Tag Archive for Korea facing business

Everything Korea August 3 Episode: K-lobalization, A New Concept?

In the recent case study, I mentioned K-lobalization. To many, this was a new concept. In reality K-lobalization was something I coined in 2008. I’d add to a video’s content, which I recorded in March 2008 on the topic (but still very relevant).

In particular we find Korean companies in 2015 are better defining their strategy globally. This means they are instituting a bolder standardized approach to marketing, branding and operations. In the past they have taken a more fragmented approach, with lots of variations from region to region.

Please take a few minutes and review the video from 2008…

https://youtu.be/s53gLZ3TPtU

Oh, one more thing. As an additional resource, here’s an excerpt from

Korea Facing, Secrets for Success in Korean Global Business

By Donald G. Southerton, 2013

Chapter 1 K-lobalization (Globalization with a K for Korea)

When I began supporting overseas non-Korean management teams for Korean companies, I often heard staff looking for a time when Koreans would fully embrace local western business norms, step aside in key decisions, and let the westerners “run things.” Why?

The overseas branches of Korean companies commonly have a CEO who is a Korean expat managing the company or region with local support. The CFO and technical support can be expats, too. Most often these Korean expats form the core for business operations in the host country. By the way, the expats below senior management are often called “coordinators” in the West. However, the Korean term is ju jae won.

In the larger overseas subsidiaries, Korean expats are assigned to the major departments, including sales, marketing, HR, and product development, along with engineering, and design divisions. In many, if not most, cases these expats are not assigned manager roles but operate as a “shadow management” with considerable oversight of local operations. 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 localization is needed but, especially if under pressure to perform, may defer to their Korean company procedures and cultural norms. In other cases, Korean firms have also initially resisted local management guidance and followed what they felt would be the best approach. Sadly, they performed poorly and eventually yielded to the local teams.

Times do change. Recently, and unlike a decade or so ago, many Korean teams and management have become increasingly global savvy. More significantly, following the global recession of 2009-10 when many international firms experienced setbacks, Samsung, Hyundai Motor Group and LG soared and as a result some Koreans see their model as superior to rival western brands.

I call this K-lobalization—when Korean firms boldly promote their own unique management style and corporate culture internationally and across many markets.

Book Available on Amazon at:

http://www.amazon.com/dp/1481224336

I look forward to your questions and comments

questions@koreabcw.com

Everything Korea, July 20 Episode: a Case Study Sneak Peek

This week we have something special, a preview of a new case study.

Over the past month I have been sharing the role of the creative class in the workplace–Korea and America. To clarify I looked at the “culture” needed to foster the Creative Mind in the workplace, and in particular recognize their values, norms, and attitudes. The new case study is the result of this study and research.

Cover Art July 20This said, I have attached a link to this new Case Study. Please take a moment to download and read. I would appreciate any feedback and comments before we offer it to a wider Korea facing distribution.

And by the way…

If you and your company would like to discuss challenges, I would be happy to chat. I’ve found each company has its own dynamics and I approach this case-by-case crafting an approach tailored to the client.

So until next time…

Schedule a chat? http://www.meetme.so/southerton

or if you have a Direct Question? Go to questions@koreabcw.com

Download Link for the Case Study

 

