Don Southerton Thought Leader
Do you have a Korean business or cultural question?
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Looking forward to talking.
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Don
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Dsoutherton@bridgingculture.com or Text/ Call 310-866-3777
1. Working with the Korean Business Culture
2. Developing and Maintaining Korean Business Relations
3. Do’s and Don’ts for Korea Business
4. Korean Decision-making
5. Managing Expectations
6. Legal Agreements–Subject to Change and Revision
7. What to expect in 2024
8. Weekly current events and Q & A Discussion
As I shared in Korea Perspective (2015) there is an interconnectedness in the Korean workplace. In particular, complex relationships abound.
This is true whether workplace operations are in South Korea, Germany, Brazil, India, or the Americas.
Directives and requests originating in Korean headquarters radiate to global operations.
In turn, inputs from local working teams, Korean and Western, make their way back to Korea impacting decisions by leadership. Relationships also play a strong part in this process.
What may appear one-sided and perhaps top-down may be the result of months of study, benchmarking, and research, as well as internal discussions and Korean peer input.
For reasons unclear to local overseas teams, projects can stall, while others re-boot.
Amid the disruptive business conditions, how overseas teams, Korean and Western, working in collaboration matters.
We all recognize that within divergent cultures and mindsets, both sides must bend, compromise, and adapt, as both are parts of a greater whole.
That said, at times tensions culminate in relationships between Korean and Western teams that can become confrontational or stall.
The good news in this era of disruptive business the most strained relationships can be repaired.
A negative relationship turned positive can be a very strong one.
Here are some key takeaways from the Harvard Business Review article, “Fixing a Work Relationship Gone Sour” (2014).
1. Give up on who’s wrong or right
2. Look forward, not back. You can take a solution-focused approach.
3. Understand from the other person’s perspective. “How do they see things?” “What are their contextual factors that need to be considered?”
4. Instead of debating what went wrong and who is at fault, create a space where you’re aligned. It can be helpful to focus on the bigger picture — the common, shared goal.
5. Don’t assume that things will change immediately ¬— repairing relationships can take time
All said, my work is focused on working through challenges and providing teams with solutions. As always, let’s talk and discuss the options.
It’s important to seek the right balance between global oversight and striving for localization writes Don Southerton
Repost of my article in Branding in Asia LINK
There has been an expectation that Korean, Vietnamese, and other APAC companies would strive to fully localize as they expand overseas business operations in markets like North and South America, the UK, and the EU. With COVID we saw a change from the past with an annual dispatching of teams from Asia-Pacific HQs to a more reduced and limited role for expatriates.
There is a strong argument that local operations are best managed locally with minimal day-to-day oversight from the company’s HQ expatriate team. The exceptions in many cases, are expatriates assigned in a “designated” support capacity often in tech support and engineering.
As a thought leader in global business trends, I suggest a potential shift in global governance.
A limited expatriate support role has been a long-term goal. It’s costly, and the acculturalization for any expat in a new market takes time and an openness to learn and adapt.
This said, one constant is change. What potentially might have been the plan to reduce oversight may be altered to strengthen expat engagement and input in day-to-day business decisions and management. This frankly has been a cycle I have witnessed over the years. The current mode of reduced engagement has been, too, rooted in COVID where new overseas assignments were all but eliminated.
There are justifications and reasonings for the increased local engagement. One possible option for effective communication with APAC HQs is to assign expatriates for daily direct communication during evening hours, considering the time and work hour differences.
Expatriates can provide valuable insights into the HQ strategy, particularly in clarifying recent mandates and initiatives for local management.
Moreover, there is a growing need for broader HQ fiscal oversight during the rapid shift to capital-intensive ventures such as mobility, which requires significant infrastructure investment.
I want to mention that many Western brands, too, have long contemplated the right balance between a centralized company business strategy versus one driven by localization.
Bottom line… In today’s rapidly changing global economy, it is vital to comprehend the intricacies of Asia Pacific business, including the hows and whys, and to engage with local APAC teams.
For those in the West, it may be the first time working with a team from Korea, Vietnam, the Philippines, or Singapore. This opportunity requires an understanding of the new partner’s culture and expectations.
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, such as Forbes 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 company members.
Finally, best practices have shown that a tiered service model with training, mentoring, and ongoing strategic support is the most effective approach for an organization. Leadership can greatly benefit from one-on-one coaching, too.
