SUPEX Is SK’s Management Guideline, Philosophy
By Jane Han
Staff Reporter
SK Group wasn't much more than a textiles manufacturer back in the 1970s, but the late former chairman Chey Jong-hyon transformed the narrow business into a sprawling empire in just three decades.
Built on hard work and a can-do spirit, the success story may not seem so different from any other dramatic growth led by South Korea's most powerful marquee conglomerates, Samsung and Hyundai. But SK's venture was uniquely driven by the company's own philosophy it calls SUPEX, or Super Excellent.
SUPEX, a business management strategy that aims to systemically eliminate defects and maximize perfection, is the core principle behind SK's Management System (SKMS) ― a philosophy equivalent to Johnson & Johnson's ``Our Credo'' and Toyota's ``Toyota Way.''
The scientific tool geared toward maximizing profit is designed to encourage members of the organization to be creative and fearless in making new attempts. It plants a can-do confidence in people's mentality so that they proactively work off of each other's potential.
SK officials say that SUPEX has been molded from the late Chey's experiences in expanding the once small manufacturer from a telecommunications to an industrial energy giant.
Once a second-tier firm with only one trillion won in sales, the conglomerate ― which currently runs the country's No. 1 oil refiner SK Energy and wireless communication services provider SK Telecom ― rakes in an annual revenue of 100 trillion won.
Being credited with successfully propping up the company, the core principle of SUPEX is now implemented in SK's business sectors across the board.
``SK's sustainability is powered by SKMS,'' company chairman Chey Tae-won recently said at an event celebrating SKMS's 30th anniversary. ``We're going to continue strengthening and improving our management system to better our sustainability.''
He said that today's turbulent economic conditions call for a more aggressive implementation of the company's tried and true entrepreneurial method.
So how is SUPEX achieved?
From marketing, production and research to support, all team players must first start out by sharing one clear-cut vision and work toward it through effective communication.
SUPEX is fully achievable through a five-step execution process: Employees must have a holistic understanding of a situation, identify their detailed role, accomplish the targeted ``super excellent'' goal, identify obstacles and eliminate them.
``The SUPEX process will continue to mature as times change and serve as a compass for the company,'' said Ko Dae-hwan, the head of the SKMS Institute.