance including shutting down the company’s computers after working hours and requiring male workers to go on paternal leave.
 
More radical, workers are now boldly voicing publically concerns when policies are not upheld. Korean daily, Joongang News noted:
            When Kim Hyo-rin, 25, started her first job at a conglomerate, she soon realized that the company wasn’t as progressive as she thought it would be. 

            “Even though my company practices flextime and has a 40-hour workweek policy,  our department boss always looks at us badly if we come to work after 9 a.m., even though I work the full 40 hours,” said Kim.

            When she started the job, Kim was optimistic about working at a company with policies that seemed so worker-friendly.

            “Our company also has a policy that prevents senior colleagues from texting juniors about work-related issues after working hours and during weekends, but that rule is always ignored,” she added. “Nonetheless, our entire office is covered with posters  promoting these campaigns, which I feel are just for show.”


Change is underway.
Although implementation may be slow to take root in a growing number even leadership in the private sector, academia and government continue to stress the benefits of the progressive workplace.  Advocates point out the goal is a workplace in which employees are intrinsically motivated and evaluated according to their performance, not their seniority.
###

Generational influences in the Korean workplace 2018.

May 18, 2018 Korean Business Culture Comments Off on Generational influences in the Korean workplace 2018.

Today we are witnessing increasing generational influences and a divide in the Korea workplace.  Many firms are adapting to this change, as the workforce is increasingly a younger generation.

generational influences

Much of the generational influences change is driven by an Old Guard mentality vs. the New Guard.  The Old Guard, people in the 60s and 70s, holds to values and norms once common business practices in Korea. With the rise of the New Guard the older generation is increasingly marginalized as well as their influence.

This generational influences marginalization has accelerated with the latest round of Chaebol family succession well underway. As before with succession of the Chaebol Founders to a second generation of family control, which mostly occurred in the mid 1990s, all now is moving in to the third generation These heirs in the 40s are at the helm at Samsung, Hyundai Motor Group, and LG (as recent as this week), etc.  In turn, management and trusted advisors surrounding these Chaebol heirs are now of the same generation, too.

In fact, as a prelude to the recent successions we’ve seen the exiting of older senior management, most stepping down and into retirement.

Between these groups we find a layer of managers and executives described by the term “sandwiched” — used to denote a generation now in their late 40s and into the 50s.

This age group has social, workplace and political views influenced by western education and work abroad that differ from those of the older generation of people in their 60s and 70s.

But in many ways their values, which emphasize the importance of collective organizations such as work, nation, and society, are still similar to those of the Old Guard generation.

As a result, the “sandwiched” group’s mentality often clashes with the younger generation whose top priority is individual freedom.

As one “sandwiched” executive shared “When I was a rookie, I didn’t have any choice but to be quiet when I had an issue or I disagreed with my superiors. But nowadays, the younger generation boldly express their opinions in the workplace.”

In turn, this younger generation now expects management to emulate this norm of open discussion and expression—a behavior that the Old Guard also find unacceptable and improper.

A Changing Workplace

The introduction of the “team system” and western norms by many Korean companies to address issues of a hierarchy system and to improve efficiency has increased the difficulty for the Old Guard to give direct orders to younger workers.

As noted a veteran manager, “Many young workers don’t recognize the authority of their seniors. They often say ‘we are all members of a team. No more, no less’.”

Other Concerns

Adding to the challenge, the younger generation sees many faults in both “sandwiched” managers and well as the Old Guard.

For example, the younger group argues that both older generations often erroneously blame others for problems. “They don’t realize the real problem. They are really stubborn and pigheaded. They are not ready to listen to younger workers.”

“They keep saying that we have to do this and that, but they never set a good example for us. Naturally, we don’t respect them at all,” said a young Seoul professional.

An Internal Challenge

Similar to today’s organizations in America, Korean organizations are presented with the internal challenge of creating harmony and cohesiveness among multi- generational employees.

Individuals from each generation (i.e. traditionalist, baby boomer, Generation X, or Generation Y) bring divergent values, beliefs, attitudes, and expectations based on their life experiences.

These multi-generational labels may not be used exactly the same in Korea, but the issues that Korean organizations face caused by the gap between different generations are the same.

Individuals of each generation group grew up in the same time period witnessing and participating in common historical events as well as political and economic changes.

Therefore, these individuals with similar frames of reference have an easier time building bonds and working together in harmony than working with individuals from other generation groups.

