POSCO CEO Chung's Soft Revolution

"1+1=3" management ideal the main theme of the smooth managerial change under Chmn. Chung's leadership

"Now learned how tough it is to be the CEO of a company after a year in office leading POSCO out of the economic crisis sweeping the world, ahead of other rival steel makers in the world. I feel it was very fortunate that POSCO has been able to break out of the jam, which was the first major task that I faced as head of the steel maker," said Chairman Chung Joon-yang during a recent meeting with a local daily on the eve of the first anniversary of his assumption of the top job at POSCO as chairman and CEO on Feb. 27, last year.
What he learned as CEO was you have to act before any one else does to set samples and sacrifice yourself in the execution of your responsibility, the POSCO chairman said.
A major change that Chung made during his initial year at the helm of POSCO is the remarkable reform in the steel maker's corporate culture. It became smooth under the new chairman's managerial mottos calling for an open management, creative management and environmental management.
Communication was the first word he spoke as he took over the top office at the steel mill and set up a blog carrying his management philosophy. He started having breakfast with over 10 of the company's managers every morning to share ideas on running the steel maker more effectively.
Chung also ordered to get approvals through e-mail and gave smart phones to staff. He also set up a recreation room at the head office so that staff can come and play games to relax and get recharged with new creative ideas on management or certain problems they have in taking charge of their duties.
Chung also changed the personnel training policies, stressing both liberal arts and sciences and on every Wednesday, a class is held regularly on humanities courses. He also placed a smoking ban on the company premises.
All the changes he made so far are related to his ultimate strategy called "POSCO 3.0" designed to make POSCO share a greater contribution to the national economy, by becoming truly a super-tier global concern as a successful private company with annual sales going over 100 trillion won, always loved by the people interested in POSCO.
Chung set up a group management system in order to achieve the company's POSCO 3.0 Strategy like a family management system so that synergy can be achieved with an effect of 1+1=3, the ultimate target of the strategy.
Chung feels that this year is an important turning point for POSCO in many aspects. Its about time for the steel maker to seek another area of growth, with the capacity accumulated while overcoming the economic crisis last year. "We will hold on to the new chance for the second huge jump if it comes along this year as we have to adjust to a new environment, not laid back satisfied with the successful fight against the management crisis.
POSCO will invest 9.3 trillion won in facilities and other business sectors, nearly twice as much as those in last year in order to "grab" the new opportunity for growth if it comes along this year. The company has submitted bidding papers for Daewoo International and has also been eyeing Daewoo Shipbuilding and Marine Engineering for possible take over.
The steel maker has also been working on a plan to build its overseas operations network linking Vietnam, China, Indonesia, Thailand and India so called the company's "Asian Production Belt." The company has also been pushing to take on such new businesses as the production of lithium, magnesium, titan and other future high-tech industrial materials for its new growth engines.
POSCO orders from Chung is in the stage of research to eliminate the CO2 in the steel production which has been the chairman's long dream for environmental reasons. He made a sweeping personnel change recently to officially launch the second Chung Joon-yang period in POSCO's in time for strengthening the management of the POSCO Group and expanded investments in facilities and other areas this year as approved at the shareholder? meeting on Feb. 26.
Personnel shake-up included the appointment of Ahn Chul-soo as chairman of the board and promotions of Park Han-yong as president of POSCOICT, and Vice Presidents Oh Chang-gwan, and Kim Jin-il as registered directors taking charge of the over-all management support, stainless steel business sector, and the CO2 reduction business sector respectively. Managing Director Yoon Hong-won has been name to head the investment for growth sector. Managing Director Kim Sang-young in charge of the public relations was promoted to vice president. nw

Chairman Chung Joon-yang of POSCO.