CJ NowCJ’s keywords for future growth: C.P.W.S.
CJ (Chairman Lee Jay-Hyun) will achieve future innovative growth by investing 10 trillion won over the next three years across four major growth engines, such as Culture, Platform, Wellness, and Sustainability. CJ will first pursue the development of top talent and innovation in work culture.
CJ Chairman Lee Jay-Hyun announces the 2023 mid-term vision for ‘CJ’s Future and Talent’
CJ Chairman Lee Jay-Hyun announced the group’s mid-term vision focused on C.P.W.S. in the specially made video on November 3rd and explained the direction for the group’s innovative growth to the employees. In this video, employees in the industrial settings related to the direction and need for change and growth, expressing their strong will, to which CJ Chairman Lee responded.
This is the first time since the ‘Declaration of the Second Leap’ in 2010 that CJ Chairman Lee actually explained the business vision to all employees.
CJ Chairman Lee claimed that CJ is now under ‘stagnation in growth,’ saying, “We hesitated in making bold decisions to discover new growth engines and couldn’t prepare for the future properly by failing to establish an organizational culture that nurtures talent and takes on new challenges.”
Reflecting on the poor establishment and implementation of the group’s future visions as well as insufficient improvement of talent and work culture, CJ Chairman Lee expressed concerns that the group will not be able to survive like this in this rapidly changing environment.
Since the ‘independent management’ in 1995, CJ has grown into Korea’s only lifestyle company complete with four major business sectors (Food & Food Service, Bio & Biotechnology, Media & Entertainment, New Retail & Logistics). However, there has been a slowdown in growth over the last 3-4 years due to the territory expansion of domestic and global platform companies as well as the intensifying competition within the existing industries.
CJ Chairman Lee came up with the plan for CJ to take a third leap by concentrating on tangible and intangible competencies within the organization with a focus on four major growth engines and by creating a workplace where top talent would want to work.
“Now, CJ will focus on future innovative growth with invincible competencies such as trend leadership, technology, and marketing, bring revolutionary innovation to the organizational culture for top talent to lead the growth, and take a leap into being a future lifestyle company that designs a new life for the world,” declared CJ Chairman Lee.
He chose ‘future and talent’ as the main keywords of the group’s management.
Concentrating on four major growth engines such as Culture, Platform, Wellness, and Sustainability, investing more than 10 trillion won by 2023
▶ CJ’s four major future growth engines (C.P.W.S) are Culture, Platform, Wellness, and Sustainability.
“We will accelerate global and digital expansion of our current businesses with a focus on Culture and Platform, seek Wellness and Sustainability as the basic spirit and philosophy for a better life of everyone, and aggressively pursue future innovative growth with new businesses based on not only fairness, coexistence, and a ban on gapjil, , but also with a focus on the global trend of ESG,” said CJ Chairman Lee.
▶ Key contents of CJ’s mid-term vision
For Culture, CJ’s goal is to let the whole world enjoy various lifestyle products and services offered by CJ, such as food, music, video content, and beauty. Accordingly, CJ CheilJedang will focus on developing global strategic products, such as mandu, chicken, and K-sauce, with its global Korean food brand Bibigo. CJ ENM Entertainment Division is also about to establish a specialized multi-studio for different genres in addition to Studio Dragon based upon which it will accelerate global market expansion.
For Platform, CJ plans to expand the digital territory by accelerating customer-centered management based on data as well as digital platforms and logistics infrastructure owned by CJ’s affiliates and develop a super platform that will build CJ’s own ecosystem in the long run.
TVING will enhance competitiveness in its original content with partners, such as Naver and JTBC, to surpass 8 million paid subscribers by 2023, maintaining the global craze over K-content by launching its services to the major countries of Asia and the Americas.
CJ Logistics will promote its status as a ‘key partner’ of the Korean e-commerce industry, thereby expanding its fulfillment service based on logistics technology represented by Technology, Engineering, System & Solution (TES) and leading the new last mile delivery (LMD) market.
