Korean Business Culture Archives - Page 7 of 8

Archive for Korean Business Culture

Weekend Read: Hammer Ready

May 31, 2024 Don Southerton Korean Business Culture Comments Off

Don Southerton, Korean Business Thought Leader

As a trusted friend constantly reminds me, “Don, no one does what you do.”

I strive to ensure success and sustainability in dealing with Korea-facing business partnerships through well-communicated expectations and cross-cultural understanding.

It also requires a unique skill set—groomed over decades of working with an ever-changing Korea.

I like the story that shortly after an engineer retires, a machine at his former factory stops working. They try everything they can do to fix it, to no avail. Finally, the boss calls up the engineer and asks him to come in and fix it.

The engineer agrees to do so as a paid consultant. He comes in, walks around the machine, looks at a few things, takes out a hammer, and whacks the machine. It whirrs into life.

The engineer presents his former boss with a bill for $5,000. The boss says, “This is ridiculous! What did you even do? I need an itemized bill.”

The engineer provides a new invoice that states:

· Hitting machine with a hammer: $5.00

· Knowing where to hit the machine: $4,995

Nuff said…

My work is knowing when and where to use the ‘hammer’, catching issues early, and then as needed providing work-throughs as projects can so easily get sidetracked. Many assume when initial talks and progress seem smooth things will continue to move forward—which is rarely the case.

It’s one thing, too, for those well-experienced in global business who are now engaged in Korean projects to expect experience in the West will be enough to work through what can be escalating challenges—but in fact, what many will find out is that they are poorly suited to adapting and being flexible (a very Korea business approach and norm).

At the very least, working through issues can become a lengthy learning process. Both ways are time-consuming and costly.

My long-time approach when providing work-throughs is to step back and look for underlying concerns and nuances that are easily missed. Then knowing the Korean processes and mindset work for a resolution. Again, this is more art than science.

To summarize, impasses are common in all business—but what may work in the West to overcome issues will take a different approach in Korea.

The best model is to be constantly aware and sensitive to what may unfold. Use less direct and non-confrontational ways to gain deeper insights into any challenges and be open to alternative approaches at work-throughs.

As always, I look forward to discussing any challenges, and any questions you may have.

I’ll have my hammer ready, too. And here, ready for your call or email.

Don https://www.bridgingculture.com

A Korean Culture Lesson: The Hyangwon Pavillion

April 29, 2024 Don Southerton Korean Business Culture Comments Off

The Hyangwon Pavillion ( Photo BCW)

I recently posted a photo of the Hyangwon Pavillion and a number have asked to share on its origin and location. What I noted in the caption was its significance as the 1st building electrified in Korea and possibly Asia.

Early in my ground-breaking 2000s post-graduate academic research, I examined the long-standing technology exchanges between the United States and Korea. Much of this development began in the late 1800s when Korea looked to bring rail, trolley, electrification, telephone, waterworks, and hard-rock gold mining to the country. Some of these infrastructure projects were “a first” for Asia. Specifically, the 1st building electrified! It was fascinating reading the correspondence between Korea and Thomas Edison.

An excerpt from my 2012 publication– HENRY COLLBRAN AND THE ROOTS OF ENTREPRENEURIAL ENTERPRISES IN KOREA

In 1884, King Gojong reached out and contracted the Edison Light Company to electrify Gyeongbok Palace starting with showcasing the Hyangwon Pavilion. The monarch intended to adopt and welcome new technologies from the West.

The 2-story Hyangwon Pavilion had been constructed on an artificial island in the center of the palace lake.

Technicians dispatched from Thomas Edison’s laboratory and installed a small DC water-powered generator on the stream that fed the lake. {The stream is long gone, curious I looked a few years ago].

To King Gojang and the court’s amazement, the building was illuminated.

Several years later, in 1893, a second electric plant was built for the Changdok Palace, and thereafter for the Sundok palace. Reports by Western diplomats of the time told that the incandescent lights were most often used for court meetings held during the evening hours.

