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        Business As An Innovative Agent Of Change

        Elizabeth Haas Edersheim,Young-Chul Chang 피터드러커 소사이어티 2008 창조와 혁신 Vol.1 No.1

        The article emphasizes business’s role as a change agent for society, building on Peter F. Drucker’s groundwork and illustrating the potential impact through the Yuhan-Kimberly story. Much of Drucker’s thinking centered on the concept that innovation is the “business” of business. To gain the freedom to innovate, we must abandon the pieces of the business that are or soon will be in irreversible decline and the assumptions that constrain the business, while holding onto core values and competencies. As Peter so succinctly commented: “You can’t throw everything out, or you’ll have anarchy. You can’t hold onto everything, or you’ll die.” The corporation that has innovation in its DNA continually searches for opportunities. Drucker has facilitated this search by directing businesses to seek opportunities from seven key sources: the unexpected; industry and market disparities; incongruities; process vulnerabilities demographic changes; perception and priority changes that shift buying habits; and new knowledge. Identifying opportunities and translating them into pragmatic ideas that aim high enough to secure a future for the company requires discipline – and instilling such discipline is a common challenge for many organizations. Again, Drucker has eased this challenge via his time-tested process for identifying, implementing, and managing innovation. And key to that process is engaging the organization’s people in the never-ending activity that is innovation. Dr. Ilhan New established the Yuhan Corporation in 1926 with a fundamental focus on people – Yuhan’s mission was to provide Korean people with opportunities for education and jobs and to solve public health problems. Kimberly-Clark joined forces with Yuhan in 1970 with the joint venture, Yuhan-Kimberly (Y-K), perpetuating this focus on people. When Y-K’s survival was threatened in 1995, then current CEO Kook-hyun Moon asked Drucker-like innovation questions: “what do we need to abandon so our employees can deliver the most value?” Chairman Moon’s answer was to first flatten the organization to remove 3 non-value-adding layers. This more horizontal structure was built on NEWAY (New Excellent Ways At Y-K) – an innovative organizational model that enabled faster decisions, better communications, and new capabilities. Y-K’s people focus includes disciplined leveraging of innovation ideas from people in all corners of the organization and investment in its employees to create important capabilities. It is this history that led Kimberly-Clark’s decision to co-locate its Innovation Center with Yuhan Corporation’s Central Research Complex.

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