A client recently shared the content and deep understanding I had shared on Korea, specifically on working with Hyundai.
The term “Hyundai Whisperer” has been used to describe my consultancy both for working with teams and in the media.
This continues, and more recently, in my work and interviews with Korea Times, CNBC, and Branding in Asia, where I have focused on the “big picture” of transforming the Hyundai Motor Group from a fast follower to a game changer.
I see my role as supporting those new to Hyundai and those engaged but with little insight into “working with culture,” its processes, expectations, and ever-changing norms.
I will continue to provide “knowledge of the tribe, ”insights, and client support worthy of the title — the “Hyundai Whisperer.”
Would you be interested in learning more? Let’s chat.
You’re training and follow-up insights have saved my career (and a few others) as we could not have survived the culture clash.
Don was our secret weapon.
The expertise and wisdom that Don brings to the discussion is insightful and practical. Cross-cultural business differences can be very challenging to overcome, and it takes both a knowledge of business practices and how complex cultural uniqueness interweaves into those practices to be successful.
No one knows more about how the global business community needs to understand Korea than Don.
Don is the guru; the guy CEOs want to have their voice heard with… Don is truly “The Hyundai Whisperer” a trusted mentor to many in our industry.
As a follow up to news on Hyundai Motor Group chaebol reform, we are seeing some interesting developments. First Samsung is one of the few Groups yet to reform their shareholder structure. That said, I feel they will adopt one similar to Hyundai’s recent plan– a hybrid from the traditional Korean Holding Corp. model.
For starters and some clarity regarding the spin-off and merger within the Hyundai Motor Group Chaebol reform, Hyundai MOBIS, the new de facto holding company still plans to further beef up its core auto parts business.
That said, operations for both domestic Korea modular and A/S parts will move over to GLOVIS as announced—overseas operations will remain under MOBIS.
In particular, MOBIS as the Group’s nerve center will focus more on R&D, and investing in future growth drivers like autonomous vehicles and connected cars.
Next… and getting lots of media coverage and in my opinion nothing that radical.
On Wednesday, Elliott Advisors, a hedge fund sponsor subsidiary of the U.S. fund, called on Hyundai Motor Group to step up its efforts to overhaul its governance structure after announcing it had acquired more than US$1 billion (1.05 trillion won) worth of stocks in three key affiliates of the Korean automotive group.
“While this step is encouraging, more needs to be done to benefit the companies and stakeholders,” Elliott said in a statement.
The hedge fund sponsor also called for a detailed roadmap to further enhance the Korean auto giant’s corporate governance, optimize balance sheets, and enhance capital returns at Hyundai affiliates.
Elliott Advisors said in the statement it looks forward to engaging with management and other shareholders directly on these issues and offering recommendations regarding the proposed plan.
In response, Hyundai said it will make continued efforts to enhance shareholder value and the worth of its affiliates while focusing on better communicating with shareholders.
I’ve also seen HMC sources note they plan to meet with Elliot teams during an upcoming investor event.
Again foreign investment in Korean publically held companies is nothing new.
For example, HMC’s total foreign ownership is about 46% of the Common Stock. Kia is at about 38%.
Elliott Advisors is estimated to own only a combined 1.4 percent stake in Hyundai Motor, Kia Motors and Hyundai MOBIS.
One more thing…
Did you have an opportunity to review my detailed 5 Page Report on Hyundai Motor Group Chaebol reform…. If not I please contact me… as has been very well received.
I’m also available to comment and answer questions as always…
“Speed” is the key to explaining Hyundai Motor Group’s stunning growth over the past decade. The rapid decision-making under the charismatic leadership of chairman Chung Mong-koo has been crucial for its global expansion.
But Don Southerton, author of the recent book “Hyundai Way: Hyundai Speed,” says a more cross-cultural approach is now needed for the Korean auto giant to keep going at its current speed.
He recalled a 2005 training session he held at Hyundai Motor’s newest plant in Montgomery, Alabama, where tensions were mounting between the American and Korean teams ahead of the production of their first vehicles at the facility.
“The problem was ‘cultural’ ― Koreans not understanding and Americans vice versa,” Southerton, who is also leading a Denver-based consulting firm, Bridging Cultural Worldwide, wrote in an email interview with The Korea Herald.
According to him, many of the new American managers had been searching in earnest for the “Hyundai Way” ― documented policies and procedures that would guide them in decision-making and day-to-day work.
But not finding a set “Hyundai Way” resulted in some Americans feeling that there might be a communication and language issue. “More concerning, a few hinted strongly at trust issues and that Koreans were deliberately withholding vital information,” he said.
He wouldn’t say this cultural issue was limited to Hyundai. Other multinational companies like Coca-Cola and IBM that have a long history of dispatching expatriates worldwide have always experienced such difficulties.
“But unlike American companies like Ford, GM and Chrysler that have highly standardized and documented policies and procedures, at Hyundai these were acquired on the job and over time, shared informally through mentoring,” he said.