It should come as no surprise that 140 years later a robust technological trend continues– today both the U.S. and South Korea’s equal tech partners.

Questions? Here as always.

Open Communications Korea Facing 2019

November 10, 2019 Don Southerton Korean Business Culture Comments Off

Open Communications…

Checking emails at 2:30 AM.

Trying to not doze off and miss a late evening phone or Facebook Message call.

Responding early morning to a previous evening’s urgent Text.

This week we look at some of the new challenges as we’re finding more open and direct communications between Korean HQ and local teams. This is more and more commonly surfacing for teams.

Waking up to a rather lengthy request for revisions on a multi-page document that the Korean team needs to finalize as is due that day in Korea.

Open communications Korea facing business — Don Southerton

By its very nature, Korean facing business is the interaction of worldwide teams operating in different zones—with Korea and North America—their working days beginning as our ends and visa versa.

Beyond the different cultures globally working together on a daily basis, which I speak of often, we have seen the advancements in telecommunications as well as more open communications between working-level teams in the West and Korea.

(BTW I can recall a time when an international call between the US and Korea was not only costly but few Korean office landlines even had international access.)

That said, it’s now common for Staff in Korea to now pick up their mobile phone and reach out via an app for a one on one with a western team member. This contrasts with the old model where all communication between HQ and local subsidiaries went through and was screened by the local expatriate team.

The new model is not without its challenges.

For one, email requests often need clarification and even a message received in the AM in the West with hopes that by the end of day (morning in Korea) there will be substantial progress—without some clarity—little may have been accomplished.

More so, even if a request is made—local teams are often stretched thin—and any new workload can be seen as overwhelming.

Also common are End of Day requests—again sent at the beginning of the day in Korea—but received as the day is wrapping up in the West. In contrast for an expat team their “second day” often begins around 4-5 PM as the Korean HQ is back on-line and their work often running late into the evening—but for western employees working late is most often not an option.

I do have a number of work-arounds—most the result of nearly 20 years working directly with teams and leadership in Korea.

Here I share two among my long list many proven cross-culture approaches and solutions.

Hint 1

In the case of a last-minute request or a request that may require more clarity and/or substantial research….

As I learned from a senior Korean executive, in many cases Korea often requests local input so teams and leadership can finalize an important decision. They are aware of time restraints and that a comprehensive response could take days. Noting that they are looking for some input, even input limited in scope, that may help sway their decision—pro or con.

Hint 2

In the case of a request and not wishing to seem uncooperative—but unable to respond as requested due to commitments and workload….

Given my experience in dealing with urgent HQ request as noted in Hint 1, I suggest sharing with the Korean team that you’d be happy to assist but you’ll need additional time due to current deadlines, end of day, etc.

As a caveat, I always ask for their timeline and then share some options on when you may be able to assist. I have found what is assumed to be an urgent request often does have flexibility.

In closing, I feel the move to more open and direct communications between HQ and the local team is quite positive. It is not without its challenges as we learn to adapt, build relationships and work within the restraints in time difference, life balance and work hours.

I look forward to your thoughts and comments. Again, if needed I can share more regarding proven cross-culture approaches and solutions.

Don Southerton https://www.bridgingculture.com

Decisions, Timelines and Process

October 6, 2018 Don Southerton Korean Business Culture Comments Off

As one delves deeper into Korea facing work what stands out is the “innerconnectiveness” of the workplace. This relationship impacts day to day business interactions such as decisions, timelines, and process.

Don Southerton

To share some background, 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.

As an example, in Korea, decisions must consider relationships both internal and external and the impact to the organization.

To share 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 next steps until they “internally discussed.”

To the dismay of highly engaged Korean project team leads I was working within the days that followed assignments for key portions of the project were distributed to a number of other 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 lead 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 high profile global assignment.

