CEO COLUMN

Published Aug-2020, [No.255]
Subject Company culture determines the company's rise and fall and foster a talent people



"Major company is manage by the System and small and medium-sized company is manage by people". The comment "Company is people" can be interpreted to mean that the growth and development of small and medium-sized enterprises depends on the people who is involved.

If small company will become medium-sized company and if this company is export-driven company rather than domestic, the necessity and importance of people and human resources will become more and more important.

Small company can do an "all-round play" centered by CEO. However, if export customers and product types become diversified and their own brands lead the market, even though it is niche market, they must have a leader who is guide the way.

Therefore, the LCC team leaders in charge of each department will be able to perform their duties autonomously in accordance with the LCC Constitution, "Company Mission Statement" and "Department Mission Statement"and could create the maximum Synergy through cooperation between departments.


The necessary and sufficient condition for becoming an one-hundred or long-lived company through export is excellent human resource. Small and medium-sized company, which is inferior to major company, the next best policy would be to __select ¡°potential people¡± and train them intensively within the company to become ¡°capable leader¡±.

In order to encourage excellent human resource, the appropriate company culture, which is the foundation for them to be encouraged, must take root. This is the similar as the development of talented person who have the right values and commitment to the nation and society in a family with a good family tradition.


"Company that grows and develops with changes and innovations," "have an open mind culture in which one can fully demonstrate one's ability," "a company that is clean like a picture which can foster one's own development and ability," "a company that practice on the right road and speed management with transparent" "a company that has a 100-year business vision that lasts for 100 or 200 years,"

So if we can firmly develop a company culture "The company that can realize happiness and dreams while growing with the company," we will be able to develop not only our Vision of "a hundred-year company through export" but also the talent person we need for it.





LCC have the "company mission statement" which is a company constitution and is imply the company culture. It contains the reason for the company's existence, the direction it should take, and the Vision, and we repeat it together every morning to put this into practice it.

The company mission statement guide the frame such as business processes and systems and the behavioral pattern of the employees, indicating the principles of autonomous management that eliminate unnecessary instructions, controls, and interference.

The 10 articles of the company mission statement, which was created after three months of discussion when foundation. It is our business strategy and also it imply our values. It is our company culture which emphasize our customer's satisfactory and the principle of WIN-WIN transaction with our partner company.

The company's mission re-developed as a department mission, and management tactics based on departmental characteristics was included. This will lead a balanced life between the workplace and the family based on the individual mission that determines the vision and future of the employees.


Our most important company culture is "quality management that puts quality first". So the articles 1 and 2 of our company mission statement emphasize quality management to ensure quality competitiveness and to grow into a global company. The growth of the company is to attract new customers and increase sales, which is the way for the LCC to secure the company's image and credibility as "a company that produces flawless products, a company that never occur quality claim again."


Recently, major and medium-sized company are shifting to outsourcing rather than expanding their own facilities in order to expand new fields. This choice have the advantage of avoiding the risk of wasting capital investment and inefficiency and concentrating on market and sales without friction with labor unions.

Therefore, if the LCC has a clean environment, excellent factory layout, and excellent quality competitiveness in the process, domestic and foreign customers will visit naturally.


In order to transform into a ¡®Quality management LCC¡¯, we have invested more than 5 million dollars in ERP and MES electronic systems. Also we have a traceable system through the Barcode for raw and sub materials and Lot management for half-finished goods and finished goods.

Quality is not only a matter of Quality Assurance and production department, but also of laboratory responsibility for semi-finished product quality, public department must provide facilities which produce good products, management team must be in charge of employee education, material department must be in charge of good material, and sales department must be in charge of delivery and meet the customer's NEEDs. So the quality management could be secured by company-wide quality control system.

For this reason, 5S activities, such as clean day activities, clean floor activities, landscape activities, forklift and commuter bus cleaning, and regular cleaning of raw materials, sub-materials and warehouses, were secure the quality of product.


The next most important company culture is the efforts of each department and each employee to develop price competitiveness and the system to support them.

In order to grow into a hundred-year company through exports, it is necessary to have unique power that no other company in the world can follow, and that is to ensure quality and price competitiveness.

To have a competitive in price, it is necessary to negotiate best price for purchasing raw materials and sub-materials with bargaining power. To reduce labor cost with continuous field improvement such as automation. To reduce general administrative costs through system management such as computerize and standardization.

Most of the raw materials depend on imports, so we need to import them directly with the maker as much as possible, or with the primary vendor. So we should reduce the raw material unit price through import which based on container.

