Tag Archive for Don Southerton

Willingness to Change

August 12, 2018 Global Business Comments Off on Willingness to Change

The Culture Puzzle Part 1 and a willingness to change.

willingness to change

Noted Korea expert Don Southerton

When a western company enters an overseas’ market such as Korea, gaps in understanding commonly surface.  Most often the western brand and their team bring new ideas and an approach to the market.

This is nothing new.  In fact, many of today’s success stories result from looking outside the box.

For example, when Starbucks entered Korea, they encouraged customers to sit and enjoy their drink… as well as converse with a friend, read a book, surf the web or catch up on homework.

Prior, the Korean model was for a quick turnover — customers in and out the door.  This “stay” took some time to convince both the local Korean business partner and the customer.  Today it is the norm and only limited by seating availability.

Still, when companies change hands, merger or are introduced to international markets, it brings in new or different procedures.

In my experience, it is not unusual for Korean teams to pushback— as most companies might with market entry until they gain insights.

To some extent, local norms, regulations, and laws may dictate how the western brand must adapt and localize. That said,  most often with the pushback comes discussions beginning with the phrase, “But, in Korea,…”

Here we can find rigid thinking and risk avoidance overshadowing the openness to change. More so, western teams can feel that without fully embracing their brand or service’s nuances and business model, chances of success in the new market are reduced and may not even succeed.

Now the tricky part…

All said when to localize and adapt to the local tastes, preferences, and trends versus when to hold to the western model requires cultural finesse, an open mind and critical thinking.  This needs to unfold over time.

 

In Part 2 of the Culture Puzzle, I’ll look at Korean companies and their brands’ openness to adapt and localize in their overseas operations outside Korea.– and a willingness to change?

 

More to come…

https://www.bridgingculture.com

 

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The Face of the Company

August 5, 2018 Commentary Comments Off on The Face of the Company

When working with teams and leadership globally the challenge is to how best embed a company’s values in new corporate C-levels to entry-level teams–as all represent the face of the company.

As I have found in all my projects… when they bring in new American and western leadership, without a full immersion in their DNA….the new team members may cognitively recognize the company culture– but frankly defer to their own past ways.

For the auto industry if former Ford, Mazda, Toyota, GM or other brands…. in most cases I see them fall back on the former company norms and practices….and not really embracing the new Culture unless strong mentoring takes place….

This goes the same for other business sectors. I see a few exceptions…

BTW in Korea, all the major Chaebol have deep immersion into the respective corporate culture. These “boot camps”, most lasting for 4-6 weeks, cover all aspects of the firm’s operation.

In addition to classroom learning, they embed the new employee in actual day to day operations. For example, this may include a week on the line in manufacturing, or on the floor in their retail operations, and time in a service center. I even know a Korean food brand that requires it’s new executives to work in their restaurants alongside a chef in food prep for a week.

All said, hires regardless of rank and title are most often given a brief orientation then expected to jump into their new job. This is a reality.

My recommendation as they are the face of the company the team also gets structured ongoing coaching and mentoring that shares the company’s Culture and DNA. This needs to be a priority… as it’s easy to push off with urgent business matters taking precedence–the Urgent overtaking the Important, the later contributing to long-term success, missions, and goals.

Here as always….

Don

Gapjil and the Attack on Bullying

July 29, 2018 Commentary Comments Off on Gapjil and the Attack on Bullying

Gapjil ― bullying employees or forcing employees to be at one’s beck and call. A phenomenon associated with the hierarchical nature of Korean society and work culture.

This week we look at one of the more hard-hitting issues.  As in past three posts, please feel free to share your comments. All welcome and appreciated.

Gapjil Korean bullying

Don Southerton author

Constant change is a trait of the Korean workplace. Most often change is initiated within the company as top down leadership mandates. Corporate restructuring within the major Korean Groups is common.

Shuffling of teams within departments and divisions annually is expected. That said, other factors contributing to change in the workplace today are outside forces, including the media and whistleblowers prompted by inappropriate actions by those in power in both the government and the private sector.

