It’s all about people, says LG Chem CEO
Bahnsuk Kim’s five habits to make a winning team
The Korea Times is running a series of articles introducing Korea's corporate leaders in an effort to shed light on their winning formulae, management philosophies and personal stories. ― ED.
By Oh Young-jin
Business editor
A winning formula may differ from one corporate leader to another.
Steve Jobs takes pride in personal charisma and enjoys boasting his latest Apple product in front of a large crowd. Lee Kun-hee doesn't like to stand in front of people but possesses a "gut feeling" to reset Samsung's business strategy ahead of time. Jack Welch was stubborn in his time at GE but used his patriarchal charm to put the ailing firm back on track.
No matter what CEOs' strong points and weak points are, their success depends on whether they can win the hearts and minds of their colleagues. After all, they are the canvas, brush and pigments with which CEOs translate their vision into a piece of art ― a good, productive company.
In this regard, LG Chem CEO Peter Bahnsuk Kim is setting a unique example.
Not much is known about the 61-year-old vice chairman of the LG affiliate in person because he rarely grants interviews but enough has been said and written about how in five short years, he has turned a mediocre LG Chem into an overachiever, a case rarely see in Korea Inc.
The Korean manufacturer of advanced batteries and chemical materials breached the 2 trillion won mark in operating profit last year and is expected to outperform that record by a good margin this year.
Kim's success story contains many shining moments. One came during the Detroit Motor Show last year, where he was introduced by Rick Wagoner, then GM Corp. chairman, as the CEO of the firm selected to provide batteries for the electric-powered Chevrolet Volt. The Volt was touted as the savior of the ailing former world No. 1 carmaker.
Obviously he doesn't let it go to his head, as he would say with a great deal of modesty, "It is just one of the deals."
It sounded as if he were confident that his company would win many more such big deals. Then, what makes him so confident? What is his winning strategy?
In a nutshell, it is all about people.
Kim says, "If I love my employees, they will love me back." His love is more like camaraderie, the brotherhood of men and women who share the same goals and pursue them as if it were their mission. The change caused by that camaraderie has turned his firm into a winning team that believes in itself.
For that, he preaches about five key habits.
Listening
As a CEO, Kim thinks that listening is seeing. It is an important part of his job to listen firsthand to what excites them and disheartens them.
From his experience, he has concluded that reports often become so altered as to fail to reflect the reality, while traveling up the chain of command.
He remembers how a model worker got excited to see his CEO come and visit him during one of his visits to a factory.
The employee talked passionately of his success story. Kim saw it being shared by the worker's colleagues.
If he hadn't made the trip, he would have missed out on the opportunity to interact with rank-and-file members of the firm and keep them in high spirits.
He believes that one of a CEO's duties is cheerleading. His rationale is that happy workers are productive workers.
Thinking
CEOs must look forward and think ahead. If they don't, it means that their companies will lag behind. In today's business environment of cut-throat competition, being behind spells the failure of their business.
CEO-level thinking requires a high degree of discipline and training.
Some corporate leaders are known to rely heavily on "gut feelings," animal-like instincts to choose the right business model that helps improve the bottom line in the short-term and promises long-haul prosperity.
Kim prefers exhaustive and repeated reviews before he takes action but he cuts short this time-consuming process as much as possible. For that, he keeps a strict daily schedule, rising at 5 a.m.
Deciding
Once all the factors have been thoroughly checked, it is time to make a decision.
His decision-making process is not a one-man affair but rather a process of going over all kinds of probabilities and fact-checking together with his executives and working-level employees as well as experts.
In this process, Kim keeps his eyes peeled and ears open to suggestions.
But once a decision is made, it is pursued according to a given timeline but with determination to execute it with no diversions.
Kim's thorough preparations leave little room for mistakes but he makes it a habit to be flexible enough to accommodate necessary changes, while his decision is being implemented.
Leading
In today's business world, there is no place for runners-up. Only people in first place survive and even their longevity can't be guaranteed without a perpetual effort to reinvent themselves.
Kim agrees on this corporate version of the survival of the fittest.
When he started to work, there were many firms in his field of business but now those second- and third-ranked companies have long disappeared.
That is why he is insisting that his company be the global No. 1 not just as the manufacturer of electric car batteries but also small ones for laptop computers.
Winning
The LG Chem CEO believes that winning is a habit. The strategy of making winning a habit involves a carrot and stick approach as well as confidence building efforts.
He sees that giving incentives is important but giving them at the right time can be even more important. He also prefers to cheer up those who are behind so they can join his successful team. Setting challenging goals plays a key part in winning.
If a worker attains a given goal three times, he gains a can-do spirit, confidence and "breakthrough capability," making winning his habit.