Korea Facing Secrets for Success in Korean Global Business By Donald G.

Southerton

Also by the Author

Non-fiction The Filleys: 350 Years of American Entrepreneurial Spirit Intrepid Americans: Bold KoreansEarly Korean Trade, Concessions, and Entrepreneurship The Sioux in South Dakota (Contributing author) Chemulpo to Songdo IBD: Koreas International Gateway Fiction A Yankee in the Land of the Morning Calm: A Historical Novel Book One, 1890-1895 A Yankee in the Land of the Morning Calm: Gold and Rail Book Two, 1895-1900 A Yankee in the Land of the Morning Calm: The Northern Frontier Book Three, 1900-1907 eBooks Coffee, Cars, and Corporations: Thoughts on Korean Business and Popular Culture More Thoughts on Korean Business and Popular Culture: Volume 2 Hyundai and Kia MotorsThe Early Years and Product Development Colorados Henry Collbran and the Roots of Early Korean Entrepreneurialism

Copyright 2013 By Donald G. Southerton All rights reserved. 10 9 8 7 6

Library of Congress Cataloging-in-Publication Data Southerton, Donald G. 1953ISBN: 978-1481224338

Cover art by Anna Cash-Mitchell

Contents
Acknowledgements Foreword Chapter 1 K-Lobalization (Globalization with a K for Korea) Chapter 2 Ju Jae Won Chapter 3 Hierarchy Chapter 4 Cross-cultural Communications Chapter 5 Culture Shock Chapter 6 Generations Chapter 7 Planning, Decision-making, and Approvals Chapter 8 Protocols Chapter 9 Stretch Goals, the Seemingly Impossible, and Managing Expectations Closing Thoughts Appendix Korean Expatriate Global Business eLearning Series Learning Korean About the Author

Acknowledgements
In crafting this work, I have benefited enormously from many, including Korean management teams and executives who have openly provided their insights. I also benefited from Westerners working for Korean firms who shared their experiences. In particular I owe a special thanks to those who offered comments when I have previously posted sections of the book in weekly Korea Facing online updates. Among those offering perspectives, Jennie Chunghea Olivers contributions stand out and have been included in the book as Reader comments in several chapters. Finally, this publication would not be possible without the strong ongoing support of family, friends, and colleagues. I would especially like to express my appreciation toDiana Southerton Rudloff for proof reading and editing and to Anna Cash-Mitchell for cover design and eBook formatting.

Foreword
This book differs from most on Korean business. Frankly, unlike many publications, the intended audience is not those working in or looking to be employed in South Korea, although they will benefit from its content. Instead the focus is the ever-growing number of westerners employed by Korean-based companies outside South Korea. This book will provide you with a strategy and the skills to succeed. Likewise, if your firm provides services or products to a South Korean overseas subsidiary or operation, this book will be beneficial and offer tactics to strengthen and maintain the relationship. Finally, if your company has significant business in Korea, but leadership and headquarters are located in the West, we offer suggestions to key management on how best to deal with pressing issues and challenges that surface. I have extensive experience in all three scenarios and have seen both failures and successes by people and companies in all three. This book provides a roadmap to avoid the pitfalls, navigate around the roadblocks, and thrive. In addition to a lifetime interacting with Koreans, over the past decade I have supported major Korea brands, such as Hyundai and Kia Motors, in their overseas operations. For example, I developed a global education program for Hyundai Motor Company that shared Korean history and culture along with Hyundais past, present, and future. This was distributed worldwide and translated into 7 languages. For affiliated Hyundai MOBIS, I have conducted web-based and live global leadership training programs as well as producing a widely used training DVD on Korean culture, the Company, and its corporate vision. I have also supported western C-level leadership to better manage their major Korean global accountssome reaching into the 100s of millions USD in business annually. In many cases, Korean leadership and teams have openly shared their challenges and pressing concerns along with the inner workings of their companies with hopes I would assist in educating their overseas teams in the firms vision, values, procedures, and methods. In summary, I have offered hundred of hours of coaching, consulting, and training to both leadership and teams employed by Korean firms, and to firms providing key services to their Korean partners. This book shares my real life experiences in a constructive, forward-leaning manner.

Chapter 1 K-lobalization (Globalization with a K for Korea)

When I began supporting overseas non-Korean management teams for Korean companies, I often heard staff looking for a time when Koreans would fully embrace local western business norms, step aside in key decisions, and let the westerners run things. Why? The overseas branches of Korean companies commonly have a CEO who is a Korean expat managing the company or region with local support. The CFO and technical support can be expats, too. Most often these Korean expats form the core for business operations in the host country. By the way, the expats below senior management are often called coordinators in the West. However, the Korean term is ju jae won. In the larger overseas subsidiaries, Korean expats are assigned to the major departments, including sales, marketing, HR, and product development, along with engineering, and design divisions. In many, if not most, cases these expats are not assigned manager roles but operate as a shadow management with considerable oversight of local operations. For westerners unfamiliar with the Korean model, this oversight usually translates into the Korean expats requiring sign off on all decisionstrivial to substantial. This can be a huge challenge when newly assigned expats have little specific background in or knowledge of the host countrys operations and market. Cognitively, they recognize localization is needed but, especially if under pressure to perform, may defer to their Korean company procedures and cultural norms. In other cases, Korean firms have also initially resisted local management guidance and followed what they felt would be the best approach. Sadly, they performed poorly and eventually yielded to the local teams. Times do change. Recently, and unlike a decade or so ago, many Korean teams and management have become increasingly global savvy. More significantly, following the global recession of 2009-10 when many international firms experienced setbacks, Samsung, Hyundai Motor Group and LG soared and as a result some Koreans see their model as superior to rival western brands. I call this K-lobalizationwhen Korean firms boldly promote their own unique management style and corporate culture internationally and across many markets. A recent manifestation is organization-wide, corporate-directed core value, vision, and management training directives. Usually the programs are expected to be unchallenged and accepted without question by overseas teams. So Why Hire Westerners? If K-lobalization is the new model, then why hire local western teams? One challenge for Korean multi-national Groups has been launching overseas operations and staffing the local branch or subsidiary. In part, Korean leadership

is well aware that local expertise is vital for success, and in part, no Korean Group has a sufficient Korean workforce to staff their international operations. Several years ago during a group session I hosted for overseas Korean and western senior managers, the discussion turned to the "role" of the westerners on teams in local project development. The local western teams felt very underutilized and wanted to contribute more. This, of course, was a source of considerable frustration for the westerners because their previous employers had given them considerable responsibility with little direct oversight and more fully utilized their experience and expertise. Pondering for a moment during the discussion, a senior Korean pointed out that local input was respected, but perhaps feedback needed to be better communicated. The Korean manager went on to explain that his team knew how to do things "Korean style", but what was needed were other ways of approaching work related issues. Even if the local ideas were not adopted, senior management reviewed those options and took them into consideration. In fact, Korean leadership had high trust in the local teams and their judgment and they hired the local team to provide much needed expertise and know-how. Listening attentively, one of the western managers grinned and, as I recall, thanked his Korean co-worker for sharing and promised he would convey the message to his team. He also commented that he wished he'd known this two years earlier, since the feedback would have reduced stress in his department. Similarly, I have noted that unlike in Korea where there is considerable internal promotion, Korean overseas operations often do not fill new positions from within the local organizations. Again, this is a result not of under-valuing local talent but rather of forwarding the belief that hiring new people will bring new ideas. The same thinking can also apply to vendors and service providers. At times new partnerships are sought to replace a long standing provider. The motive behind finding a new firm is to introduce to the company new resources, ideas, and innovative solutions. My note to Korean teams and management Take time to provide your local western teams and management with feedback, both good and not so good, when they contribute time and effort on a project. Sharing details on how their work impacted a project will go far in improving relations and morale plus lead to higher productivity. My note to western teams and management Be alert to organizational restructuring in Korean partner firms. In fact, sensitivity to and an understanding of the norms in the ever-changing Korean workplace are needed. Restructuring is constantand at times is change for the sake of change. In other words, Korean groups can shift toward K-lobalization for several