Following the cultural norm, the lead team accepted the situation and sought to maintain organizational harmony above all—even knowing their project and even their own careers might suffer.

Again, the takeaway is in Korea facing work, many factors come into play…and one needs to take a cultural approach recognizing what may be a western norm and expectation can differ in other global markets.

As always I look to support you and your teams as issues’ surface. Situations vary and so do what may be the better approach.

Don

www.bridgingculture.com

Korea 2020 The Progressive Workplace

July 16, 2018 Don Southerton Korean Business Culture Comments Off

This is the second of many sneak previews of my latest work in progress Korea 2020. Comments welcome on the progressive workplace.

Author Don Southerton

Even if a company implements a casual dress policy and does away with honorifics to facilitate communications, managers still won’t listen to us. They are just old fogies in jeans. A junior manager, 2017 Survey Korea Chamber of Commerce and Industry and McKinsey Consulting

Chapter 1 A Progressive Workplace

In November 2015, I was asked by a journalist researching an article for The Economist to comment on the Korean workplace. The journalist’s premise as a foreigner was that significant change had already occurred. I shared two points—first, office change was underway. The best example of a progressive workplace was a firm I knew well — Hyundai Capital Services, a financial arm for the Hyundai Motor Group. And two, due to stiff competition in Korea’s key overseas markets, in lots of cases, I saw the opposite of a liberalization of the workplace. In fact, new stricter policies were in place.

These points shaped the article. Addressing the first point, the progressive Hyundai Capital, the article revealed some of their policies. I quote….

MEETINGS to last no more than 30 minutes;

junior staff allowed to speak freely with superiors;

a cut in bonuses for bosses whose teams do not take enough holidays.

My second point was that even though the new generation of workers sought change and companies’ endorsed change, older generations remain in firm control, especially in their overseas operations. Again I quote The Economist:

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 has reverted to working longer hours and straining to hit short-term targets, under pressure from the bosses back in Seoul.

More South Korean companies appear to be tightening the screws at home, too: a portal, found that almost half felt their company was disciplining them more than before: making them stick to a strict lunch hour, for example; or asking them to arrive at the office an hour earlier; or in stricter dress codes.

Relapsing back into old ways is unlikely to work, however, given the reluctance of younger employees to tolerate the strictures of the typical South Korean workplace. Their expectations are “totally different” from those of their parents…

Fast-forwarding three years to 2018

Today, I do see a transition underway—a lessening pushback, too. Companies have become more sensitive to work-life balance and many have broad mandates in place. Samsung and SK Group, as examples, have introduced a more simplified corporate hierarchy. Lotte Group has introduced stricter policies to support work-life balance including shutting down the company’s computers after working hours and requiring male workers to go on paternal leave.

More radical, workers are now boldly voicing publically concerns when policies are not upheld. Korean daily, Joongang News noted:

            When Kim Hyo-rin, 25, started her first job at a conglomerate, she soon realized that the company wasn’t as progressive as she thought it would be.

            “Even though my company practices flextime and has a 40-hour workweek policy, our department boss always looks at us badly if we come to work after 9 a.m., even though I work the full 40 hours,” said Kim.

            When she started the job, Kim was optimistic about working at a company with policies that seemed so worker-friendly.

            “Our company also has a policy that prevents senior colleagues from texting juniors about work-related issues after working hours and during weekends, but that rule is always ignored,” she added. “Nonetheless, our entire office is covered with posters promoting these campaigns, which I feel are just for show.”

Change is underway.

Although implementation may be slow to take root in a growing number even leadership in the private sector, academia and government continue to stress the benefits of the progressive workplace. Advocates point out the goal is a workplace in which employees are intrinsically motivated and evaluated according to their performance, not their seniority.

###

Generational influences in the Korean workplace 2018.

May 18, 2018 Don Southerton Korean Business Culture Comments Off

Today we are witnessing increasing generational influences and a divide in the Korea workplace. Many firms are adapting to this change, as the workforce is increasingly a younger generation.

