POSCO opened 2014 as a year of innovation and opportunity with a powerful ceremony.

On January 2^nd, the first working day of the year, POSCO hosted its POSCO Family year-opening ceremony in the Pohang headquarters main conference hall, reflecting on 2013 and announcing the company’s mid- to long-term strategic directions as well as 5 core tasks.

The year’s opening ceremony included four portions, under the concepts of hope, global competitiveness pledge, advancement, and harmony.

400 employees and officials of POSCO, investing companies, external partner companies, and PCP suppliers gathered in the main conference hall at Pohang headquarters and the Gwangyang Innovation Center for the year-opening ceremony and pledged a committed beginning. The ceremony was broadcast live on Television and webcasts.

The hope portion began with an opening video for the year of the horse. The video discussed the meaning of 2014 coming 120 years after the Political Reforms of 1894, emphasizing how the Chosun people’s wisdom and innovation form the roots of the rich and powerful Korea of today. The motivating power to survive in a global management environment focused on a passion for assisting Korea through steel production, POSCO’s founding spirit, and the spirit of innovation that is not satisfied with the successes of today.

In the global competitiveness pledge portion, New Year’s wishes for POSCO Family employees were shown, along with interviews with employees who participated in the POSPIA 3.0, Indonesian integrated steelworks, and FINEX Plant 3 projects that contributed to securing POSCO competitiveness.

The advancement portion aimed at encouraging a strong commitment to forward momentum following the spirit of the blue horse, and began with a big drum performance followed by a reflection on 2013, this year’s management principles, and the 5 core tasks.  POSCO did not rest on its laurels as an ‘overall material and energy company’ last year, but maintained a profitability gap with major competitors despite global economic stagnation and over-supply, and was selected as the world’s most competitive steel company for the fourth consecutive year.  As POSCO does not settle it predicted that 2014 would be a year of low-growth structure just as 2013, setting a mid- to long-term strategy for ‘maximizing profitability’ and ‘strengthening core competitiveness.’ The 5 core tasks selected were: profitability-based project execution, global business risk management, early leading project fostering, the securement of soft competitiveness suited to a creative economic era, attainment of a safe and encouraged POSCO Family.

CEO Chung Joonyang delivered his best wishes to employees on achieving satisfactory management results despite the difficult management environment and noted that the company attained great results as an overall material and energy company through projects such as completion of the first integrated overseas steelworks.  CEO Chung emphasized in particular that all employees should join together with one heart and mind to ensure premium global competitiveness and profitability.

Prior to the event, CEO Chung Joonyang visited Pohang Steelworks Steel Manufacturing Plant 3, Cold-rolled Plant 1, and the STS Annealing Pickling Plant to encourage employees.

 Juseong Kim manha@posco.com

Raising global competitiveness by standardizing work methods

POSCO launched ‘POSPIA 3.0’, POSCO Family’s unique future management system, on January 1^st at POSCO Indonesia’s integrated steelworks.

POSPIA 3.0 is a ‘future integrated management system, globally optimizing 176 systems throughout the company, combining the abilities of Enterprise Resource Planning (ERP) which manages overall production, purchase, and sales data, as well as the Manufacturing Execution System (MES) which manages steel production activities, the Supply Chain Management system (SCM) for sales and production efficiency, and the Smart Workplace (SWP) which supports a working culture of creativity, cooperation, and communication among employees.

Accordingly, by consolidating and standardizing the work method through purchasing, sales, marketing, planning, and finances, POSCO has affirmed differentiated global competiveness.

POSPIA 3.0 successfully underwent the process of design, development, testing, education, and training over two years and two months starting with the Big Picture stage in 2011, where the future blueprint was planned. During this period, 1,800 employees directly participated in the project, while all employees completed training to understand and experience the new work method.

The overall launch of POSPIA 3.0 will cover all company processes including client orders, input, production, shipment, and payment. Accordingly, on January 1^st, the first day of operation, it was critical to convert the pre and post system connection tasks without error or stopping production.

A total of 540 employees including SCO employees from Seoul, Pohang, and Gwangyang as well as the POSCO ICT Pangyo Main Situation Room gave their full efforts around the clock on December 31^st to launch POSPIA 3.0 on the first day of the new year. To be prepared for possible emergencies, production department team leaders of two steelworks cooperated with all employees at the launch, leading to great success.

POSCO plans to expand POSPIA 3.0 application to all POSCO family companies worldwide starting with its overseas steel subsidiaries. Through POSPIA 3.0, the company expects to innovate work method in an efficient manner, moving a step further along the path from strengthening steel core competitiveness to securing global competitive advantages over its competitors.

On August 2, POSCO Family companies’ executives gave a visit to Google Korea to experience the working culture of Google and its advanced working environment. The event was held to build mutual understanding and consensus on smart workplace, prior to the launch of POSCO’s ‘POSPIA 3.0: Smart Workplace,’ which is scheduled to operate from the end of this year until February 2014.

Hwang Sung-hyun , a partner from the HR Division of Google’s headquarter, U.S. gave a presentation on ‘Google’s Working Culture,’ introducing Google’s corporate culture and HR system.

During the presentation, POSCO Family companies’ executives showed a big interests on Google’s “20% System,” which promotes its employees’ creativity by allowing them to spend 20% of their working hours to engage into the areas of their own interests. Google’s evaluation management, recruitment and education program also caught the executives’ attention.

A tour around Google Korea’s office was followed and POSCO Family’s executives were able to closely witness Google’s working culture with casual clothing, differentiated environments depending on tasks’ characteristics and sleek interiors reflecting the free spirit of Google’s employees.