"Leader-phobia," a phenomenon in which employees at companies and public institutions avoid promotions, is spreading. Analysts point to a culture that prioritizes individualism and "work-life balance," as well as excessive responsibility relative to the rewards given to leaders. Companies are grappling with how to maintain efficient operations amid the declining status of organizational leaders.
Huh Young-ho, former CEO of LG Innotek, stressed in an interview at the Seoul Economic Daily headquarters in Jongno-gu, Seoul, on the 27th that "the future of a company whose leaders are shaken is bleak," adding, "For an organization to be healthy, it must have healthy leaders." Huh joined Goldstar (now LG Electronics) in 1977, served as CEO of LG Micron in 2000, and led LG Innotek as CEO for more than a decade from 2002 to 2012, growing it into a global company. He later served as a visiting professor at Seoul National University's College of Business Administration, a partner coach at Coaching Management Institute, and president of Jeju Technopark. He recently began promoting desirable leadership through his book, "How Organizations Grow Strong."
In 1992, at the age of 40, Huh became the manager of Goldstar's TV factory, making him a "strikingly young leader." Under the seniority-based system, the position was usually held by those in their 50s or older. "At the time, leadership backed by powerful charisma was the norm," he said. "I imitated the way my seniors did things, but it felt like wearing clothes that didn't fit. I didn't think I could keep controlling and giving orders to employees."
The answer Huh arrived at after much deliberation was "gonghaeng wonro" (共行遠路), the idea of traveling a long road together with the members of the organization. "An organization should be seen as a train that runs on two wheels—the leader and the members," he said. "No matter how outstanding a leader is, they cannot replace members who each fulfill their roles in their own positions. Overcoming a corporate crisis is impossible through 'follow me' charismatic management."
Huh explained that during his tenure as CEO of LG Innotek, he achieved better-than-expected results through leadership that walked alongside the members. He joined LG Innotek's management in 2001, when the company's very existence had been shaken by the aftermath of the 1998 foreign exchange crisis. Recalling the situation at the time, he said, "Inertia and a sense of defeat had become routine within the organization. The tables and chairs in the company cafeteria were rusted, and like the 'broken windows theory,' the entire organization was left unmanaged and neglected." He continued, "To make members care about the organization, I had them personally choose new tables and chairs. I also introduced a 'Listen-Acknowledge-Question' training program to help members communicate, which reduced internal conflict." According to Huh, this made two-way communication possible—listening to others, sincerely understanding and acknowledging their positions, and asking good questions that stimulate thinking instead of giving one-sided orders.
This "Listen-Acknowledge-Question" training produced positive effects within the organization and was even selected as an LG Group innovation case. LG Innotek's revenue expanded more than tenfold, from the 300 billion won range in 2001—when Huh first joined as head of the components business division (executive vice president), excluding the defense industry division that was spun off into LIG Group in 2004—to the 5 trillion won range in 2012, when he stepped down as CEO, marking clear results. "In business terms, this can be described as a result driven by the growth of camera modules and the acquisition of external customers such as Nokia and Apple," he said. "But behind this growth, which deserves more attention, was organizational change in which members directly participated in setting organizational goals, and shared and executed them."
Huh also proposed "3D Management," with Dream, Destination, and Drive as the three philosophies of corporate operation. "At first it seemed impossible, but as we put it forward as a slogan, a seed began to sprout," he said. "By sharing our purpose with the members, we were ultimately able to achieve our goals."
Regarding the recently controversial issue of semiconductor performance bonuses, Huh suggested that labor and management should unite behind a direction for the company's future. "Wouldn't it be more appropriate for employees who will be with the company for a long time to demand that the money be used for investment in the future?" he said. "Labor and management should talk to each other and think about how to create better results."
