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ELLEN MOORE (A): LIVING AND WORKING IN KOREA

Chantell Nicholls and Gail Ellement prepared this case under the supervision of Professor Harry Lane solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality.

This publication may not be transmitted, photocopied, digitized or otherwise reproduced in any form or by any means without the permission of the copyright holder. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Business School, Western University, London, Ontario, Canada, N6G 0N1; (t) 519.661.3208; (e) [email protected]; www.iveycases.com.

Ellen Moore, a Systems Consulting Group (SCG) consultant, was increasingly concerned as she heard Andrew’s voice grow louder through the paper-thin walls of the office next to her. Andrew Kilpatrick, the senior consultant on a joint North American and Korean consulting project for a government agency in Seoul, South Korea, was meeting with Mr. Song, the senior Korean project director, to discuss several issues including the abilities of the Korean consultants. After four months on this Korean project, Ellen’s evaluation of the assigned consultants suggested that they did not have the experience, background, or knowledge to complete the project within the allocated time. Additional resources would be required:

I remember thinking, “I can’t believe they are shouting at each other.” I was trying to understand how their meeting had reached such a state. Andrew raised his voice and I could hear him saying, “I don’t think you understand at all.” Then, he shouted, “Ellen is not the problem!

WSI IN KOREA

Joint Venture Inc. (JVI) was formed as a joint venture between a Korean company, Korean Conglomerate Inc. (KCI), and a North American company, Western Systems Inc. (WSI) (Exhibit 1). WSI, a significant information technology company with offices worldwide employing over 50,000 employees, included the Systems Consulting Group (SCG). KCI, one of the largest Korean “chaebols” (industrial groups), consisted of over 40 companies, with sales in excess of US$3.5 billion. The joint venture, in its eighth year, was managed by two Regional Directors — Mr. Cho, a Korean from KCI, and Robert Brown, an American from WSI.

The team working on Ellen’s project was led by Mr. Park and consisted of approximately 40 Korean consultants further divided into teams working on different areas of the project. The Systems Implementation (SI) team consisted of five Korean consultants, one translator, and three North American SCG consultants: Andrew Kilpatrick, Ellen Moore, and Scott Adams, (see Exhibit 2).

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This document is authorized for use only by Yangyang Lin in MGT 400 - Cross Cultural Management - Spring 2019 taught by Rivadavia C Drummond Alvarenga Neto, Arizona State University from Jan 2019 to Apr 2019.

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This consulting project was estimated to be one of the largest undertaken in South Korea to date. Implementation of the recommended systems into over 100 local offices was expected to take seven to ten years. The SCG consultants would be involved for the first seven months, to assist the Korean consultants with the system design and in creating recommendations for system implementation, an area in which the Korean consultants admitted they had limited expertise. Andrew Kilpatrick became involved because of his experience with a similar systems implementation project in North America. Andrew had been a management consultant for nearly 13 years. He had a broad and successful background in organizational development, information technology, and productivity improvement, and he was an early and successful practitioner of business process reengineering. Although Andrew had little international consulting experience, he was adept at change management and was viewed by both peers and clients as a flexible and effective consultant. The degree of SCG’s involvement had not been anticipated. Initially, Andrew had been asked by SCG’s parent company, WSI, to assist JVI with the proposal development. Andrew and his SCG managers viewed his assistance as a favor to WSI since SCG did not have plans to develop business in Korea. Andrew’s work on the proposal in North America led to a request for his involvement in Korea to gather additional information for the proposal:

When I arrived in Korea, I requested interviews with members of the prospective client’s management team to obtain more information about their business environment. The Korean team at JVI was very reluctant to set up these meetings. However, I generally meet with client management prior to preparing a proposal. I also knew it would be difficult to obtain a good understanding of their business environment from a translated document. The material provided to me had been translated into English and was difficult to understand. The Korean and English languages are so different that conveying abstract concepts is very difficult. I convinced the Koreans at JVI that these meetings would help demonstrate our expertise. The meetings did not turn out exactly as planned. We met with the same management team at three different locations where we asked the same set of questions three times and got the same answers three times. We did not obtain the information normally provided at these fact-gathering meetings. However, they were tremendously impressed by our line of questioning because it reflected a deep interest and understanding of their business. They also were very impressed with my background. As a result, we were successful in convincing the government agency that we had a deep understanding of the nature and complexity of the agency’s work and strong capabilities in systems development and implementation — key cornerstones of their project. The client wanted us to handle the project and wanted me to lead it.

