LSIS has conducted a massive reorganization in order to achieve 4.5 trillion won in sales by 2015. LSIS reorganized its existing organizations, composed of five business headquarters and two sectors, into eight sectors to consolidate the existing business' income system and global competitiveness, and to create full scale new business accomplishments beginning this year. 

The new organizations are divided into eight sectors: power equipment business; T&D (transmission & distribution) business; automation business; future/research (CTO) business; China-related business; production/technology; business management (CFO); and management support (CHO). 

"The core of LSIS' reorganization is summarized as EQ-SMART meaning a "SMART" organization based on efficiency (E) and quality (Q).

With a focus on efficiency and quality throughout all processes ranging from purchasing and production to planning and develop-ment, LSIS is committed to operating a SMART organization optimized for "self-determination"(S), "market power" (M),"accomplishment" (A), "renovation" (R) and "task-based" (T). 

LSIS separated the existing power business into power equipment and T&D, and organized the R&D field in each business sector, thus adopting the self-determination structure ranging from product development to production. The same applies to the automation and China-related business sectors.

Through the market power (M) of the power and automation sector, LSIS' flagship business, which has played the role of a cash cow, can be strengthened. In addition, the China-related business sector, which has established a self-determination system via plants in Wuxi, Dalian and Yichang, along with the Shanghai Research Center and Beijing Research Center, plans to accelerate penetration into the Chinese market. 

By newly establishing the future business/research sector supervising the R&D field through combining the long-term growth businesses, such as the smart grid, green car solution and HVDC, which were organized by the existing power and automation business sectors, LSIS plans to create actual results (A). 

In the case of the production/technology and CFO sectors, LSIS plans to carry out renovation (R) in the test field for quality control and reliability enhancement under the objective that the organizations are responsible for all sectors regarding quality, ranging from purchase to the customer management stage. 

To this end, LSIS combined reliability tests by product and high power tests that were carried out by the existing Quality Management Center into the Test Technology Center in the pro-duction/technology sector. LSIS also reformed the purchase and quality management under the CFO's manage-ment. In this manner, LSIS promotes the establishment of R&D and quality control management organizations separately. 

Overall, LSIS grants such functions as R&D, product planning, marketing, and sales to each sector. In addition, LSIS has thoroughly established and completed a task-based (T) structure that separates core projects and businesses for growth in the core markets, including North America, China, and the Middle East. 

An LSIS official said, "The sales of LSIS are expected to grow, but profitability is forecasted to slightly deteriorate due to the overall economic depression, the reduction of investments from the public sector and the surge of raw material prices last year." He added, "However, new businesses, together with our cash cow businesses — power and automation —  are projected to create results in full swing by this year. Thus, we will achieve our targets, 4.5 trillion won in sales and 700 billion won in operating profit by 2015 through the EQ-SMART-based process operation."

Meanwhile, LSIS chalked up 2.07 trillion won in sales in 2011, surpassing the 2 trillion won barrier for the first time in its corporate history. However, the company saw its operating profit decline 26.4 percent to 128.2 billion won.  nw