Purchase the sub-material through bidding and focus in one or two company as much as possible to guide them to best price according to increasing transaction amounts. Regarding purchasing process, eliminate the participation of executive level acquaintances is necessary.


Monthly and weekly manufacture plans must be practiced, and no one can change the weekly plans once determined. General management cost can be lowered through Speed management only if the supply and demand of raw materials and sub-materials, personnel, and equipment plans are prepared.

In addition, even if quality and price competitiveness are prepared, effort to secure competitiveness through change and innovation must continue to be made to ward off the pursuit of late-comers and competitors. In order to ensure continuous quality and price competitiveness through innovation activities, "good corporate culture" must be widely spread throughout each departments and employees.


In order to develop abilities through self-development and to grow as an expert, continuous consciousness reform education must be implemented. The view point of workplace that not a place to solve economic problems, but a place to realize one's future and dreams must be established.

Leadership values must be formed through internal and external education from the "The Seven Habits of highly effective people". Synergy must be created through consideration and cooperation with superiors and colleagues, and spiritual and physical renewal must be sharpen the saw.


The reward culture should be boosted such as small business improvements and achievements should be rewarded. It will encourage to lead to further improvement. In order to acquire foreign language and expertise, a culture such as outsourcing education must be established. After a certain period of work, the field of vision must be widened through out circulation of position. As an export company, many employees must be earned the opportunity to go oversea business trip for spread the Global Mind. Employee have to maintain a hierarchical relationship that a subordinates are your internal customer and a superior is a mentor who can help the difficulties.


There is absolutely no transaction with the CEO's acquaintances. So we must clearly show our will that we and our partner company are in WIN-WIN relationship which has no "power harassment" toward our partner company. A workplace with a 5S activities will make employee happy and happy every day. Moreover unmarried person will be provided with dormitory, married people will be provided with house.


Ethical and transparent management must be implemented so that accounting must be conducted speedy and transparent. The management performance must be disclosed to the public through monthly meeting.

A culture of "no gift" must be established with partner companies, and CEO must take the initiative in eradicating gifts and entertainment.

Sale should also be competitive in terms of quality and price, rather than abnormal methods, and customer satisfaction should be derived by ensuring trust with customers by complying with delivery date and preventing the recurrence of claim issue.


Have a company culture that implements transparent, and ethical management, it will possible to empower (delegate authority) to lower levels, and by having responsibility and authority. Then, it will lead to expand member's business capabilities.


At one time, I had a high school alumni friend who achieved great success in small company. Their work life was pervade of lobby. It was common to receive money from their partner company. When problems arose, it is common to make a transaction between executive. it was far from the culture, ethics and honest management.

The career from the unusual company and foundation their own business with their incorrect ethics, they hit by IMF crisis. The business environment was changed such as starting with negotiations with the person in charge rather than with executive. Also they have to compete with competitiveness (price, quality, delivery time) rather than lobby. This change ended up their business broken.


No matter how good the company culture is, it can't achieve the results you expect without understanding, accepting and participating in your organization.

Therefore, since foundation, the company has issued "LCC Magazine" centered on the CEO column, and has continued to educate and promote company culture to its employees. It was suspended for three to four years due to the company's circumstances, but the LCC Magazine resumed from__ the "department story" instead of focusing on "new employees". It is our unique company culture, and through this, it became possible to expect individual growth and the company as well.


In conclusion, choose a company with a "good company culture"is the only way to have a desirable work perspective, which leads to the success of work-life and startup. If you become a leading Saladent through lifelong study and self-development, you will able to transfer to a better company and expand your business dream through foundation if you have the opportunity.

In addition, the company will develop further with the combined capabilities of its growing employees, resulting in increased sales and profitability, and a virtuous cycle of improved salaries and welfare benefits for its employees.

Creating a company culture in which employees are happy and realize their dream come true is the way to develop the success of a company and foster the talent people who can achieve it.


Twenty-three years have passed since foundation, the first, second, third, and fourth factories have been built and the new factory (Fifth factory) is in construction recently. The company has been reborn as a leading export company in various customer companies, products. Sales have increased and profitability has increased significantly.

However, I have to confess that the more complicated and difficult management of a company is also playing the role of CEO with a simple and comfortable mind. I think this is because the fundamentals and principles of the organization have been adhered to, and a "good company culture" has taken root in the depths of the employees and the organization.


Employees! Thank you very much.






CEO BAIK, SUNGCHUN

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