Thoughts on Korean Business by Don Southerton

Over the years I have shared that overseas Korean operations go through times when the local organization experience less oversight by Korean teams.  More recently through direct feedback of western teams in America as well as my own observations some overseas subsidiaries are experiencing greater demands by Korean management. In part this is now due to downturns in China, Russia, and other emerging markets—that Korean brands had high hopes. Under such global pressure ensuring key markets like the U.S. perform well can mean an increased concern, worry, and stress on the part of their Korean teams… in turn this results in increased governance, micro-management and scrutiny, in particular, by Finance.   So what’s the solution? Frankly most of us recognize that support, especially mentoring for ALL newly hired and western management is needed.  This may sound as a simple answer to dealing with a complex issue.  I agree.  That said, in a time of height...

Where to begin?  What are the essentials to better understanding the Korean mindset with regard to Korean business? I fall back on to three fundamentals. Hierarchy—place and order Hierarchy is one of the most distinguishing characteristics of Korean culture and deeply embedded in the Korean workplace in Korea and overseas. Reaching back to Korea's Neo-Confucian past, social stratification is apparent in Korea's top companies. More so, South Korea’s authoritarian military regimes of the 1960s, 70s, and 80s reinforced the model. For Koreans hierarchy brings place and order to society and the workplace . Unlike the West, within this hierarchy no two individuals have the same place within the social matrix--age, education, family, employment and title /position with a company or organization determining where one stands within this matrix. So deeply does it impact Korea that rankings from one’s class standings to consumer rating of the major Group global brands matter...

In this episode I’d like to share   “Ten Insights into Korean business.”   This is something I often incorporate into one on one coaching and mentoring sessions.   It was also developed in collaboration with a senior Korea manager specifically to explain to his team’s Westerners on the company—the Westerners lacking first hand knowledge in the mother company and seeing the Company only in their local operations. In particular, there was a gap between how things were executed in Korea and had evolved locally-- to a model less efficient and with time-consuming procedures. To begin,   Trust There is a very strong trust within teams and in the company. This is often because of a legacy in achieving many bold accomplishments—often seemingly impossible tasks. Family Traditional family norms permeate the work culture (Elder brother as boss, senior managers, etc.) and the related concept that co-workers are seen as family. Challenge A one-word summary...

This week’s Vodcast is an excerpt from Chapter 2 of my Korea Perspective book. It shares divergent approaches tackling projects. To begin, From a cultural perspective, the Korean approach to managing projects differs from the West. To better explain dynamics in the Korean workplace, we need to draw on two cross-cultural terms. The first is "mono-chronic" in which people proceed according to linear plans made well in advance of the project start and carry out tasks one at a time from start to finish. For many this is considered a very western approach. The second term is "polychronic" in which numerous tasks are addressed but not necessarily in a sequential approach. Multiple issues can be dealt with simultaneously while other assignments can be put on hold or elevated in priority. This frequently describes the Korean workplace. A polychronic work style can result in negotiations, planning, and project activities proceeding at major levels with co...