"Want to Try Being a CEO?"... Lee Jae-hyun CJ Group Chairman's Bold Personnel Experiment

President and Executive Director Consolidation 'Hierarchy Destruction'
Leader Recruitment Regardless of Affiliation or Rank
Treatment Determined by Role and Performance
Foundation for Early Development of Competent Talent

[Asia Economy Reporter Seungjin Lee] Lee Jae-hyun, Chairman of CJ Group, has taken the first step beyond organizational culture innovation to create a new corporate culture unique to CJ. This move serves as a warning to existing executives who become complacent by getting promoted just in time, and it is an effort to capture the MZ generation (Millennials + Generation Z) by creating an organizational culture where anyone, regardless of age or rank, can grow into a management leader responsible for CJ's future.

I Make My Own Career

On the 24th, CJ Group announced that it will unify six executive ranks from president to deputy general manager into a single rank called ‘Management Leader’ starting next year. A CJ Group official said, "In recent years, talented young professionals have been leaving for startups and ventures, prompting the need for corporate culture innovation, as judged by Chairman Lee and other key executives. There are more suitable leaders, but due to rank, they cannot fully demonstrate their capabilities, and many MZ generation employees have expressed opinions that they are not fairly evaluated or rewarded based on individual performance, which has been largely reflected in this decision."

CJ Group plans to implement a ‘job posting’ style project and task force contest system that allows participation in various businesses within the group without restrictions on affiliated subsidiaries or job roles. A ‘leader contest system’ will also be created, allowing anyone to lead projects or organizations regardless of rank. For in-house ventures, various reward systems such as stock options will be provided if the business is commercialized.

According to the reorganization plan, the treatment, compensation, and positions of management leaders will be determined solely based on roles and performance criteria. Executives who generate results and have a wider scope of responsibilities will receive greater rewards and be promoted to key positions more quickly. A foundation will be established for early growth into division heads or CEOs regardless of tenure, enabling early selection of talented individuals and the establishment of a management development system, CJ explained.

"Opportunities for the ‘Hagojabi’"

This executive rank system reform and personnel innovation were carried out under Chairman Lee’s strong directive. It is known that Chairman Lee had been deeply considering personnel innovation since last year. As a result, a groundbreaking personnel reshuffle was conducted at the end of last year’s regular executive appointments, with heads of 8 out of 14 major affiliates replaced. The average age of new executives dropped by two years to 45 within two years, signaling innovation.

Chairman Lee’s determination was firmly revealed last November. He unveiled the ‘2023 Mid-term Vision’ and repeatedly emphasized innovation in talent acquisition and top talent development. He diagnosed, "We lagged in preparing for the future because we failed to nurture talent and establish an organizational culture that embraces new challenges." This was a self-reflection acknowledging shortcomings in talent acquisition and work culture improvement.

Furthermore, Chairman Lee emphasized, "The core that makes everything possible is talent," and said, "We will create a workplace where ‘Hagojabi’ (workaholics who proactively create and dedicate themselves to work) receive unprecedented rewards through diverse opportunities and fair competition, and grow together." It was the first time since the 2010 ‘Second Leap Declaration’ that he personally explained this to executives and employees, indicating his strong will for personnel innovation.

Promotion Prospects for Eldest Son Amid Performance-based Personnel Policy

CJ is expected to announce next year’s regular executive appointments as early as next week, with attention focused on whether Lee Seon-ho, Deputy General Manager of CJ CheilJedang, will be promoted to executive. This is the first test of Lee’s management performance under the performance-based personnel policy.

Lee was appointed Deputy General Manager in charge of global business at CJ CheilJedang in January this year and has actively engaged in external activities, including the global marketing partnership deal between ‘Bibigo’ and the LA Lakers in September. CJ CheilJedang has expanded its presence in the global market led by ‘Bibigo’ dumplings and recently launched the vegan brand ‘Plantable,’ showing tangible results that suggest Lee’s promotion to executive is anticipated.

The management evaluation of eldest daughter Lee Kyung-hoo, Vice President of CJ ENM, is also positive. Since acquiring a stake in the 920 billion KRW production studio ‘Endeavor Content’ in November, she has formalized a series of large-scale mergers and acquisitions (M&A), including a partnership with the American comprehensive media company ‘ViacomCBS.’

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