LG Group: Command and Management Development

There is no enterprise which is repellent to environmental changes, especially business environment. As the entire year comes by, new inventions or innovation will absolutely give effect on every type of business in the world. However, the sources of the impact, quite simply, the root of the changes in the surroundings is not only via company external place; generally the impacts (either negative or positive) can come from external territory and internal territory of the business.

This written examination targets the LG Group's Chairman Koo who once explained and identified his eye-sight for the LG group to develop and improve significantly and to be considered a leading company in its local market area (Korea) and the wider market scope, international market and increase its income significantly within 7 years period. That is known as "LEAP 2005". Even though is not an easy activity to do, he is much sure that the group can do that. He considers days gone by performance of the group and the major internal changes within the business will enable it to achieve what its chairman wants. The main key success, as the management agrees, lays on the near future market leaders of the group. There are several questions that occur as the result of the discussion between the management in relationship with this key point, specifically where and how to find these future market leaders, what functions of competencies these leaders should have got how to develop these key competencies and so on.


Briefly speaking on LG historical background, a typical first impression on the company is that they have tremendous historical documents in terms of business performance and business revenue. Citing the record, LG was set up for the first time in 1947 as a small chemical company. As the time passed, there are expansions that the group has done. As a result the company got bigger and bigger. The applied several strategies that really work very well are the key reason why the business grew bigger within a comparatively short period of the time. Nowadays, LG is one of the best players in Indonesia industry.

As the situation of LG Group already identifies, what is intended by "LEAP 2005" desired by Chairman Koo demonstrates the his fantasy to make LG Group as the main company in Korea and leading company on the planet as well. This causes for sure the increasing earnings to US$380 billion. To do this, certain development an improvement towards the business as a business is an urgent necessity.

The significant subject or factors which are at once could possibly be the conclusion of the brief analysis would be that the improvement on inner areas of organizations, which by the end should result in the change of "LEAP 2005" into reality. Further, it is arranged that the management should give attention to the human group and make the first priority above all. The analysis is written as follow.


An ideal human being company that can help in the success of Chairman Koo's "Step 2005" eye-sight of future definitely has three most fundamental characteristics specifically: 1. Strong LG company culture/principles, 2. Qualified skilled people as its part, 3. Good managerial strategies and businesses by the management. These all explains the way the company will provide itself its needed resources to meet up with the requirements of the company to attain the vision. Each of this characteristic serves as a follows.

Strong Company Culture

A company with certain strong culture (or some term it as "values") can usually stand up against all turbulence that occurs during its businesses. The LG Group itself has already approved some bad period with great success and continues showing positive improvement. Addition to this, there is for sure changes of transforming (STABILITY, HARMONI, RESPECT) to the cultures (CHALLENGE, SPEED, Simpleness, BOUNDARYLESSNESS). These changes are based on the demand of business environment which takes a company to quickly change themselves to the changes.

Competent Individual Resources

The core element of a business group is the humans who move it and run the company's operation. The more competent the individual of the company the more prosperous the business will be. If the all person in the business are competent in their own field it will lead to best product that the business produces. Furthermore, this will wrap up in the accomplishment of customer satisfaction goal (consumers demand and wishes). This all will result in better competitive advantages that the company has.

Good Managerial Practices by Best Management

Company management can be is the trunk bone of the business. They will be the key one who drives the company towards certain direction. They are the decision maker of in the company. The destiny of the company is at their hands. The culture that the management builds inside the company will also impact your day to day procedure of the business. In terms of external relation, the management operates as the representative of the company. The can influence the business companions as well as potential consumers.

Specifically speaking, in relationship with recruiting, the management should provide strategies that relate to human resources management such as defining organizational strategy, defining organizational structure and man electric power planning, defining the critical careers, defining the job description that fits with the company's competencies, placing competency model and applying it in form of setting HR tools and functions such for performance appraisal and prize and settlement recruitment, campaign, training and development.

The human corporation with all these characteristics that LG Group have and can help the company to attain the "LEAP 2005" eyesight will face evident problems related to the business and business the time of the eyesight achievement progress, they are simply including the impact of paradigm or culture changes towards the business, process of establishing the company's main competencies, the changes on business orientation and goal (e. g. , business goals, from international to international (global) player, the inner (company value) and external ethnical change, the demand of new employees to satisfy the need of increasing work weight and qualified employees, to get ready human resources management system and its tools good company development.