years, then move to a western model, and return to the Korean model. How Korean teams adapt will vary, and as a senior Korean manager once reminded me no two Koreans are alike. When appropriate this eBook provides a number of skills and suggested actions. Skill # 1 Working within K-lobalization With K-lobalization in mind be upbeat and forward thinking in all dealings with Korea management and teams. Maintain a glass is half-full vs. half-empty attitude. Show passion and enthusiasm. Korean leadership looks to the companys global teams and top partners for new ideas. Find innovative ways to overcome challenges. Provide out of the box thinking to your Korean partners and their teams. Whenever possible, showcase new technology as solutions to challenges. That said, remember that Korea is a high-risk avoidance culture, so frame your ideas in a way that minimizes risk and promotes ROI. I find offering pilot programs to be a great way to allow projects to move forward within a risk avoidance culture.

Chapter 2 Ju Jae Won

Over the years, I have watched working conditions and relationships between Korean expatriates and local non-Korean teams change with time. One key driver is the Korean expat model. Why? First, most Korean overseas subsidiaries have Korean management assigned to the host country. As noted in the previous chapter, the general term for these representative employees is ju jae won. The Korean expat model has a rotation cycle in which teams and executives are assigned to overseas divisions for 3-5 years. They then return to Korea for reassignment with a replacement expected to take overoften with little preparation. Skills and experience can vary, too. For some, this is their first overseas assignment. For most, this is the first time newly assigned Korean expats are required to directly participate in the decision making process. In Korea, senior management makes decisions and their teams execute the plan. Finally, reassignments and transfers can occur at any time, disrupting operations and requiring newly assigned Korean expats to become acquainted with their new jobs and roles. Ju jae won assignments in a host country range from key managerial and fiscal positions to technical experts, such as engineers, craftsmen, and analysts. Interestingly, global researchers have found that few companies, not just Korean companies, prepare their expatriates for the stress and demands of foreign assignments. For example, the failure rate of expatriates is thought to be as high as 40% in US firms sending their employees abroad. Executive ju jae won usually hold key management C-level positions, such as CEO, COO, or CFO. A second tier of Korean management serve as coordinators or managers. Roles vary with each company, but most often a coordinators primary role is to act as a liaison between Korea and the local subsidiary. In other cases ju jae won are managers taking on day-to-day responsibilities alongside western managers. To be eligible for an overseas assignment, most ju jae won have worked for the company for 6-8 years. They know company procedures well. They have been successful at their jobs. And, they often were assigned to the headquarters overseas support teams, have traveled extensively to subsidiaries, and were educated outside Korea. However, like western teams, ju jae won can vary in experience and skills. Finally, as in all relationships, interpersonal communications determine how well teams interact. It goes without saying that people skills will vary with Koreans and Americans, as well as teams from Europe, the Middle East, and Asia Pacific.

In discussions with western management and teams over their interactions with Korean leadership, I stress the need to recognize that generational differences exist. For example, on a recent visit to one of BCW's clients, an American executive noted the younger Korean expats were great and worked well with the American team. (In the past, there were many conflicts with the expats.) So where is the challenge? New ju jae won are skilled and accomplished in Korean style business operations, norms and practices. However, they have now been assigned to an overseas subsidiary where norms, practices, expectations, and laws differ. Moreover, their responsibilities and assignments in the subsidiary may be in a department or specialty, in which they had little or no experience in Korea. Similar but Different To add to how expats experiences varied, I had the opportunity to chat with the local subsidiary's Korean CEO following a recent workshop. He hoped I would share with his team how the company in Korea and the US differed from the Group's sister firms since many wrongly assumed a high level of conformity across the Group. I assured him that in the training I addressed how even within the Group each company had its own unique culture. And, I further explained that the training addressed not only how sister companies differed, but also how recruitment and the ways of working at companies within the Group were different. For example, most recruitment for the Groups two major divisions was now directed at entry-level recent university graduates with no prior work experience. However, many currently employed in this particular division had prior experience and were recruited from the finance industry or a top global consultancy (e.g. McKinsey and Co). On parting I added, and the CEO agreed, that a key point to be shared was that Koreans dispatched to support the division's overseas operation came to see things differently over time from the Korea-based teams. Building on this... Prior to a global workshop on the ever-changing Korean workplace, a senior Korean executive once asked that I also explain to the group that despite perceived outward appearances and a homogenous society, no two Koreans are alike. In other words he asked that I help dispel common stereotyping of Koreans. Specifically, factors contributing to how individual Koreans might differ include generational issues, global travel, work, educational experiences and, of particular significance, how and if they were mentored in a management style. Dinner meetings provide an opportunity for teams to share information and for juniors to be mentored in a management style.

Regarding mentoring, during a team building workshop held several years ago, a senior Korean manager shared some insights on Korean management styles. He noted that teams within his Korean division were mentored by seniors in one of several styles. For example, some senior managers fostered a "soft" management style of collaboration, while others used a "hard" autocratic style. Elaborating more about how he was mentored, he learned to first present the challenge to his team and then ask his juniors for their opinions. In the case of an overseas' subsidiary he learned to ask the American colleagues for their ideas versus directing the team on what to doa style later advocated by his longtime boss.

Skill #2 Supporting Ju Jae Won Support your Korean teams and provide them with training opportunities. Be proactive. Suggest and encourage new ju jae won to pursue training and coaching in management skills needed for your specific market, region, and subsidiary. Expecting the new ju jae won to just pick up needed skills is similar to throwing someone into the deep end of the pool and expecting that person to swim. Most Korean executives, both in Korea and at subsidiaries, have completed several assignments in overseas marketssome for most of their careers. Over the years as ju jae won they polished needed interpersonal and management skills, not to mention learned the subtleties of many markets. I see this group needing high level and tailored coaching that is different from the needs of a new junior ju jae won. Supporting ju jae won and non-Korean executives is a must for all Korean-based organizations. This support must be more than Korean cross-cultural understanding. Mentoring and coaching is the key. Because experience and skills vary, each program must be tailored to address individual needs. More significantly, mentoring requires the coach to understand both Korean and western business, not to mention the specific Korea-based firm and the industry in general.

Chapter 3 Hierarchy
Hierarchy is one of the most distinguishing characteristics of Korean culture and the Korean workplace is deeply rooted in hierarchy. Reaching back to Korea's Neo-Confucian past, social stratification is very apparent in many of Korea's top companies. South Koreas authoritarian military regimes of the 1960s, 70s, and 80s reinforced this old model. A number of workplace norms with many protocols dictate interaction between the teams and senior management. Essentially, teams prepare reports and data for senior management to review, await approval from the executives and then implement. Additionally, the hierarchical relationship between subordinates and superiors becomes evident in the great emotional distance between these two layers. For example, those lower in the hierarchy are hesitant to approach their superiors and usually wait until superiors contact them to discuss matterseven those matters which are urgent. Also, in a hierarchical system a request from above always overrides other plans and therefore schedules are often revised on short notice. This can also unfold as any request from the Korean headquarters taking precedence over operations at the local branch or subsidiary. This top down management style works well in Korea, but as the nations business has expanded globally, Korean firms need to adapt to regional norms. For example, local teams, such as those in much of North America and Europe, are used to Low Power Distance and flat organizations and find adapting to Korea's top down management style a challenge. Next, we'll look at the role of Title and Position within the context of Korean overseas operations and the workplace. Title and Position Rank and position are important to understand within the Korean hierarchy model. Even though county and regional expat teams must assume local norms for title and position, their actual rank within the mother organization may differ from that in the subsidiary or region. For example, in some cases the local expat leaderships title may be CEO-President, but their rank within the mother organization may be e-sa (director) or sang moo (managing director). Ultimately, the Korean teams defer to the mother company rank and position. The chart below illustrates a typical Korean company hierarchy.

