[People人] "Rank off, final debate" KT President's 'Bottom-up Leadership'

[Image source=Yonhap News]

[Asia Economy Reporter Joesulgina] He is not the type to take the spotlight. However, he is not afraid of head-to-head debates either.

Gu Hyun-mo, who is set to officially take office as KT’s Chief Executive Officer (CEO) this March, is a unique competitor. He knows when to step forward and when to step back, and his leadership becomes bolder in times of crisis. This was evident about 6 to 7 years ago when KT suffered consecutive losses and morale hit rock bottom. He was the 'unsung hero' who instilled confidence in employees that they could solve on-site problems and brought about a change in corporate culture.

At that time, concerned about the stagnant organizational culture, Gu emphasized 'communication and empowerment.' He believed that only by employees gaining concrete problem-solving experience on the ground could the entire company change, and he initiated 'rank-free, no-holds-barred debates.' A representative outcome of this was KT’s unique 'First Place Workshop,' which began in the second half of 2014.

◆Motivation through Rank-Free, No-Holds-Barred Debates= The reason the First Place Workshop became a cornerstone of KT’s transformation was its focus on 'execution.' It is not unusual for dozens of practitioners from various departments to gather and discuss complex issues in workshops at many companies. However, Gu, who oversaw the First Place Workshop for several years, structured it so that a significant portion of the solutions proposed by frontline employees were actually applied to work. As a result, the implementation rate during the first three years was an impressive 70%. Naturally, empowered employees became more proactive in collaboration afterward. This was credited not only with improving management performance but also with enhancing employee motivation and revitalizing the organization, which Gu valued highly.

Gu emphasized a bottom-up approach rather than top-down during this process. This aligns with his belief that innovation and change must start from the bottom. A KT official explained, "Executives realized that market-viable ideas come from the field, and employees directly understood that change is possible through communication and collaboration. This reflects what Gu values most."

The 'bottom-up innovation' that values the frontline is expected to remain central to KT under Gu’s leadership. Known as a 'master of communication,' Gu is famous for enjoying conversations with employees. The brown bag meetings that began during his time as Chief of Staff continued weekly even after he moved to head the Customer & Media Division. After being named the next CEO, one of his first actions was to hold a meeting with employees. While he mainly listens to employees’ stories, he is also known for his calm and logical rhetoric.

◆A Competitor Who Plays His Cards at Critical Moments= In the telecommunications industry, he has long been known as a 'bold figure.' Though not one to take the front line, he is recognized as a competitor who boldly proposes solutions. A notable example was in 2018, right after a change in government, when foreign shareholders of KT visited with concerns about Chairman Hwang Chang-gyu’s position. Gu, then head of the Corporate Planning Division, personally persuaded them. It is said that after meeting Gu, the shareholders left Gwanghwamun with bright smiles. An industry insider said, "He has a deep understanding of the telecommunications industry and, contrary to his quiet image, has considerable guts."

During the final CEO candidate selection process last year, the board’s intense interviews showcased his true value. A 'true KT man,' Gu is regarded as the company’s chief strategist, having served in various key departments including General Management and Corporate Planning. This means he has a high level of understanding of various issues. Until just before his CEO appointment, he led the Customer & Media Division, overseeing new media and content businesses such as IPTV, a core part of 5G. The labor union welcomed him as the first internal CEO in 11 years, saying he was appointed solely based on professionalism and capability.

Gu is expected to reveal his future management plans at the MWC held in Spain this February. The recent organizational restructuring and personnel changes focused on expertise and generational change, selecting many young talents for change and innovation. In particular, by establishing a multiple-CEO system, he sent a message that KT will proactively respond to the rapidly changing market. He emphasized at official events that "the keyword for organizational restructuring is the customer," highlighting the need for a fast and agile organization.

◆Challenges Including Organizational Slimming and Independent Management= Gu’s administration faces many challenges. First, internally at KT, where parachute appointment controversies have arisen every time the government changed, it is essential to stabilize the organization. Experts point to organizational inefficiency as the primary reason KT’s operating profit margin is the lowest among the three major telecom companies. Improving profitability based on organizational slimming and independent management foundations is necessary to attract shareholder investment.

Finding future growth engines is also crucial. While competitors SK Telecom and LG Uplus have established broad collaboration systems with global companies and engaged in bold mergers and acquisitions (M&A), KT has not achieved significant results. There are also questions about whether Gu, a true KT man, can smoothly communicate with the government and National Assembly regarding various regulations surrounding the telecommunications and new industries.

He also faces personal challenges. Having served as Chief of Staff during Chairman Hwang’s inauguration, Gu is implicated in the chairman’s political funds law violation case. If the charges are proven true, he must step down from the CEO position. On the 10th, KT’s new labor union requested the board to allow access to all materials related to the CEO appointment, including meeting minutes. Although not part of Chairman Hwang’s transition committee, Gu is often labeled as a close aide of the chairman, a tag he must overcome through his skills and professionalism.