Thoughts on Korean Business by Don Southerton

In this Part 2 of the  Culture Puzzle,  I’ll look from the perspective of Korean companies and their willingness to adapt and embrace new ideas while localizing their overseas operations outside Korea.  With this, how adaptive are Korean teams and management when they have operations in another country outside Korea?  The simple answer is it varies from region to region, country to country and even within a company that has several local subsidiaries in a county.   Layer on an openness to change varies with individuals, plus if there a local  DNA that fosters, coaches and encourages all to adapt vs. one where the pressure is to stay the course. So what is changing? Frankly, over the past decades little has changed in the expat model. The Korean expatriates, often called Executive Coordinators, are consistently highly engaged in the local operations, decision-making and the approval process...

A Culture Puzzle: Part 1 When a western company enters an overseas’ market such as Korea, gaps in understanding commonly surface. Most often the western brand and their team bring new ideas and an approach to the market. This is nothing new. In fact, many of today’s success stories result from looking outside the box. For example, when Starbucks entered Korea, they encouraged customers to sit and enjoy their drink… as well as converse with a friend, read a book, surf the web or catch up on homework. Prior, the Korean model was for a quick turnover — customers in and out the door. This “stay” took some time to convince both the local Korean business partner and the customer. Today it is the norm and only limited by seating availability. Still, when companies change hands, merger or are introduced to international markets, it brings in new or different procedures. In my experience, it is not unusual for Korean teams to pushback — as most companies might with market ent...

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 Don Southerton 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 classr...