In an effort to create a world-class corporate culture, Posco continues to implement activities that will help spur innovation in daily business activities.

To ensure the smooth implementation of these activities, Posco established an Innovation Planning Department (IPD) that began operating as of January 1, 2005. This department will be the driving force in making sure that all innovative activities will be successful in all areas of the company. The department will coordinate individual activities from each sector, and ensure that they comply with Posco’s other management strategies, such as Six Sigma and corporate sustainability management (CSM). The department is also charged with promoting and managing innovative activities at Posco’s subsidiaries.

Posco hopes to expand its existing innovation projects. Currently, such projects are quite limited in scope, however, in the future the company wants to enhance these activities so that they are integrated into the general corporate culture for all to follow.

During the management meeting on December 28, Posco’s Chairman & CEO Ku-Taek Lee said, “These days many companies use the term ‘innovation’ with the intent to create large-scale changes, but often do not sustain such activities over the long term. Posco will be different. We will continuously innovate through our Innovation Planning Department on a daily basis for years to come.”

“Six Sigma should guide implementation of new innovative activities. One of the crucial responsibilities of the new department will be to ensure that everyone abides by Six Sigma management standards. The department will control the rate of innovation and manage the changes that result. All employees should participate in order to keep up with the rapidly changing industry,” added Chairman Lee.

Posco is developing its own unique business style that can be accepted by and serve as a model to the global community. The company will focus on efforts to share the company’s management vision, goals, and values with the community. Posco also will improve the Six Sigma methodology and encourage everyone in the industry to participate in Six Sigma activities. Further, it plans to coordinate with other companies on similar projects in an effort to benefit the entire industry.

The new Innovation Planning Department is an integration of several defunct organizations that include the strategy planning function of the Six Sigma Department, the change management function of the PI Department, and the policy planning function of the Corporate Strategic Planning 1 Department. The IPD will be composed of members from the innovation strategy, Six Sigma, change management, and CSM teams.

The IPD is expected to plan pan-Posco management innovation activities regarding major management issues and to establish Six Sigma strategies and systems accordingly. It will also look for ways to spark corporate culture innovation, set up change management indices by class, and establish CSM strategies and principles for risk management. Through these efforts, Posco is ensuring its successful future through constant innovation.