To conclude, to answer the question “Is it better to manage local operations locally?” International companies must seek the right balance between global oversight and striving for localization. This includes the best mix of an HQ team’s engagement in day-to-day oversight and decision-making while creating a level of direct communication to ensure expectations are addressed, especially aligning with global strategies and fiscal concerns.
“Much like the Salt Lake campus, the Incheon campus is located right in the heart of a bustling city.”
Photo IFEZ
Nice mention of Songdo in The Daily Utah Chronicle.
Songdo has many large businesses and it is very convenient to students, holding the popular term “Smart City” for being efficient in technology use. Business consultant Don Southerton wrote “Songdo’s development aimed to create an integrated 15-minute city, where people can access 90% of their daily activities by bike or public transportation in fifteen minutes or less.
As part of the Incheon Global Campus, Utah, is joined by SUNY, George Mason, GHENT and Stanford. https://www.igc.or.kr
The article goes on to share… In addition to the University of Utah’s main Salt Lake City campus, there is a campus located in Incheon, South Korea. The U’s Asia Campus is conveniently located in Songdo, the business district. This provides students with not only a comprehensive learning experience but is also great for future career opportunities and internships.
Source: https://dailyutahchronicle.com/2024/04/25/gordon-study-at-the-us-asia-campus/
###
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.
Hyangwon–First building electrified in Korea. Photo BCW
Seeking the right balance between global oversight and striving for localization.
There has been an expectation that Korean and other APAC companies would strive to fully localize as they expand overseas business operations in markets like North and South America, the UK, and the EU. With COVID we saw a change from the past with an annual dispatching of teams from Asia-Pacific HQs to a more reduced and limited role for expatriates.
There is a strong argument that local operations are best managed locally with minimal day-to-day oversight from the company’s HQ expatriate team. The exceptions in many cases, are expatriates assigned in a “designated” support capacity often in tech support and engineering.
As a thought leader in global business trends, I suggest a potential shift in global governance.
A limited expatriate support role has been a long-term goal. It’s costly, and the acculturalization for any expat in a new market takes time and an openness to learn and adapt.
This said, one constant is change. What potentially might have been the plan to reduce oversight may be altered to strengthen expat engagement and input in day-to-day business decisions and management. This frankly has been a cycle I have witnessed over the years. The current mode of reduced engagement has been, too, rooted in COVID where new overseas assignments were all but eliminated.
There are justifications and reasonings for the increased local engagement. One possible option for effective communication with APAC HQs is to assign expatriates for daily direct communication during evening hours, considering the time and work hour differences.
Expatriates can provide valuable insights into the HQ strategy, particularly in clarifying recent mandates and initiatives for local management.
Moreover, there is a growing need for broader HQ fiscal oversight during the rapid shift to capital-intensive ventures such as mobility, which requires significant infrastructure investment.
I want to mention that many Western brands, too, have long contemplated the right balance between a centralized company business strategy versus one driven by localization.
Bottom line… In today’s rapidly changing global economy, it is vital to comprehend the intricacies of Korean and Asia Pacific business, including the hows and whys, and to engage with their teams.
Some suggestions:Korean Business: Challenges and Solutions 50 Workplace Hints, #2 Managing Expectations
For those in the West, it may be the first time working with a team from Korea. This opportunity requires an understanding of the new partner’s culture and expectations.
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, such as Forbes notes….https://www.forbes.com/sites/forbesbusinesscouncil/2023/09/12/from-local-to-global-multicultural-businesses-bridging-international-markets/?sh=252577521062)
Is a 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 company members.
Finally, best practices have shown that a tiered service model with training, mentoring, and ongoing strategic support is the most effective approach for an organization. Leadership can greatly benefit from one-on-one coaching, too.
To conclude, to answer the question “Is it better to manage local operations locally?” International companies must seek the right balance between global oversight and striving for localization. This includes the best mix of an HQ team’s engagement in day-to-day oversight and decision-making while creating a level of direct communication to ensure expectations are addressed, especially aligning with global strategies and fiscal concerns.
And, above all get support, winging it rarely works….
Questions? Here to discuss your needs, too.
Edited by Don Southerton
A bird’s-eye view of the Global Genome Center provided by the Incheon Free Economic Zone
The Incheon Free Economic Zone (IFEZ) has the groundbreaking for Macrogen’s Songdo Global Genome Center at the Advanced Industrial Cluster in Songdo International City.
