2/23/15, 7:55 AMHyundai Motor: Cruising or Skidding? - Korea Real Time - WSJ

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12:00 pm KSTMar 11, 2014 ECONOMY & BUSINESS

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Hyundai Motor: Cruising or Skidding?

BRIDGING CULTURE WORLDWIDE CHUNG MONG-KOO HYUNDAI MOTOR KIA MOTORS

TOYOTA MOTOR

By IN-SOO NAM

— Bloomberg News Hyundai Motor America headquarters stands in Fountain Valley, California, U.S., onWednesday, Feb. 5, 2014.

For some Korea watchers, Hyundai Motor is representative of the flaws of the nation’sfamily-controlled companies: a hierarchical structure over-dependent on charismaticpersonal leadership.

But that “Korean-ness” is what has made Hyundai a winner and should be embraced,including by foreign hires working at other Korean businesses, says Don Southerton, chiefexecutive of Bridging Culture Worldwide, a Denver-based consulting firm.

“That’s what’s been successful. You don’t take out what’s successful,” Mr. Southerton saidin a recent interview in Seoul.

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2/23/15, 7:55 AMHyundai Motor: Cruising or Skidding? - Korea Real Time - WSJ

Page 2 of 3http://blogs.wsj.com/korearealtime/2014/03/11/hyundai-motor-cruising-or-skidding/

— Don Southerton Don Southerton, chiefexecutive of Bridging Culture Worldwide.

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Author of a book titled “Hyundai Way: Hyundai Speed,” Mr. Southerton cites thecompany’s rapid decision-making as a critical advantage.

Many years ago when orange became a popular car color in California, Kia Motors, whichis controlled by Hyundai, was able to get it into production in just three months, he noted.It would have taken Toyota Motor two years, he said.

Mr. Southerton says Hyundai Chairman Chung Mong-koo’s hands-on approach tomanagement helps speed up problem resolution. Critics say Mr. Chung’s frequent staffchanges, including abruptly firing executives and rehiring some of them, hampersmanagement consistency.

Mr. Southerton has conducted training sessions for Hyundai and is a frequent visitor toSouth Korea.

He recalled a cross-cultural coaching session he held in 2005 at Hyundai’s manufacturingplant in Montgomery, Alabama, where many Western managers complained aboutHyundai’s management style.

“The consensus was that the problemwas cultural–Koreans not understandingAmericans and vice versa,” he said.

“But what surfaced in discussions wasthat many of the new American managershad been searching in earnest for aHyundai way. In other words, documentedpolicies and procedures that would guidethem in decision-making and day-to-daywork,” he said.

“The challenge that Hyundai has is notunlike what even Apple has today. How

will Apple continue to convey — as they grow — the core message that they used to havewhen they were a small company and Steve Jobs was in front of everybody all the time?That’s the challenge Hyundai (also) faces for sustainable growth,” he said.

Follow In-Soo Nam on Twitter @namsama_wsj.

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