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| Title | Only Trend Readers Can Survive (Dong-A Il Bo) | 2002.09.07 |
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FROM: CEO COLUMN (A7) September 7th, 2002 These days we often see in newspapers the American style of management under attacks from all quarters. Up until only a year ago or so the U. S. economy had been admired as the model for world economy. Now we realize how false the voices were saying that the market cycle no longer exists and economic textbooks should be rewritten. The Japanese style of management had been prevailing until before the American style management emerged. The Japanese management style, which was the focus of an extreme admiration across the world in 1980s, has now been clearly stigmatized as a failure. During the economic crisis toward the end of the 1990s, Korea had to undergo a similar humiliation. The country, which had been on the honor roll in economic development, was suddenly treated as a villain created by a corrupted capitalism. The experiences of these three countries have one thing in common: an outbreak of long-festered hidden boils in the form of ugly business scandals with the close of unprecedentedly extended economic success. Just as standing pools gather filth, moral hazards take place where rosy optimism and easy successes have long dwelled. A scar, however, bears the seed of success once again. Whether to apply the American management style or the Japanese is not important. It is important to grasp the trend correctly and timely transform oneself accordingly. A core competency factor can turn out to be a core failure factor as the time flows. Governments and industries alike need a cool-headed change management capability strong enough to discard the existing core competency in order to secure competitive power for the future. It is necessary to closely observe the market trends to be able to catch the right time for a change and readily grasp the turning point in the market. We should understand why Intel chairman Andrew Grove used the extreme expression, "Only paranoids survive!" After the 1997 economic crisis, a managerial doctrinism of American style prevailed. This trend was represented by such as promotion of venture businesses, stockholder-centered management, and strict merit system. Specialization was emphasized while diversification was regarded as a social evil. Management, however, is not a simple or static thing by nature while dichotomy in management is dangerous. Management requires an ability to flexibly use the sword of specialization or the shield of diversification as appropriate for the given situation. There is no reason to avoid diversification if it can generate synergy and maximize efficiency. There also exists an analysis report stating that in the 21st century of drastic market fluctuations, diversification, if done efficiently, could reduce risks. It is the same for the boom of venture businesses. It will not suddenly collapse and vanish one day. There will remain some potential ignitors for success. Human Biology and Life Science may be good examples. As the futurist John Naisbitt, famous for the publication of The Megatrend, once predicted, human-centered technologies will be the core of future high technologies. All successful people see the possibility for change beyond the current trends. They are the pioneers playing the minority game without being swept along in the crowd. The world is a wheel. The Japanese came up with its own style of management after imitating western style of management in the ashes of the Second World War, and in 1980s, U. S. enterprises, in turn, were able to recover their economic competitiveness after carefully studying the Japanese style of quality and productivity improvement techniques. People with a short temper like a boiling pot, who once were fanatically admiring American style of management as the right answer and now condemning it as the main cause for a horrible failure, are likely to miss the fu |
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| NO | Title | Date |
|---|---|---|
| 2 | Only Trend Readers Can Survive (Don... | 2002.09.07 |
| 1 | Daesung head offers N.E. Asian gas ... | 1998.11.04 |