JVI had not expected to get the contract, because its competitor for this work was a long-time supplier to the client. As a result, winning the government contract had important competitive and strategic implications for JVI. Essentially, JVI had dislodged an incumbent supplier to the client, one who had lobbied very heavily for this prominent contract. By winning the bid, JVI became the largest system implementer in Korea and received tremendous coverage in the public press. The project was to begin in June. However, the Korean project team convened in early May in order to prepare the team members. Although JVI requested Andrew to join the project on a full-time basis, he already had significant commitments to projects in North America. There was a great deal of discussion

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back and forth between WSI in North America, and JVI and the client in Korea. Eventually it was agreed that Andrew would manage the SI work on a part-time basis from North America, and he would send a qualified project management representative on a full-time basis. That person was Ellen Moore. At that time, Andrew received immediate feedback from the American consultants with WSI in Korea that it would be impossible to send a woman to work in Korea. Andrew insisted that the Korean consultants be asked if they would accept a woman in the position. They responded that a woman would be acceptable if she were qualified. Andrew also requested that the client be consulted on this issue. He was again told that a woman would be acceptable if she were qualified. Andrew knew that Ellen had the skills required to manage the project:

I chose Ellen because I was very impressed with her capability, creativity, and project management skills, and I knew she had worked successfully in Bahrain, a culture where one would have to be attuned to very different cultural rules from those prevalent in North America. Ellen lacked experience with government agencies, but I felt that I could provide the required expertise in this area.

ELLEN MOORE After graduating as the top female student from her high school, Ellen worked in the banking industry, achieving the position of corporate accounts officer responsible for over 20 major accounts and earning a Fellowship in the Institute of Bankers. Ellen went on to work for a former corporate client in banking and insurance, where she became the first female and youngest person to manage their financial reporting department. During this time, Ellen took university courses towards a Bachelor Degree at night. She decided to stop working for two years, and completed her degree on a full-time basis. She graduated with a major in accounting and minors in marketing and management and decided to continue her studies for an MBA. Two years later, armed with an MBA from a leading business school, Ellen Moore joined her husband in Manama, Bahrain, where she accepted a position as an expatriate manager for a large American financial institution.1 Starting as a Special Projects Coordinator, within one year Ellen was promoted to Manager of Business Planning and Development, a challenging position that she was able to design herself. In this role, she managed the Quality Assurance department, coordinated a product launch, developed a senior management information system, and participated actively in all senior management decisions. Ellen’s position required her to interact daily with managers and staff from a wide range of cultures, including Arab nationals. In March, Ellen joined WSI working for SCG. After the highly successful completion of two projects with SCG in North America, Ellen was approached for the Korea project:

I had never worked in Korea or East Asia before. My only experience in Asia had been a one-week trip to Hong Kong for job interviews. I had limited knowledge of Korea and received no formal training from my company. I was provided a 20-page document on Korea. However, the information was quite basic and not entirely accurate.

1 For an account of Ellen’s experience in Bahrain, see Ellen Moore (A): Living and Working in Bahrain, 9A90C019, and Ellen Moore (B), 9A90C020; Ivey Publishing, Ivey Management Services, c/o Richard Ivey School of Business, University of Western Ontario, London, Ontario, Canada, N6A 3K7.

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After arriving in Korea, Ellen immediately began to familiarize herself with the language and proper business etiquette. She found that English was rarely spoken other than in some hotels and restaurants that catered to Western clientele. As a result, Ellen took advantage of every opportunity to teach herself the language basics:

When Andrew and I were in the car on the way back to our hotel in the evening, we would be stuck in traffic for hours. I would use the time to learn how to read the Korean store signs. I had copied the Hangul symbols, which form the Korean language, onto a small piece of paper, and I kept this with me at all times. So, while sitting back in the car, exhausted at the end of each day, I would go over the symbols and read the signs.