The particular characteristics of each generation deeply influence how employees think about many aspects of organizational behavior, such as motivation, satisfaction, creativity, innovation, loyalty, commitment, and teamwork.

This accentuates the importance of understanding the distinctive characteristics of each generation group in order to engender successful outcomes.

###

http://www.bridgingculture.com

Korea Business Weekend Read 2

January 20, 2018 Korean Business Culture Comments Off on Korea Business Weekend Read 2
Korean business: 3 essentials

With the new year and 2018, I’d like to share a few weekend Korea business reads. All Korea facing– lots for overseas operations in the Americas, Ireland, UK, ME, India, Europe, and AU; lots that share insights into Korea and the workplace. Much very relevant for firms doing business with Korea or global Korean companies, too.

Here’s a link for a Download.
http://www.bridgingculture.com/assets/toolbox.pdf

One question we are getting with the new year is “Don, How Best Do We Work with You and Get the Team Support?” I happy to say many companies do recognize the benefits in offering our training, coaching, mentoring and strategy services…. and we take this role very seriously amid the uncertain changes soon to impact local operations .

Let’s chat.. dsoutherton@bridgingculture.com or better yet text +1-310-866-3777 then and we can chat by phone.

###…

A Korean Business “Working Within the Culture” FAQ

January 11, 2018 Korean Business Culture Comments Off on A Korean Business “Working Within the Culture” FAQ
Korean business: 3 essentials

Korean Business and Why do Americans/ westerners need Korean cultural training?

For westerners this may be the first time working with Korean business and a Korea team. This opportunity brings with it the need to better understand their new partner’s culture, workplace norms and expectations.

In most cases, the western team will be interacting with a Korean expatriate team. Some of the expatriates will hold a line managerial position with day-to-day responsibilities alongside western managers, while others will hold key management C-level positions, such as CEO, COO, or CFO. In many, if not most, cases these expats may operate as a “shadow management” with considerable oversight of local operations.

With the best of intentions, the expats will look to build strong collaboration and teamwork and advocate less a sense of us and them. However, they do bring with them Korean work norms that can conflict with western work-life balance and western ways of working.

More so, Korean teams may make seemingly one-sided decisions with the best interest of the company in mind but without consulting local teams causing mistrust.

A solid training program followed by on-going support can address differences, such as sharing work styles, hierarchy, and comfort levels, plus providing work-arounds.

 What are some typical issues that arise, especially without training?

As with all individuals, no two of us are alike –and the same goes for westerners and Koreans… Each has his or her unique strengths, skills, experiences and personalities.

That said, expecting local teams to simply “get it” without support and training seldom works. Even if a better understanding of the work culture eventually occurs over time, this “learn as you go” approach we see as costly, contributes to stress, poor productivity and even employee turnover.

 What have Koreans told you about Americans? Work habits, commitment, etc.

If you ask Korean expats how they perceive Americans and westerners in general, responses would be very positive and respectful, especially toward western work ethics and work habits. Koreans see great value in American and western teams providing them with new insights and perspectives, as well as best practice

What might be covered in such training?

I see the training as two fold — 1) providing teams with an understanding of the Korean partner’s history, heritage, trends and popular culture and 2) looking at the Korean workplace and its norms, practices, and expectations.

Above all I feel a best practice is to share similarities and shared values when possible, along with instilling an awareness of and respect for cultural differences.

Addressing the team’s questions and concerns is also vital with issues, such as work-life balance, safety and quality processes and procedures and the overall expectations of Korean partners.

 Anything else?

To conclude, the need for Korean business cross-cultural training programs for local employees and management is a high priority.

The assumption that local and expatriate teams can bridge cultural gaps through practical on–the–job experience might work with those few highly intuitive individuals with the exceptional ability to assimilate cultures.

What stands out in numerous studies, however, is the need for ongoing multicultural training, that can successfully impact people, especially those who need to quickly adapt to new or changing business culture and values, while fostering sensitivity and teamwork among all members of the company.

Finally, I would add that I have found a Korean business tiered service model – training, mentoring and on-going strategic support — to be the most effective approach for an organization.

www.bridgingculture.com

###

Everything Korea, December 7 Episode: Top 4 Ills

December 9, 2015 Commentary, Global Business, Korean Business Culture, vodcast Comments Off on Everything Korea, December 7 Episode: Top 4 Ills

Korean global business can come with some serious challenges, especially if dis-connects between teams are left unchecked. With mentoring, coaching and a strategy, it’s possible to reduce these ills, and greatly improve morale and operations. So what are some of the common issues? I have listed 4 that surface often, and frankly I deal with and provide solutions.

