Collaboration. We hear the term promoted both as a core value and expectation in Korean global business. For me, it’s building a solid relationship with Korean teams—one by one.
In fact, whenever I take on a new Korea facing project, I seek out a team member, first as a point of contact and then someone I can strengthen the relationship building trust and mutual understanding. This can include daily chats by phone, email and Kakao.
In most cases, over time I add layers of support … understanding they are in a tough place… at times having to relay requests and demands they themselves may not clearly agree but nevertheless need to communicate.
In particular, I’ve found they may not be familiar with the project nuances—in contrast the experienced Western team. In my role, and to build the relationship I work as the go-between, mentoring and even share (confidentially) how to best frame their company’s issues and avoid if handled poorly what could result in an impasse.
Collaboration, all said, is about relationships, nurtured over time, and built on seeing a project through for both sides mutual benefits as well as the individual tied to the undertaking.
As I have shared before, supporting clients and their challenges requires getting to the core issues. It’s distinguishing between what may be, for example, a local organizational, or what may be tied to the Company in Korea. It then requires probing for any cultural impasses before providing a practical solution and a work through.
Much of this work is first listening carefully to clients and their challenges. Equally valuable is walking around the corporate offices, observing and capturing multiple viewpoints. Nothing beats being onsite. Nothing beats getting face to face.
Too often, I find challenges as murky, complex and layered with frustrations, so a deconstruction is needed.
In most cases, I bring a fresh perspective—one rooted in years working with Korea-facing business. I’d like to share that in addition to mentoring, my work also involves directly supporting specific and very select high profile projects with clients.
Next Steps
As a next step, I suggest we set a time to discuss how we can work together. My personal assistant Stacey at stacey@koreabcw.com can coordinate a time for us to meet or chat by phone.
I’m just back from Seoul. With “Meet and Greets,” more than once casually bumping into few longtime friends in the hotel and at the airport, a number of high level presentations, a VIP tour of Hyundai Card’s two newest venues—the Music Library and the Vinyl and Plastic retail store, and an even a day trip to PyeongChang, home to the upcoming 2018 Winter Olympics, the days and nights stayed busy.
Amid all the travel, I study the corporate Korean workplace. It’s the sub-culture within the different Groups and their affiliates—nuances– that capture my attention. Marketing teams, for example, dressing ever more casual, ties less and less commonplace, meetings in coffee shops adjacent to corporate offices, not to mention many teams working Remote in the cafes with easy to access Wi-Fi.
Still often we see some constants—older senior executives in their company car, usually black Mercedes, BMWs or Hyundai Equus (now Genesis G90, but badged in Korea as EQ 900), the exchange business cards, although less formal in how they are presented, the dominance in the local market of the top Groups—Samsung, Hyundai, SK, LG and Lotte, as well as annual strikes underway—on this trip Hyundai Motor Company’s union and the subway and railway unions.
All said, what continues to linger in the workplace is rigid canons in the Day to Day — hierarchical top down management and communications, risk avoidance and zero-sum mindsets, and although companies boasting their globalism, few wanting to move beyond the standard response “That wouldn’t work in Korea” when international teams seek to share their global approach to business.
Of course this is where I come in… giving perspective, providing context, sharing workarounds and facilitating change.
Care to discuss?
My personal assistant Stacey at stacey@koreabcw.com can coordinate a time for us to chat by phone, meet or handle by email.
A respected colleague shared their thoughts on last week’s commentary “Hit the Target”—noting is was “a timely topic!” “… Especially as we enter the fourth quarter…”
Several readers also chimed in– lamenting that local leadership and teams receive little guidance in HOW to hit the target.
To add some context, HOW has considerable to do with Korean workplace culture norms. Leaders give directives, and teams execute in a top down manner. In some cases, well meaning leaders withhold detailed instructions to empower their teams to work through it themselves…. In other cases, some in less progressive management feel there are being paid to do a job…. And teams need to struggle like they themselves had earlier in their careers… While others recognize providing direction may be efficient, but hope their team will find new and better ways to tackle the challenge. In particular, some form of “hail Mary” that drives sales and even better at a low cost.