SCOTT ADAMS The third SCG consultant on the project, Scott Adams, arrived as planned three months after Ellen’s start date. Upon graduation, Scott had begun his consulting career working on several international engagements (including Mexico, Puerto Rico, and Venezuela), and he enjoyed the challenges of working with different cultures. He felt that with international consulting projects, the technical aspects of consulting came easy. What he really enjoyed was the challenge of communicating in a different language and determining how to modify Western management techniques to fit into the local business culture. Scott first met Ellen at a systems consulting seminar, unaware at the time that their paths would cross again. A few months later, he was asked to consider the Korea assignment. Scott had never travelled or worked in Asia, but he believed that the assignment would present a challenging opportunity, which would advance his career. Prior to arriving in Seoul, Scott prepared himself by frequently discussing the work being conducted with Ellen. Ellen also provided him with information on the culture and business etiquette aspects of the work:

It was very fortunate for me that Ellen had arrived first in Korea. Ellen tried to learn as much as she could about the Korean language, the culture, mannerisms, and the business etiquette. She was able to interpret many of the subtleties and to prepare me for both business and social situations, right down to how to exchange a business card appropriately with a Korean, how to read behavior, and what to wear.

ABOUT KOREA2 Korea is a 612-mile-long peninsula stretching southward from North Korea and the Asia mainland into the waters of the western Pacific and is bounded by the Yellow Sea, the Sea of Japan and the Korea Strait. The Republic of Korea, or South Korea, consists of approximately 38,000 square miles, slightly larger than Indiana or Portugal, for example. The South Korean population is about 49 million, with more than 10 million residing in the capital city, Seoul. Korea has an ancient heritage spanning 5,000 years. The last great traditional dynasty, the Yi Dynasty or Choson Dynasty, brought about changes in which progress in science, technology, and the arts were achieved. Hangul, the Korean script, also was developed in this period. Although Confucianism had been

2 Information for this section was taken from Official website of Korea tourism, http://english.visitkorea.or.kr/enu/index.kto; Korean Confucianism, http://www.asia-pacific-connections.com/confucianism.html; and the U.S. Department of State website, http://www.state.gov/r/pa/ei/bgn/2800.htm#people; accessed January 22, 2009.

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influential for centuries in Korea, it was during this time that Confucian principles permeated the culture as a code of morals and as a guide for ethical behavior. Confucian thought came to underpin education, civil administration, and daily conduct. Lasting over 500 years, the Yi Dynasty came to a close in 1910. Today, in Korea’s modern era, traditional Confucian values mix with Western lifestyle habits and business methods. Many Korean people, particularly in Seoul, have become quite Westernized, but they often follow traditional customs. Although the major religions are Christianity and Buddhism, Korean society is strongly influenced by Confucian values and beliefs. Confucianism dictates strict rules of social behavior and etiquette. The basic values of the Confucian culture are: (1) loyalty to a hierarchical structure of authority, whether based in the family, the company, or the nation; (2) duty to parents, expressed through loyalty, love, and gratitude; and (3) strict rules of conduct, involving complete obedience and respectful behavior within superiors-subordinate relationships, such as parents-children, old-young, male-female, and teacher-student. These values affect both social and work environments substantially. MANAGING IN KOREA Business etiquette in Korea was extremely important. Ellen found that everyday activities, such as exchanging business cards or replenishing a colleague’s drink at dinner, involved formal rituals. For example, Ellen learned it was important to provide and to receive business cards in an appropriate manner, which included carefully examining a business card when received and commenting on it. If one just accepted the card without reading it, this behavior would be considered very rude. In addition, Ellen also found it important to know how to address a Korean by name. If a Korean’s name was Y.H. Kim, non- Koreans would generally address him as either Y.H. or as Mr. Kim. Koreans would likely call him by his full name or by his title and name, such as Manager Kim. A limited number of Koreans, generally those who had lived overseas, took on Western names, such as Jack Kim. WORK TEAMS Teams were an integral part of the work environment in Korea. Ellen noted that the Korean consultants organized some special team-building activities to bring together the Korean and North American team members:

On one occasion, the Korean consulting team invited the Western consultants to a baseball game on a Saturday afternoon, followed by a trip to the Olympic Park for a tour after the game, and dinner at a Korean restaurant that evening. An event of this nature is unusual and was very special. On another occasion, the Korean consultants gave up a day off with their families and spent it with the Western consultants. We toured a Korean palace and the palace grounds, and we were then invited to Park’s home for dinner. It was very unusual that we, as Western folks, were invited to his home, and it was a very gracious event.

