Archive for Commentary

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

Relationships Korea 2020

July 20, 2018 Commentary Comments Off on Relationships Korea 2020
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. This is the third installment.   Missed past 2 posts?  Just let me know and I’ll share.  Comment welcome.  Enjoy.
relationships

Author Don Southerton

Chapter 2
            Favouritism prevails in our society due to strong political, academic and blood ties… It worsens social division, denies fair chances to ordinary people and therefore makes their social mobility more difficult.  Chung Seon-sup, Chaebul.com
Relationships
Relationships are the core of Korean society and business.  During a recent Seoul office chat a team member reminded me that Korean communication, too, was based on relationships. Although I am familiar with the Korean language use of honorification and recognize the elevated status, I gained some new insights as my colleague explained how a conversation is shaped by the relationship between the speakers. For example, how one communicates with another person is dependent upon the junior/senior relationship. Honorification is required towards a person who is senior in age or position.
Additionally, my colleague reminded me that while polite and respectful conversation is a plus, the power distance created in the use of honorification could distance co-workers and created inequality, which can be seen as detrimental to a modern workplace.
This conversation then shifted to how these hierarchical power distant relationships in the workplace reinforced by language also lead to a related issue — strong loyalty with juniors expected to support leadership and visa versa.
In the extreme a loyal subordinate may take the blame for a superior’s actions and even cover for a boss’s questionable activities—a surprisingly common occurrence in Korea.  Such loyalty in the past was expected to be rewarded with superiors sharing earned fortunes and opportunities with loyalists.
It is no surprise that to ensure a high level of loyalty, executives, traditionally, hired friends, acquaintances, and classmates to fill the managerial positions below them.   Additionally, the persons hired typically were associated with shared alma maters, such as Korea University, Yonsei, Sungkyunkwan,and Seoul National, creating a tight network. This was the rule, not the exception.
Today these past practices are viewed as favoritism and are now under considerable scrutiny.  More so, these hires are seen as irregular, circumventing the normal employment procedures others have to follow, and contributing to inequality. However, the main problem with these “prioritized” loyalties is they interfere with hiring and promoting competence, especially in areas requiring expertise.
            Seoul JUNE 4, 2018  South Korea’s President Moon Jae-in is struggling to ferret out widespread nepotism and cronyism that has plagued the country for decades after revelations of hiring practices that favor those connected with the wealthy and powerful.
 
            Despite Mr Moon’s reform efforts, allegations of favouritism in the jobs market continue to make headlines, dealing a blow to his key economic policy of boosting growth by creating jobs in the public sector and fuelling discontent among South Korea’s youth. 
 
            Nepotism in hiring is politically embarrassing for the liberal government and Mr. Moon, who was elected on a platform of tackling corruption, rooting out cronyism and promoting equality… 
 
            Young people’s frustration is building up even under this centre-left administration that is pursuing a fair society free of corruption, said Park Ju-geun, head of corporate analysis group CEO Score.
            But experts say Mr Moon faces an uphill battle in stopping favouritism as they suspect unfair hiring practices are even more prevalent in the private sector than in state-funded institutions, because it receives less public scrutiny. 
 
            “If favouritism is tolerated, competent human resources are not allocated to the best places, weakening the country’s economic efficiency and social justice,” said Park Sang-in, a professor of public administration at Seoul National University .
Regarding public scrutiny, the tide has turned. Media coverage of what is now seen as unfair practices has been quite extensive. Government agencies, financial institutions and private industry have been cited, with their leadership coming under investigation and being prosecuted.
We see this systemic overhaul to fix unfair hiring practices as another aspect of the change in the Korea workplace.  That said, many of these changes such as honorification, seniority, and loyalties are deeply rooted in tradition and practice.
In particular modern Korean society still is challenged to part from the ways of Confucianism–the Confucian emphasis on the importance of the family and the group over the individual that had been extended to South Korean business.
Employees once were expected to regard the workplace as a family, with loyalty to the head of the company as the patriarch who enjoyed exclusive rank, status and privileges. Importance was also placed on attributes such as age, kinship status, gender, education, and sociopolitical standing.  All today seen to be in conflict with a modern and fair workplace. Still relationships matter.
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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

Hyundai Motor Group Chaebol Reform

April 7, 2018 Commentary Comments Off on 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.