Rank and position in the mother company, along with sphere of influence, have a powerful impact on an expats effectiveness. For example, a chajang (deputy general manager) with the mother company who is seen as on the fast track will fare better than someone who has little interaction with senior leadership. Moreover, an expat who has successfully worked overseas for years may be very effective interacting with local branch teams but the long tenure abroad may have weakened the network at the mother company as long-time Korean friends transfer or retire. In contrast, a newly assigned expat who has worked for years at the headquarters on high profile projects and has gained the respect and trust of peers and senior management may have considerable pull and influence. That said, understanding an expats career background provides an insight into the expats ability to obtain support for local projects from the headquarters in Korea. Finally, we discuss of the role of Korean mid-level managers in overseas operations and the challenges they encounter. Middle Level Management As discussed, most often those dispatched to department level overseas assignments are middle management kwajang (manager) and chajang (deputy

general manager) levels, although dae-ri (assistant manager) may assume posts for temporary tasks and projects. One major challenge for this middle management in their new roles is that in their Korean organization kwajang and chajang do not question or evaluate the opinions, ideas or orders of superiors. A request from above receives priority over other projects and scheduled meetings. In contrast, in the new roles they are expected to make decisions and give direct input on issues under discussion. Over time some embrace their new roles, while others in an effort to avoid risk lay low and defer to others. Another new major challenge for middle managers is the growing generational influence on the Korean workplace. As early as 2006 a Korea Times article shared this new challenge for middle level managers. The following example was discussed. Seoul, Korea A 43-year-old office worker in Seoul is thinking seriously about quitting his job. As a middle-ranking manager at an automaker, he has been sandwiched by his boss and his subordinates. In an interview by Korea Times a manager noted, It is really difficult working with my senior officers and my junior staff members. When something goes wrong, I get harsh criticism from both the bottom and top levels. In Korea, the term sandwichedis used to denote a generation of middle managers in their late 30s to late 40s who are usually chajang or bujang level. This age group has some social and political views that differ from those of the older generation of people in their 50 and 60s. But in many ways their values, which emphasize the importance of collective organizations such as work, nation, and society, are still similar to those of this older generation. As a result, the sandwiched groups first mentality often clashes with the younger generation whose top priority is individual freedom. When I was a rookie, I didnt have any choice but to be quiet when I had an issue or I disagreed with my superiors. But nowadays, the younger generation boldly express their opinions in the workplace, the Korean manager shared. In turn, this younger generation now expects middle management to emulate this norm of open discussion and expressiona behavior that middle managers find unacceptable and improper.

A Changing Workplace The introduction of the team system by many Korean companies to address issues of a hierarchy system and to improve efficiency has increased the difficulty for superiors to give direct orders to younger workers. As noted in the Korea Times article by a veteran manager, Many young workers dont recognize the authority of their seniors. They often say we are all members of a team. No more, no less. Other Concerns Today middle managers in Korea are evaluated by top managers and also by subordinates. This adds new stress to middle management. A 39-year-old middle manager at a manufacturing company notes that he now has to be careful when dealing with both his seniors and juniors and the differing views of the two groups make the task difficult. Adding to the challenge, the Korea Times article points out that the younger generation sees many faults in sandwiched managers. For example, the younger group argues that middle managers often erroneously blame younger workers for problems. They [the middle managers] dont realize the real problem. They are really stubborn and pigheaded. They are not ready to listen to younger workers. They keep saying that we have to do this and that, but they never set a good example for us. Naturally, we dont respect them at all, said a young Seoul professional. The young professional also notes, Senior workers think that sitting at office until late is working well. It is wrong. They just sit too long, pretending to work hard and thus they want to get the favor of their boss. But it is not efficient at all. Similar to today's organizations in America, Korean organizations are presented with the internal challenge of creating harmony and cohesiveness among multigenerational employees. Individuals from each generation (i.e. traditionalist, baby boomer, generation X, or generation Y) bring divergent values, beliefs, attitudes, and expectations based on their life experiences. These multi-generational labels may not be used exactly the same in Korea, but the issues that Korean organizations face caused by the gap between different generations are the same. Individuals of each generation group grew up in the same time period witnessing and participating in common historical events as well as political and economic changes. Therefore, these individuals with similar frames of reference have an easier time building bonds and working together in harmony than working with individuals from other generation groups. The particular characteristics of each generation deeply influence how employees think about many aspects of organizational behavior, such as motivation, satisfaction, creativity, innovation, loyalty, commitment, and teamwork. This accentuates the importance of

understanding the distinctive characteristics of each generation group in order to engender successful outcomes. Nail that Sticks Out One last comment, repeating a theme in this book that no two Koreans are alike, often middle level chajang continue to be seen as the most resistant to change and risk taking among Korean teams. Why? Job security. Many Korean managers in their late 30s and early 40s see little career opportunity outside their companies. The major Groups tend to promote from within, with few outsiders joining the management ranks of major companies. Moreover, these middle managers defer decisions or taking any risk that might jeopardize future promotions beyond general manager. Some take a the nail that sticks out gets hammered stance, keep a low profile with their team, and minimize their direct exposure. Internally their Korean juniors and in overseas operations their western co-workers find this risk avoidance challenging and frustrating. Skill # 3 Hierarchy When meeting a Korean, you will commonly face a litany of questions about your education, age, marital status, children and other questions that you may consider personal. Since no two people are at the same place in the social matrix in Korea, asking these questions provides a means of understanding how to position you in their company hierarchy. Be prepared to share key accomplishments and aspects of your life, such as family, children, and even hobbies.

Chapter 4 Cross-cultural Communication

Communication is unique within a culture. In business, communications can either cement a relationship or create a barrier. Effective cross-cultural communication can lessen misunderstandings, reduce tensions, and improve business productivity. This is crucial with globalization and the expanding marketplace among differing cultures, such as Korea, Europe, the Middle East, and the United States. Differences do exist. However, our openness to new information and an awareness of more than one cultural perception can make a huge impact on our ability to communicate better. Moreover, there are similarities and differences, which are called cultural variables. A number of cultural variables such as individualism-collectivism, masculinity-femininity, uncertainty (risk) avoidance, power distance, and high and low content communications, exist between Koreans and Americans. The topic of cultural differences has been researched for decades by cross-culturalists including Geert Hofstede, Edward Hall, Stella Ting-Toomey, Harry Triandis, and William B. Gudykunst. Generally speaking, the greater our cultural knowledge the less likely misunderstanding and stereotyping will occur. Understanding the nuances of these cultural dimensions can dramatically improve communication. One of the most important dimensions is individualism-collectivism and the need to consider the impact of rapid change on Koreas values, beliefs, and behaviors. Most studies cite that within individualistic cultures, America and Australia for instance, the individual takes precedent over the group. In collectivistic cultures, such as China, Japan, and Korea, the opposite exists.