Ellen also found team-building activities took place on a regular basis, and that these events were normally conducted outside of the work environment. For example, lunch with the team was an important daily team event, which everyone was expected to attend:

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You just couldn’t work at your desk every day for lunch. It was important for everyone to attend lunch together in order to share in this social activity, as one of the means for team bonding.

Additionally, the male team members would go out together for food, drink, and song after work. Scott found these drinking activities to be an important part of his interaction with both the team and the client:

Unless you had a medical reason, you would be expected to drink with the team members, sometimes to excess. A popular drink, soju, which is similar to vodka, would be poured into a small glass. Our glasses were never empty, as someone would always ensure that an empty glass was quickly filled. For example, if my glass was empty, I learned that I should pass it to the person on my right and fill it for him as a gesture of friendship. He would quickly drink the contents of the glass, pass the glass back to me, and fill it for me to quickly drink. You simply had to do it. I recall one night when I really did not want to drink as I had a headache. We were sitting at dinner, and Mr. Song handed me his glass and filled it. I said to him “I really can’t drink tonight. I have a terrible headache.” He looked at me and said “Mr. Scott, I have Aspirin in my briefcase.” I had about three or four small drinks that night.

Ellen found she was included in many of the team-building dinners, and soon after she arrived in Seoul, she was invited to a team dinner, which included client team members. Ellen was informed that although women were not normally invited to these social events, an exception was made since she was a senior team member.

During the dinner, there were many toasts and drinking challenges. During one such challenge, the senior client representative prepared a drink that consisted of one highball glass filled with beer and one shot glass filled to the top with whiskey. He dropped the whiskey glass into the beer glass and passed the drink to the man on his left. This team member quickly drank the cocktail in one swoop, and held the glass over his head, clicking the glasses to show both were empty. Everyone cheered and applauded. This man then mixed the same drink, and passed the glass to the man on his left, who also drank the cocktail in one swallow. It was clear this challenge was going around the table and would eventually get to me.

I don’t generally drink beer and never drink whiskey. But it was clear, even without my translator present to assist my understanding, that this activity was an integral part of the team building for the project. As the man on my right mixed the drink for me, he whispered that he would help me. He poured the beer to the halfway point in the highball glass, filled the shot glass to the top with whiskey, and dropped the shotglass in the beer. Unfortunately, I could see that the beer didn’t cover the top of the shot glass, which would likely move too quickly if not covered. I announced “One moment, please, we are having technical difficulties.” And to the amazement of all in attendance, I asked the man on my right to pour more beer in the glass. When I drank the concoction in one swallow, everyone cheered, and the senior client representative stood up and shouted, “You are now Korean. You are now Korean.”

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The norms for team management were also considerably different from the North American style of management. Ellen was quite surprised to find that the concept of saving face did not mean avoiding negative feedback or sharing failures:

It is important in Korea to ensure that team members do not lose face. However, when leading a team, it appeared just as important for a manager to demonstrate leadership. If a team member provided work that did not meet the stated requirements, a leader was expected to express disappointment in the individual’s efforts in front of all team members. A strong leader was considered to be someone who engaged in this type of public demonstration when required.

In North America, a team leader often compliments and rewards team members for work done well. In Korea, leaders expressed disappointment in substandard work, or said nothing for work completed in a satisfactory manner. A leader was considered weak if he or she continuously provided compliments for work completed as required.

Hierarchy The Koreans’ respect for position and status was another element of the Korean culture that both Ellen and Scott found to have a significant influence over how the project was structured and how people behaved. The emphasis placed on hierarchy had an important impact upon the relationship between consultant and client that was quite different from their experience in North America. As a result, the North Americans’ understanding of the role of a consultant differed vastly from their Korean counterparts. Specifically, the North American consultants were familiar with ‘managing client expectations.’ This activity involved informing the client of the best means to achieve their goals and included frequent communication with the client. Generally, the client’s customer was also interviewed in order to understand how the client’s system could better integrate with their customer’s requirements. Ellen recalled, however, that the procedures were necessarily different in Korea:

The client team members did not permit our team members to go to their offices unannounced. We had to book appointments ahead of time to obtain permission to see them. In part, this situation was a result of the formalities we needed to observe due to their rank in society, but I believe it was also because they wanted to be prepared for the topics we wanted to discuss.