One not-so-surprising change is the growing push back and reporting of the strong arm or gapjil tactics in the workplace. One of the reasons is the heightened press coverage over instances of bullying by the members of the South Korean elite and privileged family businesses.

Linguistically, gapjil is a uniquely Korea term… and provides a look into Korea culture. The word, a newly coined term, is a colloquial expression referring to the arrogant or authoritarian attitude by someone in a position of power over others. The Korean culture of high power distance and strong hierarchical organizations have shaped and reinforced these attitudes. Sadly, gapjil is so much a part of the culture that we find individuals as subordinates on the receiving end of bullying-type situations guilty of the same actions to those below them.

Owner Gapjil is the most common type of gapjil and the one drawing considerable media attention. In this scenario representatives or executive family members of a company treat their employees with contempt, using abusive language or even assault. Owner Gapjil reflects the mistaken view that employers can treat employees however they want because of the extreme vertical relationship between the two individuals.

The controversy and public scrutiny arise as Koreans become increasingly intolerant of the country’s biggest conglomerates, or chaebol, whose executives often act with impunity. The December 2014 “nut rage” incident gained worldwide attention and notoriety. The controversy centered on the overt belittling of a senior attendant by airline executive Heather Cho, daughter of the Korean Air Chairman, over the pre-flight serving of nuts, on board a departing Korean Air flight from NY’s JFK International Airport. The subsequent attempt by the Cho family and Korean Air to coerce employees to cover up the incident only added to public outrage. Similar “rages” continue to surface, adding to the fury over entitlement behavior among Korea’s elites.

Workplace Bullying
Workplace gapjil incidents have gone viral and Koreans have now started to perceive this as a serious problem. Previously, these incidents might have been dismissed or never reported for fear of retribution.

Studies report that the most frequently observed bullying behaviors are arrogant and crude language, abrupt task assignments, rejection of opinions, discrimination and character assassination.

On the positive note, public scrutiny has forced more companies to become sensitive to the issue and openly address complaints of bullying. Also, workers subject to abuse in the past are now speaking out in social media and reporting cases to whistle-blower sites.

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More on Don Southerton    http://www.bridgingculture.com

Sneak Peek Korea 2020

July 7, 2018 Commentary Comments Off on Sneak Peek Korea 2020

Working Title Korea 2020       Sneak Peek 1

In recent years my works Korea Facing, Secrets to Success in Korean Global Business (2013) and Korea Perspective (2015) both looked at Korea business–outside Korea, while Hyundai Way: Hyundai Speed (2014) was a deep dive into Hyundai Motor and Korean corporate culture. That said, over the past 3 years I have continued to author numerous published articles…. all the while pondering the next book-worthy topic.
My recent non-stop rounds of travel to South Korea has not only piled on the air miles but provided the needed research required to again begin crafting my next book.
Korea 2020