Frankly, demands today on Korean export driven business have pushed and stretched teams. Many feel they are operating at maximum with little room for additional market share or sales.
Risk avoidance adds another layer when new ideas are presented, too.
Under these circumstances I have two recommendations.
Present multiple and alternative ideas and countermeasures… vs. selecting one idea. I know a common response is “we do this, but to little avail.” This does take some cultural savvy… the best teams in Korea do find ways to get their message heard. I can help here…. in providing you with a best approach.
Couple with suggesting a trial or pilot approach to minimize risk and investment— with the ability to roll out fast. Again, this takes some savvy in how best to share and present…. Something I do often….
Care to discuss solutions? My personal assistant Stacey at stacey@koreabcw.com can coordinate a time for us to chat by phone, meet or handle by email.
A week does not go by without a colleague or client expressing deep concern for what seems an overarching and singular need for their company to hit their numbers. To most, despite a number of vital business initiatives, they feel the monthly demand to meet “plan” is all that matters.
Frankly, as long as I have been working with Korea facing global business it has been a (the) driven force. In fact, I can recall more than a decade ago while mentoring a new American divisional vice president that his Korean coordinator, obviously under some duress and knowing I understood the company well, pulled me aside. He asked passionately I stress to the new VP they needed to “Hit the Target.” Repeating the phase, 3 times so to ensure I got it… then patting me on the back and sending me over to the adjacent office with the VP.
In another case, I was a speaker at LG’s Mobile national sales meeting. Capping the upbeat and motivating event, the CEO with a huge graph projected behind him shared their amazing unit sales growth over for the years, then added the next year’s “stretch goal” as a hush came over the room. The new goal a huge bump over past years, which had pushed teams and the organization to their limits.
To be fair, this model is not unique to Korean business. It is also the subject on frequent discussion in Korea. However, South Korea’s modern economy was once rooted in a state run export driven model—the government fixing private industries and well as the nation’s overall production and sales quotas in many sectors. Today despite leading international as well as Korean economic experts arguing the old model is dated and need to move more to the service sector… the export production model still remains a driving force… one now where Korean Groups now direct their own organizations production and sales numbers across global organizations and into numerous markets. In part with so much of the Korean identify, economy and jobs tied to export production the Groups are under pressure to continue to seek growth each year—push the teams even harder. More so, with global stagnation in new markets and China, the past successes are marginalized. As a consequence Sales to move inventories has to rely on special pricing and incentives, which hurt brand image and profits.
Sadly Korea brands are world class and should sell based on their quality and value from cars to smartphones.
So what’s the solution?
First we need to accept this has long been the foundation of Korean business and it has been their proven success model. It’s part of their Culture and in a sense Tradition accepted by many. In turn, others do hope and argue for Korea to re-invent and redefine itself, less focused on growth numbers and more on a being a leader in new technology and innovation synonymous with Silicon Valley.
Care to discuss some additional solutions? My personal assistant Stacey at stacey@koreabcw.com can coordinate a time for us to chat by phone, meet or handle by email.
One more resource– this week it’s my 2014 book Hyundai Way: Hyundai Speed. In it, I tackled the often-raised question, “What has made Hyundai so successful?” The book also looks to capture my ongoing pursuit to define and share Hyundai corporate culture, which by nature is an intangible
Chapters in the book then explore the ties between Korean and Hyundai heritage with deeply rooted culture and tradition that still strongly impacting the modern workplace. After sharing this background on Korea, I look at the rise of Hyundai under its founder Chung Ju Yung and the current chairman Chung Mong Koo.
Next, the focus is on Hyundai corporate culture, old and then insights into the notable company management styles. The final chapter shares my opinions on a question many outside Korea have asked of this enigmatic system: “Is Hyundai business model globally sustainable?” Again, I tackle this question from the cultural perspective.
Have a Korea-facing situation that needs addressing? Need some insights into Korea-facing challenges? In many cases, we can provide solutions and workarounds.Questions@koreabcw.com
Topics ranged from Korea’s changing corporate culture to upmarket trends with Korean automakers Hyundai, Kia, and their new stand-alone luxury brand Genesis.