Individualism Individualism holds that a person is the primary unit of reality. Individuality is the ultimate standard of value. This view does not deny that societies exist or that people benefit from living in them, but it sees society as a collection of individuals, not something over and above them. Individualistic cultures see each person as having unique talents and potentials with the need of fulfillment. In the workplace, this manifests as self-direction, self-motivation, and independent selfevaluation. Collectivism Collectivism holds that the group, (e.g. the nation, the community, or the company) is the primary unit of reality and the ultimate standard of value. This view does not deny the reality of the individual, but ultimately collectivism holds that one's identity is determined by the group(s) with which one is affiliated. Essentially, one's identity is molded by relationships with others. In collectivistic societies, group goals take precedent over an individuals objectives. Collectivistic cultures also require that individuals fit into the group. The groups goals and needs matter over individual pleasure. Within the collectives, the group shares responsibility and accountability, while fostering harmony and cooperation. In addition, within collectivistic societies, groups have rank-orders. This has a huge impact in Korean organizations, such as Samsung and the Hyundai-Kia Motor Group, which are hierarchical and managed top-down. I and We Cultures In contrast, in individualistic societies one is expected to look after Number 1, while in collective cultures in exchange for loyalty one looks after the group. Fundamentally, individualism emphasizes the I identity and collectivism emphasizes the We identity. It should be noted that individualism-collectivism can be used to explain cultural differences, but not all members of each respective culture are individualists or collectivists. Individualism and collectivism are not polar dimensions, for both form a continuum. There are collectivists in America and individualists in Korea, so each person must be considered at the individual level.

Change in Korea Most researchers agree that collectivism is one of the most distinctive characteristics of Korean culture. This collectivism has a huge impact on family, society, and business. But today, Korea is showing change in these spheres. The large extended traditional family is shifting to one centered on the wife and husband. In addition, Korea is shifting to a youth-centered culture influenced by Western individualism, education, media, and values. It might be said of contemporary Korea that both collectivism and individualism exist.

How can you utilize this information to improve the quality of cross-cultural communication in your organization? Recognizing cultural patterns is the first step. For example, when meeting Koreans and they probe for what appears to be personal information of family, school, marital status, and age, do not feel uncomfortable. They are collecting data to understand your group memberships. In Korea, work group, family, and school strongly influence daily life. On another level, in business situations we can reduce the chance of misunderstandings when we are aware of more than one perception and recognize the differences. In conclusion, effective communication with Koreans requires that we minimize misunderstandings and stereotyping through learning about their culture. Becoming an expert may not be practical, but a mindful approach will reap great benefits.

Chapter 5 Culture Shock

The Adjustment Often overlooked is an expats well-being in adjusting to the new job and relocation. Labeled as Culture Shock, a cross-cultural acclimatizing needs to occur when an individual is assigned to a different geographic location. This adapting varies with distance from home country, scope and responsibilities of the new job, local social support, and duration of assignment. Also, whether the assignment was voluntary and deemed career enhancing can significantly impact the adjustment period. Other Culture Shock factors can include first time assignments, family situations, or the potential damaging consequences from poor performance in the foreign service. Studies show there are several stages of Culture Shock: 1. The Honeymoona period of positive attitude, excitement, and high expectation. 2. The Adjustmenta time when cultural differences result in challenges at work, at home, and in day-to-day life. Irritation, unhappiness, and hostility are indicators. 3. Recovery and Biculturalismthe phase when the expatriate is able to predict patterns of behavior at work and in day-to-day life, communicate successfully, and grow to accept and appreciate the local culture and norms. Suggested guidelines for effective cross-cultural training programs include: Emphasize job and culture equally. For expatriates, this includes understanding Tripartite Socializationthe local culture, the host nations business culture, and the companys corporate culture. Maximize the similarities in value beliefs between host and home countries. Identify important features of beliefs, values, expectations, and traditions of host culture. Design training content so lessons apply to day-to-day experiences. Coach and mentor participants (situational, when possible). Outcomes Although there is bound to be some friction between expatriate and host country cultural values, a successful cross-cultural training program accomplishes: Awareness and appreciation of both the home and host country with the ability to gain an insight into ones own personal traits, strengths, weaknesses, attitudes, and interests. Realization of similarities and shared values, along with an awareness of and respect for cultural differences.

The ability to adapt quickly to new cultures, ideas, and challenges on the job and in the home.

The Assumption To conclude, given the magnitude of global operations, the need for crosscultural training programs for host and expatriate employees and management is high. The assumption that host and expatriate can bridge cultural gaps through practical on-the-job experience might work with those few highly intuitive individuals who possess an exceptional ability to assimilate cultures. However, what stands out in numerous studies is the need for ongoing multicultural training that can successfully impact people. In particular training should educate new expat teams in local business culture and procedures, while fostering sensitivity and teamwork among all members of the company. The Challenge Because business norms, practices, and decision-making processes vary across cultures, expatriate management teams need to not only understand local business practices but also, and more importantly, internalize the how and why in order to adapt successfully to the new assignment. Merely expecting expat teams to "get it" seldom works. It is wishful thinking that newly assigned Korean teams can quickly recognize the nuances of American business culture (or for that matter American teams to grasp Korean corporate norms). An Approach Working across the Hyundai Motor Group in the US, Korea and internationally over the years, we have found that needs and circumstances vary even among sister companies. In some cases the best approach is a workshop for combined teams where both local and expat teams share expectations and practices. In other instances separate American and Korean sessions are more productive. Skill #4 Reducing the impact of Culture Shock As emphasized above, training is crucial. The extent of training can depend on variables, such as previous overseas assignments and the novelty of the new country and market compared to Korea and past experiences. In addition to localized management and decision-making training coaching, offer sensitivity and communication workshops. Training and coaching can range from low intensity to total immersion: Low-interaction training focuses on information distribution. This generally takes the form of lectures, videos, and readings. The material should include local business norms and a company operational overview.

Low-intensity training would be appropriate for someone who has held a previous expatriate assignment or someone familiar with the host country. Unfortunately, this is often the only training received by most expatriates whether they have previous experience or not. This approach is usually due to last-minute selection and/or no training budget. Medium to high-intensity training should have a duration of one to two months. This training should provide a mix of affective learning and cultural immersion. Medium-intensity training takes the intercultural experience workshop approach, offering cultural simulations, role-playing, and case studies. Skill development can be culture-general or culturespecific. High-intensity training, most necessary for inexperienced expatriates entering a very different culture, provides sensitivity training and includes communication workshops and field exercises that focus on selfawareness, listening skills, open-mindedness, and communication skills.

BTW, I have developed a new eLearning program for Korean expatriate teams and management. See Appendix for more details.

Chapter 6 Generations
South Koreas dominant age groups have great impact on Korean business culture, so there is value in understanding the differences in Korean generations. In South Korea, a generational group is defined more by its shared experiences than by a specific number of years. For instance, older Koreans (50:60ers) who lived through the Korean War and its aftermath are more conservative, strongly allied with the U.S., and uncompromising towards North Korea. In contrast, a group called Generation 386 (a phrase coined more than a decade ago, and comparable in some aspects to American baby-boomers) grew up in a period of great student unrest and tend to be more socially conscious and liberal than their forbearers. 386, no longer a literally accurate term, stands for Koreans in their 30s in the late 1990s, born in the 60s, and educated in the 80s. An example of their growing influence is the April 2004 parliamentary election which saw the decline of the older conservative Grand National Party and the emergence of the reformist URI party composed of many 386ers. A third generation of South Koreans, those in the age group of 26-35, is commonly referred to as the New Generation or Shinsedae. Many of this group have studied abroad, worked most of their careers on overseas support and projects, are fluent in English (and often another language or two), and have a global perspective. This group grew up after the 1997 economic meltdown in Asia, which strongly impacted South Korean culture. This younger generation of Koreans is less concerned about ideology and more pragmatic. Their primary concern is finding a job. They are also a strong gotta have it consumer class and individualistic as a result of the impact of globalization, the Internet, television, and the high percentage of students who attended U.S. schools and universities.

