’Boeing is part of Korea’

_ Integration ability, customer knowledge key drivers for Boeing's growth

By Kim Jae-kyoung

With the business environment changing at a rapid pace and becoming more like a battle field, military leadership has been highlighted in the business community.

More chief executives are keen on learning this form of leadership as the new landscape created by the digital era has called for extraordinary adaptability to new situations and quicker decision-making processes.

Pat Gaines, president of Boeing Korea, the Korean arm of U.S. aerospace giant Boeing, is the epitome of an ambidextrous leader fully understanding both the military and business worlds. He served in a variety of aviation assignments throughout the world before joining Boeing in 1987.

He thinks that his success in the commercial sector is partly attributable to his experience in the military, citing a quick decision-making ability and people management as two core elements he learned then and applied to the business world.

His attitude during an hour-long interview clearly shows who he is ? he responded kindly like a sales person but made his points simply and clearly like a military officer whenever he answered tough questions.

“When I look back at my 10 years in the military, I say to people that I don’t regret a minute of being in the military, and I also don’t regret a second getting out of the military. I very much enjoyed my period in the military, but I also found that the commercial world has been very rewarding, too,” Gaines told Business Focus during an interview.

Gaines, who took the helm of Boeing Korea in June 2010, has also been chairman of the American Chamber of Commerce in Korea (AMCHAM Korea), the U.S. business lobby group, since May 2011.

As a foreign businessman, he openly expressed his view of Korea. In Gaines’ words Korea has entrepreneurial spirit. He said that what’s behind the spirit is a strong work ethic and the education system, which he believes were key factors in the country’s rapid success.

When asked what he thinks about the Korean market, he showed special affection. With a big smile, the 56-year-old chief executive answered, “Korea is part of Boeing and Boeing is part of Korea.”

The following are excerpts from the interview.

Boeing and its strategy

Q:

Boeing has long been considered as one of the most successful companies in the aircraft manufacturing sector. What is your key success factor for business sustainability as a multinational enterprise?

A:

At Boeing we expand our product line and services to meet emerging customer needs, including the Korean market. Our unique range of capabilities includes creating new, innovative and more efficient members of our commercial airplane family as well as integrating military platforms, defense systems and the war fighter through network-centric operations.

I think that there are a couple of things that set Boeing apart from rivals. First, we really strive to be the best aerospace integrator in the world in using technology and being able to develop that technology further and integrating it for all the solutions on a variety of platforms whether for commercial use or for defense.

Also, we are probably the best company that really understands customers. When you look at the intimate customer knowledge, we go both sides. We go defense side and commercial side. And we really do understand our customers, we live with them, we understand their operational requirements, we understand their pain, and we understand if the solutions are really making impact.

You have multiple business units, including commercial airplane, defense, space and security. What areas will you focus on? And what is your business strategy in the rapidly-changing global market?

At Boeing, we have a saying called “ONE Boeing,” and like this saying suggests, we aspire to be the best-integrated aerospace company in the world, not just focusing on one business unit. And in Korea we believe we have an ideal balance of ONE Boeing with both our presence on the commercial side and the defense side.

Our vision is people working together as a global enterprise for aerospace leadership. The strategy is based on running a healthy business, leveraging strengths into products and services, and opening new frontiers.

How important is the Korean market to Boeing?

Korea is one of Boeing’s most important partners. The relationship between Korea and Boeing goes back more than 60 years, and we like to say Boeing is part of Korea’s aerospace history and will continue to invest in the future and well-being of its people.

In Korea, we really take pride in contributing to the aerospace industry through various industrial participation programs in association with defense procurement programs as well as services provided in the commercial airline sector. I am proud to say that there is a part from Korea in all current Boeing commercial airplanes.

One aspect we are very proud of is our continuing relationship with our partners in the Korean aerospace industry. We share a long and cooperative relationship with KAL-ASD (Korean Airlines Aerospace Division), not only on defense projects, but also as a global supplier of essential commercial airplane parts and components. KAL-ASD has partnered with Boeing on the 747, 777, 717, as well as the new 787 Dreamliner. Boeing also maintains a close relationship with KAI (Korea Aerospace Industries) and has partnered through important projects such as the 737, the AH-64 Apache helicopter, the F-15, and the E-737 Airborne Early Warning and Control program known as Peace Eye.

Leadership and philosophy

You are a military officer-turned-businessman. Does your military experience help you become a successful CEO?

One thing you learn in the military is decision making. In the military, no one else will make the decision for you. Many times in the military you are in situation where you can’t call and ask somebody what to do next. So what that really does is drive you to learn to really seek out the information that you need to make a good decision. It teaches you to trust your people and get good capable people that can provide you that information so that you can make an appropriate decision.

The second thing is that the military teaches you that you will be successful if your people are successful. In a combat situation or in any kind of situation where the decisions need to be made rapidly, no one person can make all those decisions. The same is true in the commercial sector. The more you develop your people where they are comfortable with making decisions ? what is the situation, what is the problem, how do they confront those problems, and what are the consequences from every decision I make, the more successful you will be.

What is your management philosophy?

If you ask me what is important, it’s our people. I’ve been in Boeing for 25 years and have been honored to work with some of the most talented individuals in the world. What I discovered is if you don’t develop them and listen to them and break down the barriers that they need to achieve, there is nothing that you can accomplish as a company.

When I hire young managers, I try to emphasize that their success is based on their people’s success. Not only as a great way to be a happy organization, developing people is probably the most enjoyable thing that you do as a manager. I put most value in working with an organization and its people, and they will make you a difference.

Doing business in Korea

How is the Korean market different from others as you have worked in many overseas markets?

A world-famous work ethic by highly-educated workers, strong business infrastructure, proximity to the rising Northeast Asian market and an ambitious FTA strategy are all major attractions of this dynamic market.

In Korea, forming mutually-beneficial relationships and trust are important if you are looking for long-term success. Korea is also a fast-paced country ? bballi-bballi culture ? with rapidly changing market conditions, so quick decision making is also important. For U.S. companies interested in entering the market, we advise them to take time to learn about the local population, network with U.S. firms already doing business here to get as much insight and connections possible, and be sure to take advantage of all the resources that are available to help them succeed in the Korean market.

What is so special about doing business in Korea?

I worked all over the world. I have never ever had the honor to work with such a dedicated workforce with the strongest work ethic. But if you combine that work ethic with an education system, it is really entrepreneurial. It makes every day in Korea exciting. It’s a dynamic environment.

Many Koreans want to have their own business, they want to grow, want to be successful. You combine that with the education and philosophy in Korea, and you see that they have the highest achievement in schools and attendance in universities. So you take that entrepreneurship, you take that education and then you combine that with the strongest work ethic. That’s what Koreans have been able to do.