http://unbouncepages.com/case-study-fb/

Everything Korea: May 25 Episode: Diverse Sub-cultures

Coming off the Memorial Day Weekend Holiday here.  I use holidays as a time to write, read, recharge and re-focus. This means opting out perusing Facebook and Twitter, as well as checking emails.  I’m happy this year both the American holiday and Buddha’s Birthday (a legal holiday in Korea) fall together.
I was again asked what’s been on my reading list.  I recommend for starters, Brian Grazer’s (the Hollywood producer and with creative partner Ron Howard founded Imagine Entertainment) new book A Curious Mind
A second Book:  The start-up of YOU, by Reid Hoffman, co-founder and Chairman of Linkedin
And, Hatching Twitter, by Nick Bilton
All three give some great insights into the varying aspect of American business–behind the scenes and sub-cultures.
This brings us to today’s topic—these recognizing diverse sub-cultures.  To often like an iceberg what is seen on the surface only shares a potion of a business and in particular for that business model in a respective market or region.
What is truly deceptive is that on the surface business is business, and all can appear similar.  Where the challenge emerges is that each business sectors can vary considerably in the West, and the three books I mention highlight just how different.
For example Brian Grazer, as a Hollywood insider and successful TV and film producer talks about expectations within filmmaking and specifically Hollywood that require special mindset— which at the core is “creating ideas.”
Building on this, the other two books look at recent trends and sub-cultures that exist within…
As the Linkedin Chairman points out that in contrast to an old model embodied by the once great Detroit, we find the entrepreneurial mojo of Silicon Valley embracing a willingness to take bold risks and accept failure, coupled with a network of alliances to work in collective action.
More revealing to inner workings, we find in Hatching Twitter that can things vary lots even across startups.  Cited in the book one of the Twitter co-founders Biz Stone willingly went to a startup which would become Twitter from  “unlimited free meals, free snacks, free buses to work, and a free inexhaustible everything at Google  and replaced with a office where homeless people slept in stairway, the only free transportation was his two feet, and the only free food and drink was a beer after work if EV [his boss] picked up the tab.”
This said, the author notes, “ The cultural difference was incalculable. The sterile, robotic culture of Google, with its know-it –all engineers and bossy bosses, was now replaced with tattooed hackers with a do-what-you-want mentality.”
So what am I saying…
To my friends and clients in Korea, I’d share these are just several examples of the diversity in Western work culture and norms—a deep understanding required to be effective in the local market.
In contrast, although no two Korean Groups are entirely alike in their mindset and even Divisions and sister companies within a Group can vary some—workplace culture, norms and process are very relatively similar.  For example, hierarchical titles, role of Finance, a team focus, a junior’s deference to seniors, pressure to take action over considerable upfront critical thinking, as well as top down oversight and decision making.
All said, I am often asked about a pet project of mine over the past year Mad For Garlic.  My Korean friends and the expat community in Korea know the brand well. In short…. Mad For Garlic is known for its unique and innovative menu with garlic-specialized Italian cuisine.
I was asked to assist the team in US market entry. A rare and very smart move by the Korean team who recognized the need for local support. Our first round was getting the word out to the FSR industry.  This is summed up nice in a PDF study. Link below.
As if often the best case, our original strategy to find a master developer for the US market has evolved to now finding a VC or Angel to invest in the International development of the brand.  This makes considerable sense with a recent  $48 MM investment by Standard Chartered Private Equity (SCPE) in the now 40 plus domestic Korea Mad For Garlic operations. This new partnership with SCPE will accelerate Mad for Garlic’s Korea expansion.  Working with the Korean team we seek to accelerate the International development though a similar partnership.  Questions, thoughts or an interest, please contact me directly and we’d love to discuss more.
Oh and one more thing…. I am off to Nashville, Tenn. area this week and more specifically as speaker a panel on international development held in Clarksville-Montgomery County, soon be home to a $180MM Hankook Tire plant.
So until next time….
Links

 

Listen to Podcast from the Korea Society Corporate Series Featuring Don Southerton

Listen to Podcast Here:

Korea Society Corporate Series Featuring Don Southerton

TKS 2

This Week’s Episode of Everything Korea – Watch Now!

Two topics, first I’ll be working from NYC this week. I’ll be sharing the Korea Society presentation once their very professionally team produces the video series and uploads to YouTube. Please Stay tuned.

That said, much of my professional work is providing strategy and consulting to the top Korean brands globally.

This includes working with non-Korean firms, leadership and audiences to explain the dynamics and nuances in Korean business. During a long day that can often extend into the evening, I tackle client issues.

A common question both in media interview and by clients is “ Don, how did you get interested in Korean business?”

My Korea focus and experience are actually rooted in Korean martial arts. I began martial arts in the early 1970s, receiving my Cho Dan (1st Degree Black Belt) by the mid 1970s, opened my first school in 1976 and tested for Sabom Master Instructor in 1987. In 2013, I was inducted into the Taekwondo Hall of Fame.

Outside my public image today of business consultant, coach, trainer, strategist, social commentator, and author. I’ve continued to be a life-long student of traditional Korean martial arts– now for 43 years.

I have added several complex Chinese forms to my repertoire of over 35 hyung—the traditional sets of combative movements martial artists’ practice to hone their bodies and minds.

I have always seen martial arts as not only a way of staying in shape through a wide range of stretching, kicking, and hand movements, but also a demanding mental regiment.

All said, I attribute my success in Korean business much in part to the discipline, “meditation in motion,” self-control, patience, and focus sharpened over a lifetime in the martial arts—not to mention the strong rooting in the cultural dimension of a traditional Korea art.