The Korean consultants refused to interview the customers, because they did not want to disturb them. Furthermore, the client team members frequently came into the project office and asked the Korean consultants to work on activities not scheduled for that week or which were beyond the project scope. The Korean consultants accepted the work without question. Ellen and Scott found themselves powerless to stop this activity. Shortly after arriving, Scott had a very confrontational meeting with one of the Korean consultants concerning this issue:

I had been in Korea for about a week, and I was still suffering from jet lag. I was alone with one of the Korean consultants, and we were talking about how organizational

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processes should be flow-charted. He was saying the client understands the process in a particular manner, so we should show it in that way. I responded that, from a technical standpoint, it was not correct. I explained that as a consultant, we couldn’t simply do what the client requests if it is incorrect. We must provide value by showing why a different method may be taken by educating the client of the options and the reasons for selecting a specific method. There are times when you have to tell the client something different than he believes. That’s what we’re paid for. He said, “No, no, you don’t understand. They’re paying our fee.” At that point I raised my voice: “You don’t know what you are talking about. I have much more experience than you.” Afterwards, I realized that it was wrong to shout at him. I pulled him aside and apologized. He said, “Well, I know you were tired.” I replied that it was no excuse, and I should not have shouted. After that, we managed to get along just fine.

The behavior of subordinates and superiors also reflected the Korean’s respect for status and position. Scott observed that it was very unusual for a subordinate to leave the office for the day unless his superior had already left:

I remember one day, a Saturday, when one of the young Korean consultants who had been ill for some time, was still at his desk. I made a comment: “Why don’t you go home, Mr. Choi?” Although he was not working for me, I knew his work on the other team was done. He said, “I can’t go home because several other team members have taken the day off. I have to stay.” I repeated my observation that his work was done. He replied: “If I do not stay, I will be fired. My boss is still here, I have to stay.” He would stay and work until his boss left, until late in the evening if necessary.

Furthermore, Scott found that the Korean consultants tended not to ask questions. Even when Scott asked the Korean consultants if they understood his instructions or explanation, they generally responded affirmatively, which made it difficult to confirm their understanding. He was advised that responding in a positive manner demonstrated respect for teachers or superiors. Asking a question would be viewed as inferring that the teacher or superior had not done a good job of explaining the material. As a result, achieving a coaching role was difficult for the North American consultants even though passing on their knowledge of SI to the Korean consultants was considered an important part of their function on this project. WOMEN IN KOREA Historically, Confucian values have dictated a strict code of behavior between men and women and husband and wife in Korea. Traditionally, there has been a clear delineation in the respective responsibilities of men and women. The male preserve can be defined as that which is public, whereas women are expected to cater to the private, personal world of the home. Although change has taken place, these old values have lingered and the attitude of male superiority has not entirely disappeared. Korean public and business life still tend to be dominated by men.3

3 See for example “Women’s Role in Contemporary Korea”, http://www.askasia.org/teachers/essays/essay.php?no=21, and “Women's Development and Information on Women in Korea”, Young-Joo Paik, Korean Women's Development Institute, Seoul, Korea. Paper presented at the 64th IFLA General Conference , August 16 - August 21, 1998; http://www.ifla.org/IV/ifla64/112-122e.htm, accessed January 22, 2009. See also Korea: The Essential Guide to Customs & Culture, Culture Smart, 2008.

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Nevertheless, compared to the Yi Dynasty era, the position of women in society has changed considerably. There is now virtual equality in access to education for men and women, and a few women have embarked on political careers. As in many other areas of the world, the business world has until recently been accessible only to men. However, this is changing as Korean women are beginning to seek equality in the workplace. Young Korean men and women now often participate together in social activities, such as evenings out and hikes, something that was extremely rare even 10 years ago. Dual income families are becoming more common in South Korea, particularly in Seoul, although women generally hold lower-paid positions. Furthermore, working women often retain their traditional household responsibilities, while men are expected to join their male colleagues for late night drinking and eating events, which usually exclude women. Although the younger generation are breaking from such traditions, Scott felt that the gender differences were quite apparent in the work place. He commented:

The business population was primarily male. Generally, the only women we saw were young women who were clerks, wearing uniforms. I suspected that these women were in the workforce for only a few years, until they were married and left to have a family. We did have a few professional Korean women working with us. However, because we are a professional services firm, I believe it may have been more progressive than the typical Korean company.