CJ ENM Commerce Division will evolve into a vertical lifestyle platform that goes beyond home shopping by enhancing its live commerce competency, while CJ Olive Young will establish itself as a specialized global K-beauty platform.
For Wellness, CJ CheilJedang will reinforce its existing business portfolio of health functional foods and expand red bio focused on next-generation medicines, ultimately providing customized total health solutions. The recent acquisition of microbiome company ‘ChunLab’ is also part of this strategy, and the company is also seeking expansion into the business for bio contract development and manufacturing organization (CDMO).
For Sustainability, CJ will nurture sustainable new businesses based on innovative technologies, such as green technology, new materials, and future foods, while also taking preemptive measures to develop future carbon resources.
CJ CheilJedang will complete its manufacturing plant for marine biodegradable plastic (PHA), which the company succeeded in commercializing for the first time in the world, in Indonesia by the end of the year and begin mass production. The company is also making global investments to obtain technologies in meat substitutes and cultured meat for the ‘vegan’ trend.
“The four major growth engines refer to the business direction that reflects the trend as an extension of our corporate values such as ‘health, pleasure, and convenience’,” said an official at CJ. “There will soon be acquisitions and new investments for employees as well as customers and investors to see that the focus is not on declaration but on implementation.”
CJ claims that even though C.P.W.S includes the direction for business development, they are always willing to commercialize other new opportunities in IT and BT.
CJ will invest more than 10 trillion won by 2023 in supporting innovative growth focused on these four major growth engines. A total 4.3 trillion won will be invested for 3 years in brands, future innovative technologies, AI/big data, human resources, and other intangible assets as well as AI-focused digital transformation. This is to keep pace with the trend seeing firms investing now more in intangible assets instead of tangible facilities.
CJ will also reform its business methods by expanding open collaboration with outside companies and organizations.
The group will additionally develop collaboration models that can create synergy, like the strategic business alliance with Naver last year, and actively seek new businesses by making more investments in startups with open innovation and technology.
“Our goal is to concentrate our investments and competencies in the four major future growth engines and generate 70% of the group’s sales growth in these growth engines within 3 years,” said an official at CJ.
Giving an opportunity for self-directed growth to nurture the top talent, establishing a fair evaluation scheme and an unconventional reward system
Securing the top talent and reforming the organizational culture are what CJ Chairman Lee has emphasized the most in this vision.
“Talent is the key to making all of this possible,” said Lee. “We will create a workplace where well-prepared Hagojabi (a person eager to do anything) can grow and receive unprecedented rewards for their excellent performance based on various opportunities and fair competition. We will make CJ a workplace that pulls in the top talent to come, work, and grow together.”
The key to CJ’s reform of the personnel system is to select talent regardless of age, experience, and rank and provide an environment for employees to ‘self-design’ their time and space as well as career path.
CJ’s main affiliates have already partially adopted satellite offices and working from home to create a work environment based on employees’ autonomy. This will be expanded to the entire group. Selective working hours will also be expanded, allowing employees to design their own working hours each day as long as they meet the minimum working hours per day or week considering their job characteristics.
“This is to allow Generation MZ employees that are the leaders of growth to display their capabilities to the fullest by designing their own careers,” said an official at CJ. “We’re going to establish a culture in which employees are given various opportunities and yet are required to take responsibility in the process. We will evaluate the outcomes fairly and offer unconventional rewards for their performance.”
CJ also plans to improve the system that changes the requirements for talent recruitment from seniority to abilities and will.
First there will be ‘job posting’ and ‘project/TF recruitment’ through which employees can apply for various projects within the group regardless of their affiliation or job. There will also be a ‘leader contest’ providing opportunities for talented individuals with will and potential regardless of rank. The rank and promotion system will also be reformed, and the executive ranking system will be simplified.
CJ provides opportunities for employees to try new projects out of their own organization. The group activates the independent Company In Company (CIC) and in-house ventures and rewards employees for successful commercialization by giving stock options.