ShinsedaeNew Generation With regard to overseas Korean management most newly assigned expats are shinsedae. Recognize that many younger Koreans care little for the past and are more interested in the latest trendsthe latest cell phone technology, new clothing fashions and new hip urban centers. Their focus is now, in contrast to many Koreans (386ers, 50:60s) who treasure and wish to preserve, protect, and promote Koreas heritage. Bloomberg News, Seoul reports the once lifetime dream of working for one of the top Groups is changing. I work with teams from major groups including Hyundai and with two recent startups. In comparison, I see the startups offering more flexible work hours and an opportunity for employees to express themselves and impact decisions. Ive seen this change unfolding for a number of years. I recall chatting with some Korean students at the University of California, San Diego Graduate School of International Relations and Pacific Studies. My question to them was about what they planned to do upon graduation and returning to Korea. One student rather coldly said hed probably work for Samsung for a year or two and then form a startup. The other student agreed, saying Samsung was a meat grinder. The Bloomberg News article goes on to note...Sim Cheol Hwan is one of the countless twentysomethings around the world who have adopted Facebook (FB) founder Mark Zuckerberg as their patron saint. The 27-

year-old engineering student wants to take a break from college in Seoul to make apps for mobile phones. Idont want to get a job at a top10 Korean company, says the Hanyang University student. Zuckerbergs success proves that there is a lot of money to be made in startups. Not long ago, South Korean graduates dreamed of lifetime jobs at Samsung Electronics or one of the other chaebol, the sprawling conglomerates that dominate industries from electronics to autos to shipping. Now, inspired by the success of companies like Facebook, Twitter, and Instagram, many are starting businesses. Thousands of aspiring entrepreneurs powered an 83percent surge in the number of South Korean technology startups in the four years through 2011, according to Korea Venture Business Assn., a private organization that supports new enterprises. Everyone used to think if you go to a good college, that means youll get a job at a big conglomerate, says Kim Dae Ho, professor of service management at Mokwon University. Now people are thinking they can also start their own company and run it, rather than working for someone else. The whole environment has changed. Young risk-takers like Sim remain a minority. Samsung was still the most favored employer among South Korean job seekers, followed by Hyundai Motor, according to a March survey by SaraminHR, which operates an online job site. Its no wonder: Salaries at Samsung average 77.6million won ($68,300) a year, according to the companys annual report, more than three times South Koreas per capita income in 2011. [BTW Hyundai Motor pays even better according to a more recent report]. The nations top30 conglomerates employed 6.8percent of the countrys workforce last year, according to a June6 report by the Federation of Korean Industries. South Koreas work culture, with its emphasis on hierarchy, groupthink, and long hours at the office, may be starting to take a toll. South Koreans average 2,193 hours at work annually, the most of any of the 34 member nations in the Organization of Economic Co-operation and Development, according to 2011 OECD data. In a life satisfaction study of 32countries undertaken by a network of social scientists called the World Values Survey Association, Korea came in 31st. Surveys by Korean research institutes have found that happiness among teenagers, who spend nights and weekends in cram schools prepping for university exams, is the lowest in the OECD.

There are more of us now who believe in the importance of finding what is meaningful for you, not what society dictates should be meaningful or good for you, says Sim. Even as Samsungs fall recruitment season nears, engineering student Sim has no plans to visit the companys careers website. I dont think I can maximize my full potential at these companies, he says. Ultimately, any person starting their own business should think big. The bottom line: South Koreas government spent $16.7billion last year to support small and midsize businesses, helping fuel a boom in startups. A Reader Comment As noted in the Acknowledgements, sections of the book were published in the weekly Korea Facing online newsletter. This shares one readers first hand perspective on Korean generations. First, it seems that the younger generation, especially those who are in their late twenties, started to think about running their own business in the near future. Are these young men and women truly equipped for success or set for failure? I know that this question is somewhat extreme, but is an interesting question. Based on my recent research study on Korean ESL learners and recent articles published in Korea, college students in general suffered severely from the lack of creativity, originality, and critical thinking. The lack of training for these skills in both school and home created adult learners who have no idea what to do with themselves when they are not directed by their parents or teachers. As you already know, Korean education mainly focuses on exam-driven didactic teaching methods. The external force from the parents and school to give up on their personal dreams, but to pursue what the society dictates has impaired the flexibility of young adult learners today. This begs a question: what are the chance of running a successful startup organization for these young men and women? Second, Korea is a small nation that offers limited job opportunities for young men and women. You have probably noticed during your trips to Korea that there are so many businesses in various sectors such as consulting, finance management, gaming, and so forth. From time to time, I wonder how these businesses can possibly survive in the highly competitive marketplace. Sadly, not all businesses thrive. In fact, many of them fail shortly after opening. The new businesses usually replace the empty seats. This negative pattern repeats itself. Among these startups, how many of them actually make business deals with established companies and become recognized as reliable, competent, and

profitable? Unless they possess some special merit, startup companies may have a difficult time staying in business due to the fact that established companies probably pay a very little attention or have the patience to watch them grow up to be reliable or competent. This observation/assertion presumes that their choice of doing business is through making business deals with big companies, rather than by serving individual customers. At the same time, it seems that working into channels with existing and established players is the best opportunity for a small startup in Korea to differentiate from the competition. As you know, in this global/international business era, business requires textural understanding of the market beyond offering competitive product and service. Are these young men and women, who want to run their business, truly ready for what they are up against? I would like to say, "Kudos to these young men and women for their courage and ambition." At the same time, checking and rechecking their business plan to look for a thousand hidden opportunities for innovation would serve them well, as well. Jennie Chunghea Oliver, October 2012

Chapter 7 Planning, Decision-making and Approvals

Planning Assignments and direction from above always override other plans in a hierarchical system. Schedules are frequently revised on short notice. In Korea, schedule changes and the possibility of cancellations seem to be more the rule than the exception. One middle manager notes, Ifthe boss requests to see you, then other meetings are, of course, cancelled. More so, those working for Chairmen, Vice-chairmen, and CEOs find their days a constant shifting of appointments and meetings to adjust to ever changing world and local conditions. This is not a disregard of the concept of time in general, but rather a different attitude towards punctuality, sticking to a schedule, canceling, or rearranging meetings. Much of this is rooted in culture. A junior, for example, out of respect for a senior can't just leave a private meeting or a conversation with their boss if the meeting is running late. The junior must listen patiently, knowing others may be waiting. Respect for a senior matters, even if it means schedules run behind or get postponed. Essentially, in Korean culture people and maintaining appropriate respect and decorum matters more than adhering to a paper or electronic schedule. On another level Koreans perspectives on managing projects differs some 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 try to proceed according to plans made well before hand and to carry out tasks one at a time from start to finish. For many this is a very western approach. The second term is "polychronic" in which numerous matters are dealt with simultaneously while other assignments are put on hold or given a higher priority. In many cases, this is the Korean workplace. However, I see the line between monochronic and polychronic cultures in Korea as vague and even occasionally defined as a monochronic culture. That said, most top Groups tend to be polychronicwith senior leadership casting a huge shadow over day-to-day affairs. A polychronic work style can result in negotiations, planning, and projects activities proceeding at major levels with talks jumping back to earlier discussed issues mixed with conversations on new issues. On the positive side, Korean organizations are flexible and used to change, which is ironic, too, since there, is considerable risk-avoidance and limited risk taking.