What drew much attention was the profile’s mention of my 40+ years of Korean martial arts experience, the Tae Kwon Do Hall of Fame, and more so my years at the United States Military Academy (USMA) at West Point. From 1983 to 1991, I served as the Cadet martial arts instructor and USMA Karate Team coach.
Over the years, I remained in contact with a few of the former cadets. More recently via Facebook and Linkedin, I have been re-united with many more… This had been rewarding on several levels including how they served their country in peace time and conflict as well as how they have become outstanding leaders in both the private and public sectors.
Personally, beyond seeing how their lives have unfolded, what touches me most are the kind words they share. It but reminds me the impact we have on other’s lives and the need to support and mentor whenever possible… the fruits of this labor revealed over time.
As one former cadet shared:
“I just wanted to take a moment to thank you for everything you taught me and the team. I’ve applied those lessons time and again and worked to pass the knowledge on. I just retired after 27 years in the Army. Time does pass swiftly 🙂 Please accept my best wishes for your continued success. Attached is a recommendation, if it is helpful.” Linkedin Recommendation Link ( Scroll down to USMA/ West Point) https://www.linkedin.com/in/donsoutherton
All said, much of my day is devoted to supporting key leadership –part sounding board, part helping keep the issues in perspective, part helping them keep their job… and providing workarounds and alternatives—all with a Korea facing lens.
Connecting Deeper
Have a Korea-facing situation that needs addressing? Need insights into Korea-facing business? In many cases, we can provide solutions and workarounds.
My personal assistant Stacey at stacey@koreabcw.com can coordinate a time for us to chat by phone, meet or handle by email.
Much of my client work supporting Korea-facing business involves mentoring Marketing, Creative and Media leadership and teams. This has ranged from on-boarding new Chief Marketing Officers and Chief Creatives to CEOs and COOs of new Agencies of Record (AOR) as well as ongoing support across their teams. In fact, I have interacted with most of the top “A-list” Ad, Digital, Media and Marketing groups and their organizations.
I have come to find branding especially fascinating and peaking my interest. More so, the Korean and Asian approach to the market in contrast to the West.
One resource I’d like to share and that stands out is Branding In Asia.
They provide a wealth of information for the industry into Asia’s diverse and widely varied tastes. In particular, Branding in Asia explores exciting new ideas and creative concepts exploding from the mind of Asia. Please subscribe.
Q: What is the biggest change you’ve seen in the business culture in Korea over the years?
A: For starters, Change is a constant within the Korean companies. As for corporate culture, Korean companies have found that as they expanded operations overseas the rigid norms and practices that worked well domestically needed to be adapted to local Western markets. In turn, this gap in cultures is well recognized by HQ teams who are in daily interactions with the West. Most recently, the leading Korean brands have crafted more global savvy corporate visions, core values and communications to reflect their international footprint and diverse workforce. In some cases, I have developed and shared these programs worldwide.
Q: You’ve said that Korea is the place for companies to start before moving into neighboring markets like China and Japan. Can you talk about that?
A: International market entry can be a huge challenge for Western brands looking at new opportunities. I have long seen Korea as providing a sound entry point for further expansion into China, Japan, India and Vietnam. Ever growing, Korean companies have divisions in these countries and have strong international business networks and supply chains. Options include partnering in a Joint Venture or Licensing Agreement with a local Korean firm, first for Korea, and then for a rollout across East Asia.
Again, for the full article go to: http://brandinginasia.com/don-southerton-interview/
One last thing… Have a Korea-facing situation that needs addressing? Need some insights into Korea-facing business? In many cases, we can provide solutions and workarounds.
My personal assistant Stacey at stacey@koreabcw.com can coordinate a time for us to chat by phone, meet or handle by email.
My teams and I are ever on the phone with Korea!” It’s something a week does not go by without hearing. … it’s someone I know so well personally.