Much of the generational influences change is driven by an Old Guard mentality vs. the New Guard. The Old Guard, people in the 60s and 70s, holds to values and norms once common business practices in Korea. With the rise of the New Guard the older generation is increasingly marginalized as well as their influence.

This generational influences marginalization has accelerated with the latest round of Chaebol family succession well underway. As before with succession of the Chaebol Founders to a second generation of family control, which mostly occurred in the mid 1990s, all now is moving in to the third generation These heirs in the 40s are at the helm at Samsung, Hyundai Motor Group, and LG (as recent as this week), etc. In turn, management and trusted advisors surrounding these Chaebol heirs are now of the same generation, too.

In fact, as a prelude to the recent successions we’ve seen the exiting of older senior management, most stepping down and into retirement.

Between these groups we find a layer of managers and executives described by the term “sandwiched” — used to denote a generation now in their late 40s and into the 50s.

This age group has social, workplace and political views influenced by western education and work abroad that differ from those of the older generation of people in their 60s and 70s.

But in many ways their values, which emphasize the importance of collective organizations such as work, nation, and society, are still similar to those of the Old Guard generation.

As a result, the “sandwiched” group’s mentality often clashes with the younger generation whose top priority is individual freedom.

As one “sandwiched” executive shared “When I was a rookie, I didn’t have any choice but to be quiet when I had an issue or I disagreed with my superiors. But nowadays, the younger generation boldly express their opinions in the workplace.”

In turn, this younger generation now expects management to emulate this norm of open discussion and expression—a behavior that the Old Guard also find unacceptable and improper.

A Changing Workplace

The introduction of the “team system” and western norms by many Korean companies to address issues of a hierarchy system and to improve efficiency has increased the difficulty for the Old Guard to give direct orders to younger workers.

As noted a veteran manager, “Many young workers don’t recognize the authority of their seniors. They often say ‘we are all members of a team. No more, no less’.”

Other Concerns

Adding to the challenge, the younger generation sees many faults in both “sandwiched” managers and well as the Old Guard.

For example, the younger group argues that both older generations often erroneously blame others for problems. “They don’t realize the real problem. They are really stubborn and pigheaded. They are not ready to listen to younger workers.”

“They keep saying that we have to do this and that, but they never set a good example for us. Naturally, we don’t respect them at all,” said a young Seoul professional.

An Internal Challenge

Similar to today’s organizations in America, Korean organizations are presented with the internal challenge of creating harmony and cohesiveness among multi- generational employees.

Individuals from each generation (i.e. traditionalist, baby boomer, Generation X, or Generation Y) bring divergent values, beliefs, attitudes, and expectations based on their life experiences.

These multi-generational labels may not be used exactly the same in Korea, but the issues that Korean organizations face caused by the gap between different generations are the same.

Individuals of each generation group grew up in the same time period witnessing and participating in common historical events as well as political and economic changes.

Therefore, these individuals with similar frames of reference have an easier time building bonds and working together in harmony than working with individuals from other generation groups.

The particular characteristics of each generation deeply influence how employees think about many aspects of organizational behavior, such as motivation, satisfaction, creativity, innovation, loyalty, commitment, and teamwork.

This accentuates the importance of understanding the distinctive characteristics of each generation group in order to engender successful outcomes.

###

http://www.bridgingculture.com

Korea Business Weekend Read 2

January 20, 2018 Don Southerton Korean Business Culture Comments Off

With the new year and 2018, I’d like to share a few weekend Korea business reads. All Korea facing– lots for overseas operations in the Americas, Ireland, UK, ME, India, Europe, and AU; lots that share insights into Korea and the workplace. Much very relevant for firms doing business with Korea or global Korean companies, too.

Here’s a link for a Download.
http://www.bridgingculture.com/assets/toolbox.pdf

One question we are getting with the new year is “Don, How Best Do We Work with You and Get the Team Support?” I happy to say many companies do recognize the benefits in offering our training, coaching, mentoring and strategy services…. and we take this role very seriously amid the uncertain changes soon to impact local operations .

