Samsung Electronics is actively recruiting external talent, and it has been pointed out that internal decision-making structure and organizational culture innovation must accompany this appointment for business performance to bear fruit.
According to industry sources on the 11th, Samsung Electronics has recruited Mauro Porcini, who was the chief design officer at PepsiCo, as the chief design officer (CDO) of the DX institutional sector and president, and has placed Sophia Huang Judias, the former North America representative of Tommy Hilfiger, as the global head vice president of the retail strategy sector. They are expected to lead their respective businesses starting as early as the first half of this year.
◇ Lee Jae-yong said, “Recruit top talent” as he expedited the appointments of individuals including Porcini.
Porcini has been appointed as the first foreign design chief president in Samsung Electronics' history. After starting his career as a product designer at Philips, he served as CDO at 3M and PepsiCo. He is expected to oversee the design strategy for home appliances and TVs at Samsung Electronics. This appointment is noteworthy as he is the first presidential-level external hire recruited after Lee Jae-yong, chairman of Samsung Electronics, mentioned last month that the company should 'nurture and bring in exceptionally talented individuals of any nationality or gender,' adding that 'personnel changes should be made as needed.'
Despite the owner's message and Samsung Electronics' search for a breakthrough through external recruitment, there are concerns that the exclusive organizational culture unique to Samsung may be a hindrance. A senior Samsung official noted, 'Samsung still has a culture centered on public recruitment.'
Samsung Electronics recruited Chris Bangle, known as one of the top three automotive designers in the world, in 2011 but failed to achieve clear results. Bangle was involved in the design of Samsung Electronics' washing machines and other home appliances, but the products he influenced were only sold in limited quantities, primarily in the North American market. He left Samsung Electronics after his three-year contract expired and has recently made a name for himself by leading the design of Xiaomi's electric vehicles, which have gained explosive popularity.
Around the same time, LG Electronics recruited the world-renowned designer Karim Rashid and actively attempted marketing initiatives, including launching a microwave oven designed by Rashid.
Kim Dae-jong, a professor at Sejong University’s Department of Business Administration, noted that 'Samsung’s recruitment of external talent is an attempt to complement branding, design, and marketing capabilities in a technology-centric organization to accelerate the shift toward a consumer experience focus,' while also stating that 'large corporations in Korea still have strong vertical decision-making and closed organizational cultures, making it take time for external talent's ideas to permeate the field. A flexible organizational structure, a culture that allows autonomous experimentation, and open leadership from management are crucial.'
◇ Hyundai Motor Group leads with foreigners from design to CEO.
Hyundai Motor Group is often cited as a representative success story of utilizing foreign talent. In 2006, Chung Eui-sun, chairman of Hyundai Motor Group and the then-president of Kia, personally recruited Peter Schreyer, a designer from Volkswagen Group. In 2016, Luke Donckerwolke joined as Hyundai's chief designer and the head of Genesis design, leading design innovation and elevating the design level of Korean cars.
Additionally, Hyundai Motor Group is analyzed to have solidified its position as a global company by appointing a foreign chief executive officer (CEO). Spanish Jose Munoz, who joined as the global chief operating officer (GCOO) and head of the Americas region in 2019, is currently leading the tariff response to the Trump administration’s second term, which has recently shaken the global industry. An official in the finished vehicle industry explained that 'as conditions for Schreyer and Donckerwolke to establish themselves within Hyundai Motor Group have been created, it has influenced the appointment of foreign CEOs like Munoz.'
Kim Yong-jin, a professor at the Department of Business Administration at Sogang University, stated, 'The reason Hyundai Motor Group could grow into a global company was that Chairman Chung Eui-sun created an environment where foreigners could settle by granting them full authority.' However, he added that 'Samsung Electronics has a strong culture of closure and hierarchy, making it challenging for external talent to demonstrate their capabilities. To transform into a global corporation, top management must innovate the organizational culture.'