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A Conversation Driving Culture Change at Samsung Semiconductor
Dr. Ho-Kyoon Chung and Grant Gustafson Samsung Electronics Co. Ltd., since its foundation in 1969, has developed a broad range of electronics and related items from semiconductors and finished home appliances to telecommunications hardware and multimedia products. A listed company on the Korean Stock Exchange, Samsung Electronics’ sales reached US$20 billion in 1996. Samsung Semiconductor, the largest of Samsung Electronics’ four core business divisions, is one of the world’s leading semiconductor makers. In 1995, Arthur D. Little conducted a corporate assessment of Samsung Semiconductor in Korea. The assessment delivered one essential message – while the company’s historical success was based on being an exceptional technology/product follower with a mass production focus, future success would require technology/product leadership and a strong customer focus. One key characteristic of the historic success model was a rigid, authoritative organization and culture. In workshops with Samsung Semiconductor’s top executives, it became evident that a more fluid organization and culture is required for Samsung Semiconductor to achieve its future success model. Samsung Semiconductor recognized the need for guidance and facilitation in implementing a process to enable it to achieve this challenging vision. It turned to Arthur D. Little for assistance. The challenge for Arthur D. Little was to identify the critical cultural objectives on which to focus and the critical levers with which to implement those objectives. The Arthur D. Little case team worked side by side with the culture change process owner, Executive Managing Director Ho-Kyoon Chung, several executive advisers, and a cross-functional group of Samsung Semiconductor personnel. By employing shared-visioning techniques, this core team established the

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