Decision-making As discussed in Chapter 3 on hierarchy, power in Korean companies is often very centralized and only people at the highest level have the right to decide on issues. In Korea, the working team's role is to gather needed information and/or implement. In cases in which overseas leadership and teams hope to offer a new service or program, local Korean management's role is to gather information and then provide to the appropriate senior team members who are often in Korea. The local opinion is valued, but the decision and approval come from Korea. A Reader CommentNo Surprises... Even in organizations with a flattened organizational structure, hierarchical and centralized management system is pervasively embedded in the minds of individuals in Korea. Regardless of negative or positive aspects of this particular characteristic, the truth of matter is that individuals, those who are supposedly at the position to make final decisions, prefer to be informed with thoroughly researched background information (this definitely makes their job easier, of course). Before commencing a formal meeting, having an informal pre-meeting and providing background information is definitely helpful in two ways. First, it minimizes anxiety for both the local Korean team and the head quarter team from unexpected elements, such as challenging cultural characteristics and the often difficult vocabulary used to describe these nuances. Second, as the headquarter team is well-informed, making a final decision becomes less burdensome: this saves face for them. As you mentioned in your previous posts, the channel of communication often flows from top to bottom. As a result, when data is gathered and shared by bottom management, it may take a while for the information to reach top management. It is no surprise that the internal approval process is complex and slow in many cases. For foreign organizations, understanding this type of business operation will certainly allow them to communicate more effectively and elicit better outcomes in the end. Jennie Chunghea Oliver September 2012

Approvals Within hierarchical business structures approvals usually require a number of people to "sign off" on a project or program before commencing the project. For westerners the process can be seen as time-consuming and lead to frustration and delays. First, once agreement to move forward on a project is reached within the local organization's team, the Korean team has their own procedures that usually include both Operations and Finance's approvals. Depending on the size of your local organization and whether the project needs review by the Korea HQ, I've experienced the process requiring a number of "approvals" leading to a "final" approval. For example, once the Korean team agrees to a project, it may mean their team has signed off, but the project must still go to senior management for their okay. Once senior management has given approval, it may then go a COO or CEO for "final" review. I've found Korean teams rather vague in sharing the number of approvals in part because the approval chain can change with each project. In other words, the Korean teams are aware there are a number of approvals, but depending on the nature of the project and costs involved higher levels of approval might be required. I recall the Korean team leader on one project rather humorously reporting approvals several times over the course of a week and then upon receiving a final approval at the end of the week remarking that it really was the final approval. In some cases, I've seen companies with several CEOs have a junior CEOs sign off but the project still waits several more days for a senior CEO to approve. In the best instance, these senior approvals go smoothly when senior leadership trusts the judgment and needs of the local organization's team. However, in other situations, senior leadership may request additional specifics on the project. More concerning, Ive witnessed senior leadership ask for modification, dramatically effecting previously negotiated terms and conditions of the agreement. One example of CEO intervention that is not uncommon comes to mind. Several years ago I was organizing and facilitating a 10-day Global Manager Leadership workshop in Korea for one of the Hyundai Motor Group's top divisions. Participants from the U.S., Europe, the Middle East, India, and Asia- Pacific would be attending. Plans were set, dates confirmed and approvals were obtained all the way up to, but not including, the CEO, an approval thought to be just a formality. To the surprise of some, the CEO asked the Korean team a number of pointed questions. Uncomfortable with the level of response and sensing the team was rather inexperienced at organizing a global event, he asked the workshop be postponed with the team re-grouping and coming back in a few days with some data/metrics centered on outcomes from past events and specifically their impact on long term employee loyalty.

Jumping forward, the follow up meeting went better...but with the event postponed from May to October, and on the CEO's orders the venue changed from a local hotel to a Hyundai Motor Group facility. The good news is that once a project has senior leadership approval, expectations by the Korean team are the program will move forward and be implemented immediately. Approvals, Part 2 Previously, we noted that in most cases leadership made key decisions and teams implemented. Obtaining these approvals can be a challenge, time consuming and should take into account such subtleties as the mood of the seniors whose approval is required. At times, teams can wait days for an approval. This can be because senior management is in out of the office and traveling. But, it can also be that Korean teams try to be sensitive to their boss' mood, well-being, and workload and also maintain an awareness of pressing issues impacting the company and their division. In other words, if senior management is dealing with a major challenge or looks stressed, team leaders may delay requesting a meeting that day. In contrast, if senior management looks to be in a good mood, timing might be better to get an approval. Again timing is everything and being sensitive is the sign of a savvy team leader. For example, in Korea I've witnessed teams waiting in line all day to meet with a Vice President to obtain approvals for a wide range of projects with one involving a merger of services in the world's largest and most competitive car market. The delaythe VP was on the phone with his back turned to the door making arrangements for his daughters wedding, a personal matter, but one upon which the teams and subordinates would not infringe. "Counter-measures" When I first began coaching at both Hyundai and then Kia Motors a few of the older highly experienced American industry veterans obtained some satisfaction in pointing out "issues." This was even more apparent if they had previously warned the Korean team of what would happen if the company took a certain approach and the approach ultimately failed to meet expectations. It is no surprise that tensions ran high. My strategy to improve relations was to persuade the American team that merely pointing out "issues" was not culturally productive. Mistakes and poor judgments were obvious to all and did not need to be highlighted. Moreover, Koreans were

comfortable with and often took a trial and error approach. What was needed were solutions or "counter-measures. This was reconfirmed a few years later while conducting a team building leadership workshop. In the discussion, one of the Korean participants pointed out that they typically look for at least 3 options to solve a situation. He went on to explain that when a problem surfaced in Korea, they would prepare at least 3 or more "counter-measures" for senior leadership to review. Just pointing out the problem, he said, was not productive, noting that his boss already knew there was a problem. Leadership wants to see options. At times the best approach was a combination of the 3 possible solutions. My suggestion When issues and problems surface, be the one to step forward with solutions. A Reader Comment As a person who grew up in Korea and participated in the Korean workforce, I can understand why Korean participants in the discussion mentioned that they will prepare at least three counter-measures for senior leadership. At the same time, I can also understand about the approach that American teams use, focusing heavily on problems rather than solutions, as a person who benefited from American higher education and participated in the American workforce. I thought about these two very different approaches for a while and had a thought provoking conversation with my husband, Zach, who is also an organizational leadership professor, entrepreneur, and author. During the course of 11 years in America, I have come to realize a couple of salient factors about myself as a Korean. First, through primary and secondary education in Korea, individuals are highly encouraged to grow up to be solution-oriented. And, let it be said clearly that: There is nothing wrong with this perspective. And, in the spirit of bridging the cultural divide, being "solutions-focused" is, after all, featured on so many bright-eyed MBA's resumes in America as well. However, I must also acknowledge that this approach does not necessarily lead to effectiveness and efficiency. When paying attention to solutions, one may actually miss the bigger picture and narrow down his/her perspective: hence, a limit will filter options. I recognize that the encouragement, in your document, to look to multiple suggestions for counter-measures can be recognized both as a way of getting at a consensus of what a problem might be and how a team might effectively respond to it. It's a solid way to also increase trust and empowerment across a stakeholder group, when used well. This is never a bad thing. At the same time, I've been trained to look at both side and

offer you that a worst case scenario might even be that, when asking for multiple counter-measures, a team manager may be inclined to implement multiple counter-measures thereby setting the stage for increased inefficiencies, both financial and process, in a system and inadvertently damage an important strategic positioning which may have been long fought for. Without working through a robust analysis of a problem from multiple angles and thinking about potential repercussions resulting from a subjective and potentially myopic analysis of it, a solid evaluation can never arise. Second, through my higher educational experience in America, I realized that Korean society does not promote reflective thinking. Reflective thinking does not provide immediate effects, as it must be grown gradually from a highly individuated core within each person's consciousness. However, when one becomes reflective through consistent cognitive exercise, he/she is able to broaden his/her perspective and better see the bigger picture. Reflective thinking requires not only acquiring knowledge, but also demands the application of one's own experience, admitting personal bias, and evaluative skills. Apparently, the difference between these two divergent approaches stems from the difference in philosophical and intellectual orientations. Personally speaking, having multiple solutions has not always linked to successful outcomes. If the analysis of a certain problem is inaccurate, then presumably, the solutions will be inaccurate as well. When the organizational culture focuses on finding solutions which can easily be identified in mechanistic and procedural inefficiencies rather than understanding the "real" problem which often is embedded in the textural aspects of human motivations and interactions, the technocratic and bureaucratic solutions brought to bear on the perceived inefficiencies actually force members to become less flexible, motivated, satisfied, independent, creative, and innovative. In this case, thinking outside of box usually gives leverage. Fortunately, when one looks through a particular problem with a reflective and conscious lens by investing an appropriate amount of time and energy into its analysis, effective solutions, which are both necessary and sufficient, present themselves. Through my training as a social scientist interested in the study of organizational leadership, I can say that the visible problem is usually the tip of an iceberg. If the organization only tries to figure out solutions, then more problems may occur as a consequence. Jennie Chunghea Oliver October 2012