Seoul

As with past three books and those prior, I’ll be sharing chapter by chapter sneak peeks for comments, questions and in many cases your additional and much-needed thoughts.
To begin…Korea 2020
I work within two worlds, two cultures.  In my first, I support organizations outside Korea, often advising major Korean companies on their international operations or assisting western firms’ HQ C-suite leadership in their market entry ventures into South Korea.
My second is counseling leadership and teams, both western and domestic, in Korea.  As a highly respected friend and colleague recently noted to a group meeting introduction,  “Don has lived many lives in Korea.”
For the former, the overseas subsidiaries of most Korean companies have Korean management assigned to the host country. The general term for these representative employees is ju jae won. Within the local overseas organizations, they may be called Coordinators, Executive Coordinators or Executive Advisors.
Some expatriates may hold a line managerial position with day-to-day responsibilities alongside western managers, while others hold key management C-level positions, such as CEO, COO, and especially CFO.
Little Change
Frankly, over the past decades, little has changed in the expat model. The expatriates are consistently highly engaged in the local operations and decision-making.  More so, I see few differences from the past in their workplace dress, protocols, work habits and grueling long hours—even with generational shifts occurring.
Radical Change
Surprisingly, where I see the contrast is with the companies in Korea.  In fact, in what was once a sea of conformity and protocols, the workplace is undergoing radical change.
Exploring this change will be the core for my new book in progress—working title Korea 2020.   As I explore and share the new Korean workplace, I envision two audiences.  My first target group is those new to Korea and its workplace. For this, my work can serve as a study guide and primer.  The second target readership is the leaders and teams outside Korea and my goal is to help this group understand the changes underway within Korea.  I see this as vital to help them better make decisions.
Snapshots Tuesday PM`
Driving across Gangnam amid a summer rainstorm to a meeting with a Korean multi-national firm’s CEO, the newly appointed domestic leader—a Korean American expatriate.  His challenges—getting the local team to be open to change.
Wednesday AM
Meeting with senior leadership of a major Korean chaebol’s tech division.  The Korean senior vice president, a newly recruited America educated Ph.D., walks into the meeting in jeans and a dress shirt. His team– in a mix of casual dress –polos and collared dress shirts.
Thursday Early AM
Arriving at the worldwide headquarters for a top global brand, one notices the high-security measures now in place from vehicle checkpoints to heightened levels of document verification when signing in for the visit.
Escorted by a staffer, we’re joined by the team again in casual dress… in a workplace once best described for decades as  “ a sea of white shirts, ties, and dark suits.”
Thursday PM
Passing through similar security some hours later, we were greeted by a team and its lead engineer—again sporting a very trendy Ralph Lauren branded shirt. In quizzing his past work experience—we learn this engineer was recruited from a rival Chaebol—a once unheard of recruiting practice.
Their Vice President, a European—one of several in the company, and now heading up the division, joins the meeting. .  Despite a considerable difference in rank and experience, the Korean team and the VP collaborate as equals—their common ground—they are engineers.
Friday AM
A mid-level manager arrives in the office shortly after 9 AM—not unusual for the worker with a 45 to 60-minute commute.  Reflecting today’s workforce women in the office number the same as men. One notices the manager’s casual dress–sneakers and jeans with cuffs rolled up 10+ inches, the new trend.  Few heads turn as the employee walks over to a workstation. All is considered normal.
Stay tuned…
It is apparent to those long associated with Korea that the workplace culture is changing.   In sneak peek previews, as an observer of Korea, I’ll be sharing not only trends but also the impact of Change both in Korea and for operations and HQs outside Korea. Plus, my focus… the “why’ behind …
More to come… comments and questions welcome…Korea 2020
Don
 Copies of  ALL my previous works are available complimentary… just ask.
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Korean facing business interactions

June 4, 2018 Commentary Comments Off on Korean facing business interactions
This week we look at Korean facing business interactions in the workplace.
By its very nature, Korean facing business is the interaction of worldwide teams.
This necessitates colleagues of different cultures working together on a daily basis.  How we see others culturally is often in the differences and similarities.  (I like to focus on the later; as differences pull us apart and similar brings us together. More effective, too.)
Korean facing business interactions
Most old-school cross-culture books and program content dwell on sharing differences… so be wary.
Particularly for U.S.-based western teams engaged in Korean operations, I believe in the importance of learning about the workplace in Korea—the 2018 norms, practices, and day-to-day life. These insights allow us to better understand our Korean teams and their expectations. Recognizing can dispel stereotyping, prejudices and ethnocentrism.
Recognizing similarities is one of the most powerful cross-cultural bridges. In other words, to what can you relate in routine day-to-day life?  This requires identifying the local beliefs, values, expectations, traditions, and culture.
BTW   They are ever changing.
Outcomes
Although there is bound to be friction between home and host country cultural values, a successful model accomplishes:
Awareness and appreciation of both the home and host country with the ability to gain an insight into one’s own personal traits, strengths, weaknesses, attitudes, and interests.
Realization of similarities and shared values, along with an awareness of and respect for the cultural differences.
Noting the 2018 generational differences. ( if you missed my recent article on Korean generational in the workplace, let me know and I’ll get you a copy).  Lots vary in how Korean generations see and do business.
In closing.
How do you see applying Korean facing business interactions to you and your own experiences as well as working with Korean teams?
I look forward to your thoughts and comments.
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Cross-cultural Workplace Gaps

May 28, 2018 Commentary Comments Off on Cross-cultural Workplace Gaps

Happy Memorial Day…. some thoughts for a holiday read on the cross-cultural workplace.