1. A common perception is that the allegiance of Korean expatriates assigned to a local subsidiary is to the Korean HQ over local matters. This in turn drives their actions to the detriment of the local operations.

2. Another overarching issue is Trust, especially with the sharing of information. Many feel it is one-way (Korea requesting data and reports) but little feedback from Korea. It can even be perceived that little or poor communication exists even between HQ departments, or with their sister affiliates and suppliers.

3. Koreans assigned to local operations need to be more receptive to change, and be more 50-50/ give and take in interactions.

4. Local teams were hired with expectations “to Do something– Build something Grand. “ Seeing little progress this can lead to poor morale at local operations and can result in the high turnover of employees. Some feel it also taints the ability of local operations to recruit new team members within their respective industry.

Again, these concerns can be addressed and mitigated. It’s what I do. Would you like to schedule a time to discuss your needs?

To facilitate and with my rather demanding workload and travel, Stacey, my personal assistant at stacey@koreabcw.com can schedule us for a time.

Everything Korea, November 30 Episode: The Economist looks at Korean corporate culture.

December 3, 2015 Commentary, Global Business, Korean Business Culture, vodcast Comments Off on Everything Korea, November 30 Episode: The Economist looks at Korean corporate culture.

This week’s episode shares thoughts from an interview with The Korean corporate culture.  I have attached a link to a PDF version. Take a few minutes and read. BTW The article appears in this week’s Print Edition as well in the Digital version…. Circulation 4.5 Million paper/ 2.5 million Digital …

The Article paints the Korean workplace as softening…. And I agree this is true at Hyundai Capital as they cite… and I feel Capital is perhaps one, if not the leader in crafting less restrictive and innovative workplace in Korea…

This said, and not a surprise for my viewers and readers, is how the article– in probing deeper–how many Korean companies in contrast have gotten tougher on staff … in fact it’s my point of view that this is more dominate force today in the Korean workplace especially in overseas operations, than a softening ….

Don Southerton, who advises South Korean businesses on how to manage their foreign operations, says many have been “going back to basics” since the slowdown in China and other big emerging markets. Their Korean staff have reverted to working longer hours and straining to hit short-term targets, under pressure from the bosses back in Seoul.

The article adds some companies (code word for the major Groups) in Korea appear “to be tightening the screws,” “making them stick to a strict lunch hour,” or “asking them to arrive at the office an hour earlier.”

All in all, I feel The Economist article reflects an ever-changing Korean workplace, one I share in mentoring, coaching and crafting a strategy to overcome the challenges.

Access Link to the Article

https://www.scribd.com/doc/291417799/Loosening-their-ties-The-

In the meantime, would you like to schedule a time to discuss your Korea facing business questions?

To facilitate and with my rather demanding workload and travel, Stacey, my personal assistant at stacey@koreabcw.com can schedule us for a time.

Everything Korea, November 16 Episode: Crafting a “Way”…

November 17, 2015 Commentary, Global Business, Korean Business Culture, vodcast Comments Off on Everything Korea, November 16 Episode: Crafting a “Way”…

Stepping back to August 2005, I was conducting cross-cultural training and coaching sessions at a manufacturing facility. In the early months of the plant operations, tensions between the American and Korean teams were mounting.

Startup operations are always a daunting task. The additional cultural dimensions and language differences only compounded the odds of having a smooth launch.

Recognizing the challenges, senior Korean leadership asked if I could provide team- building workshops that would allow the respective managers to better address escalating concerns and issues.

Consensus was that the problem was “cultural”—Koreans not understanding Americans and visa-versa. I had been working across their organization for several years and I had dealt with what I thought were similar situations.

However, a few hours into the team-building workshops I uncovered the true cause of the strained relationship, but it was not what I had expected.

Most of the American teams were production veterans—hand picked because they had been top performers at Ford, Toyota, Nissan, Honda, Mercedes Benz, and GM North American plants. In contrast, the Korean teams were career employees—most having worked for a decade or more at a sister plant in South Korea.

What surfaced in discussions was that many of the new American managers had been searching in earnest for a Way—documented policies and procedures that would guide them in decision-making and day-to-day work. For example, former Toyota managers looked for a model similar to the Toyota Way, while others who had worked for Ford Motor Company sought standard operation procedure manuals (SOPS). Not finding a set Way resulted in some Americans feeling that there might be a communications and language issue. More concerning, a few hinted strongly at trust issues and that Koreans were deliberately withholding vital information.

