I. CEOs and Books

The best way for corporate chief executive officers to respond to rapid changes and uncertainties in the business environment is to enhance their intellectual capacity. A CEO with strong intellectual capacity can actively respond to unpredictable external challenges. Alvin Toffler predicted that a power shift would occur in the 21st century, and that control of information is at the heart of tomorrow's power and wealth.

How can CEOs then effectively enhance their intellectual capacity? The augmentation of their intellectual ability would naturally lead to stronger corporate intellectual capacity. The quality and quantity of knowledge that CEOs possess has nowadays become more important, their performance often determines the success or failure of business. The importance of intellectual power cannot be emphasized enough, as 90% of a CEO's performance is driven by mental and intellectual power.

The term "learning organization" - once the catchphrase in the corporate sector ?refers to an organization that continuously enhances the learning ability of its members and swiftly adjusts to change. Despite the importance of educating all members of an organization, building a CEO's knowledge remains the most crucial. An organization's overall intellectual capacity can be upgraded through knowledge management, but it has the downside of requiring too much time and resources.

CEOs gain insights, new ideas for management, and peace of mind through reading. Executives are burdened with the responsibility to foresee market changes and technology innovation, and must instill a sense of urgency in their organization. They not only decide the direction of main strategies, but also must provide the key for those strategies. Whether it is technology or design, business leaders stimulate activity within the organization.

Nowadays, the intellectual capacity of CEOs has increasingly become a defining factor in the success and failure of business strategies. In a business environment where changes occur at rapid speed, experience alone does not insure sound judgment. New trends such as technology or product convergence require CEOs to have in-depth knowledge across various fields. New knowledge acquired through reading may lead to development of new products and businesses. As an example, founder and CEO of Amazon.com Jeff Bezos gained insights on emergence of the Internet while reading a magazine on the plane, eventually starting Amazon.com on the spur of his reading experience.

How CEOs use their spare time, and whether or not they use it constructively has a significant impact on business vitality and corporate culture. Spare time does not mean "suspension of work," rather it is a necessity for reinvigoration and change. Korean CEOs, when asked to pick their favorite pastime, generally choose reading along with golfing and mountain climbing.

Successful CEOs have a big appetite for knowledge and read regularly. World-renowned CEOS like Jack Welch, Bill Gates, and Warren Buffett make time for reading to gain new ideas and insights. As for Korean CEOs, Vice-Chairman and CEO of Samsung Electronics, Jong-Yong Yun cites reading as his favorite hobby. Other notable domestic CEOs are also avid readers.

According to a survey by Samsung Economic Research Institute (SERI), Korean CEOs read an average of two or three books per month. This was slightly lower than what their counterparts at western companies read (they average 1,000 pages per month).

Among the Korean CEOs surveyed, 34.8% answered that they read to gain knowledge, 32.6% to catch up on current trends, and 27.7% to get new ideas for management. CEOs enjoyed reading economic and management books most, followed by history and philosophy books.

SERI received recommendations from its researchers and subscribers to its SERICEO publication, and selected 20 books that CEOs would enjoy reading during their summer holidays. SERICEO members recommended 87 books on subjects ranging from economics, management, Asian studies to history. SERI picked out the ten most frequently suggested books, and added ten more books recommended by SERI researchers, for a total of 20 books that deserved the attention of CEOs.

The following are summaries of five books chosen from the 20 books recommended for summertime reading.

II. Brief Reviews

1. Korea in Ten Years
Byung-Ho Gong/ Hainaim Publishing/ June 2004

An outlook on the future of Korea ten years from now, dealing with matters related to the survival of companies, the economy and the nation as a whole.

"Someone needs to forecast the future when an increasing number of people are becoming anxious for no specific reason and disappointment and despair are quickly spreading across society." - Byung-Ho Gong

The author blamed Korea's problems not on distorted economic mechanisms, but on the predominance of politics and threats against the market economy. He points out the following seven reasons as the cause of the current problems:

1) Resurgence of primordial instincts
2) Impetuous idealism
3) Formality over pragmatism
4) Weak individualism
5) Absence of self-defining values
6) Marxism
7) Weak market economy

The author asserts that communities, companies, and individuals all need to prepare for the future. He cites "nine habits of successful countries," and urges readers to change their perception of Korea, viewing it as another level of community that requires cooperation and participation.

2. Ten Years after Kun-Hee Lee's Reform

Sung-Hong Kim and others/ Gimmyoung Publishing/ December 2003

This is a retrospective on the ten years of reform at Samsung Group, and a close look at the management philosophy of Samsung Group Chairman Kun-Hee Lee who stood at the center of reform and implemented new management methods. Samsung emerged as a global company in a short period by creating brand value, attracting foreign investors, and posting high profits.

The unique management philosophy of Chairman Lee consists of principles surrounding core talents, revolution in design, and seizing business opportunities ahead of competitors. In 1993, Chairman Lee exhorted his executives to change everything in their approach to management and life except their wives and their children.

Chairman Lee spearheaded future-oriented business by identifying high growth potential and quality management, setting a standard of entrepreneurship for the 21st century. Consistent efforts to enhance the quality of personnel, management, products and services have made Samsung a global leader in semiconductors, cell phones, and LCDs.

3. Toyota's Power Management

Masaharu Shibata and others/ Translated by Jung-Ah Ko/ Ilsong Media/ December 2001

This book analyzes the secret of innovation at Toyota, which has enabled it to maintain growth and reap high profits despite the prolonged recession.

Toyota established unique methods of corporate innovation, and pursued changes that went beyond the norm. Just-in-time production, the signboard system, and "andon" (a production-line warning signal), and advanced prevention of mistakes are just some of the unique methods of improvement that Toyota implemented.

The management of Toyota was fuelled by the following factors:

1) Toyota formed a colleague-based organization system unbound by hierarchy, and moving freely to participate in the improvement process.
2) Open communication between colleagues and outsiders, triggering an active exchange of ideas with people in other business fields outside the company, to form creative methods of improvement.
3) Toyota rewarded innovative talents that achieved seemingly impossible goals.
4) When a problem occurred, it would not be covered up, but would be brought out into the open for collective resolution.
5) The CEO took initiative under the belief that "I am the person responsible for change."

4. Marketing is War

Robert Hartley/ Translated by Min-Joo Kim, Hee-Ryung Song/ IN Company/ 2004

Written by Robert Hartley, a well-known marketing professor from Cleveland State University, this six-chapter book analyzes marketing successes and failures of leading global companies, and sheds light on the lessons that may be learned from each case. It also discusses fierce competition in marketing, success and failure, overcoming crisis, and ethical marketing.

5. The Story of Chinese People

Published by People's Publishing House of China/ Translated and Edited by Ha-Rim Kim/ July 1998

The People's Publishing House of China published this book to strengthen mutual understanding and unity among people from different parts of China.

China's geography is vast and its climates are various, as are the historical experiences of people from different regions of China. This has led to the development of varying regional characteristics and temperaments. People from the Beijing area are broad-minded and bold, readily overcoming hardships and are considerate of others. Shanghai citizens tend to be relatively indifferent to others, have strong survival skills, and make good use of their surrounding environment. They place more importance on pragmatism than idealism, and have a tendency to judge people by their wealth. People from Guangdong province adapt well to changes, new culture, and place significance on time and money. People from Shandong place so much emphasis on Confucianism that they are referred to as the descendents of Confucius and Mencius. People from the northeastern region of China have sturdy bone structure, are broad-minded and brave. Such different regional characteristics of people have a significant influence on the social and economic development of their regions.

Written by Han, Chang-Soo

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