Contracts, legal agreements, and business plans go hand in hand with global business. I was once told that in Korea the purpose of signing a contract or agreement was essentially to formalize the partnership. Over time terms would be subject to change and re-negotiation.

My Korea facing experience has been that agreements fundamentally solidify the working relationship. However, to maintain any partnership contractual obligations will require on-going changes to reflect business conditions. In contrast, a legal agreement in the West is immutable.

This week, I’d like to elaborate and bring into a broader cultural dimension re: the cross-cultural workplace.

cross-cultural workplace

Don Southerton

This Culture (with a big C) lesson is Koreans in the workplace and business see and prefer most things as “ gray” ever-changing and subject to revision. What’s set on paper matters, but as just as a Roadmap.

This ties into the “balli-balli” mindset, too.  See balli-balli, here, too.

In fact, Koreans in contrast to the Japanese see this “ flexibility’ as a competitive advantage…. They do craft elaborate and thoughtful business plans, organizational charts, job descriptions, and workflows — often crafted by junior and less experienced teams, but in reality, feel these are subject to change as circumstances shift. In the Korean workplace, the reality is all is ever evolving — shifting and adjusting daily.

In contrast western (US, UK, the Germans, AU) business feels most comfortable when we think through all the potential issues (often based on years of first-hand experience by senior executives) and then set things firmly on paper. In turn, any changes to for example, to a business plan, are subject to considerable scrutiny and critical thinking before altering.

As an option and best practice to working with both Cultures, first and foremost building the relationship and communications matters most. Misunderstandings will surface, but when both teams better understand each other’s mindset, we can move to collaboration and compromise.

In mentoring, I strive to build this understanding, pulling apart the issues to their cultural core, and sharing how to best build bridges and close gaps — something which is more art than science ☺ and not without its challenges in the cross-cultural workplace.

DS

Globalization and Trustworthy Management

April 21, 2018 Commentary, Global Business Comments Off on Globalization and Trustworthy Management

Each weekend I turn my thought to sharing topics on Korea business. This week it’s my article on Globalization and Trustworthy Management  from Korea Herald titled:

‘The Tall Man’ and the Globalization of Hyundai Construction

Hotel Architect Bill Swank opens Chaebol to West through Trustworthy Management

Globalization and Trustworthy Management

Bill Swank The Tall Man

Bill was the first westerner hired by the Hyundai Group.

The story was written in 2013, but still timely.

Bill passed away in February 2014.  It was an honor to know him. Bill was a huge advocate for my work.

Bill was the first westerner hired by the Hyundai Group.
Article Link

http://www.koreaherald.com/view.php?ud=20130729000587

 

 

Questions, Comments, Thoughts?

DS

A Question on Korean Decisions

March 14, 2018 Commentary Comments Off on A Question on Korean Decisions

Earlier this week I was asked for a cross-cultural insight into the “why” behind Korean expatriates intervening in what some feel is the local decisions process. More so, these decisions may be one-sided, lack collaborative and mutual engagement and have consequences.

Decisions

In turn, western teams see themselves consulted only to validate preconceived ideas or to implement directives from Korea.

This has to lead to in some cases local Western management seeing their input and expertise being marginalized– more so with complex situations and long-term planning “drilling deeper” may uncover ramifications.

 

In my experience due to the hierarchical Korean approval model, decisions take time–lots of time 🙂  That said, when Korean teams are under enough pressure they are driven to take immediate action. With no ill intent and out of expediency, it can result in little local joint discourse related to potential trade-offs and risks in projects assigned to the local subsidiary.

Particularly deep local concerns on this narrow and reactive workplace approach, one can draw an analogy to jigsaw puzzle building.