That day, CJ presented the business slogan with the direction for growth being focused on future and talent: ‘Create the future lifestyle with you, LIVE NEW.’ “Our new aim is to take one step further to make our everyday life healthy and fun, let the whole world live an interesting, beautiful life, and make the Earth sustainable,” said CJ Chairman Lee.
Chairman Lee Jay-Hyun’s speech for the declaration of CJ Group’s mid-term vision
Opportunities for Hagojabi prepared for the future growth of CJ …
My dearest CJ employees,
Thank you all for your hard work and effort that have been put into CJ’s development even in this COVID-19 pandemic.
CJ has been winning the love of our customers and the market’s recognition by presenting a new lifestyle complete with the future growth portfolio of food, bio, culture, logistics, and new retail since 1995, and has continued to lead the history of dynamic growth with aggressive global expansion.
However, in the last 3-4 years, we have been stuck in a tunnel failing to respond to the rapid changes of the world.
We have hesitated in making bold decisions to discover new growth engines and were unable to prepare for the future properly by failing to establish an organizational culture that nurtures talent and takes on new challenges.
This is the management’s mistake, including myself.
I would like to deliver two messages to you today: CJ’s future, and CJ’s talent.
COVID-19 is just a variable, and the world is undergoing a rapid and fundamental change.
Now, we are facing these turbulent times, being unable to predict the direction and speed of change.
Today though, we will perceive this reality and begin a great transformation to prepare for the future.
Now, CJ will focus on future innovative growth with invincible competencies, such as trend leadership, technology, and marketing, bring revolutionary innovation to the organizational culture for the top talent to lead the growth, and take a leap into becoming a future lifestyle company that designs a new life for the world.
We will accelerate the global and digital expansion of our current businesses with a focus on Culture and Platform, seek Wellness and Sustainability as the basic spirit and philosophy of a better life for everyone, and aggressively pursue future innovative growth with new businesses based on not only fairness, coexistence, and a ban on gapjil, but also with a focus on the global trend of ESG.
Each affiliate will strictly implement the choice and concentration strategy and established investment plans, and the group will boldly and actively support invincible competencies, expansion into new territories, and innovative M&As.
The group will also continuously develop major projects in BT and IT as the new growth engines. For this to happen, CJ will invest more than 10 trillion won by 2023.
Innovative growth must also take on a different form.
We must create synergy with open innovation by collaborating boldly with outside organizations, investing in not only tangible assets focused on infrastructures and systems but also intangible assets like brands, future innovative technologies, AI, big data, and especially talent, thereby securing invincible competencies that competitors simply cannot catch up with.
Talents are the key to make all of this possible. What we most desperately need right now is the top talent and an innovative organizational culture.
We will create a workplace in which well-prepared Hagojabi can grow and receive unprecedented rewards for excellent performance based on various opportunities and fair competition.
Anyone can be a leader as long as they have competencies and will, regardless of age, experience, or rank.
We will create a culture where the new generations can come out of their ruts and take on new challenges, using all measures, such as in-house ventures, CIC, spinoff, and IPO. You will also be given the chance to self-design your working time and space freely,
have time to refresh yourselves in your own ways, and even apply for any project or job you want.
You will be given the best rewards for excellent performance based on clear responsibilities and management of the process as well as fair evaluation of the outcomes.
We will make CJ a workplace that pulls in the top talent to come, work, and grow together.
This is my strongest desire.
Dear CJ employees,
The world has already joined our challenges based on ONLYONE.
CJ has penetrated the lives of the world with the power of culture through food, films, and music, and by developing the industrial ecosystem with the power of CJ’s brands beyond K-brands and expanding the venue for the youth to try new things.
Now, our new aim is to take one step further to make our everyday life healthy and fun, let the whole world live an interesting, beautiful life, and make the Earth sustainable.
You are the heroes and heroines that are sure to achieve such success in the global market, and my wish is to develop many more outstanding and talented individuals in the process.
Like our new slogan ‘LIVE NEW,’ let’s build a new future for the world with CJ’s talent.