As the recruiting management plays significant roles the process of translating the chairman's vision in 2005 they should be reviewed further in details. The overall implementation of strategies, policies, programs, and or techniques by Mr. Y. K. Kim's LG People Resource Team that can help Chairman Koo change his "LEAP 2005" perspective into certainty must connect to the way the management organizes and manages the recruiting that the company has. These could be the strategies of appealing to best new staff, develop the legend performers (or other may call "high potential") in conditions of very soft and hard skills or competencies, retain the best performers, manage work effectivity etc.


As discussed before, the main element success of the company in changing the perspective "Jump 2005" into simple fact relies about how the organization prepare and develop the future leaders of the company which will regulate how the business will operate and run in the future.

These market leaders will be having several capacities as what Chairman Koo desired so that these competencies will permit them to execute well. First and foremost, these leaders must possess a feeling of competition for global point of view. This competency strongly connects with the capability to fight and compete with the world class companies. Secondly, this has a relationship with how sensible and tactical a innovator can create a global management system. Finally, a distinct sense of global point of view will help a leader on how to make a top notch business.

The other attributes a future head must maintain is his capacity to maintain the quality of the company outcome. With regards to this they must have capability to create maximum value for customer. In other words, the satisfaction and commitment of the costumer towards the business must be the first goal and target for the future leaders that the group will require in the foreseeable future. As important as the give attention to outputs (products) the leader must also accept the values that have been the LG values directly distributed by the Chairman. Both other ideals that basically will be the required attributes for many future innovator of LG to own will be the skills (managerial) to conduct the business enterprise with integrity and the good degree of contribution towards interpersonal development.

Practically speaking, when it comes to day to day business activity, the essential capabilities for them to master is that the data on what and the way the company process runs. Thus, when there's a problem using section of the business, they can easily tackle down the condition and solve it. Finally, they must have what so called global orientation and global leadership capacities. These will identify the company orientation in the future as well as solve the problem that may occur such as significant and severe different environmental and business condition changes.


To discuss the truth of future market leaders in greater detail, the whole procedure for preparing the future leaders can be explained in more specific process and levels as follow

To identify and draw in the best market leaders. Here research I really believe will benefit the business much in the sense of checking the best individuals in the future. Nowadays, competition is happening not only attracting best costumers/consumers but also in getting the potential experienced employees.

To select, recruit and retain the future leaders. The activities will be the follow up of the study conducted in the first stage. Citing the case of LG, the business will desire a really great number of employees, both Korea and Non-Koreans. These involve certain strategy to achieve best result in conditions of bringing in future market leaders with competent capabilities.

To coach and develop the future leaders of the business. Here, a training center such as what Dr Lee works with his LG Academy performs an important role. Their process involves defining the current employee competencies necessary for better performance and a set of competencies on which they can focus diagnosis and development activities in the future. This also one of the key concerns of the management. They see training and development for specialized competencies as the main element of achieve the "LEAP 2005"

To provide motivation, appraise, and rewards as implementation of strategies to retain the proficient company future leaders. The company should not reenact what so called as "Bamboo Roof" which most Japanese company once experienced. The management must develop clear and clear career path for those employee. The assessment for promotion also needs to be made reasonable so that all employee can easily see the progress with their career and most importantly, and similar opportunity for job improvement must exist in the business. This will guarantee the all employee can perform higher position as their performance says so.

In relation with the near future strategies in "LEAP 2005" perspective, the company plans to realize 50 % of the whole earnings from international market the amount of non Korean employees increase significantly. Within the practices, the business and the management plan to fill three or four 4 business presidents with non-Koreans out of 50 positions and present 20% part of all executives in the office at Seoul. To keep the unity and fairness of the management way, the team could take the same method of the both Korean and non-Korean employees.

However, the customization may take place in accordance with the backdrop of culture of those two groups. However, on the whole the normal strategies must be implemented to both groups. What must be emphasized is the outcome which is all employees can use the strategies in to the business and provide the required outputs.


In conclusion, by analyzing the truth of LG Group: Developing Tomorrow's it could be concluded that a business business activity can not be separated from inner and external influences. Internally the management may have a couple of future strategies and strategies or even vision that must definitely be implemented and altered by all company components. Externally, the changing business environment in each different period often requires the business to constantly prepare a set of strategies to manage possible problems and stay survive amid uncertain condition. Here, the recruiting team performs an important role since a competent future leaders will be the key person that can manage the company through the hard time that you can do in the foreseeable future. It's the responsibility of the human resources team to attract, develop, and keep maintaining those future leaders with regard to company stableness.

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