Skill #5 Decision Making When conducting a meeting in which a decision must be made, please recognize that your Korean team(s) will have some say in its outcome. This may include both the operations and finance teams. First, since the topic and subject matter may be new to your Korean team, I recommend that prior to the meeting you share any needed background documents, preferably in .PPT format. In addition, conduct an informal pre-meeting Q&A with the Korean team leaders to brief and update them on any specifics. Note: they may need a day to review proposals and agreements, so timing is critical. Even in the best cases, expect that the Korean team may postpone any decision until they can carefully review and perhaps confer with Korea. I suggest all documents and meeting presentations be immediately forwarded to the Korean team. I would create a sense of urgency with a timeline for execution and implementation. Regardless, expect some delays and be patient. If your firm provides services to a Korean based partner, provide both the western and Korean teams with background information prior to any meetings. Moreover, be prepared to share the meeting's content with the Korean team, too.

Chapter 8 Protocols
Over the years I have been asked to prepare western subsidiary executives and employees for their first meetings with Korean management and teams. Lets first discuss protocols for VIP visits, although there will be some common procedures in both cases.

" Senior Management Visits Its common for senior management to visit their western HQs and regional offices, as well as their partners overseas operations. I define senior management as Director-level and above. In meeting with senior management, the initial meet and greet requires a formal introduction, followed by a handshake and the exchange of business cards. It is also common for some casual conversation to take place prior to any meeting topics or business discussions. The norm is to be introduced versus introducing yourself. In other words, arrange for someone to introduce you to the VIP. In many cases this will be a Korean team member at the HQ or local office. After a customary handshake, business cards are exchanged. Turn the card so your name faces them and hand the card to them with 2 hands. They will reciprocate. Next, take a moment to study the card. I suggest you share how you would like to be addressed. For example, Please call me Don. They may offer similar suggestions, but since they are senior management, continue to address them Mr. or Ms. in a formal setting.

In most cases, it is preferable for the most senior on the western side to be introduced first, followed by the other members of your team in terms of their rank and tenure with your company. This helps the VIP better understand the local team dynamics. Team Visits In contrast to a senior management visit, team visits are often by junior-ranked staff assigned to a specific task. Regardless, similar procedures are followed. For example it is always best to be introduced versus introducing yourself. After a customary handshake, business cards are exchanged, although younger team members often follow a more western-style of one-handed exchanging of cards. With team visits, I suggest you share how you would like to be addressed. For example, Please call me Mary. Ask them how they would like to be addressed. Most have an English name, although some Koreans go by initials (ex: SK) or a truncated Korean name (ex: Yong). The meet and greet is the best time to clarify names. Finally, as with a VP meeting, introduce your team in terms of rank and tenure, which helps the Korean team to interact. Next, let's discuss formal meetings, although informal meetings share some similar norms. Senior Management Meetings As we discussed last month senior Korean management often visit overseas operations. Following introductions and exchange of business cards, the group then usually moves to the conference room for formal presentations. Most often the senior Korean will enter the room first and will take a seat in the middle of the Korean side of the conference table. Expectations are that the American team will follow the same seating order with the senior American sitting in the middle of their side of the table. Respective members of each team should then position themselves on both the right and left side of the senior Korean and senior American with the more junior attendees further from the center. Typically, members of the Korean teams will neatly position the American business cards in front of them on the table to match names with faces. I suggest you do the same, since this aids in associating a name to a face.

In most cases, no one should sit until the visiting senior Korean first sits. If suit jackets are worn, do not remove your suit coat unless the visiting senior does first. In addition, sit straight with both feet on the floor without crossing legs or leaning back. Team Meetings Many younger South Koreans have adopted western methods of doing business so sitting order and norms tend to be less formal. Moreover, in contrast to a senior management visit, team visits are often longer working sessions. Ive found that these sessions start rather formally but tend to relax quickly and become less rigid, especially over the day and in follow up meetings. That said, for the first meeting and similar to the management visit protocol, the more senior Korean team member will usually sit in the middle of the Korean side of the conference table with the American team following the same seating order. Subsequent meetings may be very casual and seating order random. Brief Introductions Finally, as for meeting agendas in both formal and informal meetings, the first few minutes are usually devoted to each American team member giving a short introduction that covers some professional background and roles and responsibilities in the project and/or position in the company. Depending on the English skill level of the Korean team they, too, will share at minimum their name and position. Once presentations are given, distributing the deck in digital form via thumb drive or email is appropriate.

Chapter 9 Stretch Goals, the Seemingly Impossible and Managing Expectations

Stretch Goals and the Seemingly Impossible Korean companies, such as Samsung, Hyundai, Kia, SK, and LG, have a reputation for setting huge goals that look unrealistic to many outside the organizations. Based on my observations throughout major groups from smart phones sales, to food services, to the Korean retail golf market, most often these are stretch goals for sales. What I have found interesting and quite different from the West is that when stretch goals are announced, Korean teams and management never openly voice that the task is impossible, even if most of team do not have a plan to address the goals. Why? It is thought that although you may not have a plan or solution, someone else, perhaps your most junior employee, may either know of a solution or have a friend in their personal network who has a solution. Additionally, it is considered non-productive to share an opinion that a task is impossible even with close co-workers, since they may be the ones with an idea. Outwardly the most effective Korean teams are forward leaning and positive. On another level, when senior leadership set huge goals, some in the ranks might doubt, but many more grew up witnessing the amazing and near impossible achievements of the Group. They reason that if the company did the impossible before, why not again? In other words, success breeds success. Of note, I was once in a conversation with a senior Korean manager. I brought up the subject of what are the grounds for being terminated or fired. Pondering for a moment, the Korean manager instead explained that it was hard to get fired even if you made a big mistake as long as you were seen as positive and upbeat. A Suggestion Always be seen as positive and forward leaning...even when facing the near impossible. "Knock on the door a hundred times!" Over the years, I've provided guidance on business norms and expectations with Korean, American and global teams and management. I, too, have learned much in exchange. In fact, I have been fortunate to have a number of senior Korean leadership share their opinions and thoughts with me. Last year I was asked by a Korea client to explore if a high profile American brand might be interested in entering the Korean market. If so, the Korean firm would like to be considered as a potential partner.

