Repost from Branding in Asia
https://www.brandinginasia.com/how-the-hyundai-way-is-shaping-automotive-innovation
September 9, 2024
On the recent 2024 CEO Invest Day, Hyundai Motor Company revealed its new “Hyundai Way” strategy and outlined its mid-to-long term goals.
For almost 20 years, I have explored and articulated ‘The Hyundai Way’ in my publications, media, and lectures. Early on, I realized that it was an innate quality and required a deep understanding of company and workplace culture gained through hands-on experience.
The Investor Day event outlined strategies, action steps, and timelines. Hyundai Motor leadership presented a flexible response to market conditions and a focus on electrification, as well as an expanded lineup of vehicles through its “Hyundai Way” strategy.
As Jaehoon Chang, President and CEO of Hyundai Motor Company, said, “Under the Hyundai Way, we will respond to the market with agility thanks to Hyundai’s unique flexible response system.”
In the following commentary, I look at the evolving but grounded “how” of the “Hyundai Way” and the methods Hyundai has used to achieve past successes, which I will strategically build upon.
“Can do Spirit”
First, and at the core, Hyundai has always been embodied with a “Can do Spirit” despite the odds—and this heritage is doing what others have said is impossible.
This “Can do” attitude means attacking challenges with 110% commitment through strong will to overcome obstacles.
In Korean, this is referred to as Ha myeon dwaen da, which translated means, “Even if it’s impossible, it’s still possible.” Then, I’d add “Move with Speed.”
For example, regarding “Can do Spirit,” in my work, I often share Korean core values, norms, and expectations with teams globally—those long associated with Korea would agree—a shared drive to tackle the impossible with a “Can-do Spirit.”
Even those entering the ranks in Korea soon acculturate and embrace these values… seeing what the company has achieved over the past decades.
Innovative thinking
Hyundai has a rich heritage of entrepreneurial innovation. This is forward-leaning, innovative thinking, especially when faced with challenges. Hyundai, the name adopted in the 1940s when an entrepreneurial startup, means “Modern,” showing forward-leaning origins, heritage, and DNA.
“Hyundai, the name adopted in the 1940s when an entrepreneurial startup, means “Modern,” showing forward-leaning origins, heritage, and DNA.”
In the rapidly evolving global automotive industry, Hyundai Motor has emerged as a trailblazing innovator, breaking away from its traditional role as a fast follower.
At the core of Hyundai’s future success will be its strategic metamorphosis. Its commitment to leading innovation, exemplified by its ventures into Boston Dynamics robotics, Supernal urban air mobility, and Motional autonomous driving, has redefined its brand identity and challenged the conventional paradigms of automotive manufacturing and design in many areas. I’d layer on the move to developing Software Developed Vehicles (SDV) equipped with High-Performance Vehicle Computers (HPVC).
Risk-taking
This means taking bold action. They seek opportunity and then act while assuming ownership and responsibility. Hyundai has transitioned from a Fast Follower to a Game-changer and first mover.
Generally, a fast follower closely watches and tracks a brand leader and then quickly emulates. This eliminates many risks.
Most significantly, fast followers can capitalize on profound economic savings that game changers and the first movers must invest in new technologies, such as development costs and investments running into the billions.
On a more practical level, fast followers wait for a concept to be proven and “bugs” to be worked out. Then, they can spare their customers from recalls, downtime, and inconvenience.
In highly competitive industries like automotive, Hyundai, now a first-mover brand leader, holds an advantage and will be seen by customers as offering something new and exciting.
This advantage can translate into new vehicle sales, which are the drivers for any OEM.
Bold Challenges
With that, I want to layer on a long-time intrinsic observation. Hyundai teams and leadership have embraced challenges over the years. This includes becoming a top automaker and now new targets such as 5.55 million annual global sales, selling 2 million EVs per year, offering a full lineup of EV models ranging from affordable to luxury and high-performance, launching Software Developed Vehicles, and bolstering corporate value and shareholder return.
In a Seoul meeting with several former executives, I discussed the Korean company’s move to Mobility. I mentioned that some in the West feel that Korean car makers still need to sell many ICE (internal combustion engine) cars and SUVs—the ICE vehicle profits as an offset required to fund the new projects.
Still, somewhat surprisingly, a senior Korean paused and, with conviction, pointed out, “They always needed a farsighted goal—best if it seemed impossible!”
Significantly, embracing bold challenges means that what others will doubt and may see as unreachable can and will be achievable—frankly, that has always been “The Hyundai Way.”
Questions? Comments dsoutherton@bridgingculture.com