Chairman Choi Tae-won of SK Group has ordered complete overhaul for executive management of SK Group’s affiliates so that they do not have to face ‘Sudden Death’.
Chairman Choi has issued a such topic for managements in second half by holding ‘2016 SK Group Expansion Management Discussion’ at SKMS Research Institute in Icheon on the 30th of last month. A reason why he issued such topic is due to unstable management situations such as lowering of estimated values of Brexit and growth rate of economy and reduction of exports for 18 months in a row. He ordered executive managements to completely overhaul their businesses and to prepare method of innovation by taking responsibilities and rights.
Chairman Kim Chang-geun of SUPEX Association and 7 other chairmen under SUPEX Association attended this meeting. CEOS of 18 major affiliates such as President Chang Dong-hyeon of SK Telecom, President Park Sung-wook of SK Hynix and others and about 40 executives from these affiliates also attended this meeting. Chairman Choi, who wore a wireless mike and casual business clothing, explained crisis that SK Group is facing and methods of change in TED (Technology, Entertainment and Design) method.
“A reason why executives and employees chose SK is because they feel like they are happier working in SK and believe that societies are becoming happier due to SK.” said Chairman Choi. However he criticized that realities are really bad and it is difficult for executives and employees to be happy in such situation. “Management index is very bad as SK Group’s ROE (Return On Equity) is low and PBR (Price Book-value Ratio) of affiliates is not even 1.” said Chairman Choi. “Executives and employees cannot be happy in such condition and SK also cannot give happiness to societies.”
He brought up areas that need changes such as ways of earning money and working, utilization of assets and others. “Ways of earning need to be changed if environments change.” said Chairman Choi. “We have to ask ourselves if we thought about to whom and how we are going to sell our products.” He also added that we cannot be satisfied with successes in the past or practices but aggressively change business models.
He also expressed his doubts whether or not systems and regulations such as familiar commute culture, working hours, vacations, evaluations and compensations, hiring and others correspond to changes that are taking place now. He emphasized that previous inertia needs to be let go and that formalities can be broken when one works with an open eye. “Finances and strength are needed for medium and long-term managements.” said Chairman Choi. “Above everything else, utilization of assets needs to be preceded.”
He ordered CEOs of affiliates to implement and carry out concrete changes in businesses, groups, and cultures and plans until next seminar for CEOs in second half of this year. “Happiness is made and expands to societies when members maximize their brain activities voluntarily and enthusiastically.” said Chairman Choi. “I want executive managements to establish and carry out such environments.”
“Topics of Chairman Choi’s management is very concrete as it discusses even things that need to be changed, methods, and reason for changes.” said Team Leader (Vice-President) Lee Man-woo of SK Group’s PR. “SK Group’s affiliates will look to change themselves from the bottom according to Chairman Choi’s management.”
Staff Reporter Kim, Wonbae | adolfkim@etnews.com