HYOSUNG CHEMICAL

The global supply chain crisis caused by a pandemic and war that paralyzed the world has brought various business challenges. Consequently, the ability to swiftly restructure systems and adapt to the situation, known as “agility,” has emerged as a key competitive advantage for companies in ensuring business continuity.

The ability to be agile is being emphasized as a crucial factor for companies to adapt and thrive in the dynamic business environment. This agility enables them to make swift and significant investments, reconsider their mid- and long-term strategies, and redefine their approaches to stakeholder communication.

Agile Management: Rapidly Adapting to a Changing Environment

Domestic group companies’ traditional business operating methods have been successful for a long time. Due to their large size, rigid culture, and centralized system, they have difficulty adapting quickly to rapidly changing industry environments, causing them to lack creativity and flexibility. As a result, a new management called Agile management emerged.

The term "Agile'' is an adjective that means "quick" or "nimble." Particularly in business operations, it refers to a strategy that enables swift responses to changes. This phrase has been around since 1957, but widespread adoption began in 2001 when software developers published the "Agile Manifesto." This manifesto outlined a philosophy that distinguished them from traditional development methodologies..

However, to utilize this efficiently, it should not be applied through the overall operations of a company or a single business task. Rather, it should be applied by adopting new industries or project-centered approaches such as task forces (TF).

To implement Agile management, Hyosung Group has established Smart Factory Task Forces (TFT) in each business units and introduced new technologies into its systems. The company collects and analyzes data on product status and equipment conditions, from raw material imports to production, shipment, and control processes. Hyosung Group also collects customer voice (VOC) data from its 62 global trade corporations and offices in countries such as China, Vietnam, Turkey, and Brazil and across 32 other production corporations. This information is then stored in a database and utilized for business purposes. Additionally, the company has partnered with MetaGalaxia, a blockchain expert, to develop a curated NFT platform based on blockchain technology in partnership with ST Telemedia Global Data Center. Hyosung Group is developing a digital-based Agile management system through all these efforts.

Agile management is about more than just quick responses. It can also be characterized by proactive communication and the utilization of technology, particularly among the millennial generation. Hyosung Group utilizes the metaverse platform “Gather Town” to overcome the limitations of remote education and foster a sense of community and camaraderie among new employees. They conduct onboarding training by creating virtual spaces that resemble offline settings such as the company headquarters, auditoriums, and factories. New employees explore these virtual spaces using avatars, gaining insights into job-related information and company culture.

Hyosung Group's transformation goes beyond that. A transition towards independent management has been made by each affiliate to ensure streamlined operations. They are led by professionals with expertise in their areas. We aim to foster a new corporate value system based on agile decision-making based on our deep knowledge of each product and industry. Therefore, Hyosung corporate value system is key to shaping the perception of sound management among employees and the general public.

Hyosung's Agile Management Combines with 'Hyosung Way' to Create a New Philosophy.

Hyosung Way: Embodies Hyosung’s Value

Hyosung’s new brand concept called 'Agile Promise,' embodies the meaning of "an agile commitment towards customer engagement." Based on this concept, they have set their brand mission as “being the first to deliver innovation to customers and a sustainable future." Hyosung Way is the value structure for delivering the capabilities and mindset needed for all Hyosung employees to achieve new goals. It serves as a global company that leads innovation through  Agile Promise values.

In the modern era, the public evaluates companies based on their products and their production processes, such as ESG management. Departing from the traditional focus on outcomes, there is a growing recognition of the significance of role-based values in actively contributing to the "process" of societal change and success. In light of this, Hyosung introduces "excellence," "innovation," "responsibility," and "trust" as the core values for meeting the needs of customers, adapting to evolving times, and fostering collaboration with social organizations.

1. The highest value recognized by global customers - “Global Excellence for Customers”

With a global mindset, technology, and expertise, we listen to our customers’ voices and provide the best values.

2. The value of pursuing constant change and innovation - “Striving for Innovation”

Beyond management innovation, we continuously and rapidly pursue new opportunities to  generate added value and ensure competitiveness.

3. The value of taking responsibility for the future society - “Responsibility for the Future”

To build a sustainable future, every member will be held accountable for upholding our commitment to change and innovation through self-directed leadership that goes beyond authority and roles.

4. The value of trust for fostering flexible synergy. - “Trust for Synergy”

We will build a dynamic, collaborative ecosystem by generating capabilities within and outside the organization based on mutual trust, respect, and cooperation. We will distribute resources to enable synergy and adapt quickly, fostering a culture of agile collaboration.

Through Hyosung Way, we aim to become a pioneering company fulfilling its promises to customers. We strive to be a global innovative solutions provider, leading the way in this transition era. Moreover, we aspire to be a company that turns imagination into reality and deeply impacts the lives of our customers.

Employees’ promise to practice Hyosung Way, Hyosung Credo

Hyosung Group recognized the need for a structured system of activities with specific expressions to ensure consistency of Hyosung Way across employees and marketing channels. Additionally, they identified that the existing Hyosung Way lacked the ability to effectively communicate the company's value system. Therefore, they reinterpreted Hyosung Way as an employee action concept and implemented the Credo method, which emphasizes core principles, to help customers better understand Hyosung's values. By translating Hyosung Way into actionable behavior, Credo represents employees' commitment to embody Hyosung Way.

Global Excellence for Customers: An agile attitude to adapt and change quickly to provide the best value to customers.

1. We prioritize the voice of the customer above all else.

2. We pledge to consistently deliver valuable products and services as a top priority.

3. We make every effort to earn recognition as the best from the customer's point of view.

4. We aim to achieve worldwide competitiveness with a global perspective.

Striving for Innovation: Courage to face new challenges without fear

1. We will constantly strive to learn and develop new competencies to create opportunities.

2. We will fearlessly implement changes more effectively by responding quickly and decisively.

3. We will be at the forefront of innovation with a positive mindset

4. We will embrace challenges as opportunities for innovation rather than being afraid of them.

Responsibility for the Future: Leveraging business influence for customers and society.

1. We will take charge of our responsibilities with a sense of ownership as experts in our field

2. We will always uphold our promises to our customers with a strong sense of accountability,

3. We will be mindful of our technology’s impact on society and the environment.

4. We will prioritize the value of human life and never compromise on safety.

Trust for Synergy: Communication and growth through flexible team culture.

1. We will work together towards a common goal by fostering teamwork.

2. We will create a culture that embraces and supports personal growth for everyone.

3. We will aim for clearer, more transparent, and more extensive communication.

4 We will cooperatively work with stakeholders based on mutual respect and trust.

Hyosung Group Chairman Hyun-joon Cho states, "In times of change, companies must transform themselves through agile management based on speed and efficiency to survive and create opportunities for success." He also stated, "We need to make the company's constitution strong and solid, and through nimble collaboration between departments, we must be able to quickly, flexibly, and efficiently embrace technology and trends."

Changing markets can bring opportunities for some, and crises can present crises for others. By following Hyosung Way through Agile management, Hyosung will continue to grow.