Let’s chat.. dsoutherton@bridgingculture.com or better yet text +1-310-866-3777 then and we can chat by phone.

###…

A Korean Business “Working Within the Culture” FAQ

January 11, 2018 Don Southerton Korean Business Culture Comments Off

Korean Business and Why do Americans/ westerners need Korean cultural training?

For westerners this may be the first time working with Korean business and a Korea team. This opportunity brings with it the need to better understand their new partner’s culture, workplace norms and expectations.

In most cases, the western team will be interacting with a Korean expatriate team. Some of the expatriates will hold a line managerial position with day-to-day responsibilities alongside western managers, while others will hold key management C-level positions, such as CEO, COO, or CFO. In many, if not most, cases these expats may operate as a “shadow management” with considerable oversight of local operations.

With the best of intentions, the expats will look to build strong collaboration and teamwork and advocate less a sense of us and them. However, they do bring with them Korean work norms that can conflict with western work-life balance and western ways of working.

More so, Korean teams may make seemingly one-sided decisions with the best interest of the company in mind but without consulting local teams causing mistrust.

A solid training program followed by on-going support can address differences, such as sharing work styles, hierarchy, and comfort levels, plus providing work-arounds.

What are some typical issues that arise, especially without training?

As with all individuals, no two of us are alike –and the same goes for westerners and Koreans… Each has his or her unique strengths, skills, experiences and personalities.

That said, expecting local teams to simply “get it” without support and training seldom works. Even if a better understanding of the work culture eventually occurs over time, this “learn as you go” approach we see as costly, contributes to stress, poor productivity and even employee turnover.

What have Koreans told you about Americans? Work habits, commitment, etc.

If you ask Korean expats how they perceive Americans and westerners in general, responses would be very positive and respectful, especially toward western work ethics and work habits. Koreans see great value in American and western teams providing them with new insights and perspectives, as well as best practice

What might be covered in such training?

I see the training as two fold — 1) providing teams with an understanding of the Korean partner’s history, heritage, trends and popular culture and 2) looking at the Korean workplace and its norms, practices, and expectations.

Above all I feel a best practice is to share similarities and shared values when possible, along with instilling an awareness of and respect for cultural differences.

Addressing the team’s questions and concerns is also vital with issues, such as work-life balance, safety and quality processes and procedures and the overall expectations of Korean partners.

Anything else?

To conclude, the need for Korean business cross-cultural training programs for local employees and management is a high priority.

The assumption that local and expatriate teams can bridge cultural gaps through practical on–the–job experience might work with those few highly intuitive individuals with the exceptional ability to assimilate cultures.

What stands out in numerous studies, however, is the need for ongoing multicultural training, that can successfully impact people, especially those who need to quickly adapt to new or changing business culture and values, while fostering sensitivity and teamwork among all members of the company.

Finally, I would add that I have found a Korean business tiered service model – training, mentoring and on-going strategic support — to be the most effective approach for an organization.

www.bridgingculture.com

###

Everything Korea, December 7 Episode: Top 4 Ills

December 9, 2015 Stacey Commentary, Global Business, Korean Business Culture, vodcast Comments Off

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.

Everything Korea, November 30 Episode: The Economist looks at Korean corporate culture.

December 3, 2015 Stacey Commentary, Global Business, Korean Business Culture, vodcast Comments Off

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.

Access Link to the Article

https://www.scribd.com/doc/291417799/Loosening-their-ties-The-

In the meantime, would you like to schedule a time to discuss your Korea facing business questions?

To facilitate and with my rather demanding workload and travel, Stacey, my personal assistant at stacey@koreabcw.com can schedule us for a time.

« Older Entries Recent Entries »

Bridging Culture Worldwide

Strategic Advisory for C-Suite Leaders Navigating Korean Business