Samsung Electronics, the world's biggest manufacturer of memory chips, saw its profits jump almost 400 per cent in the third quarter this year. Not bad for a company who just a few years ago was looking at a debt ratio of 300 per cent.

Samsung Electronics CEO Yun Jong-yon attributes the turnaround to massive restructuring led by what he calls a "chaos-maker," a person who brings about the needed changes.

Speaking at a Chamber Distinguished Speakers' Series luncheon on October 10, Mr Yun said, "In our reorganisation, we eliminated 119 businesses which were in marginal deficit and non-core. In trimming the workforce and organisation, we cut 28,000 people, representing 34 per cent of the total workforce, over two years," he said.

The company also reduced its inventory and account receivables by 40 per cent, or US$2.9 billion, over two years. This also helped Samsung Electronics become more responsive to IT trends, build an enhanced supply-chain process and lift its brand image.

The recognition of the importance of inventory management even led the company to suspended factory operations of colour televisions for two months to reduce inventory.

"What was needed was a 'chaos maker'," he said. "You need to break down complacency and conventional wisdom, formality and self-centred mindsets. Ultimately, you must develop new values."

One way to do this is to demonstrate that new methods work. "You need to create commitment and support within an organisation by demonstrating a success story in one small area, and then transfer that success model to other areas," he said.

Ultimately, all the people within the organisation will become committed to innovation and work together to accelerate innovation, he added.

But just as importantly as developing a workforce to support top management, is the need for management to provide clear goals and support to staff.

Mr Yun said the lesson about the danger of complacency, which he feels sparked Samsung's meltdown in 1996, has been well learnt.