[Column] The Veteran Who Tied His Bootlaces Again (Nobyeong)

Isun Byung, Senior Member of the National Academy of Engineering of Korea

This is a story from when I was an executive at a construction company. It was customary for headquarters executives to visit the site regularly, and after completing safety management events, the site managers would guide them along well-organized routes they had planned in advance for site inspections. However, I would often change direction midway to check whether there were any liquor bottles in the kitchen of the site cafeteria or in the trash bins of the employee dormitories. The site managers would be startled, but I did this to remind them not to lose sight of the core of management.

There are quite a few cases in the distribution industry, including apparel and food and beverage sectors, where companies break away from conventions and continuously innovate. This is probably the driving force behind South Korea’s remarkable economic development. Although I am not very familiar with the distribution field, I recently thought that a friend who has taken the helm of a related company might be one of the protagonists walking that path.

Last week, news about Lee Seok-gu appeared in our high school alumni KakaoTalk chatroom. Someone had shared a newspaper article. Even if the name "Lee Seok-gu" sounds unfamiliar, everyone would know "Starbucks."

Born in 1949, the same year as me, Lee Seok-gu (hereafter referred to as "CEO Lee") has led Chosun Hotel and Starbucks as CEO, and now he is in charge of the lifestyle brand "JAJU." It’s been only a year and a half since he left Starbucks, and now he has laced up his boots again. He has the distinguished(?) career of overseeing all three essentials of life: clothing, food, and shelter.

Last March, when CEO Lee left Starbucks after growing the company and receiving applause, I recalled the saying, "Old soldiers never die; they just fade away." But in reality, he has returned to the front lines.

Starbucks achieved sales of 1.5 trillion won in 2018. Although it’s somewhat unreasonable to compare, the 1 trillion won sales of a construction company I am familiar with feels very different from 1 trillion won in coffee sales. I have no clue what kind of sales strategy would be required to reach 1 trillion won by selling coffee. It’s quite mysterious. That’s why I think leading a business is an exciting and rewarding endeavor.

Just as professional sports teams hire coaches suited to their environment, companies appoint CEOs who fit the market conditions. CEO Lee is a typical salesman. In the military, there are generals who mainly hold meetings with staff at headquarters, and generals who lead battles in the field, eating field rations with soldiers at the front lines. Viewed this way, CEO Lee is a typical field commander.

CEO Lee was known for spending more time walking around stores than sitting in his office. His leadership style is not about formality but about seeing through the substance. He didn’t just visit stores to receive formal reports from branch managers and pat employees on the back before moving on to the next store; instead, he focused on inspecting kitchens and restrooms. Employees must have been on edge. He can be called a salesman who understands the core of the food service industry.

Starbucks once employed a global price discrimination strategy, which caused difficulties and fluctuations in sales. However, under CEO Lee’s leadership in Korea, Starbucks greatly increased consumer preference, dominated the coffee market, and even raised the value of the buildings where its stores were located. The new sales models he introduced were successful, and other countries’ stores are adopting those models as well. I heard that at meetings where Starbucks CEOs from around the world gather, CEO Lee’s seat was placed at the front.

Now, CEO Lee’s challenges and innovations are in a completely different field. The coffee market is tough, but so is the lifestyle sector. Especially in this field, trends are very sensitive, and survival depends on winning fierce speed competitions. From market research to design, production, distribution, and retail, it is a war against time and a battle to read consumers’ minds.

Currently, amid the turmoil of the Fourth Industrial Revolution and the COVID-19 pandemic, the distribution sector is undergoing tremendous upheaval. We often see articles about large retailers withdrawing from offline stores.

CEO Lee rarely attends alumni gatherings. Or rather, it’s more accurate to say he cannot attend. While the nature of his work requires him to achieve results through on-the-ground efforts, I believe it is more because of his attitude of throwing his whole body into the tasks assigned to him.

At Starbucks, he checked kitchens and restrooms while visiting stores, but at JAJU, I am quite curious about where and what he will focus on. To use a baseball analogy, JAJU is a newly formed team, and it is already very interesting and exciting to see how the veteran manager Lee Seok-gu will lead the game. I cheer loudly for him. Veteran Lee Seok-gu, fighting!!!

This content was produced with the assistance of AI translation services.