World's Leading Scholar: "Samsung Should Focus on What It Can Do Well Rather Than Too Many Fields" (Comprehensive)

"When Considering Not What Can Be Done but What Must Be Done"
Calls for Change from 'Frankfurt Samsung to Florence Samsung'
"To Become a First Mover from a Fast Follower, 'Creation' Is Necessary"

The world's leading management philosophy scholar advised on the 18th that "Samsung should focus more on what to concentrate on rather than trying to enter too many fields."

Roger Martin, Professor Emeritus at the University of Toronto in Canada, made this remark at an international academic conference held to commemorate the third anniversary (on the 25th) of the late Lee Kun-hee, former chairman of Samsung.

The conference was held at the Samsung Seocho Building in Seocho-gu, Seoul, to commemorate the 'New Management Declaration' made 30 years ago in 1993, in which Chairman Lee emphasized that increasing product quantity was less important than improving quality to become a world-class company. About 300 people attended, including Kim Jae-gu, president of the Korean Academy of Management, Kim Hwang-sik, chairman of the Hoam Foundation (former Prime Minister), domestic and international scholars, and executives from Samsung affiliates.

Chairman Kim Hwang-sik said in his commemorative speech, "We mourn Chairman Lee, who walked the path of innovation that no one had taken during his 9,659 days (29 years and 169 days) leading Samsung," adding, "I hope this will be an opportunity to re-examine the spirit of New Management and provide a milestone for preparing the future of Korean companies."

Roger Martin, Honorary Professor at the University of Toronto, is presenting at the '3rd Anniversary Memorial for Chairman Lee Kun-hee and the 30th Anniversary of Samsung's New Management' international academic conference held on the 18th at the Samsung Headquarters in Seocho-gu, Seoul, hosted by the Korean Academy of Management. Photo by Hyunmin Kim kimhyun81@

The invited speakers analyzed Samsung's New Management from six perspectives: technology, strategy, talent, coexistence, future generations, and implications for emerging countries, and shared opinions on how to apply the New Management Declaration from 30 years ago.

In the first part of the conference, Professor Emeritus Martin and Professor Kim Sang-geun of Yonsei University's Graduate School of Theology delivered keynote speeches on the themes "What is the essence of Lee Kun-hee's management philosophy?" and "The significance of the KH legacy," respectively.

In the second part, lectures were given by Professor Scott Stone of the Massachusetts Institute of Technology (MIT), Professor Gita MacSorely of Columbia University, Professor Patrick Wright of the University of South Carolina, and Professor Kim Tae-wan of Carnegie Mellon University specializing in business ethics.

Professor Emeritus Martin is seen waiting before the Q&A session with reporters after delivering the keynote speech at the international academic conference commemorating the 30th anniversary of Samsung's New Management and the 3rd anniversary memorial of Chairman Lee Kun-hee on the morning of the 18th.
[Photo by Moon Chae-seok]

Professor Emeritus Martin evaluated Chairman Lee as both a strategy theorist and an integrative thinker. He explained that Chairman Lee managed Samsung based on the imagination that things and the world can change, rather than a mindset of "the answer is fixed, just respond" which assumes the nature of things does not change. He broke the framework of "traditional management," which is answer-oriented, consensus-seeking, and decision-making by choosing only one among several alternatives.

During the Q&A session following his keynote speech, when asked, "In this era of great transformation, besides talent, what should Samsung focus on?" Martin replied, "As the Samsung organization grows larger, it should focus more on 'what must be done' rather than 'what can be done.' Instead of trying to enter too many fields (what can be done), Samsung should think more about what to focus on (what must be done)."

He added, "Amazon and Alphabet (Google's parent company) are facing similar concerns, and Samsung should pay attention to these points as well."

On August 12 last year, visitors were viewing the exhibition works at the "Lee Kun-hee Collection Special Exhibition: Lee Jung-seop" held at the National Museum of Modern and Contemporary Art in Jongno-gu, Seoul. This exhibition features over 90 works in total, including about 80 of the 104 Lee Jung-seop pieces donated by the late Chairman Lee Kun-hee to the National Museum of Modern and Contemporary Art, combined with 10 of the 11 pieces previously owned by the museum. Photo by Kim Hyun-min kimhyun81@

Professor Kim Sang-geun introduced how Chairman Lee's social contributions in non-management areas such as culture have contributed to Korean society.

Professor Kim argued that a businessperson who pays a lot of taxes is an 'entrepreneur,' a businessperson who provides many jobs is a 'large enterprise leader,' and if one also has the qualities of a philanthropist based on goodwill, they embody the 'spirit of the age.' He said, "Chairman Lee is the spirit of the age in Korea, comparable to the Medici family who led the Renaissance in Florence, Italy."

Professor Kim stated that Samsung's '30-year history of New Management' began after Chairman Lee's 1993 Frankfurt Declaration. Since the New Management Declaration, Samsung transformed from 'quantity management' to 'quality management.' It has since evolved through creative, design, Mach, and global management to the present day.

Professor Kim evaluated that after the Frankfurt Declaration, Samsung became a well-coordinated organization aiming for a 'super-gap' by securing excellent talent. He advised that Samsung must now transform from the '1993 Frankfurt company' to the '2023 Florence company.'

In the Q&A after his keynote speech, when asked about the difference between the '1993 Frankfurt company' and the '2023 Florence company,' he said, "Samsung was a fast follower, like the machine tool industry associated with Germany in 1993, following rules, but now it must become a first mover. The Samsung brand should become a first mover like Florence, which shortened the 1,000-year medieval history and ushered in modernity in response to the demands of the era."

This former chairman spending time with a Jindo dog.
Photo by Yonhap News

At the end of last month, Samsung began creating an atmosphere to commemorate the third anniversary by re-examining the guide dog school project led by Chairman Lee. The business community is paying attention to what message Samsung will deliver ahead of the third anniversary and the first anniversary of the chairman's inauguration.

On the 19th, a memorial concert for Chairman Lee will be held at the Samsung Electronics Human Resources Development Center in Yongin, Gyeonggi Province. Pianist Cho Seong-jin, the youngest recipient of the Samsung Hoam Prize, will perform. It is reported that Samsung's chairman Lee Jae-yong, Chairman Lee's wife Hong Ra-hee, former director of the Leeum Museum of Art, and other Samsung family members are likely to attend. Presidents of Samsung affiliates are also expected to attend.

On the 25th, a simple memorial service for Chairman Lee's third anniversary will be held at his family burial site in Yongin, Gyeonggi Province. Former and current Samsung presidents are expected to attend to pay tribute. At the first anniversary in 2021, only family members gathered quietly at the burial site in Suwon. At last year's second anniversary, about 300 Samsung executives and Kim Seung-yeon, chairman of Hanwha, visited the burial site along with the bereaved family to pay respects.

Meanwhile, Samsung Electronics Chairman Lee Jae-yong will mark his first anniversary on the 27th. Samsung does not plan to hold a separate event for the chairman's first anniversary.

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