Hyundai Motor Group Chaebol reform

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

No One Does What You Do: Korean Business Advisor

March 31, 2018 Commentary Comments Off on No One Does What You Do: Korean Business Advisor

As a trusted friend constantly reminds me, “Don, no one does what you do,” providing solutions as a highly respected Korean business advisor.

Korean business advisor

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

My Korea facing experience has been that the contract fundamentally solidifies the working relationship. However, to maintain the partnership contractual obligations the contract will require on-going changes to reflect business conditions. In contrast terms in legal agreement in the West are seen as immutable.

 Challenges

Major differences in how Korean and Westerners perceive legal agreements can surface during the negotiation stage and even after the contract is in place. In particular, requests by Korean teams for changes to a Western company’s standard agreements and contracts can cause considerable frustration, especially for their legal counsel. In the West some “red lining” of a document may take place but legal teams may see unprecedented levels of questioning the most basic contractual language. Great patience may be required to walk Korean teams through the Western legal terminology and clarifications of what cannot be changed within the document to maintain compliance with international laws.

 

Finally, it is not uncommon for terms to be re-visited and questioned by other Korean departments—often with limited or no international legal or business experience— despite months of work between the Western and Korean lead teams!

 

Oh, one more thing

Ensuring success and sustainability in dealing with Korea-facing business partnerships will require well-communicated expectations and cross-cultural understanding. In particular, any business plan and strategy need to take into account differences in the cultural realities between the West and Korea.

It’s here I can help as a Korean business advisor proving solutions., and echoing my opening statement. “Don, no one does what you do.”

https://bridgingculturekorea.blogspot.com/2018/03/no-one-does-does-what-you-do-korean.html

 

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Korean Business Speed: Real Fast

March 24, 2018 Commentary Comments Off on Korean Business Speed: Real Fast

For those with ties to Korea as well as popular brands like Hyundai, Kia and now Genesis, we realize Korean business speed is critical–a competitive advantage used to leapfrog past more established rivals.

Korean business speed

Korean business speed means things need to get done today and now, not tomorrow.

Others, too, have observed similar, and as Automotive News Asia Editor Hans Greimel pointed out in his 2017 article, “Hyundai Motor Group employees pride themselves on a frenetic corporate cadence dubbed Hyundai Speed, a kind of pedal-to-the-metal obsession with doing everything fast. Real fast.”

http://www.autonews.com/article/20170812/OEM03/170819923/hyundai-speed-design-cycles

I, too, have long found it as the driving force in Hyundai’s DNA. In fact, when quizzing seasoned Korean executives on wording for the title for my 2014 book, the term “Hyundai Speed,” was came up often and was strongly recommended.

I noted in my book’s Forward…

In the wake of the recent accomplishments of the Hyundai Motor Group and respectively the Hyundai Motor and Kia Motors brands a question is often raised, “What makes Hyundai so successful? As author, I tackle this question from a cultural perspective, leaving aspects of such as sustainable production networks, ever changing consumer appeal and brand image staying power for my colleagues in the industry.

My objective for Hyundai Way: Hyundai Speed is simply 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…

Moving fast—a common trait

To answer my own question on what makes Hyundai so successful, as well as Samsung and other successful Korea brands, I’d say moving fast—real fast–was a common trait.

That said, moving fast to many Koreans and Westerners working with Korea, means balli balli, a defacto core value impacting everything from immediately responding to email requests for data to launching major projects.

[For the pros- and- con’s of balli balli see my article. PP. 3-4 http://www.bridgingculture.com/assets/toolbox.pdf]

As for moving fast, here are my 3 takeaways…

  1. With short timelines, the focus is then on identifying the critical tasks that contribute most and with quickly moving on to execution.
  2. The longer the deadline, the more time gets spent in analysis and discussions with an ever-lessening focus on the task.
  3. Noting the Korean decision process can be time consuming, when a decision is made, all come together and move forward

All said, when working with Korean leadership and teams understanding their perspective is key…. and allows us to, in turn, “ work within the Culture,” and then provide alternatives. The later, something I strive to provide as a trusted advisor.

 

Here as needed…Call, Text, or Email… all work.

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