After talking to the American brand's founder and CEO, he politely told me that their plans were to focus on the US market. Any Asia expansion would not be for at least 2-3 years. Several months later I hosted the Korean client's Chairman and his wife at a VVIP lunch meeting while they were visiting the US. During the meal, the Chairman's wife quizzed me on my progress with the American brand. I explained that the US brand's founder and CEO was polite, but the company was not currently looking to expand into Asia and Korea. Pausing a moment, the Chairman's wife expressed that their Group was still very interested in the brand for Korea. She then hoped I would continue trying and not take "no" for an answer, adding firmly that sometimes we need to "Knock on the door a hundred times!" I came away with 2 insights worthy of sharing... 1. My Korean client's success was evidently rooted in perseverance and not taking "no" for an answer, a trait I find in many of the top Korean Groups. 2. The company's success was also due to the Chairman's wife, a strong and influential woman who has gained my respect and esteem. Managing Expectations with Korean Clients Perhaps managing expectations between Korean and western teams is the most overlooked aspect of Korea facing global business. Many firms do a great job meeting with Korean teams and sharing their products, expertise, or services. They are culturally sensitive and gain the trust of the Korean client. They negotiate well. A deal is signed and it is time to perform. Sadly, the honeymoon is now over. Challenges arise and what appeared to be clear expectations now seem murky with poor alignment and weak communications. Why? There are a number of reasons. One is that the teams that meet, bond, and negotiate are seldom the ones who actually do the work. The teams on both sides that crafted the deal are well skilled in global business. The teams doing the work are talented but most likely have no experience working with Koreans or are Koreans who have limited experience working with American or international teams. A caveat to this is that many of the Korean team members are bright, but very junior (sawon or daeri), new to the workplace and tend to be generalists, whereas your companys team is comprised of highly specialized veterans. So what's the solution? Frankly, in my experience the most successful firms show great leadership by keeping top management well informed, obtaining coaching

for the team and frequently soliciting advice and updates on changing Korean business norms and the client. Second, successful firms insure that their teams are trained and receive on-going support. Expecting the team to "get it" seldom worksand even if it does, this approach takes time, is costly, and contributes to stress, poor productivity and even employee turnover. At the risk of being repetitious, expecting non-Koreans to understand Korean culture, the changing global workplace, and another companys culture is like throwing your team into a pool and assuming they will swim, not sink.

Closing Thoughts
Leadership Issues

Do offer both your non-Korean and Korean management teams cross-cultural training. Encourage cross-cultural, management, and trust-building skills training for Korean overseas executives, especially those who are newly assigned to work with your team. Also, ensure your non-Korean teams have the skills to work closely with Korean teams. Do offer key executives one-on-one coaching sessions and support in addition to training programs. Most executives benefit fromand appreciatean opportunity to discuss work-related cross-cultural and workplace issues privately and confidentially. Driving Corporate Change Do not hire a high-profile global management consulting firm that lacks practical experience with Korea and contemporary corporate cultures to mend or spur change in your organization. Many western consulting firms have a record of success in some geographies and cultures but perform poorly when working in Korea-based organizations. Expecting Korean teams to participate and embrace these programs rarely works. Building support from the Korean team takes special skills and insights. Over the years as I have worked with numerous global and domestic organizations, I have come to see and recognize their gaps, strengths, and weaknesses. On a positive note, top management is increasingly becoming skilled in handling cross-cultural issues within their organizations. However, a companys success is highly dependent on the teams collective grasp of global markets and cultural differences. Unfortunately, few individuals develop cross-cultural understanding without training and coaching. It just does not happen. Letting cross-cultural understanding unfold over time is a recipe for failure and high employee turnover.

Finally, present your thoughts, ideas, and concerns in a forward leaning, upbeat mannerrecognizing the Korean risk-avoidance culture and the need for Korean teams to fully understand before embracing anything.

Appendix
Korean Expatriate Global Business eLearning Series
Supporting Korean overseas teams (ju jae won) and their Korean executives is a must for all Korea-based organizations. The assumption that expatriates 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. However, what stands out in numerous studies is the need for a training program that can successfully provide insights into new business cultures and values, while fostering sensitivity and teamwork among all members of the company. An effective eLearning program for Korean expatriates can help bridge gaps while supplying needed skills and knowledge. Based on years of working with western and Korean expat teams, Bridging Culture Worldwide has developed an eLearning program to address issues that commonly occur in the American and global workplace. The benefits of BCWs eLearning program include: 1. The training is designed to be self-pacing with the ability to go back for a second time to review a specific section. This results in better comprehension and higher retention of course content. 2. FlexibilityUnlike instructor-led training the course is accessible 24-7. This allows the participant to fit the training into a personal schedule. 3. Finally, this eLearning program offers an opportunity to grow. The course content will add to the participant's understanding of the differences in global business, improve communication with local teams, and increase effectiveness in fulfilling the assignment. Outcomes Although there is bound to be some friction between expatriate and host country cultural values, a successful cross-cultural and localization training program accomplishes: 1. Awareness and appreciation of both the home and host country with the ability to gain an insight into ones own personal traits, strengths, weaknesses, attitudes, and interests. 2. Realization of similarities and shared values, along with an awareness of and respect for cultural differences.

3. The ability to adapt to new cultures, ideas, and challenges on the job and in the home, while adjusting quickly to new conditions and workplace practices. Next Steps Further details on the Korean Expatiate Global Business eLearning Series are available upon request. This includes a Table of Content, course outlines, and fee rates. Call +1-310-866-3777 or email dsoutherton@bridgingculture.com

Learning Korean
A question frequently asked by Korea-facing teams over the years has been, Whats the best way to learn the Korean language? I share that local university programs and Korean community centers offer Korean language classes. The Internet can be a great resource, too. Another option I have used over the years is a language partner,a Korean looking to improve their English in exchange for teaching you Korean. The Korean language is unique and a phonic-based system different from Chinese and Japanese. However, learning the Korean alphabet is probably easier than youd expect. To get started, here is a website to visitSogang University Korean Language http://korean.sogang.ac.kr/. Go to the Introductory Korea section and click on The Korean Alphabet. Also, the writing practice exercise is very helpful. BTW, As with Korean brands (e.g. Kia, Samsung and LG) and pop music, the Korean language is gaining respect and widespread global interest. This Chosun Il Bo article notes: King Sejong the Great, who is credited with inventing the Korean alphabet or Hangeul, is getting attention from linguists around the world. In its "Fifty Key Thinkers" series, British publisher Routledge devotes a chapter to the Korean monarch in the "Fifty Key Thinkers on Language and Linguistics."

King Sejong (1397-1450) Creator of Hangeul The book also covers Plato, Aristotle, Wittgenstein, Saussure and Noam Chomsky. There are only three non-Western figures, the other two being Panini, who laid out the grammar of Classical Sanskrit around the 4th century B.C., and Sibawayh of Persia, a grammarian of Arabic in the 8th century. "Hangeul has been acclaimed for its succinctness, accuracy, and segmentalized phonological features," explains Prof. Lee Jung-min from the linguistics department of Seoul National University. "The inclusion of King Sejong is an important step." Western scholars usually divide major writing systems into alphabetical and non-alphabetical letters, with the former placed above examples of the latter such as hieroglyphics and ideograms. But Hangeul is in a way neither, and instead formulates more segmentalized sets of phonetic elements beyond the simple combination of consonants and vowels. Study of Hangeul has been intensifying overseas. Last March, the Cambridge University Press published "A History of the Korean Language," which sheds light on Hangeul at the linguistic level, while Japanese linguist Hideki Noma cited Hangeul as a "script that gave rise to a revolution in knowledge" in his recently-published book, "The Birth of Hangeul."

About the Author

Don Southerton has held a life-long interest in Korea and the rich culture of the country. He has authored numerous publications with topics centering on culture, new urbanism, entrepreneurialism, and early U.S.-Korean business ventures. Southerton also extensively writes and comments on modern Korean business culture and its impact on global organizations. His firm Bridging Culture Worldwide provides consulting, strategy, and training to Korea-based global business.