Listening to the group, I had a realization. Over the years working with the company and other Korea-based businesses, I found sharing historic background and differences between Korean culture and other cultures as a proven, effective and commonly accepted cross-cultural learning model. Nevertheless, it became crystal clear to me that what was truly needed in this situation was to clarify and impart an intangible—the Way or vision.

A Shared Mindset

Jumping forward several years… on a number of occasions I have shared my quest to better understand the companies’ Way (and triggered by the work at the plant ) with veteran Korean staff and executives. Time and time again, I found those long employed by the Company reflecting for a moment and then stating frankly that the company’s approach was not easy to explain.

For example, one senior Korean pointed out that within company there are several management styles and approaches to tackling an issue depending on the person’s lineage.

Groomed by their seniors, junior members of teams adopt the mentor’s methodology and leadership style—some “hard” and demanding, others “soft” and preferring collaboration.

Another executive imparted that their Way was acquired over time. He added that,with the exception of some minor differences among the sister companies, the transferring of key people among divisions, creates a shared mindset.

At a minimum, Korean teams understand the thought process and methods of others across the organization regardless of the affiliations.

The Korean executives did agree that understanding the corporate mindset by both Koreans and non-Koreans working across the organization was vital to the continued success of the Company.

In Contrast

Recognizing lessons learned in incorporating a Way in the operations of other American plants, I’d like to share a success model. In 2009 Korea based Kia Motors Manufacturing Georgia’s senior leadership took a bold approach Day One. The crafted their “Kia Way.” Key elements include:

  •  Continuous Improvement
  •  One System One Team
  •  Effective 2-Way Communication
  •  Cooperative Mindset
  •  Harmony Ÿ Teamwork Ÿ Trust

At the core, the “Kia Way” aligns teams—Korean and American. In particular, it provides continuity as new Korean expatriates are assigned to the plant, as well as Americans formerly employed within the manufacturing industry and who join the team in Georgia.

All said, I am strong advocate of crafting a “Way,” for Korean operations overseas—one that addresses and tailored to local needs while still aligning with the global organization Culture.

Would you like to schedule a time to discuss steps to implement a “Way” in your organization?

To facilitate and with my rather demanding workload and travel, Stacey, my personal assistant at stacey@koreabcw.com can schedule us for a time.

unnamed

Everything Korea, November 9 Episode: Mentoring Korea Expatriates

November 10, 2015 Commentary, Global Business, Korean Business Culture, vodcast Comments Off on Everything Korea, November 9 Episode: Mentoring Korea Expatriates

 

It’s common for Korean overseas business to embed Korean expatriates in their local operations. Their functions and responsibilities vary with each company, but frequently an expat’s role is liaison between Korea and the local subsidiary.  

For westerners unfamiliar with the Korean model, an expat’s responsibilities usually translate into the Korean required to sign off on all departmental decisions—trivial to substantial. This can be a huge challenge when newly assigned expats have limited background in or knowledge of the host country’s operations and market.

They do however know the mother company procedures well. They have been successful at their past assignments. And, they often were assigned to the headquarters’ overseas support teams, have traveled extensively to subsidiaries, and were educated or experienced life outside Korea. However, like western teams, their experiences and skills can vary.

Once overseas, workload can strong impact an expats’ performance.  Cognitively, they recognize localization is needed but, especially if under pressure to perform and hit goals, may defer to their former Korean HQ procedures and cultural norms.

What I strongly suggest is American management mentor new expats.  Here are my suggestions.

  • Mentoring Koreans is building on the relationship.
  • Express genuine willingness to support. Tell them that you care.
  • Ask, and listen to whatever they want to talk about.  
  • Then respond anecdotally if possible.  In many cases, share what other successful expats have done well in the past.

BTW

In Korea most team members have a Mentor within their company, in fact that’s the role of a Senior.  Much of the mentoring happened when they go out to diner with alcohol drinks.  Knowing it may be difficult to share with the boss their challenges, Mentors use the effects of drinking to get their teams to open up and talk.  

Would you like to schedule a time to discuss mentoring?  

To facilitate and with my rather demanding workload, Stacey, my personal assistant at stacey@koreabcw.com can schedule us for a time.

« Older Entries