THE SYSTEMS IMPLEMENTATION TEAM Upon her arrival in Korea, Ellen dove into her work confident that the Korean consultants she would be working with had the skills necessary to complete the job in the time frame allocated. The project work was divided up among several work groups, each having distinct deliverables and due dates. The deliverables for the SI team were required as a major input to the other work groups on the project (see Exhibit 3). As a result, delays with deliverables would impact the effectiveness of the entire project:

JVI told us they had assigned experienced management consultants to work on the project. Given their stated skill level, Andrew’s resource plan had him making periodic visits to Korea; I would be on the project on a full-time basis starting in May, and Scott would join the team about three to four months after the project start. We were informed that five Korean consultants were assigned. We believed that we had the resources needed to complete the project by December.

JACK KIM J.T. Kim, whose Western name was Jack, was the lead Korean consultant reporting to Mr. Park. Jack had recently achieved a Ph.D. in computer systems from a reputable American university and he spoke English fluently. When Andrew initially discussed the organizational structure of the SI team with Mr. Park and Jack, it was agreed that Jack and Ellen would be co-managers of the SI project.

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Three weeks after her arrival, Jack informed Ellen, much to her surprise, that he had never worked on a systems implementation project. Additionally, Ellen soon learned that Jack had never worked on a consulting project:

Apparently, Jack had been made the lead consultant of SI upon completing his Ph.D. in the United States. I believe Jack was told he was going to be the sole project manager for SI on a daily basis. However, I was informed I was going to be the co-project manager with Jack. It was confusing, particularly for Jack, when I took on coaching and leading the team. We had a lot of controversy — not in the form of fights or heated discussions, but we had definite issues during the first few weeks because we were clearly stepping upon each other’s territory.

Given Jack’s position as the lead Korean consultant, it was quite difficult for Ellen to redirect team members’ activities. The Korean team members always followed Jack’s instructions. Scott recalled:

There were frequent meetings with the team to discuss the work to be completed. Often, following these meetings, the Korean consultants would meet alone with Jack, and it appeared that he would instruct them to carry out different work. On one occasion, when both Andrew and Ellen were travelling away from the office, Andrew prepared specific instructions for the team to follow outlined in a memo.

Andrew sent the memo to me so I could hand the memo to Jack directly, thereby ensuring he did receive these instructions. Upon his return, Andrew found the team had not followed his instructions. We were provided with the following line of reasoning: you told us to do A, B and C, but you did not mention D. And, we did D. They had followed Jack’s instructions. We had a very difficult time convincing them to carry out work as we requested, even though we had been brought onto the project to provide our expertise.

In July, a trip was planned for the Korean client team and some of the Korean consulting team to visit other project sites in North America. The trip would permit the Koreans to find out more about the capabilities of WSI and to discuss issues with other clients involved with similar projects. Jack was sent on the trip, leaving Ellen in charge of the SI project team in Korea. While Jack was away on the North American trip, Ellen had her first opportunity to work with and to lead the Korean consultants on a daily basis. She was very pleased that she was able to coach them directly, without interference, and advise them on how to best carry out the required work. Ellen felt that everyone worked together in a very positive manner, in complete alignment. When Jack returned, he saw that Ellen was leading the team and that they were accepting Ellen’s directions. Ellen recalled the tensions that arose as a result:

On the first day he returned, Jack instructed someone to do some work for him, and the person responded, “I cannot because I am doing something for Ellen.” Jack did not say anything, but he looked very angry. He could not understand why anyone on the team would refuse his orders.

THE MARKETING RESEARCH PROJECT A few days after Jack returned from the North American trip, the project team realized they did not have sufficient information about their client’s customer. Jack decided a market research study should be conducted to determine the market requirements. However, this type of study, which is generally a large

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undertaking on a project, was not within the scope of the contracted work. Ellen found out about the proposed market research project at a meeting held on a Saturday, which involved everyone from the entire project — about 40 people. The only person not at the meeting was Mr. Park. Jack was presenting the current work plans for SI, and he continued to describe a market research study:

I thought to myself, “What market research study is he talking about?” I asked him to put aside his presentation of the proposed study until he and I had an opportunity to discuss the plans. I did not want to interrupt his presentation or disagree with him publicly, but I felt I had no choice.

