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| - Executive Seminar in January 2005 |
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The world’s economy today is changing very rapidly and the center of economy has already switched from a national to a global stage. Therefore, all economic policies that are established must reinforce a nation’s international competency. In this world of change, companies should also have the flexibility to adapt to global change and evolve into competent and highly-profitable companies. Now, a company must become global as a matter of survival. |
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Japan has a 1,000-year-old company and many that are several hundred years old. As Europe has architecture that took a few hundred years to be completed, I do not insist that we make our company global right away. A global company is not born in one day, so our role is to lay the groundwork through long-term plans to enable the next generation to realize our global goal. |
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Dongbu is a company with ideals and must become a global company. It must also become a leading company in a global setting. Our dream will definitely come true if we seriously establish our plans and make constant efforts to achieve our long-term goals; with strong belief in ourselves, we can achieve what we set out to do. |
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Dongbu Group has been divided into ① Finances and Insurance; ② Materials (steel and electronics); ③ Chemicals, Fertilizers, Ferro Alloy, and Food; and ④ Construction, Logistics, and Leisure. All four fields have promising futures and our Company has established a relatively considerable scale, competency and foundation in these fields in Korea.
Our Chemical field is number one in Korea, and steel works, as you all know, is second only after POSCO. In the case of Finances and Insurance, although it is anticipated that advanced companies in the United States or Netherlands will dominate the world market, we will be one of the companies that will coexist among them. |
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Dongbu Group has separated its business roughly into four sectors: 1) Finances; 2) Construction and Logistics; 3) Chemicals; and 4) Materials. This is not a simple reorganization, but a kind of innovation. As a company grows larger and its administrative conditions change, its organization must be reestablished accordingly. I have seen many companies that have undergone bankruptcy due to unsuccessful reorganization. |
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I prefer an administration system that encourages each member’s spontaneity and responsibilities rather than one that is bureaucratically run by a leader, namely the CEO. A company that collapses when that CEO leaves does not have a solid system.
Each division and organization should be allowed to perform spontaneous and responsible administration. This means that a CEO’s role is to support and manage each unit of the organization rather than to rule over and give instructions. If an organization culture can transform, its authorities and responsibilities will be clarified, and this clarity will lay the fundamental groundwork for spontaneous and responsible administration. |
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How should we become an “Excellent Company” When all members of a company, with no exceptions, participate in spontaneously setting challenging goals and constantly achieve higher accomplishments by concentrating on achieving those goals as a means of increasing efficiency--it is then that a company becomes an “Excellent Company.” Concretely, the way to implement the catch-phrase: “full participation/ high efficiency/ and spontaneous administration” is to establish systemic administration and achievement-oriented administration. |
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Systemic administration and achievement-oriented administration are actual tools to realize the goal of becoming an “Excellent Company.” There is no greater need than the need for outstanding human resources, competent systems and a progressive company culture in a company. In other words, the basic strategy of Dongbu Group’s administrative innovation is the constant generation of higher standards by realizing “full participation/ high efficiency/ and spontaneous administration”, based on outstanding human resources, competent systems and progressive company culture. |
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Among the books I have read over the last 36 years while accumulating experience as a CEO, “Good to Great” by Jim Collins was the most impressive. “Good to Great” teaches the essence of administration and is worthy enough to be read thoroughly and discussed and studied in depth. In order for our Group to become a world leading global company, it should survive; and in order for it to survive, we must be educated and learn and study thoroughly no matter how busy we are. That is, our dream will never come true without a well-established profound knowledge in business administration. |
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All decisions must be made within a system. I, the Chairman, and my office of secretary are parts of that system. The system does not tolerate exceptions. Only when the system is observed, can I be responsible for everything. Indeed, I should be fired if I don’t change. This is my conscience, my self-image and my philosophy of life. I should repeatedly undergo transformation and the process of learning to become a world leading CEO. |
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