All Possible Options? 
The pieces to a puzzle have many unique sides. There may be different ways to place them into the puzzle. What is required is to look diligently at all possible options.
Like all challenges, one needs to explore the different possibilities to find the right solution and how the piece fits into the overall puzzle—essentially one needs a reflective mindset.
As a Korean colleague has pointed out, their society beginning with grade school does not promote reflective thinking and instead looks to promote a thought process that leads to more immediate results. In fact, Korean high school students spend more than 14 hours a day studying, memorizing and preparing for exams—a model that stifles creativity.
I also see a cross-cultural aspect with many Korean decisions the result of a team workplace’s collective thought process, and in contrast, reflective thinking stems from an individual’s core consciousness.
Bottom line – reflective thinking requires taking acquiring knowledge and then calling upon one’s own experience, utilizing evaluative skills and admitting a personal bias.
The result is a broader perspective and a better view of the bigger picture.
Without working through a robust analysis of a problem from multiple angles and considering potential repercussions a solid evaluation can never arise.
 
All this said, my message for Korean teams is that there are immediate benefits to thinking outside the box through a reflective and conscious lens, the time invested in the analysis will lead to most effective solutions—required in times of high stress.
Questions? Here as always…
DS

Ten Valuable Insights into Korean Business

March 10, 2018 Commentary Comments Off on Ten Valuable Insights into Korean Business

This read shares Ten Valuable Insights into Korean business. This is something I often incorporate into advising and mentoring. That said, we have to admit US-North Korea talks top the list of newsworthy topics this week, although the Steel and Aluminum trade issues are not to be overlooked. I do have my opinions 🙂

Ten Valuable Insights into Korean Business

On  Ten Valuable Insights into Korean business ,,, As food for thought, I am not advocating we drop Western norms and practices. In fact, it was developed in collaboration with a senior Korea manager more as a reference.

Specifically, we looked to share a perspective and explain to the local team the company culture in Korea — the Westerner employees lacking first-hand knowledge in the mother company and seeing the Company only in their local operations.

Ten Insights

• Trust There is a very strong trust within teams and in the company. This is often because of a legacy in achieving many bold accomplishments — often seemingly impossible tasks.

• Family Traditional family norms permeate the work culture (Elder brother as boss, senior managers, etc.) and the related concept that co-workers are seen as family.

• Challenge A one-word summary of the Korean workplace would be Challenge — both in what it has overcome and in what it expects of its global employees.

• Input Companies are very hierarchical but actively demands input from all levels. In fact, top management make decisions based on the expectation that the lower levels have considered all possible outcomes and challenges.

• Teamwork Once a decision is made all dissenting or differing opinions unite to embrace success.

• Solution In Korea, employees do not bad mouth or put down their company. In fact, employees feel that such an attitude is “part of the problem” and not “part of the solution.” Even among friends, negative thoughts are not shared.

• Relationships From higher ranks to the lower ranks, they are very hierarchical. But, here are also very protective organizations. On one level, norms dictate that Seniors are demanding of their Junior employees. One reason is to make sure Juniors learn the work expectations, practices, and culture.

On another level, workers must ensure that mistakes are not made that could reflect badly on their Seniors the department or the company. Once a Junior works for a Senior that Jr. is part of a network of other employees under the umbrella or protection of the Senior.

• Expectations There are very high expectations that must be met. Doing a great job is what you are paid to do…

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• Collaboration The American workplace process is often to receive an assignment, clarify details, go off, work hard, and come back to the manager with the result. The Korean staff will take a different approach. They will receive an assignment, work and discuss it collectively with others, and go back to the manager on multiple occasions informally to make sure they are following the path the manager wants. This method takes times, but Korean workers know when the manager sees the result, it will be what the senior requested.

And in closing and  Ten Valuable Insights into Korean Business …we conclude w/ Adaptability     Flexibility and acceptance of change. Projects are subject to lots of change — some speed up, while others stall.

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https://bridgingculturekorea.blogspot.com/2018/03/ten-valuable-insights-into-korea.html

Weekend Read # 8: Relationships

March 3, 2018 Commentary Comments Off on Weekend Read # 8: Relationships

Relationships… 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.

This March weekend read provides some recommendations.

relationships

Relationships matter

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 relationships 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 the 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, 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.

http://www.bridgingculture.com

 

 

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