DINNER WITH JACK Two hours following the presentation, Ellen’s translator, Susan Lim, informed her that there was a dinner planned for that evening and Jack wanted everyone on the SI team to attend. Ellen was surprised that Jack would want her present at the dinner. However, Susan insisted that Jack specifically said Ellen must be there. They went to a small Korean restaurant, where everyone talked about a variety of subjects in English and Korean, with Susan translating for Ellen as needed. After about one hour, Jack began a speech to the team, speaking solely in Korean. Ellen thought it was unusual for him to speak Korean when she was present, as everyone at the dinner also spoke English:

Through the limited translations I received, I understood he was humbling himself to the team, saying, “I am very disappointed in my performance. I have clearly not been the project leader needed for this team.” The team members were responding “No, no, don’t say that.” While Jack was talking to the team, he was consuming large quantities of beer. The pitchers were coming and coming. He was quite clearly becoming intoxicated. All at once, Susan stopped translating. I asked her what was wrong. She whispered that she would tell me later. Five minutes went by and I turned to her and spoke emphatically, “Susan, what is going on? I want to know now.” She realized I was getting angry. She told me, “Jack asked me to stop translating. Please don’t say anything, I will lose my job.”

I waited a couple of minutes before speaking, then I interrupted Jack’s speech. I said, “Susan is having difficulty hearing you and isn’t able to translate for me. I guess it is too noisy in this restaurant. Would it be possible for you to speak in English?” Jack did not say anything for about 30 seconds and then he started speaking in English. His first words were, “Ellen, I would like to apologize. I didn’t realize you couldn’t understand what I was saying.

Another thirty minutes of his speech and drinking continued. The Korean team members appeared to be consoling Jack, by saying: “Jack, we do respect you and the work you have done for our team. You have done your best.” While they were talking, Jack leaned back, and appeared to pass out. Ellen turned to Susan and asked if they should help him to a taxi. Susan insisted it would not be appropriate. During the next hour, Jack appeared to be passed out or sleeping. Finally, one of the team members left to go home. Ellen asked Susan, “Is it important for me to stay, or is it important for me to go?” She said Ellen should go. When Ellen returned to her hotel, it was approximately 11 p.m. on Saturday night. She felt the situation had reached a point where it was necessary to request assistance from senior management in North America. Andrew was on a wilderness camping vacation in the United States with his family, and could

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not be reached. Ellen decided to call the North American project sponsor, the Senior Vice President, George Peterson:

I called George that Saturday night at his house and said: “We have a problem. They’re trying to change the scope of the project. We don’t have the available time and we don’t have the resources. It is impossible to do a market research study in conjunction with all the contracted work to be completed with the same limited resources. The proposed plan is to use our project team to handle this additional work. Our team is already falling behind the schedule, but due to their inexperience they don’t realize it yet.” George said he would find Andrew and send him to Korea to further assess the situation.

THE MEETING WITH THE DIRECTOR When Andrew arrived in August, he conducted a very quick assessment of the situation. The project was a month behind schedule. It appeared to Andrew that the SI team had made limited progress since his previous visit:

It was clear to me that the Korean team members weren’t taking direction from Ellen. Ellen was a seasoned consultant and knew what to do. However, Jack was giving direction to the team, which was leading them down different paths. Jack was requesting that the team work on tasks which were not required for the project deliverables, and he was not appropriately managing the client’s expectations.

Andrew held several discussions with Mr. Park concerning these issues. Mr. Park insisted the problem was Ellen. He argued that Ellen was not effective, she did not assign work properly, and she did not give credible instructions to the team. However, Andrew believed the Korean consultants’ lack of experience was the main problem.

Initially, we were told the Korean team consisted of experienced consultants, although they had not completed any SI projects. I felt we could work around it. I had previously taught consultants to do SI. We were also told that one of the Korean consultants had taught SI. This consultant was actually the most junior person on the team. She had researched SI by reading some texts and had given a presentation on her understanding of SI to a group of consultants.

Meanwhile, Andrew solicited advice from the WSI Co-Managing Director, Robert Brown, who had over ten years experience working in Korea. Robert suggested that Andrew approach Mr. Park’s superior, Mr. Song, directly. He further directed Andrew to present his case to the Joint Venture committee if an agreement was not reached with Mr. Song. Andrew had discussed the issues with George Peterson and Robert Brown, and they agreed that there was no reason for Ellen to leave the project:

However, Robert’s message to me was that I had been too compliant with the Koreans. It was very important for the project to be completed on time, and that I would be the one held accountable for any delays. Addressing issues before the Joint Venture committee was the accepted dispute resolution process at JVI when an internal conflict could not be resolved. However, in most cases, the last thing a manager wants is to be defending his position before the Joint Venture committee. Mr. Song was in line to move into senior

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executive management. Taking the problem to the Joint Venture committee would be a way to force the issue with him.

