“Like the overwhelming brand power of’Nike’, we can only succeed if we have a clear vision and differentiated values tailored to each company.”
Lotte Chairman Shin Dong-bin said, “There is no future for a company whose purpose is survival, not growth,” and ordered to overcome the group’s sense of crisis and take a leap again. “Even in the IMF (International Monetary Fund) and Lehman incidents, Lotte made meaningful results through bold decisions. We have’crisis overcoming DNA’,” he encouraged.
According to Lotte on the 14th, Chairman Shin emphasized at the Value Creation Meeting (VCM) in the first half of the previous day that “if there is a clear vision for the future, innovative growth will be possible even in a crisis.”
VCM is a presidential meeting attended by major executives including the CEO of Lotte affiliates. It was conducted in a non-face-to-face video conference with more than 130 people present. The VCM is held twice a year divided into the first and second half.
This meeting was held under the theme of’Re-Think-Restart: Preparation for a leap forward’. It reflects the sense of crisis and urgency that Lotte Group’s re-leap plan, which was hit by the corona 19’s direct hit last year and recorded the worst performance, must be made in depth from various angles. It is said that despite taking solemnly the crisis situation, encouragement rather than reprimand was continued.
Chairman Shin said of last year’s management performance, “The management index was sluggish than ever with Corona 19. “This is a proof that our potential is not being recognized in the market. Just as companies that innovate during a crisis have a large growth rate after the crisis, we must thoroughly prepare for when the pandemic has stabilized since the second quarter of this year.” Said.
Chairman Shin ordered the president’s team to present a future vision and create differentiated values.
He asked the president’s team, “What are the essential competitiveness and core values of each company?” He said, “We must be able to present the company’s appearance to employees in 5 and 10 years.” One participant said that it was ordered to look 10 years away because the future can only be seen in the next 1-2 years. This participant interpreted it as “a message to establish a clear vision of the significance of the company’s existence and future perspective, rather than the present survival.”
Chairman Shin also ordered digital transformation, R&D (R&D), and continued strengthening of the brand.
In order to become the No. 1 in the industry, it is necessary to establish a vision from the perspective of the future to see if it meets the rapidly changing market environment, and check if it meets the rapidly changing market environment.
Chairman Shin emphasized, “I think the reason why there were sluggish business groups even though they started out first in the industry was not a strategy, but a problem of execution.” “In order for investors to see fruitful results, it is essential to implement the strategy according to the strategy.”
Discussions on organizational culture suitable for the new business environment were also conducted. Chairman Shin pointed out that although there have been many organizational reorganizations and greetings over the past two years to renew corporate culture, some companies have an authoritative culture. “To build a flexible and horizontal organizational culture that can adapt to the trend of the times, It has to change from now on. Only then will we be able to lead to changes in the entire organization of the company and the group.”
Strategic focus on ESG (environmental, social, governance) management, which is directly linked to corporate value, was also mentioned.
Chairman Shin said, “ESG elements must be considered when establishing a vision and strategy. Social value is a key factor that determines the survival of a company and the success or failure of a business,” he said. “A responsive approach to regulations is not desirable, and furthermore, we must actively consider what kind of society we want to create and what social value we can provide. I said.
Lastly, Chairman Shin ended the meeting by saying, “I will boldly abandon the past success experiences that are hindering our growth and promote business innovation in a different way from the CEO.”
Reporter Baek So-yong firstname.lastname@example.org
[ⓒ 세계일보 & Segye.com, 무단전재 및 재배포 금지]
*The article has been translated based on the content of 경제 by www.segye.com. If there is any problem regarding the content, copyright, please leave a report below the article. We will try to process as quickly as possible to protect the rights of the author. Thank you very much!