Dr. Won-seok Yun, head of the Incheon Free Economic Zone Authority, said, “We expect Macrogen to take a leap forward as a global precision medicine leader and Incheon Free Economic Zone to advance its bio-industry structure further.”
IFEZ Songdo is home to South Korea’s growing biopharmaceutical production capacity and increasingly making the country an attractive investment destination for global life science companies.
Founded in 1997, Macrogen is a company specializing in dielectric analysis. They are South Korea’s leader with the world’s fifth-largest capacity next-generation sequencing. Macrogen provides services to more than 18,000 customers in 153 countries.
The Songdo Global Genome Center will serve as a global genomic big data hub that accelerates the digital transformation of healthcare by combining big data including genomic information and artificial intelligence (AI).
IFEZ expects Macrogen’s dielectric analysis research facility to greatly contribute to the diversification of the bio-industry structure of the Songdo Biocluster.
By Don Southerton
Reflecting on Earth Day, my ties to Green and Sustainability have reached back in time and continue today.
They parallel my work with Korea and globally. In the mid-2000s, I was an advisor to developing Incheon, South Korea Songdo IBD (now Songdo International City), today one of the 3 Incheon Free Economic Zones (IFEZ). Incheon Free Economic Zone
Developed as a global model for urban sustainability, Songdo was envisioned as a Green, high-technology city of the future, and at the time, it was one of the world and Korea’s most significant foreign real estate development projects.
Built on reclaimed land and with partners like Kohn Pederson Fox, Cisco, and United Technology, the forward-leaning project also showcased the first LEED-certified buildings in South Korea and Asia.
In conjunction with the Songdo project and aligned with my work for Hyundai Motor Group, we had the opportunity for a VIP visit to Hyundai Motor’s R&D. I even got to fuel their 1st Gen Hydrogen Fuel Cell Electric Vehicles (FCEV), and then test drive the next generation of EV vehicles. At this time, Songdo’s leadership was very interested in FCEV buses for the district and powered by hydrogen.
Songdo’s innovations were again the subject of my 2013 article for the Korean government’s Ministry of Culture, Sports & Tourism, highlighting the city’s Green accomplishments.
I also hosted a 2013 BBC World Service visit, too. We showcased Songdo’s Green smart city capabilities, capped off by an interview with Cisco’s former Chief Global Strategist Wim Elfrink. Wim was the thought leader who popularized the term IoT — the Internet of Things.
A day later, we visited Hyundai Motor’s Eco Lab and test-drove their 3rd Gen FCEV, a first-of-its-kind production SUV, which was soon launched in Korea and then California.
In the years that followed, as companies I supported moved to mobility and EVs, I, too, shifted my research and work to these new sectors. Electrification has been and continues to be a major part of my work, leading to an ongoing immersion in the sector supporting Korean startup Grinergy and Green lithium battery technology.
In the last months, my interest has expanded to the Critical Mineral sector as well as recycling of black mass and rare earth sustainability and supply chain.
I’d add, most recently, my work, number of articles, and support have returned to the City of Incheon, IFEZ, and Songdo, as well as Cheongna International City, and the airport’s Yeongjong International City. Each, with a renewed Green and sustainability agenda.
https://www.brandinginasia.com/category/analysis/columns/korea-facing
Finally, as we reflect on Earth Day, in both my work and pursuits, I find the need to embrace Green technologies and renew efforts, fueled by government and private funding and with a growing public interest in sustainability.
Earth Day- Earth Week- Earth Month 2024
Questions? Comments? Have a project in mind or need support?
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Two Best Sellers: Korea 101: The Book, Hyundai Way
Two of Our Most Popular Books… Korea 101 and Hyundai Way: Hyundai Speed, The Third Edition
Korea 101: The Book https://a.co/d/4k0nNaQ
For over 20+ years, I have presented Korea 101 programs to more than 10,000 participants across the globe. Korea 101: The Book shares insights and experiences with my ‘boots on the ground’ in the classroom, boardroom, and, more recently, remotely.”
Hyundai Way https://a.co/d/dHJdwYy
Building on the past, this revised edition, too, looks at the transition to Smart Mobility and the corresponding workplace overhaul to become an agile global player.
Have a Korea-facing question? Just ask dsoutherton@bridgingculture.com
Don Southerton