Just one more thing, in addition to my Korean facing Facebook pages, I just added a new martial arts Page. It includes some articles I have written for both academic and the martial arts industry.

So until next time, this is Don Southerton wishing you all the best.

As in past Everything Korea, I will share links on topics discussed in the accompanying copy.

1. The Korea Society
http://www.koreasociety.org/corporate/korea_perspective.html

Please Follow and Like:
2. My Facebook Page ( lots of posts I see as timely and relevant)
https://www.facebook.com/dsoutherton

3. Bridging Culture Worldwide Facebook Page (Korea facing)
https://www.facebook.com/BridgingCultureWorldwide

4. My Martial Arts Page (cool videos and articles)
https://www.facebook.com/pages/Don-Southerton/846237712136423

Questions, Comments, Thoughts? Go to questions@koreabcw.com

‪#‎Koreasociety‬ ‪#‎NewYorkCity‬ ‪#‎strategy‬ ‪#‎Korea‬ ‪#‎Koreanbusiness‬‪#‎martialarts‬ ‪#‎personaldevelopment‬ ‪#‎mentaldiscipline‬ ‪#‎patience‬ ‪#‎focus‬‪#‎Koreanculture‬

Korea Inc.–Common Misconceptions

Many thanks to my friends at The Korea Society for posting on YouTube segments of recent Korea Inc business discussion.

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To view the full YouTube Working for Korea Inc. series go to:
https://www.youtube.com/playlist?list=PLYTdCvotGB1QKPCB5zVzabQD6NG9I2VkZ

DS

Working for Korea Inc.

An evening discussion with Don Southerton

The Korea Society


Hosted by The Korea Society, NYC

June 27, 2013  5:30 PM

Korean firms operating internationally employ non-Koreans at all
levels. Don Southerton, CEO of Bridging Culture Worldwide and
author of Korea Facing: Secrets for Success in Korean Global
Business, shares insights on working for Korea-based companies and
understanding Korean operational norms for goods and services
providers.

http://www.koreasociety.org/corporate/working_for_korea_inc.html

THE KOREA SOCIETY is a private, nonprofit, nonpartisan organization
with individual and corporate members that is dedicated solely to
the promotion of greater awareness, understanding and cooperation
between the people of the United States and Korea.

In pursuit of its mission, the Society arranges programs that
facilitate discussion, exchanges and research on topics of vital
interest to both countries in the areas of public policy, business,
education, intercultural relations and the arts. Funding for these
programs is derived from contributions, endowments, grants,
membership dues and program fees.

From its base in New York City, the Society serves audiences across
the country through its own outreach efforts and by forging
strategic alliances with counterpart organizations in other cities
throughout the United States as well as in Korea.

For more info dsoutherton@bridgingculture.com

###

Korea Herald: No Two Chaebol Are Alike

Many thanks to Korea Herald and reporter Elaine Ramirez, the
article shares my views on Korea facing global business.

http://www.koreaherald.com/view.php?ud=20130408000691

No Two Chaebol Are Alike, Author says

By Elaine Ramirez
While Koreans’ rising presence on the global stage is hard to
ignore, how to do business with them as a non-Korean is an
increasingly tricky area little covered in English-language
literature. Don Southerton explores the niche with his recently
published book “Korea Facing: Secrets for Success in Korean Global
Business,” which picks apart how to work with a Korean conglomerate
from the ground up, for non-Koreans working in Korean branches
overseas.

“Over the years I witnessed firsthand cross-cultural issues that
surfaced as Korean companies expanded globally. My role has been to
address these issues such as poor trust among the Korean and
Western teams, lack of communication, local employee turnover and
managing expectations,” Southerton said in an email interview with
The Korea Herald.

Although he has long been aware and exposed to the cultural
differences in Western and Korean business settings, he said, it
was when he began working at a Korean subsidiary in the U.S. in the
early 2000s that he witnessed the differences between how U.S. and
Korean teams managed the company.

He noted that the differences in decision-making processes, for
example, had been a particular source of friction between Korean
and Western teams: Key decisions were always deferred to the parent
headquarters in Korea, and Koreans in the overseas branches needed
to scrutinize and approve even the most mundane matters, regardless
of the Western team’s experience in the field.

He discovered, as he writes in “Korea Facing,” that all too many
frustrations were rooted in not knowing how to do things “Korean
style” ― or, for the Korean side, not knowing any other way.

