I would not be fitting without sharing my thoughts on the recent US presidential election and its potential impact on US Korea global business. To many in Korea the election results are troubling… another layer of stress and concern amid a downturn in Korean exports.
Trade agreements, US military support for South Korea and dealing with North Korea top the list. On the trade agreement front, I was a supporter of KORUS FTA both prior to its ratification and contributing a number of high profile articles on the benefits of the treaty.
More so, I’ve commonly referred to KORUS FTA is news articles, interviews and speaking engagements.
My clients Hyundai Motor America, Kia Motors America and well as Mobis Parts America benefit from the treaty… although I’m told 60% of the two OEMs finished product sold in America are made in US plants. (Some engines and a number of Tier 1, 2 and 3 components are still imported, but much less than when the plants were established).
Frankly, I am more concerned with trade agreements with Mexico. Korean Groups, Hyundai, Samsung and LG operate plants across Mexico for local demand and export to America.
As an example, a new Kia Motors Mexico plant opened earlier in 2016 with plans to supply up to 80% of their capacity for export. A heavy trade tariff on Mexican goods exported to the US would be troubling not only to Kia, but a growing wave of Korean Tier providers. On a side note, opening a plant in Mexico for an OEM is not only about labor costs and savings, but eliminates a heavy tariff on vehicles the brand also wishes to imports into Mexico.
In addition and less know as another example is Hyundai Motor Group affiliate Hyundai Translead, who I have also supported. First developed under the maquiladora program, trailers made in the Mexico plant currently are sold in the US—check out the back of a Wal-Mart trailer you see on the highway for the Hyundai logo… or this Hyundai Translead video.
As for Samsung Electronics, since the 1980s, with the construction of an electronics complex (SAMEX) in Tijuana, where TVs, color monitors, and mobile phones are currently being produced. Samsung Electronics Mexico (SEM), a local sales subsidiary, was established in 1995, and now the operation has been expanded to include refrigerator and air conditioner production. Samsung Electronics also has local production of side-by-side refrigerators, front-loading washing machines and other high-end appliances.
All said, Detroit’s Big Three automakers — GM, Ford and Chrysler — all have production plants in Mexico, and any hefty tariff would impact them as well. In addition, GM’s Korea plants produce cars for the US market.
With more questions that answers, I’ll be revisiting the impact of the elections as it unfolds over time. So stay tuned.
Oh one more thing-
Regarding North Korea, I see with President- elect Trump’s unpredictable, and aggressive way of thinking it may make Pyongyang more cautious about its military provocations.
Korea-facing business consultant, strategist, author, Hyundai Whisperer—and martial artist.
My public image is a trusted Korea-facing global business leader… I’ve also been an avid practitioner and Master Instructor of traditional Korean martial arts– a Mind and Body journey I have enjoyed for the past 44 years.
During the 1970s, 1980s, and 1990s, I trained extensively in Moo Duk Kwan Tang Soo Do (now also referred to as Soo Bahk Do), much of this under the Korean system’s Founder and son, the current Grand Master.
Highlights of these years included serving as Chief Instructor/ Coach for the United States Military Academy at West Point. Before shifting my interest to academia, writing, and global consultancy my martial arts schools, Southerton Karate, were nationally recognized leaders in the industry and among the largest in America. My years as a competitor in the late 1970s were recognized in 2013 by the Official Taekwondo Hall of Fame.
As of late, I also serve as an advisor to close friend and long time colleague Stephen Oliver’s elite international martial arts business consultancy.
For my daily practice, in addition to my repertoire of over 35 traditional hyung—over the past 16 years I have added a number of complex forms of Chinese and Korean origin. These Hyung are sets of combative movements martial artists’ practice to hone their bodies and minds.
In closing, 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 and spiritual regiment.
More so, I attribute my success in business to the discipline, self-control, patience, and focus sharpened over a lifetime in the martial arts—not to mention bringing to my professional work a deep cultural dimension, which is an intricate part of the traditional Korea arts.
BTW You may find this interested, I have a dedicated Facebook Page with some my martial arts videos and photos—past and present. See Some Cool Videos
As I pointed out in Part 1 of this series, recognizing there will be challenges is one thing, providing a solid solution is another. I’d like to address these and other issues when we look at Globally Mandated Program.
It is always best that globally developed and mandated programs are crafted to mesh and align well in support local operations…
So what are my recommendations? I’d be happy to share just a sample for consideration.
First all programs should:
Recognize the need for visual content to reflect our diversity– Low vs. high- context presentations, plus inclusive of individuals of Color, Ethnicity and Gender. (In many cases, I find global content is very White).
Get high-level local leadership input and support (vs. just input from working level team.)
Programs regardless of the content should align with local operations. For example with corporate culture, efforts should allow the local organizations to define their own corporate culture, and the global content developed to be flexible and easily incorporated into current training initiatives like New Employee Orientation and mandatory compliance workshops.
Avoid hiring an outside agency to craft, they rarely get True Vision–they understand the Data, but not Context. They may add credibility and professional look and feel, but to be cost effective, they usually plug Data into a generic Boiler Plate.
Craft content in a way to connect to a wide segment of the workforce including “The New Creative Class.” (See my case study on topic and who they are). Here is the Link.Creative Class Case Study
The program should be launched in a way that dazzles and impresses the local teams and leadership. Sadly I have seen well-crafted program presented poorly.