With the shift to ever-increasing daily interactions with Korean HQs via web and phone conferences, western teams need even deeper practical insights into the Culture along with new skill sets. In particular, the Executive Coordinator/ Advisor model had its limitations…but the Koreans assigned as expatriates did learn local norms and adapt over time. This mean the Coordinators molded to local operations with a lessening need for many in the local teams to become skilled in Korea workplace norms.
In contrast, Korea-based teams follow deeply imbedded HQ and company norms. They are not likely to model or adapt to their overseas subsidiaries.
This now means strong skills in managing the relationship and understanding the Korean workplace “in’s and out’s” and “do’s and don’t” as well as effective communication take on a new heightened significance.
I feel there is no escaping the need to get you and the team mentoring, coaching and skills sets. I am here to support. Just a call away.
My personal assistant Stacey at stacey@koreabcw.com can coordinate a time for us to chat by phone, meet or handle by email.
Difficult not to be following Brexit (short for British Exit from the EU).
Things are still fluid, so my commentary targets the impact on Korea-facing global business and specifically the Korean car sector (and dominated players, Hyundai and Kia).
That said, as a cultural historian it’s hard not to mention my initial reaction is a potentially wider pendulum swing toward populist Protectionism-Isolationism after years of “The World is Flat” Globalism and Free Trade Agreements.
To begin…. Headlines abound like “the Pound tanked, while the Dollar and the Japanese Yen gain ground,” and “… Brexit a blow to integrated global economy,” the later a Korean headline.
From a broader trade perspective, South Korea’s exposure to the U.K. is minimal. Due to this low trade exposure we expect the Brexit to have no major impact on the Korea economy’s projected growth. Korea’s exports to the U.K. amounted to just 1.4 percent of all export shipments. This said, the Brexit’s wider implications have many in Korea on alert and noting “the uncertainty” that was common term cited last year with the downswing in the global economy.
More significant, and something I comment on often is the foreign exchange market. As we see when there is some global economic crisis, the immediately effect is the Won-Dollar exchange rate impacted—in this case Korean currency sinking compared to the U.S. dollar by the greatest % rate in five years.
This is not always a bad thing…. As a result, US Dollar profits repatriated back to Korea are worth more in Won, so essential US overseas operations getting more bang for the Buck.
We need to watch carefully the Won with relation to the Japanese Yen, too. South Korean carmakers fared well between 2007 and 2011 as the Won fell as much as 50% against the Yen. That trend reversed in the middle of 2012. So, noted in my introduction, the Yen is strengthening.
Regarding car imports to UK…. The Brexit departure could revive a 10-percent tariff on exports of Korean passenger vehicles to UK unless a deal similar to the EU-Korea trade pact is negotiated. Short term this will have little impact, as there is a 2 year grace period for the withdraw from the EU.
If no UK-Korea trade agreement is implemented, the Korean car brands will have disadvantage in price competitiveness compared to Japanese and German rivals, which have production bases in the UK.
For the Hyundai and Kia…. the real concern is the effect it will have on the European market as a whole, as well as the global economy…. In recent months, both Hyundai and Kia have seen an upswing in business in the EU As of last year, Hyundai Motor and Kia Motors sold about 850,000 vehicles in the European countries, with 20 percent sold in the U.K.
Thanks to the FTA benefits, Korea has exported cars over 1,500 CC without any tariffs. Starting from July, those under 1,500 CC are also exempt from tariffs.
Over time… We’ll see UK move to becoming a “regulatory island adopting its own rules for tariffs, duties and standards. The European market will be more like Asia—with different rules in we find in Japan, South Korea, Hong Kong, and China.
Crisis? To share a reach out for a comment from a close colleague and a leading global economist focused on Korea…. my friend notes: “Probably a lot of turbulence over next several weeks because many aspects of the Brexit were not considered by the Leave camp. But I think the markets are probably oversold as London’s position as financial center is not affected in short-run, and neither is trade. Put differently, the material effects are not as catastrophic as might appear in short-run …”
In closing… look for my follow ups this week…. As well as share you comments and questions… so, please share your remarks…. ☺
As mentioned in my introduction, whether Brexit is isolated, or the first of a broader populist Protectionism movement—it is something of interest to be followed…