Andrew attempted to come to a resolution with Mr. Park once again, but he refused to compromise. Andrew then tried to contact Mr. Song and was told he was out of the office. Coincidentally, Mr. Song visited the project site to see Mr. Park just as Ellen and Andrew were completing a meeting. Ellen recalls Mr. Song’s arrival:

Mr. Song walked into the project office expecting to find Mr. Park. However, Mr. Park was out visiting another project that morning. Mr. Song looked around the project office for a senior manager, and he saw Andrew. Mr. Song approached Andrew and asked if Mr. Park was in the office. Andrew responded that he was not. Mr. Song proceeded to comment that he understood there were some concerns about the project work, and suggested that perhaps, sometime, they could talk about it. Andrew replied that they needed to talk about it immediately.

Andrew met with Mr. Song in Mr. Park’s office, a makeshift set of thin walls that enclosed a small office area in one corner of the large open project office. Ellen was working in an area just outside the office when she heard Andrew’s voice rise. She heard him shout, “Well, I don’t think you’re listening to what I am saying.” Ellen was surprised to hear Andrew shouting. She knew Andrew was very sensitive to what should and should not be done in the Korean environment:

Andrew’s behavior seemed so confrontational. I believed this behavior was unacceptable in Korea. For a while, I heard a lot of murmuring, after which I heard Andrew speak adamantly, “No, I’m very serious. It doesn’t matter what has been agreed and what has not been agreed because most of our agreements were based on inaccurate information. We can start from scratch.” Mr. Song insisted that I was the problem.

The Richard Ivey School of Business gratefully acknowledges the generous support of The Richard and Jean Ivey Fund in the development of this case as part of the Richard And Jean Ivey Fund Asian Case Series.

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Exhibit 1

ORGANIZATIONAL STRUCTURE — FUNCTIONAL VIEW

Korean Conglomerate Inc. (KSI) Korea

Western Systems Inc. (WSI) U.S.A.

Joint Venture Inc. (JVI) Korea

Mr. Cho Co-Managing Director

Joint Venture Inc. (JVI)

Robert Brown Co-Managing Director

Joint Venture Inc. (JVI)

Mr. Song Director

Joint Venture Inc. (JVI)

Mr. Park Manager

Joint Venture Inc. (JVI)

Jack Kim Consultant

Joint Venture Inc. (JVI)

Bob Stewart President - Region A Western Systems Inc.

(WSI)

George Peterson Senior VP

Systems Consulting Group (SCG)

Brian McKenna Vice-President

Systems Consulting Group (SCG)

Andrew Kilpatrick Principal

Systems Consulting Group (SCG)

Ellen Moore Senior Consultant

Systems Consulting Group (SCG)

Scott Adams Senior Consultant

Systems Consulting Group (SCG)

For the exclusive use of Y. Lin, 2019.

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Exhibit 2

ORGANIZATIONAL STRUCTURE — SI PROJECT TEAM

Korean Conglomerate Inc. (KSI) Korea

Western Systems Inc. (WSI) U.S.A.

Joint Venture Inc. (JVI) Korea

Mr. Cho Co-Managing Director

Joint Venture Inc. (JVI)

Robert Brown Co-Managing Director

Joint Venture Inc. (JVI)

Mr. Song Director

Joint Venture Inc. (JVI)

Mr. Park Manager

Joint Venture Inc. (JVI)

Jack Kim Consultant

Joint Venture Inc. (JVI)

Bob Stewart President - Region A Western Systems Inc.

(WSI)

George Peterson Senior VP

Systems Consulting Group (SCG)

Andrew Kilpatrick Principal

Systems Consulting Group (SCG)

Ellen Moore Senior Consultant

Systems Consulting Group (SCG)

Scott Adams Senior Consultant

Systems Consulting Group (SCG)

Korean Consultants (4) Joint Venture Inc.

(JVI)

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Exhibit 3

PROJECT TIME FRAME

Mr. Park, Manager

Joint Venture Inc. (JVI)

Team 1 (SI Project Team)

Team 2

Team 3

Team 4

Team 5

______________________ 7 months _________________________________10 years

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