Concluding Thought
Shared globally programs can align an organization and serve as a compass to steer the respective teams forward. It is also a daunting task and one requiring a sound plan and execution.
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For questions raised, Stacey, my personal assistant at stacey@koreabcw.com can coordinate a time for us to chat by phone, meet or handle by email.
Would you like a copy of my book Korea Facing: Secrets for Success In Korean Global Business? Click Here
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.
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.
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 Teamwork 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.
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.
Supporting clients and their challenges requires getting to the core issues. It’s distinguishing between what are the organizational and what are the cultural impasses then providing practical solutions and work through’s.
Much of my 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. Not to mention there is a growing Korean business dimension to an overseas operations.
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, I have recently began to work directly on specific and very select high profile projects with clients. To often an initiative that can dramatic improve local operations fails to get the needed support or approval from Korean local leadership or from the mother organization in Korea. I work to ensure these proposals get taken seriously.
Don Southerton, CEO and president of Bridging Culture Worldwide, a global consulting firm that focuses on Korea business ventures, is one of 10 companies that rents and operates from Perc. Photo by Amy Woodward
1.Working with and within a culture is sensible, practical and effective.
2. Within an overarching corporate culture, there are generally several subcultures each with the own unique elements.
3. Use the culture you already have.
….take pains to stay within the most essential tenets of existing culture.
4. [it’s] Critical to fully understand the culture, then be able to de-construct and simply aspects relevant to your situation.
These quotes are from a well crafted article titled, “Stop Blaming Your Culture”
A colleague recently shared the article recognizing the concept had value for his own company in working with and within their Culture. In particular, I was asked then to assist with providing insights into the Korean side of my client’s Culture. Echoing the article “Culture matters!”
I strongly recommend you download the article and study. I’d then be happy to share my thoughts on how to work within your specific Culture.
In Korea Perspective, which I released at the beginning of the year, I discuss the complexity of the Korean workplace.
What stands out in Korea facing work is the innerconnectiveness of their workplace. 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.
In addition philosopher Donald Munro pointed out that East Asians understand themselves in “their relation to the whole, such as the family, society…” I would include the workplace in Munro’s paradigm.
An Example
The Korean workplace is a complexity of interrelations. Decisions must consider relationships and the impact to the organization. To share an example 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 decisions until they “internally discussed.”
To the dismay of the Korean project leads in the days following the presentation assignments for portions of the project were distributed to a number of 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 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 global assignment. Following the cultural norm, the lead team accepted the situation and sought to maintain harmony above all—even knowing their project would suffer.
Everything Korea: November 14 Episode: Trump and South Korea Trade
I would not be fitting without sharing my thoughts on the recent US presidential election and its potential impact on US Korea global business. To many in Korea the election results are troubling… another layer of stress and concern amid a downturn in Korean exports.
Trade agreements, US military support for South Korea and dealing with North Korea top the list. On the trade agreement front, I was a supporter of KORUS FTA both prior to its ratification and contributing a number of high profile articles on the benefits of the treaty.
From 2012:
https://bridgingculturekorea.blogspot.com/2012/05/korea-facing-business-2012.html
From 2013:
http://www.uskoreaconnect.org/blog/2013/04/trade-in-ideas-a-hidden-benefit-of-korus-fta/
From 2014:
http://www.uskoreaconnect.org/news-events/newsletter/newsletter-3-2.html
More so, I’ve commonly referred to KORUS FTA is news articles, interviews and speaking engagements.
My clients Hyundai Motor America, Kia Motors America and well as Mobis Parts America benefit from the treaty… although I’m told 60% of the two OEMs finished product sold in America are made in US plants. (Some engines and a number of Tier 1, 2 and 3 components are still imported, but much less than when the plants were established).
Frankly, I am more concerned with trade agreements with Mexico. Korean Groups, Hyundai, Samsung and LG operate plants across Mexico for local demand and export to America.
As an example, a new Kia Motors Mexico plant opened earlier in 2016 with plans to supply up to 80% of their capacity for export. A heavy trade tariff on Mexican goods exported to the US would be troubling not only to Kia, but a growing wave of Korean Tier providers. On a side note, opening a plant in Mexico for an OEM is not only about labor costs and savings, but eliminates a heavy tariff on vehicles the brand also wishes to imports into Mexico.
In addition and less know as another example is Hyundai Motor Group affiliate Hyundai Translead, who I have also supported. First developed under the maquiladora program, trailers made in the Mexico plant currently are sold in the US—check out the back of a Wal-Mart trailer you see on the highway for the Hyundai logo… or this Hyundai Translead video.
As for Samsung Electronics, since the 1980s, with the construction of an electronics complex (SAMEX) in Tijuana, where TVs, color monitors, and mobile phones are currently being produced. Samsung Electronics Mexico (SEM), a local sales subsidiary, was established in 1995, and now the operation has been expanded to include refrigerator and air conditioner production. Samsung Electronics also has local production of side-by-side refrigerators, front-loading washing machines and other high-end appliances.
All said, Detroit’s Big Three automakers — GM, Ford and Chrysler — all have production plants in Mexico, and any hefty tariff would impact them as well. In addition, GM’s Korea plants produce cars for the US market.
With more questions that answers, I’ll be revisiting the impact of the elections as it unfolds over time. So stay tuned.
Oh one more thing-
Regarding North Korea, I see with President- elect Trump’s unpredictable, and aggressive way of thinking it may make Pyongyang more cautious about its military provocations.
Questions and comments welcome.