14th SKMS Revision Highlights

 

It is a pleasure to see you all. Thanks to your participation, we were able to complete the 14th SKMS revision. Previous SKMS revisions were dictated primarily by discussion among the executive leadership whereas the SK People were allowed to contribute their ideas to this SKMS revision. I would like to take this opportunity to thank the CEOs and other executives who contributed with their ideas in several discussions over the revision, and the SK People who communicated their feedback through various channels and stood by us. I stand here today to wrap up the SKMS revision built on the SK People’s brilliant ideas and inform you of the purpors and key contents of the 14th SKMS revision.

 

 

 

 

The purpose of SKMS Revision

What does SKMS mean to us? It compiles our belief and the work that we have collectively promised to put into action. In a nutshell, SKMS to date is all about “realizing the happiness of stakeholders including SK People by pursuing SUPEX through VWBE.”

 

 

How have we done so far? We believed we would be happier by making more money and focused our energy on it. But, didn’t you feel that what you do at work is not really relevant to your happiness?

 

In addition, didn’t you think that having to pursue the ‘happiness of stakeholders’ meant that we could be happy only when we made others happy first, namely, that we should put our happiness on the backburner?

 

What about VWBE, SK’s happiness implementation methodology? The key to VWBE is voluntary initiative, but, VWBE considered our responsibility and obligation, ‘something we ought to do.’ So, SK wrapped its brain on how to keep SK People VWBE with various attempts to create a conducive environment, yet, such attempts brought about only mixed results.

 

Hence, I felt we needed to change for our own happiness. In search for an answer, I held a hundred rounds of ‘Happy Talk’ throughout 2019 and talked with SK People in person. In so doing, I was able to put together my ideas on what changes we should put into practice.

 

From now on, I would like to show you the four keywords on which our management philosophy, the New SKMS, stands.

 

 

 

The first keyword is “People.”

SK People have joined SK by their own choice, so it is fair to say that each represents SK with a sense of ownership. So, the new SKMS began from the understanding of SK People who consist of SK itself.

 

 

Why are we here together? Because we can create greater values more effectively when we work together rather than alone, namely as an organization, our community must persist with stability and growth. As well, SK People must trust themselves and believe that they can achieve what we desire in our community.

 

What is the shared goal that we want to achieve? You may have a range of ideas, but I think in the end it is “Happiness”.

 

 

That brings us to the second keyword, “Happiness.”

The ultimate goal of corporate management as updated in the 14th SKMS revision to be the ‘sustained happiness of SK People’ indicates that we need to focus on the primary driver that has brought us here together, which is our happiness itself.

 

 

it is an unprecedented for a company to place the happiness of its people upfront as its corporate mission. There is neither a reference case nor established methodology. However, as long as happiness is our goal, we cannot give up easily just because we do not have the required knowledge or there are no precedents. At the same time, we cannot give up making money either just because we do not know enough or expected results are not within our sight. Rather, we tried to fulfill our mission with an organized might and achieved good results. Now, we must not think that happiness is up to each individual, but promote it jointly, leveraging the power of our organization.

 

In the previous Happy Talks, many SK People agreed to such a vision of change, demonstrating their commitment. The 14th SKMS revision was rendered possible only with SK People’s collective commitment. To sustain our happiness, we must not seek only our own happiness. We must count in the happiness of the stakeholders around us. This is where the third keyword becomes relevant.

 

 

The third keyword of SKMS is social value.

 

 

The 14th SKMS revision has defined social value as all value created by the company for stakeholders’ happiness and reaffirmed SK’s commitment to actively creating such value.

 

 

Simply put, even if we personally try to stay in shape by doing regular exercise and keeping a healthy diet, we will not be able to remain healthy irrespective of our will if our surroundings are unclean or diseases such as Covid-19 breaks out as we see it these days. Likewise, our happiness can be sustainable only when the stakeholders around us are happy.

 

Some wondered whether the social values to be created by us would conflict with economic values, but that was not the case. As we expanded the reach of our ultimate goal from ‘money’ which is a small component of happiness to ‘happiness itself,’ we need to outgrow the economic value-centered perspective for relationship with stakeholders and actively pursue ‘happiness’ needed and desired by the stakeholders.

 

 

 

The fourth keyword of SKMS is VWBE.

 

I am going to talk about “VWBE”, SK’s proprietary methodology of linking the previous three keywords. Standing for Voluntarily, Willingly, and Brain Engagement, VWBE is SK’s a proprietary implementation methodology. As “Voluntarily” and “Willingly” indicate, it is founded on the voluntary initiative of SK People. However, our VWBE was not voluntary but something effectively ‘compulsory’ to be done for something else. That was because we thought that the ‘stakeholders’ happiness’ pursued by us was little to do with ‘my own happiness.’

 

 

Yet, our perception of VWBE can change if what we pursue is aligned to ‘our’ happiness.
When the corporate goal is rendered consistent with the goals of our personal life, VWBE becomes something that is done not compulsorily but spontaneously. That is because a human being is willing to get immersed and try his/her best for the sake of one’s own happiness. We get naturally hooked on our work because it is not forced on us but we spontaneously encourage ourselves.

 

We will also create happiness for all SK People rather than our own as individuals. That way, our happiness will be mutually linked and SK People will be invited to work together rather than compete with each other, being more immersed in pursuing happiness.

 

 

As one gets immersed in pursuing happiness, some even equate ‘immersion’ itself with happiness.

 

 

SUPEX is where we seek economic values, social values, and our happiness all as high-level goals, and a SUPEX company can be re-defined as a company that delivers all those three values.

 

 

When we define happiness as the ultimate management goal of corporate management, a virtuous cycle is completed in which are linked with each other in sequence. For the virtuous cycle to keep on rolling, it must be founded on our collective commitment to our shared goal.

 

Requests for putting SKMS into practice
The revision is now complete, but that alone cannot ensure our happiness. For our shared happiness, I would like to make several requests to put SKMS into practice.

 

We need SK People’s commitment. For the happiness virtuous cycle to keep on rolling, it must be founded on the solid commitment of SK People. I would like to emphasize once again the commitment of all SK People who are the owners of our happiness.

 

 

Develop the happiness map in detail and advance the SV account. I invite you to keep exploring what is needed to foster our happiness. You are encouraged to keep updating the happiness map by communicating with other SK People to find out what can ramp up our happiness.

 

We must think about who our stakeholders are, what they really desire, and how we should measure and evaluate value created for them. That is why I have emphasized the needs for creating and maintaining SV accounts and requested you to do so.

 

 

Now, our task has changed. Our way of work must also change as much as our task has changed. This is my last request. Put your time and resources in tasks that create social values and happiness and act on them.

 

 

 

SK affiliates will incorporate the 14th SKMS revision highlights in their articles of incorporation. That will showcase SK’s commitment to happiness management and demonstrate and promise our shared will to external audiences.

 

As I have talked with SK People many times to win their commitment, I will show our commitment and determination to relevant stakeholders and build a relationship of trust and support with them.

 

Dear SK People, It is now the beginning. Let’s step forward into the world of happiness, using our new SKMS as compass. Thank you.