In “Korea Facing” he shares his personal experiences from working
particularly for Hyundai-Kia overseas branches as a coach,
consultant and trainer with those Korean and Western teams, and
offers experience-based advice for overcoming those workplace
challenges.

His chapters explore basic business culture lessons, from the
levels of the Korean managerial hierarchy, to nuances on the right
timing for getting approvals, meeting protocol ― upon meeting
foreign teams, Koreans line up their business cards on the table to
match their seating order, and he advises doing the same ―
identifying and resolving conflicting expectations and ambitions of
Korean and Western teams, and insight on just how much the Korean
chairman’s wife might influence the direction of the company.

But Korean companies are gradually loosening their neckties and
adapting to Western business practices, he notes.

“I feel the Korean groups have seen the need to be flexible and
adapt quickly to changes in global economic fluctuations,” he said.
“For example, in the recent global recession they saw an
opportunity to expand when others pulled back in production, R&D
and marketing. They capitalized on this opportunity to leapfrog
ahead of the competition.”

Additionally, young Korean employees sent overseas have often
attended school or lived abroad, and increasingly more Korean
executives have worked overseas as expats. And as the overseas
businesses are increasingly using English to communicate, so, too,
do they adapt more casual Western business norms and practices, he
added.

Beyond all the differences between Korean and non-Korean working
cultures, Southerton noted, Korean companies deal with many of the
same challenges: How quickly projects can be approved and executed
depends on the individual company; Korean and Western companies
both struggle with generational gaps when trying to create harmony
and cohesiveness within their ranks; and no two Koreans or Korean
companies are alike, nor should they be approached as such.

The last is a theme he drives throughout his book ― affiliates
under the same chaebol and even sub-divisions of affiliates have
entirely different business cultures, and it is important not to
work on assumptions based on experiences with other companies, he
emphasizes.

“One common mistake by Western teams outside Korea is assuming that
because they might have worked for other global companies such as a
Japanese firm that they will have few challenges adapting to a
Korean company,” he said. “Norms, expectations and mindset differ,
even with Korean groups.

“Many Western overseas teams have stereotyped Koreans, often based
on their interactions with the early expats dispatched to the local
operation. Like Westerners, experience, training and skills vary ―
some Korean expats do well while others struggle,” he added. “In
global business we need be mindful of others, and recognize that
Korean teams and leadership vary in their approaches to challenges
and management.”

“Korea Facing: Secrets for Success in Korean Global Business” is
available through iBook, Kindle, Nook, and Google Book.

###

Korea Facing 2013 Video

By Don Southerton,  Songdo to Belmar Editor

As we begin a new year, I’d like to share thoughts on Korean facing global business for 2013.

[embedplusvideo height=”365″ width=”450″ standard=”http://www.youtube.com/v/Yfw4_VVeM-U?fs=1″ vars=”ytid=Yfw4_VVeM-U&width=450&height=365&start=&stop=&rs=w&hd=0&autoplay=1&react=1&chapters=&notes=” id=”ep4705″ /]

Questions?

BTW We are always interested in new opportunities, so keep us in mind….

Contact: Dsoutherton@bridgingculture.com

DS

Korea Facing Book Interviews Online

By Don Southerton, Editor
Thought you may appreciate links to my recent Korea media interviews. Essentially, I encourage collaboration and offer thoughts on what is the best way to approach Korean facing business–in Korea and globally. BTW Each interview looks at the topic from a different perspective.

1. Last week’s tbs eFm Seoul radio interview is now available in mp3 format.

Here’s the link. Just download and listen.

http://sites.google.com/site/ds19192/mp3/0108_Don_Southerton.mp3

2. WSJ Korea Real Time

Southerton Advises Non-Koreans in Overseas Korean Offices

Wall Street Journal

http://blogs.wsj.com/korearealtime/2013/01/14/southerton-advises-non-koreans-in-overseas-korean-offices/

This was also re-posted on Marmot’s Hole, the leading Korean blog for expats.

http://www.rjkoehler.com/2013/01/18/advice-for-non-koreans-working-for-korean-companies-overseas/

3. Busan Hap

http://www.busanhaps.com/article/korea-facing-interview-korea-global-consultant-don-southerton

Hope this is helpful….  more media to come…

My thanks go to the eFM Morning Show team, WSJ’s Evan Ramstad, Marmot’s Robert Koehler, and Busan Haps’ Jeff Liebsch…

DS