SEOUL, KOREA - Talent-oriented management and high-speed decision-making have led Samsung Group's remarkable success, a global business expert said.
At an international forum titled the “Twenty years of Samsung’s New Management” held at the K-Hotel in Yangjae-dong, Seoul on June 20, Hiroshi Katayama, a professor of Waseda University in Japan, said, "The characteristics of Samsung's quality management are speed management, timing management, pursuing perfection, talent-oriented management, seeking synergy effects and exact insight of business nature.
"Samsung succeeded in removing unnecessary business process and being equipped with globally standardized development system, producing a rpaid decision-making system."
He also pointed out at the forum organized by the Korean Academic Society of Business Administration that the future of Samsung’s next decades will be dependent upon how it advances its supply chain management system and how the company will develop and implement effective transfer methods in between sites, business functions, business divisions and industries.
Under the slogan “New Management,” Samsung Electronics Chairman Lee Kun-hee declared his goal in Frankfurt, Germany, in 1993, of shifting toward quality-focused growth not quantity-highlighted expansion. Lee then ordered employees to change everything but their wives and children.
Meanwhile, Prof. Kevin Lane Keller of the Tuck School of Business, Dartmouth College, the United States, has given six marketing imperatives for better understanding of Samsung’s success story.
Keller, who is an international leader in the study of brands, branding and strategic brand management, said, “Samsung puts an emphasis on design. Actually, it has a strong design philosophy. Samsung has developed creative advertisement campaigns, strong in-store programs and high-profile sponsorships.”
Stressing its consistency to launch new products to the time-to-markets, Keller said Samsung Electronics has been consistent in maximizing long-term growth by entering new markets.
He said, “Samsung has taken a big picture view of marketing effects and knew what’s working. It has been achieving greater accountability for marketing investments in brands. Samsung was launching very clever marketing campaigns. Advertizing was another factor that lifted Samsung over the two decades.”
Keller advised Samsung to improve marketing further in a highly-competitive consumer electronics market, noting “Become a leader, tap even more into emotions and manage brand architecture carefully.”
The professor also said, "Samsung must be confident in communications and bold in action, while the company needs to cultivate yearning to purchase and pride of ownership. Samsung needs to recognize the pros and cons of flagship products. Keep it simple and clear.”
Prof. Song Jae-yong of Seoul National University said, "Samsung is giant, but it is a rapid organization. It is well diversified by field and boasts of top-class global competitiveness in each sector. Its most powerful strongpoint is its managerial system that has optimized merits of the Japanese and American-style managerial systems."
Commenting that Samsung is equipped with the fastest response system in the world by securing global ERP and SCM management systems through massive investment, Song said, "Samsung is possible to develop new products at a faster pace than its global competitors as it has secured both finished products such as smartphone and TV and relevant parts, including semiconductor and display."
At the forum, Patrick M. Wright, bicentennial chair of the Darla Moore School of Business at the University of South Carolina, also said, “Samsung was a true transformer over the last 20 years in a very positive way. Its business transformation is a model for all modern multinationals and the transformation well illustrates the competitive advantage that form a strong link between business strategy and people strategy.”
Noting that talent assessment and review programs are important reasons behind Samsung’s success, Wright said, "Samsung’s transformation has had people at the center. The human resources function at Samsung has played a critical role in enabling this transformation. The human resources system has developed to enable the transformation of the New Management that has constantly evolved to meet new challenges and achieve new objectives.”
Saying that New Management was supported by strategy execution by top Samsung management, the scholar said, “New human capital pools require new and different ways of attracting, developing, motivating and retaining those people. This requires human resources functions to design, develop and deliver human resources system and processes.”
In the meantime, Prof. Kim Seong-soo of Seoul National University, said, "Samsung's personnel management system has become a foundation to lead new management philosophy and basic strategies. To effectively cope with rapidly changing managerial environment, Samsung has secured talents to lead the future management preemptively and changed market strategies frequently by using the accumulated human resources."
Lee Kun-hee, Jae-yong make business trip to Japan, China
Samsung Electronics Chairman Lee Kun-hee and his son Jae-yong, vice chairman of the electronics maker, flew to Japan and China, respectively, on June 20.
The junior Lee left the Gimpo International Airport around 9:00 a.m. for Beijing, along with Kim Suk, CEO of Samsung Securities, and Lee Sang-hoon, head of the managerial support office of Samsung Electronics.
His business trip is designed to check Samsung's local corporations and business offshoots in China ahead of President Park Geun-hye's official visit to China from June 27-30.
President Park Geun-hye will meet Chinese President Xi Jinping on the first day of her visit to China. The summit is expected to play a crucial role in inter-Korean relations, which are showing signs of improving as the two are set to hold a minister-level meeting for the first time in six years. Beijing has a big say in Pyongyang as its main benefactor.
The vice chairman is also scheduled to visit the U.S. before returning home.
Meanwhile, Chairman Lee left the Gimpo International Airport around 10:00 a.m. for Japan. His overseas trip this time seems to seek a new business strategy beyond the New Management.