He pointed out even some Korean employees experience this issue.
“In the past … an employee joined the group as their first job and moved up through the ranks. Today, greater numbers of Korean team members are joining the group after years of employment with other firms. Like Westerners, it takes time for them,” he said.
“As more and more Hyundai operations and sales have shifted globally, the need to localize to each market has been crucial. I feel Hyundai is constantly evaluating what works best for each market. In some markets leadership is Korean, in others leadership is local.”
He suggested that what works best is when both the Korean and local leadership are strong collaborators. As for the hiring of non-Koreans for local leadership roles, like in any international operation, or in the case of Peter Schreyer, the group’s design chief, the decision would be based on the individual’s experience and reputation.
“I also feel one management change occurring is a shift from the top-down management to one of collaboration,” he said of the ongoing leadership transition from the current chairman to his son Eui-sun, the vice chairman.
Global business expert Don Southerton has authored a new eBook, Hyundai Way: Hyundai Speed, which shares insights into the one of the world’s top automakers.
Korea global business expert Don Southerton has released his latest publication, titled Hyundai Way: Hyundai Speed. Southerton notes, “In the wake of the recent accomplishments of the Hyundai Motor Group and specifically the Hyundai Motor and Kia Motors brands a question is often raised, ‘What makes Hyundai so successful?’ I tackle this question from a cultural perspective.”
The author points out his objective for Hyundai Way: Hyundai Speed is to share insights into the Hyundai Motor Group—a unique inside view of a unique corporate culture.
In addition to the growing number of Hyundai and Kia Motors enthusiasts wishing to learn more about the carmaker, Southerton sees several target audiences for the book. First for the global teams working for the Hyundai Motor Group and its affiliates, Hyundai Way: Hyundai Speed will build upon their current experiences, while providing new understandings.
A second audience is firms and vendors providing services or products to the Hyundai Motor Group. This book will be beneficial in strengthening and maintaining the relationship.
A third readership is companies with significant Korea-based business. Although the book offers specific insights into Hyundai Motor, the broader content can apply to many Korean firms in sectors outside automotive.
The eBook is available through iBook, Kindle, Nook, and Amazon.
About the author
With over 35 years’ experience, Don Southerton is the definitive authority on Korean-facing global business, strategy, branding and market entry–from automotive, golf, retail, and QSR/ food sectors to New Urbanism and Green technology.
Building on a life-long interest in Korea and the rich culture of the country, Southerton writes extensively and provides commentary to the media on modern Korean business culture and its impact on global organizations. This is his thirteenth publication.
Hyundai Motor Group Chaebol Reform
As a follow up to news on Hyundai Motor Group chaebol reform, we are seeing some interesting developments. First Samsung is one of the few Groups yet to reform their shareholder structure. That said, I feel they will adopt one similar to Hyundai’s recent plan– a hybrid from the traditional Korean Holding Corp. model.
For starters and some clarity regarding the spin-off and merger within the Hyundai Motor Group Chaebol reform, Hyundai MOBIS, the new de facto holding company still plans to further beef up its core auto parts business.
That said, operations for both domestic Korea modular and A/S parts will move over to GLOVIS as announced—overseas operations will remain under MOBIS.
In particular, MOBIS as the Group’s nerve center will focus more on R&D, and investing in future growth drivers like autonomous vehicles and connected cars.
Next… and getting lots of media coverage and in my opinion nothing that radical.
On Wednesday, Elliott Advisors, a hedge fund sponsor subsidiary of the U.S. fund, called on Hyundai Motor Group to step up its efforts to overhaul its governance structure after announcing it had acquired more than US$1 billion (1.05 trillion won) worth of stocks in three key affiliates of the Korean automotive group.
“While this step is encouraging, more needs to be done to benefit the companies and stakeholders,” Elliott said in a statement.
The hedge fund sponsor also called for a detailed roadmap to further enhance the Korean auto giant’s corporate governance, optimize balance sheets, and enhance capital returns at Hyundai affiliates.
Elliott Advisors said in the statement it looks forward to engaging with management and other shareholders directly on these issues and offering recommendations regarding the proposed plan.
In response, Hyundai said it will make continued efforts to enhance shareholder value and the worth of its affiliates while focusing on better communicating with shareholders.
I’ve also seen HMC sources note they plan to meet with Elliot teams during an upcoming investor event.
Again foreign investment in Korean publically held companies is nothing new.
For example, HMC’s total foreign ownership is about 46% of the Common Stock. Kia is at about 38%.
Elliott Advisors is estimated to own only a combined 1.4 percent stake in Hyundai Motor, Kia Motors and Hyundai MOBIS.
One more thing…
Did you have an opportunity to review my detailed 5 Page Report on Hyundai Motor Group Chaebol reform…. If not I please contact me… as has been very well received.
I’m also available to comment and answer questions as always…
DS